Workers’ rights: Government publishes bill which may result in overhaul of workers’ rights in the UK

Published 14 October 2022

In September, the government published the Retained EU Law (Revocation and Reform) Bill which could result in a radical overhaul of workers’ rights in the UK in 2023.

THE FACTS

When the UK was a member of the European Union, it was required to implement various EU directives into UK legislation by Acts of Parliament.  Additionally, some EU law is directly applicable in the UK without the need for additional UK legislation.  Decisions of the Court of Justice for the European Union have also been binding on the UK.   A significant proportion of UK employment law is therefore underpinned by EU law.

Since Brexit, there has been a body of EU law which has been retained in UK law – known as “Retained EU Law”.  However, the UK has the right to repeal Retained EU Law (although this might result in the EU imposing “rebalancing measures” such as tariffs). 

The government is now revisiting Retained EU Law to decide what should be retained and what should be repealed.  In September, it published the Retained EU Law (Revocation and Reform) Bill.  In summary, the proposed Bill provides for the automatic repeal of (bar some exceptions) all Retained EU Law contained in statutory instruments and of all retained directly applicable EU law on 31 December 2023 unless the law is expressly preserved or extended to 2026.  Any Retained EU Law which is kept will be “assimilated” into UK law.   There are also provisions to limit or remove the effect of EU case law in UK courts and tribunals. 

Retained EU Law includes some key workers’ rights, including in relation to:

• working time and paid holiday rights
• TUPE
• fixed term employees
• agency workers
• posted workers
• information and consultation.

If the legislation is passed in its current form, some of these workers’ rights will automatically disappear from UK legislation at the end of 2023. 

WHAT DOES THIS MEAN FOR EMPLOYERS?

This Bill potentially has huge ramifications for workers and employers.  We do not know which workers’ rights the government is intending to keep.  Radical change to many of the above rights is likely to be very unpopular with the workforce and (in reality) not always helpful to employers. 

At the least, the Bill heralds a period of uncertainty for employers, unions and workers in terms of employment law.