The issue of immigration

THE current downturn in the North Sea Oil & Gas industry is difficult enough, with low oil prices, low investment and extensive job losses.

A Brexit vote in the EU Referendum would cause further upheaval, and whether you cheer or mourn the passing of the union, one certain outcome is that a Brexit vote would cause a further, protracted period of uncertainty, not least in the context of workforce issues.

The issue of immigration is central in the national referendum campaign, yet businesses have been slow to assess the potential impact of Brexit on their workforces.

The oil & gas industry relies on the global mobility of its workforce.

As part of the EU, UK-based companies have the ability to look to other European countries for personnel, in the knowledge that those workers can work freely in the UK without restriction or administrative charge.

The Leave campaign suggests that the free movement of European workers would be severely curtailed, although there is little detail as to what system would replace the existing arrangement.

The current approach in respect of non-EEA nationals is to limit immigration to skilled workers, or those in shortage occupations, using a points-based system.

If that were to be mirrored in future for EU nationals, the administrative and compliance burdens on businesses would increase, as would the cost of recruitment from overseas.

There is also a lack of clarity about what would happen to those EU workers who are already in the UK and working lawfully.

Our Immigration team is dealing with growing numbers of enquiries from companies wanting to encourage their EU workers to apply for permanent residency, with a view to safeguarding their status in the UK.

But whilst immigration may grab the headlines, it's also important to recognise the massive impact that the EU has on the employment laws which govern UK workplaces.

Equality laws, paid holidays and working time regulations are all derived from European legislation and are affected by decisions of the European Court of Justice, as are the TUPE Regulations.

TUPE is likely to have greater relevance in the new post-downturn oil & gas industry, as this period of volatility leads to consolidation of businesses, through merger or acquisition, and to consideration of alternative business models, as leaner companies seek to achieve efficiencies through outsourcing and increased use of temporary workers.

For those involved in workforce issues, transfers of employees are tricky, from the perspective both of the outgoing and the new employer.

In contracting situations, the commercial allocation, between the client and the contractor, of employee risk and costs is a key element in pricing discussions.

In mergers and acquisitions, it's vital to understand not only the extent of the workforce which you will inherit under TUPE, but also what changes you can lawfully make to the make-up or terms of that inherited workforce.

That task is difficult enough in the current environment, with a relatively stable underlying legal position.

If, following Brexit, Government is no longer required to observe the supremacy of European Legislation and Courts, employers may have to re-examine, again, a wide range of accepted norms.

Euan is a partner in the employment team at Pinsent Masons and has been advising clients on employment law across the UK for over 15 years.

He is speaking at the annual Employment Law Conference in Aberdeen in November, on TUPE regulations, the common issues and what to do about them.

Scotland's leading employment law advisers Burness Paull LLP, Clyde & Co (Scotland) LLP and Pinsent Masons LLP pool their resources to deliver this year's essential event for busy HR professionals.

There is an early bird booking rate, which is valid until the end of June