Retained EU Law (Revocation and Reform) Bill

Lord Hamilton of Epsom Excerpts

Committee stage
Thursday 23rd February 2023 Lords Chamber

[Baroness Thornton (Lab)]

My Lords, I apologise for not having been involved in the Second Reading debate on this but I think it is worth noting that in the last couple of days the EHRC has issued a briefing note about its concerns about the Bill, particularly these amendments. I am here partly to read into the record some of the concerns that our Equality and Human Rights Commission has about the things that are contained in the Bill, including:

“The Bill covers legislation on limits on working time, the right to paid holiday, rights for temporary and agency workers, and parental leave. These are important legal protections for all UK workers which have specific impacts for people with certain protected characteristics under the Equality Act, such as sex and pregnancy and maternity”,


as my noble friends have already outlined. The EHRC also says:

“Any negative impacts on people sharing protected characteristics must be identified and mitigated by Government”


and that it is

“concerned at the potential impact of the Bill on workers with the protected characteristics of sex and pregnancy and maternity. This is because the workers’ rights at risk, such as maternity and equal pay, and parental leave, disproportionately affect women”,

as the Minister will be aware. It continues:

“There may also be negative economic impacts if the ability of women to participate in the labour market is eroded.”


The EHRC goes on to talk about the “legal uncertainty” that this will create within our labour market and our equalities field. So my question to the Minister is: how are the Government going to mitigate these risks?

[Lord Hamilton of Epsom (Con)]

My Lords, what we seem to be ignoring in all these amendments is that it is essential in this legislation that we do have a sunset clause, because if we did not, we would not know how many bits of legislation we are talking about. Ministers have been asking departments to produce all their EU retained law and absolutely nothing happened until minds were focused by the fact that the sunset clauses were put into this legislation. I am going to oppose every conceivable amendment saying “This bit of EU retained law should be retained” for the simple reason that the sunset clauses are absolutely critical.

What we must do is decide how we deal with all the EU retained law. It must be sifted, because some of it is completely irrelevant to British statute. I mean, we talk about movement of reindeer between—

[Lord Collins of Highbury (Lab)]

Is the noble Lord suggesting that employment rights are irrelevant, not important and not a consideration?

[Lord Hamilton of Epsom (Con)]

I am not arguing that at all. I am saying that much of this legislation is going to be retained and some of it will be discarded. What we have to do is decide which legislation falls into which category. That is the critical element of all this. We cannot say that we should start retaining this bit, that bit or the other, because that is not relevant.

[Baroness Thornton (Lab)]

The noble Lord is being distinctly unsuccessful in convincing his own Government that that is indeed an important thing to do.

[Lord Hamilton of Epsom (Con)]

I am saying that we have to decide how we handle the whole bulk of EU retained law. If the noble Baroness had been here for Second Reading, she would have known that I actually raised this issue. We have to sift this legislation and decide what is going to be debated in primary legislation and what is going to be subjected to secondary legislation and so forth. You cannot generalise about all the legislation coming into one category or another—it will not. Some of it will be retained, some of it will be amended and some of it will be abolished altogether. There has to be some sifting system that makes the decisions on that. Therefore, we should not be pleading for individual bits of EU legislation to be retained; we should be saying that we need a system that divides it up and sensibly deals with it in one way or another.

That is why I am not going to vote for any of the amendments that go against the sunset clause, because I think the sunset clause is critical. We would not know how many bits of legislation we were dealing with if we did not have a sunset clause.

[Baroness Andrews (Lab)]

My Lords, I have some sympathy with the noble Lord’s position, because, as he made clear at Second Reading—which we were delighted and a bit surprised by—he takes issue with the Bill. The noble Lord talks about there being a system and us being involved. However, first, Parliament is not involved in this; that is almost universally agreed around the Chamber. Secondly, the process is being conducted by a handful of civil servants, across Whitehall, who are working frantically against the clock to make serious judgments on issues of which they often have little experience themselves. They are doing it on behalf of the devolved Governments as well. The sunset clause is a ludicrous timetable against which to make extremely sensitive judgments.

The whole process is untransparent, to say the least. For example, take the dashboard which the Government keep saying will tell us everything we need to know. It does not even cover all the SIs which are now coming into scope. It does not explain which bits of law are SIs, which are the remainder, or which are other forms of retained law. It is virtually useless for anybody trying to make a judgment on whether the issues they are concerned about will be inside or outside the scope of this.

My noble friend made the point that all we need to reduce uncertainty in the first place is some set of criteria whereby certain SIs may be retained and others may not. For example, one red line could be whether an SI impacts on our trade relationships or our international obligations. We could see that and be able to judge if we had a set of criteria, but we have none of that. It is making life totally dreadful for people who are trying to make decisions inside government. Defra has 1,700 individual SIs. The common frameworks, which we will discuss later, will be dealing with about 500 SIs which translate across the whole of the internal market, and the dislodging of one may well impact 50 others.

We are trying to make sense of a process in which there is no sense. Could the Minister give us some idea of the timetable against which Whitehall is working? When will we know when those basic judgments have been made about what can be retained and what is going to be put in the “disposable” bucket? If we had a timetable which gave us some reassurance about that, or a timetable about when, for example, an SI which needed to be put in the place of something that was going to be removed would come forward, that would help. Noble Lords should bear in mind that this House takes six to eight weeks to process SIs. If you work backwards from Christmas and the sunset clause, we will need to start laying SIs in May or June to get them through in order to replace the laws we will lose. That is a measure of the chaos that is being created by the Bill. This House needs to take its processes seriously and slowly, so that we can introduce some reassurance to all those bodies outside—such as the CBI and the trade union movement—which are relying on us to create some clarity around this.

--- Later in debate ---

[Lord Davies of Brixton (Lab)]

My Lords, I was unable to be present at the Second Reading of this Bill because I was at the fourth day of the Committee stage of the Financial Services and Markets Bill. There is an interaction between that Bill and this Bill, which we can discuss in more detail when we get to the Government’s Amendment 45. But, in the context of this debate and the suggestion made by the noble Lord, Lord Hamilton of Epsom, that the sunset clause is essential, he should read the justification for the Government’s Amendment 45. It says:

“This new clause contains new exceptions to the clause 1 sunset”.


So even the Government do not believe that the sunset clause is essential; there are groups or parts of European legislation without the sunset clause and so, if special rules can be made for financial services, why does he think that we cannot have special rules for other areas of legislation?

[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?