On June 23, 2016, the people of the United Kingdom—more
precisely, the island of Great Britain (comprising England, Wales,
and Scotland) and Northern Ireland—voted, pursuant to a
referendum called "Brexit," to leave the European Union
(EU).
The UK is a Member State of the EU, and so is subject to EU law,
in addition to UK law that does not conflict with that of the EU.
Thus, an employer with workers anywhere in the UK currently must
comply with EU laws, including EU Directives and European Court of
Justice case law, as they have been specifically implemented in the
legal system of each EU Member State.
What does Brexit mean for U.S.-based companies employing people
in the UK, or with UK or European expansion plans? No specific
legal changes will occur for some time. Following the Brexit vote,
there will be a period of time before the treaty clause to leave
the EU is legally triggered, which will then start a two-year
period of notice-running.