Retained EU Law (Revocation and Reform) Bill

Debate between Lord Fox and Lord Hamilton of Epsom

Consideration of Commons amendments
Tuesday 20th June 2023 Lords Chamber

[Lord Hamilton of Epsom (Con)]

My Lords, I totally agree with the sentiments of the noble Baroness, Lady Meacher, my noble friend Lady Altmann, and the noble and learned Baroness, Lady Butler-Sloss. However, at the end of the day, the House of Commons is the elected House, and it has the right, as the elected House, to be wrong. I am afraid we have to accept that.

If we go on throwing this back, saying it should think again—and the House of Commons thinks again and comes up with yet another quite substantial majority in favour of the status quo—all we are doing is antagonising the other place unnecessarily. I cannot understand why the other place is giving away the powers that it is—in the way that it seems happy to let the Executive take over everything—but that is what it has decided to do. It is the elected House and we should live with it.

[Lord Fox (LD)]

My Lords, it is an honour to follow so many wise speeches. I am not going to attempt to lengthen this debate or trump that wisdom. In the various iterations of this discussion, we have benefited from having either the noble and learned Lord, Lord Hope, or the noble Lord, Lord Anderson; today, we have both of them in their places. Although I associate myself with my noble friend Lady Parminter’s comments regarding the amendment in the name of the noble Lord, Lord Krebs, I will speak to the amendment in the name of the noble and learned Lord, Lord Hope.

I want to make just two points. First, the objection in the Commons largely and often dwelt on the unprecedented nature of the amendment that was being brought to them by your Lordships last time. In this case, the noble and learned Lord, Lord Hope, has dealt with that issue. This is not an unprecedented situation. It speaks a little to the point made by the noble Lord, Lord Hamilton: it is not that we are bringing back the same amendment, rewritten in different ways. Your Lordships are being asked to re-present a different proposition to the one that was presented last time. The Leader of the House can shake his head but, if he reads the amendments, he will see that they are fundamentally different; I am sure that he knows that in his heart. We are asking your Lordships not to be stubborn, in the words of William Cash, but to offer the Commons a different alternative. Stubbornness is doing the same thing over and over again. This is not the same thing; it is markedly different.

The other point that I want to address, which no one else has addressed, is the one made by the Minister about how much time this would take. I accept that it may take time, but we have to look at what we are doing. First, we are doing important things that Parliament should retain an ambit over. Secondly, the things that we are dealing with are things that we have lived with for many years—indeed, decades. This is not a burning platform; it is stuff that already exists. We are co-existing with it. It is not something that has a blue light on and must be rushed down the road as fast as possible. The argument about time does not count, in my view.

It is clear from what I and my colleagues have said that we support this amendment and will certainly vote for it when the noble and learned Lord, Lord Hope, presses it.

Retained EU Law (Revocation and Reform) Bill

Debate between Lord Fox and Lord Hamilton of Epsom

Committee stage
Thursday 23rd February 2023 Lords Chamber

[Lord Hamilton of Epsom (Con)]

I am very grateful to the noble Lord for letting me in. Does he not accept, though, that, when this Bill was printed with the sunset clauses in it, that was the only point at which all this legislation started to appear? They had done nothing up until that time to actually dig it out.

[Lord Fox (LD)]

My Lords, it seems the debate has started quite strongly already, as I think we expected. I am indebted to the noble Baroness, Lady Meacher, for her intervention, which I think puts in context quite a lot of what we will hear today. This group of amendments is part of a series, as the noble Baroness will have seen, that highlight how this is not a tidying-up exercise, as it was characterised by Rees-Mogg, and is not about reindeer-related legislation. It is about a fundamental set of changes that could affect almost everybody, potentially seriously detrimentally.

Each of these groups sets out different areas of concern; that is the point of what we are doing here today. Together, they indicate the breadth and the importance of the legislation that is being cast into doubt by this Bill. It is all very well the noble Lord, Lord Frost, saying, “Trust us”—we do not, and we will not until all these laws are ruled in, because until they are ruled in, they may very well be ruled out or amended. That is our purpose here today: to use specific examples to explain that this is real, and affects real people and real lives. That is what we are here to do.

