>> As Britain prepares to leave the European Union, financial firms who might need to relocate staff if Britain loses access to the single market, face a costly choice. Either offer employees who might need to move expensive relocation packages or expensive redundancy packages or expose themselves to costly litigation.
I'm Anjuli Davies, Reuters Investment Banking Correspondent, reporting from the heart of the city of London. There are many different estimates on the impact Brexit could have on the financial industry. A report last week by an industry group said that in a worst case scenario where EU financial firms lose access to the single market completely, up to 75,000 jobs could be at risk.
Banks basically face a conundrum. Do they attempt to relocate large chunks of their business abroad, and take their staff with them, knowing that these staff may not want to move. Either for family reasons, perhaps they don't know the language in say France or Germany, which is one mooted option.
Or do they relocate and find staff on the ground. The problem is that London is a hub for talent in the banking industry and the danger is that they might not find the qualified staff in any new location, be it Frankfurt, Dublin, or Paris. Lawyers we have spoken to have said that under British law it's very hard to enforce an employee to relocate to another country as this will not be deemed as reasonable.
In this case, employees might have grounds to sue their employee for unfair dismissal and this could cost the bank thousands of pounds. In Britain, the amount of compensation of unfair dismissal claims is capped at 79,000 pounds. Therefore, it might be in the interests of an employee to offer generous redundancy packages instead.