Brexit: Trick or Treat?

The UK leaving the EU will present businesses with a number of legal implications. BLM's head of commercial law, Jonathan Askin, provides an overview of what your organisation needs to consider

by Management Today Staff
Last Updated: 28 Jan 2020

The 31 October 2019 Brexit deadline is nearly upon us and, as befitting of Halloween season, many are wondering whether it will be a time of tricks or treats. With the UK’s exit from the EU still shrouded in uncertainty, businesses still have little clarity on how to prepare for the future.

The UK Parliament has largely been celebrating as they pushed through a domestic (UK-only) law requiring the Prime Minister to request the EU to extend the UK’s membership of the EU until 31 January 2020. Yet, a key point is largely going missed – the UK’s EU membership extension cannot be decided by domestic law – it will only be decided by EU law (and the relevant treaties). 

Register to attend our Brexit brunch

This is because the UK has been a member of the EU for many years and the agreement for the UK to initially join and remain in the EU is recorded in (and the terms set out in) the EU treaties.

Article 50 of the Treaty on the European Union (TEU) sets out the process for a member state to leave the EU. As we all know too well, that process was triggered some time ago by the UK.

Article 50(3) of the TEU is the crucial provision in relation to the attempt to compel the Prime Minister to seek an extension. 

The article states: "The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification referred to in Paragraph 2, unless the European Council, in agreement with the Member State concerned, unanimously decides to extend this period."

Whilst the European Council will meet on 17 – 18 October 2019, such unanimous approval to a further extension for the UK until 31st January 2020 is very much up in the air at the moment. Many EU members have made it clear there will be no further negotiations and the horror show of the prorogation has taken up much time that the Prime Minister could have spent negotiating a deal or extension with the EU members ahead of the European Council meeting.

There is still no certainty on if, when, or how the UK will leave the EU and so all businesses must have, or be forming, strategic plans and taking action to cope with a hard Brexit taking place on 31 October 2019.

BLM’s commercial legal team has been assisting businesses of all sizes to understand the risks and opportunities that a hard Brexit will create, as well as advising on strategies that need to be put in place.

Here is a short summary of actions businesses can take to prepare for a potential hard Brexit:

The Brexit Audit

Firstly businesses should conduct a 'Brexit Audit' and consider if:

The Plan

Some areas that businesses may need to incorporate into the strategic plan include:

While disruption is inevitable if a hard Brexit occurs on 31 October 2019, businesses can ensure continuity, flexibility and resilience by having a strategic plan in place that can be implemented as the need arises.

Find out more at our Brexit Brunch on 6 November 2019

No one knows Brexit better. Or what this means to you. At our Brexit Brunch you can gain significant insight and hear opinions from leading experts at the heart of the political, legal, economic and business community. 

In partnership with Management Today, BLM’s Head of Commercial Law Jonathan Askin, and our guest speaker, MP Ed Vaizey will be sharing their thoughts on all things Brexit.

BLM’s Brexit Brunch will take place at The Shard, but there are only 20 places available. Register your interest in the event here.

Image credit: Luis Diaz Devesa/Getty Images 

Find this article useful?

Get more great articles like this in your inbox every lunchtime

How I pivoted to a direct-to-consumer model

As health consciousness increased because of Covid-19, so did the demand for kombucha. But with...

Recruitment hacks: How to find a diamond in the rough

Management Today’s panel of leaders share their tips for finding non-obvious talent.

How I negotiated a senior job share

“Job sharing saved my career because I would have otherwise given it up out of...

Howard Davies: "Reopening will be rather like starting again"

NatWest Group's chairman ponders post-Brexit trade, business support and the perfect interlude to a Zoom...

My boss told me to 'suck up the stress' - and I listened ...

The leaders that made me: Daryl Woodhouse’s workaholic tendencies eventually caught up with him.