I rise to move Amendment 23, which is in my name, and to support Amendment 1, which is also in my name and the names of my noble friend Lady Burt and the noble Baroness, Lady Crawley. I also support Amendment 40, in the name of the noble Lord, Lord Collins. This set of amendments concerns employee rights; Amendments 1 and 23 deliberately focus on one of the suite of employee rights that could be swept away by the effects of the Bill. These rights could be lost as a result of the deliberate actions of the Government, bent on winding back the national clock, or they could happen as a result of accidental changes that are not picked up—legislative commission, or legislative omission. In either case, Parliament is all but bypassed in the process.

Amendment 1, as we have heard set out thoroughly by almost all the people speaking today, on parental leave, is really vital to the lives of so many people, and an important enabler to working families. It is so vital that we do not think it should be risked in the potential pitfalls that this legislation sets out. That is why we propose to exempt it from the sunset, to make sure that UK working families get the opportunities they so need with their children at the start of life.

Turning to Amendment 23, which I know no one has yet spoken about, that looks at a different but equally important employee right: the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as TUPE. I am sure that noble Lords are more than familiar with this; I certainly am from my business life, and I am sure that many noble Lords are from their different experiences. To be clear, it means that when one business buys another business, there is a reasonable certainty as to which workers transfer to the new business, so that the purchaser knows what employees they are getting and what they will cost, and workers know that they cannot just be dismissed because of the transfer. This is about fairness and peace of mind, and ensuring that employees caught in an outsourcing, for example, are not driven out of work as costs are slashed.

We saw with P&O Ferries that this law has serious limitations, but it is better than nothing and we need it to endure through this process. This is also business-friendly, because it allows businesses planning that are acquisitions to know what they will be buying. Similarly, businesses that are pitching for outsourced work now, to be carried out next year, need to know what rules they will have when that work starts. So this amendment gives both workers and businesses certainty.

On Wednesday 1 February, in answer to a question regarding employee rights from the noble Lord, Lord Woodley, the Minister, the noble Lord, Lord Callanan, said that

“our workers’ rights, of which we are very proud, do not and did not depend on our membership of the EU … let me repeat: UK standards did not depend on EU law”.—[Official Report, 1/2/23; cols. 658-59.]

That spirit has been reflected by speakers opposite, but, as evidenced by these two specific regulations—real regulations that exist now—the Minister was not correct. It is very clear that, as the Minister indicated, there are UK-derived laws, but these work in tandem with, and are interwoven with, laws that were imported into the UK from the EU. These work together to deliver the suite of workers’ rights that we have today.

Parental leave and TUPE are not the only important worker protections that are in danger; they are illustrative of a whole raft of legislation that is up for grabs. For example, I would emphasise the right of NHS workers, who have worked through the pandemic, to be able to carry over annual leave that they have been unable to take; maximum hours, not just for office workers but for safety-critical workers such as airline workers, deep-sea fishermen and HGV drivers; and the obligation on employers to make an assessment of health and safety risks to their workers and to keep such risk assessments up to date—I think the noble Lord, Lord Berkeley, referred to that. In the second group of amendments, we will also reflect on part-time work and agency workers, which is another important area.

There are a number of other laws that are set out by the noble Lord, Lord Collins, in Amendment 40. However, I am aware that this is not an exhaustive list, so can the Minister confirm that the Government now know all the laws that will be in scope of Clause 1? How many concern, first, employment rights and, secondly, workplace health and safety? We would be very pleased to know the numbers there.

As the noble Baroness, Lady Crawley, set out, many of these laws impact women more than they do men. The Bill’s equality impact assessment confirms that the Government’s commitment to upholding high standards in equalities does not expressly acknowledge the potential disparate impact of revoking these regulations. As we know, unless the Government positively act to save a regulation, it will be abolished at the end of 2023—although the Government can decide to extend that into 2026; that is a voluntary act.

