We previously reported on the Retained EU Law (Revocation and Reform) Bill (the “Bill”) and the uncertainty it brought for UK employers. Some recent developments from the UK government have given further clarity on what reforms are envisaged for UK employment law post-Brexit.

On May 10, 2023, the UK government:

• announced that the sunset provisions as drafted in the Bill will be abandoned (instead certain listed regulations will be revoked); and

• published a policy paper on Smarter regulation to grow the economy (the “Policy Paper”) setting out in brief some proposals to reform employment law, including:
  • reforms to holiday pay, the Working Time Regulations (WTR) and the Transfer of Undertakings (Protection of Employment) Regulations (TUPE); and
  • limiting the duration of post-termination non-competes to three months.

The UK government then published a consultation on “Retained EU Employment Law” (the “Consultation”) providing further detail on these proposals. The Consultation does not include the plans in respect of the non-competes, which are instead covered by a recent response to a previous consultation on non-compete clauses.

In this article, we explain these latest developments and what impacts they might have for UK employers.*

Detail

It was originally proposed that all retained EU laws (approximately 4,000 identified at the time) would be revoked at the end of 2023, unless restated or replaced, as part of a controversial “sunset clause” in the Bill. Since...

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