Payroll... Brexit... Payxit
It’s business as usual for payroll despite the uncertainty caused by the UK’s decision to leave the European Union. Although the Brexit vote is bound to result in changes affecting the payroll profession, the CIPP points out that it is impossible to predict what these changes will be or what impact they will have. The payroll sector is continually changing legislation and this will continue over the coming years and months, irrespective of our status within Europe.
Employment regulations are enshrined in UK legislation
An often quoted example is that the EU was responsible for the introduction of the right to paid holiday leave, which is of course correct. However, EU legislation grants workers 20 days paid holiday whereas UK workers have a higher entitlement of 28 days as a result of UK regulations. Not everything will change following our exit from the EU and the CIPP will continue to monitor all legislation and regulation changes arising in the future, regardless of whether these are a result of European or UK legislation, and will ensure that payroll practitioners are always aware of their responsibilities and obligations and how these should be met.
Uncertainty in the marketplace
Uncertainty is a constant backdrop to the current climate, as both business leaders and politicians scramble to come up with post Brexit plans. While the Bank of England has a plan to keep us solvent as the pound continues to fall and trust in economies begins to waver, so does trust in enterprise. While low interest rates allow for cheaper borrowing, a weak currency will hit the bottom lines of businesses and discourage external investment.
Over the next two years, as we commit to leaving the EU, changes will be made to employment regulations. This may impact the availability of highly skilled labour as we leave an open-bordered employment market. Many small businesses in the UK hire workers from the EU, whose futures are currently uncertain. If there are higher restrictions on EU employees working for UK companies, new businesses may struggle to find the expertise they need in order to thrive
Whatever happens there continues to be a prolonged period of uncertainty, both politically and economically. The two years it will take to disentangle ourselves from Europe will be difficult. Payroll teams should prepare themselves for that now, ensuring tight systems and procedures are in place, and payroll is legislatively compliant.
Post Brexit Hiring
Positively, recruitment in the payroll & benefits sector seems to be very buoyant at the moment and we are seeing an increase in vacancies compared to this time last year, in particular in the Financial & Professional services sectors.