A Month In UK Employment Law

The UK votes to leave the EU

We could not write a roundup of news stories from the UK without referencing the UK's vote to leave the EU. The so-called "Brexit" has created uncertainty and speculation as to the implications of leaving the EU and what happens next. In relation to employment law, although exiting the EU will have implications for employment law, we consider that much that is in place will remain, not just in the short-term but in the medium and long-term too.

We have outlined the potential impact of Brexit on UK employment law in our Client Alert, Brexit: The Consequences for UK Employment Law. We will continue to provide updates on the actual impact of Brexit (rather than mere speculation) as it relates to employment and data protection law in the forthcoming months.

Guidance on the General Data Protection Regulation issued following Brexit

On 25 May 2018 the General Data Protection Regulation ("GDPR") is due to come into force. This is EU legislation concerning data protection rights, and would replace the current Data Protection Act 1998. Given the vote to leave the EU, there is now uncertainty as to whether this legislation will be implemented in the UK. However, as indicated by the Information Commissioner's Office ("ICO") and the UK's Data Protection Minister, irrespective of whether the legislation is implemented in the UK, the GDPR will be relevant for UK businesses. This is because of both its extra-territorial impact and its applicability to overseas operations.

Moreover, if the UK remains within the single market, then it is likely the GDPR will apply fully in the UK in any event. In addition, even if the UK leaves the single market, any country that wants to share data with EU member states has to provide sufficient protection so it is very likely that the UK data protection laws will need to be updated to ensure that there is an adequate level of data protection.

The ICO therefore recommends that organisations continue to make preparations for the introduction of the GDPR.

BIS call for evidence about restrictive covenants and their impact on entrepreneurship and innovations

The Department for Business, Innovation & Skills ("BIS") called for evidence on non-compete clauses. One of BIS' general objectives is to ensure that the UK has a competitive, flexible and effective labour market to encourage business success and growth. It therefore wants to explore whether such clauses "stifle entrepreneurship and innovations". The areas that the government is looking at include: (i) the prevalence of non-compete clauses in the UK; (ii) whether businesses use non-compete clauses; (iii) whether the clauses have prevented workers from moving from one job to another or starting their own business; (iv) whether the clauses are transparent; and (v) whether legislation to restrict the use of non-compete clauses would affect business or have unintended consequences.

The call for evidence closed on the 19th of July 2016. Given the current political changes in...