Employment law in the UK: How it is made

Essential points

• Law in the UK originates by two means – from legislation made by parliament and from common law (where a judge’s interpretation of legislation sets a precedent for how it should be interpreted in future).  
  • Most legislation starts as a proposed bill. It is normally presented to parliament by ministers and then debated and voted on in the House of Commons and House of Lords. Amendments are often made during this process. Once a bill has been approved by both houses it receives Royal Assent to become an act (law).  
  • When a precedent is developed in common law, a judge has made an interpretation of the law based on considering the words of legislation, their understanding of the intentions of Parliament in making the law and the interpretation of the law in previous court cases.  
• Previously during EU membership, the UK courts would automatically take decisions made in the European Court of Justice (ECJ) into account in cases in areas related to trade, including food standards, competition, environment and employment law. This changed at the start of 2024 when the final Brexit arrangements were implemented. The UK courts may now have regard to any post Brexit judgments of the ECJ, but are not bound by those decisions (although ECJ decisions will always remain relevant for businesses operating in both UK and EU jurisdictions). When interpreting any uncertainties over assimilated EU law, the UK higher courts can depart from ECJ decisions.
• In the UK, employment law is either set by the UK Government or devolved. In Great Britain (England, Scotland and Wales) law is largely a reserved matter, developed by the UK Government. In Northern Ireland most areas of employment law are devolved (transferred) however some matters are not. The CIPD offer a resource detailing the matters that are transferred and the matters that are not transferred in Northern Ireland.
• Employment law claims in Great Britain may follow different court processes: employment tribunals and the civil courts (occasionally criminal courts may be involved if illegal acts are committed, such as health and safety violations, sexual harassment, or theft). Cases can also be appealed in an Employment Appeal Tribunal, the Court of Appeal, the Court of Session and the Supreme Court.
• Some employment law claims are automatically referred to one court or another (with the majority being processed by employment tribunals). However, some claims go straight to the civil courts.