Government Introduces Bill to Repeal Retained EU Law – Implications for UK Employment Law

Home » Government Introduces Bill to Repeal Retained EU Law – Implications for UK Employment Law

By Rachel Davis

Principal Associate

T: 01279 712582
E: rd@nockolds.co.uk

Posted on 23rd September 2022

On 22 September 2022, the government published the Retained EU Law (Revocation and Reform) Bill as part of its commitment to remove the supremacy of EU retained law over UK laws to ensure UK laws can take priority.

The Bill will automatically repeal any retained EU law so that it expires on 31 December 2023 (this date can be extended until 31 December 2026), unless specific legislation is introduced to retain it. 

The proposals are likely to have significant implications for UK employment law and workers’ rights in the following areas:

  • Discrimination Law – the government may consider introducing a cap/upper limit in relation to financial compensation for discrimination claims.
  • Agency Workers – The Agency Worker Regulations provide employment rights to agency workers – the rules are complex and there’s a possibility the Regulations may be repealed.
  • Working Time Regulations – the Working Time Directive caps working hours at 48 hours per week but UK employees are currently allowed to opt out of the 48 hour limit.
  • Holiday Pay – clarification may be given in relation to the calculation of holiday pay, for example, whether this should continue to include commission and overtime or be calculated in relation to basic pay only.
  • TUPE (Transfer of Undertakings (Protection of Employment) Regulations) 2006 – employees are currently protected when the business they work for is sold or when there is a service provision change.

It is difficult to know at this stage what laws the government will choose to preserve and what employment rights it will allow to expire quietly at the end of next year.  Employers can begin to take proactive steps to prepare and protect their business such as consulting with employees and addressing any concerns they may have and undertaking a review of employment contracts in order to ensure they are legally compliant.

If you have any queries relating to the Retained EU Law Bill please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form to discuss how we might be able to help.