EWCs: EAT decides Irish law applies to HSBC EWC

UK’s Employment Appeals Tribunal has ruled that British bank, HSBC, correctly appointed a “representative agent” in Ireland in anticipation of Brexit and so no longer has any obligations in this regard under UK law

Why it matters: This ruling is significant for businesses that had European Works Councils (EWCs) under UK law before Brexit and relocated them to Ireland. The decision sets a precedent and clarifies the obligations of UK businesses operating in the EU/EEA.

The big picture: The EAT's decision is positive news for undertakings that relocated their EWCs due to Brexit. However, the fate of the regulation that affects only three businesses, including easyJet, is uncertain under the new Labour government.

The bottom line: HSBC's successful exemption from Brexit obligations provides a useful precedent for other UK businesses. The ruling offers clarity amidst ongoing legal challenges and shows a potential way forward for businesses with similar situations.

“The UK and EWCs” will be one of the topics explored in our October Sitges program. Email Tom Hayes for more details.

ADDITIONAL INFORMATION:

David Hopper of Lewis Silkin LLP comments on EAT ruling