In his answer to the noble Lord, Lord Woodley, earlier this month, the Minister also said:

“Regarding the regulations the noble Lord mentions, as with all retained EU law we will look at that and see whether it is appropriate for the UK economy, and if necessary we will modernise, update or replace it”.—[Official Report, 1/2/23; col. 658.]


Well, these are amendments about specifics. Will the Government be retaining these specific laws as they are or do they find it necessary to modernise, update or replace them? We would like specific answers on these specific laws.

I fear there is a further complication, which I would like to probe in this amendment—and here I thank the Employment Lawyers Association for some very detailed help. There is a third factor, and that is case law. On the face of it, the least disruptive course that the Government could choose is to take current law and assimilate it directly into UK law—essentially making no fundamental changes but perhaps tweaking some of the language. Surprisingly, that does not finish the uncertainty. That is because the Bill does not just turn off regulations; it turns off EU law that the European Union (Withdrawal) Act 2018 kept in British law. Examples of the law that would be turned off are wide-ranging. The Bill also turns off the direct effect of many parts of EU law that the courts use to interpret regulations in domestic law, and this is what I wish to interrogate.

The turning off of this type of EU law is amplified by the Bill abolishing the principle of the supremacy of EU law in Clause 4, together with the general principles of EU law in Clause 5. The new Bill sets a new default that removes three principles from British law at the end of 2023. The Bill will erase the interpretive principles and settled decisions that courts have relied on to give settled and predictable meaning to hundreds of employment law rights and obligations that are derived from EU law. To be clear, the three principles are these: the direct effect, supremacy of EU law and the general principles of EU law.

Abolishing the direct effect removes rights such as a facet of equal pay law which is being used by tens of thousands of women to claim equality with better-paid men. This is because equal pay rights in the Equality Act 2010 do not go as far as the current case law, as since 1976 the Act has been supplemented by EU law. Abolishing the direct effect sets a default to abolish rights such as the right to normal pay during holiday—enjoyed by millions of workers—or the ability to carry over holiday, and with it holiday pay, from one year to another when sick. It sets a default to remove from UK law the legal reasoning that has helped extend anti-discrimination law and other protections to atypical and gig workers.

Abolishing the principle of supremacy, together with abolishing the general principles of law and the removal of the direct effect, means that the settled meaning of not only EU regulations but primary Acts of the UK Parliament, such as the Equality Act 2010, will not be the same after 2023. The Bill affects primary Acts of Parliament as they may be interpreted in the future. An employment dispute centred on the meaning of a legal right in December 2023 may have a completely different outcome from one that arises in January 2024. In other words, all the existing case law can fall away and new case law has to be built up from scratch. That will create huge legal uncertainty and a bulge of cases in the country’s courts.

These regulations, and ones like them, are used every day by workers and employers in courts and tribunals. Lawyers are asked to advise on them and use the certainty of past decisions to be able to give answers to clients that allow them to conduct their business and resolve their disputes in a settled, stable and well-understood framework of law. This reduces disputes and litigation. The settled and predictable meaning of a considerable body of employment law will be wiped away, creating unpredictability. It will be up to the courts to decide whether case law carries over or whether it changes. Legal uncertainty will undermine any plan that the Government might have for growth, as neither employers nor employees will have any clarity on the meaning of large parts of employment law that affect investment and the cost of labour. I ask the Minister to give us a very detailed response to this because it is one of the most important elements and has so far not been debated very much by the general public.

As I have said, these amendments are the first in a series that illustrate how everyday lives will be affected. They also bring into stark relief the risks inherent in this Bill of disturbing settled understandings of the law, turning legal certainty, clarity and predictability on their heads. Will the Minister please give the Committee a detailed response to this amendment, particularly setting out the view of government lawyers on the implications of removing direct effect, the supremacy of EU law and the general principles of EU law?

I repeat my question. Will the Government be retaining the specific laws set out in these amendments—parental leave and TUPE—or do they believe that there is a necessity, in the Minister’s words, to modernise, update or replace?