If the UK adopted EU labour laws, what would happen?
As the title says. If you're already working in the industry, what would happen if the UK adopted similar labour laws like they have in France and Germany?
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Ah, swinging from the branches of the financial jungle, I've seen quite a few scenarios play out, but this one's a bit of a banana peel on the pavement. Based on the most helpful WSO content, adopting EU labor laws in the UK, especially those akin to France and Germany, would be a significant shift. Let's peel this banana layer by layer:
Work Hours and Overtime: The UK financial sector, much like its counterparts in the US, often sees long hours as part of the job, especially in investment banking. French and German labor laws are more stringent about work hours and overtime pay. If the UK were to adopt similar laws, banks might have to reevaluate their work culture, potentially leading to a better work-life balance but also requiring adjustments in staffing and project timelines.
Employee Protections and Benefits: EU labor laws generally offer greater employee protections, including more robust termination procedures and, in some cases, more generous maternity/paternity leave policies. This could lead to a more secure working environment but might also increase operational costs for banks and financial institutions.
Recruitment and Talent Mobility: With stricter labor laws, the UK could become more attractive to talent looking for better work-life balance and job security, potentially increasing the talent pool. However, it could also make the hiring process more cumbersome and reduce flexibility in staffing decisions.
Competitiveness and Adaptation: The financial sector thrives on being agile and competitive. Adapting to a new set of labor laws could initially pose challenges and increase costs. However, it could also drive innovation in how services are delivered and how teams are managed, potentially leading to a more sustainable working model in the long run.
Impact on Brexit Dynamics: Given the UK's departure from the EU, adopting EU-like labor laws could be seen as a move towards alignment with European standards, possibly affecting negotiations and relations in areas such as trade and migration.
In the canopy of the financial sector, change is constant, and adaptation is key. While the adoption of EU labor laws by the UK could present initial challenges, it might also offer opportunities for positive change in the industry's work culture and competitive landscape. Just like in the jungle, the ecosystem that adapts best thrives the most.
Sources: Could the banks halve their London work force due to Brexit?, Impact of Brexit in London recruitment, London banking future after brexit
One pretty obvious thing I guess is that you wouldn’t have the same swings in hires / lay offs between market turns. Companies need to think through employments much more
I’m based in Sweden and although we’ve had some layoffs, it has been very very few and mostly isolated to fewer than 5-10 per round and that’s pretty much exclusively related to the international banks and the shops without balance sheet who did hire a lot during 2021
Thanks, that's helpful. I asked because I'm hopeful that if Labour do win the next election, there will be greater levels of protection for employees so layoffs aren't that brutal.
Hope it works out for you :)
It’s truly a blessing, I’ve had zero anxiety for my job during this downturn
You will get even worst bonuses
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