Looser Employment Regs, Fewer Workers On Tap Post-Brexit
The U.K.'s decision Friday to leave the European Union could lead to short-term uncertainty and long-term turmoil for employers, experts say, predicting that unpopular employment regulations will be scrapped by reformist lawmakers while new immigration restrictions will dilute the pool of available workers from EU member states.
The shock waves from U.K. voters' decision to exit the EU, known as Brexit, were felt almost immediately, with stock markets worldwide plunging and Prime Minister David Cameron announcing that he will step down by October.
Charles Wynn-Evans, leader of Dechert LLP's employment practice in London, said that an important distinction needs to be made between employment law, where Brexit's effects won't likely be felt right away, and immigration law, where the impact may be more immediate.
"The direct impact will be economic uncertainty," Wynn-Evans said. "Employers have been more worried about the uncertainty in hiring than about the underlying employment regime."
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