Kieran Laird
Partner
Article
11pm (GMT) on 31 December 2020 marked the end of the Brexit transition/implementation period entered into following the UK's withdrawal from the EU. At this point in time (referred to in UK law as 'IP completion day'), key transitional arrangements came to an end and significant changes began to take effect across the UK's legal regime. For more details about IP completion day read our insight, what does IP completion day mean for the status of EU law in the UK?
This article provides an introduction to retained EU law and an overview of the key definitions and concepts with reference to the relevant provisions of the European Union (Withdrawal) Act 2018 (EU(W)A 2018).
This analysis was first published on Lexis®PSL.
Retained EU law is a legal concept describing EU-derived rights and legislation preserved by UK law after the end of the Brexit transition period. It is a defined term under the EU(W)A 2018, and the collective term given to the body of EU-derived laws preserved and converted into domestic UK law when the repeal of the European Communities Act 1972 (ECA 1972) came into full effect.
Originally, retained EU law was intended to take effect on the day the UK ceased to be a Member State of the EU (exit day, 11 pm on 31 January 2020). This was amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020), in order to reflect the transitional arrangements in the Withdrawal Agreement agreed between the UK and EU.
Under the transitional arrangements in the Withdrawal Agreement, the UK continued to be treated by the EU as a Member State for many purposes after exit day and was required to adhere to its obligations under EU law until the end of the transition or implementation period (defined in the implementing legislation as 'IP completion day', 11 pm on 31 December 2021).
The repeal of the ECA 1972 under EU(W)A 2018, effective on exit day, was subject to specific savings provisions introduced by EU(WA)A 2020, to allow for continued application of EU law in UK domestic law until IP completion day. The provisions of EU(W)A 2018 on retained EU law were also amended so that the adoption of retained EU law was deferred from exit day until IP completion day.
There is no specific list of EU legislation within the definition that lawyers can refer to. Whether a certain EU-derived legal provision, right or obligation etc is retained (and to what extent) is a matter of statutory interpretation.
Retained EU law is defined in EU(W)A 2018, s 6(7). It is a wide-ranging term with potential application to thousands of EU-derived laws. The definition is broadly framed, and cross refers several other provisions of the EU(W)A 2018:
'"retained EU law" means anything which, on or after IP completion day, continues to be, or forms part of, domestic law by virtue of [section 2, 3, 4 or 6(3) and (6) of the EU(W)A 2018] (as that body of law is added to or otherwise modified by or under this Act or by other domestic law from time to time);'
The sections of the EU(W)A 2018 cross-referred in the definition of retained EU law are as follows:
Several of the terms quoted above are specifically defined. Many, but not all, of the defined terms are set out in EU(W)A 2018, s 20. To assist, EU(W)A 2018, s 21 contains an index of defined terms and the relevant corresponding provisions. The key terms are considered in more detail below.
EU(W)A 2018 'saves' EU-derived domestic legislation which might otherwise have fallen away with the full repeal of the ECA 1972 , as well as other domestic legislation relating to EU and EEA obligations.
EU(W)A 2018, s 2 preserves EU-derived domestic legislation after IP completion day. For the purpose of retained EU law, EU-derived domestic legislation is saved as it had effect in UK law immediately before IP completion day.
EU-derived domestic legislation includes any enactment so far as:
It includes:
• legislation that was passed or made before IP completion day but had not come into force by that date
• amendments to EU-derived domestic legislation made under the ECA 1972
It does not include:
EU-derived domestic legislation captures a wide range of domestic legislation implementing the UK's obligations while it was an EU Member State within the definition of retained EU law so as to enable its continued effect in domestic law after IP completion day.
One of the reasons for framing EU-derived domestic legislation so broadly was to ensure that the government could exercise the powers to amend it in order to ensure that it works effectively after IP completion day. The amendments to retained EU law include textual amendments, repeals, revocations and specific interpretive provisions, introduced in order to address or mitigate so-called 'deficiencies' in retained EU law. The powers to amend retained EU law have been applied liberally.
EU-derived domestic legislation is also referred to as 'preserved legislation', and is saved subject to the effect of relevant retained case law.
