Using a specialist contingent workforce like Flexible Legal Resources can help businesses work through their Brexit related regulatory challenges.
November 17, 2017
As we are all too aware the people of Britain have voted to leave the European Union. No member state has ever left the EU before and as such the process for withdrawal remains a great unknown. What we do know however, is that achieving a successful 'Brexit' will involve extracting the United Kingdom from a complex web of financial, political, legal, regulatory and commercial relationships and obligations.
Against this backdrop businesses will have to review their contractual, regulatory and compliance obligations in light of various post-Brexit scenarios.
Businesses will need to consider (amongst other factors) the following:
- Contracts: Brexit may act as a trigger to terminate certain agreements. What is the effect of Brexit on contracts which expressly refer to existing EU law and regulation? Are existing jurisdiction and dispute clauses still appropriate in the post-Brexit world?
- Financial Services: Businesses operating in the financial services sector need to consider the potential loss of valuable passporting rights post-Brexit. Does it makes sense to establish operations in other EU member states pre-Brexit to preserve such rights?
- Deregulation: Brexit potentially means an opportunity for the UK to deregulate in certain areas (e.g. Financial services). Whilst this may present an opportunity for businesses those businesses will need to ensure their governance and operations are fit for the new regulatory environment.
- Employees: Brexit has potentially serious implications for non-UK nationals working within businesses. Companies will need a strategy to cope with potential loss of rights for certain members of their workforce to work in the UK post-Brexit.
The above considerations are just a few of the key areas businesses will need to consider in order to be ready for the post-Brexit environment. The bulk of responsibility for such reviews will often fall on in-house legal teams. This will create a spike in work loads for these legal teams (potentially over prolonged period whilst Brexit plays out). Businesses will need more resource to cope with these spikes. Solutions such as Flexible Legal Resources are providing businesses with this additional resource on a temporary basis in order to allow legal teams to deliver on time and within budget.