The UK voted to leave the EU 51.9% to 48.1%. Following the results, Prime Minister David Cameron announced that he would step down by October and the market reacted as the pound fell to its lowest level against the dollar since 1985.

For many small businesses, dissatisfaction with the EU has centered on the amount of rules, restrictions and employee rights that have been introduced, as a result of European legislation, for example regulations on working hours, holiday pay and agency workers’ rights.

Fiona Coombe, Director of Legal and Regulatory Research at Staffing Industry Analysts says: “It is highly unlikely that anything will happen in the short term to reverse any of these laws, until the UK’s membership of the EU is formally terminated. In any event the terms of any future trading partnership with the EU, not to mention domestic opposition to the watering down of workers’ rights, may mean that we see very little change to our employment laws”. For more on its effect on the contingent workforce, click here.  

The Recruitment and Employment Confederation (REC) and APSCo (Association of Professional Staffing Companies) have responded to today’s announcement that the UK has voted to leave the European Union. Samantha Hurley, Operations Director at the Association of Professional Staffing Companies (APSCo), commented.

“At this early stage, there is little detail on how Brexit will affect the regulation of the professional recruitment sector. However, this result brings the possibility that the Agency Workers regulations (AWR), and other inappropriate EU-derived legislation, could, at some stage, be reformed.”
 
 Adecco, the largest Staffing company globally (according to Staffing Industry Anaysts 2015 - Global 100) stated “We appreciate that the outcome of today’s vote may cause much uncertainty for both you and your business. As a Group we conducted a great deal of research into every possible scenario of the EU Referendum. UK laws will not automatically change because of Brexit. Many EU-originated laws have been implemented in the UK via Acts of Parliament, which will remain in force until UK governments decided to amend or repeal them. There are some legislative changes that are perhaps more likely than others; the Agency Workers Regulations (“AWR”) and the “TUPE” regulations are potential contenders for reform. Repealing EU nationals’ rights of free movement to the UK could also result in practical difficulties for businesses.”

"Openness is key for attractiveness & competitiveness of a country," Alain DeHaze, CEO of Adecco Group, said. " The UK will need to make sure its Labour Market remains competitive & open."

 Recruitment & Employment Confederation Chief Executive Kevin Green said. “Our data has shown a slowdown in hiring as we approached the Referendum. We expect to see this period of uncertainty continue.

Oliver Donoghue, Managing Director of Swiss-headquartered NonStop Recruitment, also commented on the Brexit. “At this early stage there is little indication how freedom of movement laws, and other regulations, will be impacted so it would be remiss to suggest how the recruitment sector will be impacted.”

Independent law firm, Mishcon De Reya stated the impact of Brexit “will be dependent on the negotiations that follow and, importantly, there will not be an immediate change.”

Doug Monro, Co-Founder of Adzuna, said "We will continue to drive growth and trade with the EU and other countries.  No one in Brussels is arguing that Britain will have to leave that common market.  Yes, jobs are ‘dependent on our trade with the EU’ – but they aren’t dependent on our membership of the EU.  We don’t need a political union with India or China in order to do business with those countries, for instance."