The UK has voted to leave the European Union (EU), with potentially far reaching consequences for employers and employees.
With a reported 71.8% turn out, 52% of voters elected to leave the EU in the referendum on 23 June 2016.
To begin the withdrawal process, the government will have to trigger Article 50. Once triggered, the UK will have a period of two years to negotiate its exit.
Following the outcome of the vote, David Cameron has announced that he will step down as prime minister by October 2016.
The referendum result is expected to affect workplace benefits such as pensions and share schemes, and raises questions around certain areas of employment law.
Peter Cheese, chief executive at the Chartered Institute of Personnel and Development (CIPD), said: “The impact of a ‘leave’ vote is much bigger than simply changing the political landscape of the UK. It stands to have a significant impact on the world of work and future planning within organisations.
“We need a broad and thorough consultation between government, organisations and employees across all sectors and representative bodies. The CIPD will play its part in these necessary consultations drawing on our strong base of evidence and experience of the world of work. It’s important that the government takes the time to really understand the impact of any proposed changes and works with businesses to minimise risk to individuals, organisations and the economy.”
Ruth Christy, an employment specialist at Blake Morgan, said: “In reality, employment law was unlikely to see too many dramatic changes from a Brexit. Despite the claims that businesses are stifled by EU labour laws, the fact is that many employment law rights either originated in the UK or have become deeply embedded in UK law as the UK’s attitudes to social issues have evolved. A move to scale back all but the most minor employment law rights would, in all likelihood, be politically unpopular.”
Steven Cameron, pensions director at Aegon UK, said: “Our key message to pension savers is don’t panic. If you have a defined contribution or personal pension, it’s value will be affected by stock market movements and if you are thinking of taking money out in the immediate future, we recommend you first seek advice.”
Gareth Tancred, chief executive officer at the Pensions Management Institute, said: “Pension schemes are long-term arrangements and should therefore maintain that long-term focus, resisting any pressure to react to short-term events where the implications are unclear.”