Introduction
The United Kingdom and the European Union have published their Trade and Cooperation Agreement, alongside a summary issued by the UK government and an explanatory brochure from the EU Commission. This article assesses the implications that the deal might have for employment law.
As predicted, in return for a tariff and quota-free trade deal, the United Kingdom has agreed that it will not reduce employment law rights below the standards that existed on 31 December 2020 – but only if this affects trade or investment. The United Kingdom is free to choose to diverge from future EU employment laws but the European Union may, within certain constraints and subject to an arbitration process, apply rebalancing measures if it obtains proof of a material impact on trade or investment.