Employment law in the UK is derived mainly from Acts of Parliament and case law. European law became a further source after 1973 when the UK joined the European Economic Community (subsequently the European Union) and the impact of the EU on employment regulation grew considerably when the UK joined the Social Chapter of the Maastricht Treaty in 1997.

The UK formally left the European Union on 31 January 2020. Negotiations then took place for 11 months, resulting in an agreement about how the future relationship between the UK and the EU would be managed. The agreement contains a ‘non-regression’ arrangement as far as employment law and workers’ rights are concerned. In practical terms this means that as of 2021 the UK is no longer bound to follow EU law in the field of employment, but has agreed not to reduce the level of existing social protection in such a way as to distort competition. 

This factsheet for CIPD members explains the EU’s impact on UK employment law and how EU social policy is made by the Council of Ministers and the EU Parliament. This then becomes directives and regulations, which must become part of member states’ national laws. It describes the enforcement role played to date by the European Court of Justice (ECJ) and how this will change as a result of the UK’s departure from the European Union. This factsheet also discusses the Retained EU Law (Revocation and Reform) Bill that is likely to become law in the UK in 2023.