The so-called ‘sunset’ clause in the Retained EU Law (Revocation and Reform) Bill was designed to automatically repeal any and all EU laws in force in the UK following 31 December 2023, unless Parliament enacted new laws to retain them. However, the Government has today announced its decision to abandon the sunset clause and entirely reverse its position. This means EU law will now remain binding in the UK unless it is expressly repealed by Parliament.

At the same time the Government has provided some guidance on changes to employment law that we can expect to see following 31 December 2023.

Working Time Regulations

The Government has announced its intention to merge the rules around normal and additional leave.

It also intends to change the law to allow for rolled-up holiday pay. This would be a significant change - it is currently unlawful because it means a worker does not receive holiday pay at the time their holiday is actually taken.

These changes could see the calculation of holiday pay revert back to the old method using 12.07%, instead of identifying the worker’s average pay over the previous 52 weeks.

The proposed changes to the Working Time Regulations will also see the requirement for record-keeping for working hours being removed.

TUPE

Currently there is no requirement for businesses to hold TUPE consultations where they employ fewer than 10 employees. The Government has announced its intention to extend this exemption to slightly bigger business which are only transferring part of their workforce. Businesses which employ fewer than 50 employees and are transferring fewer than 10 employees will no longer be required to consult with representatives.