EU(W)A 2018, s 3 is one of the key provisions of the EU(W)A 2018. It captures and 'incorporates' or 'converts' certain direct EU legislation into UK law, so far as operative in the UK immediately before IP completion day, so that it continues to operate in domestic law after Brexit, in spite of the underlying EU Treaties ceasing to apply to the UK.
Direct EU legislation includes English language versions of:
It does not include:
Many of the terms used in this definition are individually defined:
'"EU regulation" means a regulation within the meaning of Article 288 of the Treaty on the Functioning of the European Union;
"EU decision" means-
(a) a decision within the meaning of Article 288 of the Treaty on the Functioning of the European Union, or
(b) a decision under former Article 34(2)(c) of the Treaty on European Union;
"EU tertiary legislation" means-
(a) any provision made under-
(i) an EU regulation,
(ii) a decision within the meaning of Article 288 of the Treaty on the Functioning of the European Union, or
(iii) an EU directive,
by virtue of Article 290 or 291(2) of the Treaty on the Functioning of the European Union or former Article 202 of the Treaty establishing the European Community, or
(b) any measure adopted in accordance with former Article 34(2)(c) of the Treaty on European Union to implement decisions under former Article 34(2)(c),
but does not include any such provision or measure which is an EU directive;'
"EU directive" means a directive within the meaning of Article 288 of the Treaty on the Functioning of the European Union;'
Unlike the provisions for EU-derived domestic legislation, EU(W)A 2018, s 3 contains more specific parameters, so that it catches the text (including recitals) of the English language versions of the relevant legislation 'so far as operative immediately before IP completion day'. The word 'operative' has a specific meaning:
'For the purposes of this Act, any direct EU legislation is operative immediately before IP completion day if-
(a) in the case of anything which comes into force at a particular time and is stated to apply from a later time, it is in force and applies immediately before IP completion day,
(b) in the case of a decision which specifies to whom it is addressed, it has been notified to that person before IP completion day, and
(c) in any other case, it is in force immediately before IP completion day.'
Direct EU legislation is also known as 'converted legislation', and in each case incorporates the full text and recitals of the English language version of the instrument. Recitals may continue to be used in the interpretation of retained direct EU legislation, particularly where the instrument in question has not been modified by UK legislation (see below). If it has been modified, the recitals may still be used to aid interpretation, unless that is counter to the legislative intention of the modification (eg where recitals have been expressly excluded).
EU(W)A 2018, s 4 saves certain rights etc, which are not caught as EU-derived domestic legislation or direct EU legislation, but continue to be recognised and available in domestic law since IP completion day.
It includes:
It does not include:
EU(W)A 2018, s 4 saves directly effective rights under the EU Treaties (and other treaties brought into UK law under the ECA 1972 eg the EEA Agreement, Euratom and certain multilateral treaties entered by the UK by virtue of EU membership), which contain provisions conferring rights on individuals and can be relied on in domestic law without implementing measures. It also covers powers, liabilities, obligations, restrictions, remedies and procedures to the extent they have direct effect by virtue of ECA 1972, s 2(1).
Unlike the definition of direct EU legislation, which retains English language versions of specific texts and instruments, in this case it is the relevant right or obligation etc that is retained, rather than the text of the relevant Treaty provision. The explanatory notes to the EU(W)A 2018 included an illustrative list of such rights (cross referring the relevant Articles of the Treaty on the Functioning of the European Union (TFEU)) eg:
Directly effective rights may also arise under international agreements between the EU and third countries, applicable in the UK by virtue of EU membership and incorporation under the ECA 1972, as well as certain multilateral agreements to which either or both the EU and UK are a party.
An example provided is the Hague Convention of 19 October 1996 on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children. A further example is the Hague Convention of 30 June 2005 on Choice of Court Agreements.
Retention of directly effective rights etc under EU(W)A 2018, s 4 is subject to the government's right to amend or repeal provisions which have no practical application, or which make provision for reciprocal arrangements that are no longer recognised or appropriate. Rather than being expressly excluded from retained EU law, the provisions of EU(W)A 2018 allow for such rights to be retained and immediately repealed or amended. An example is the Freedom of Establishment and Free Movement of Services (EU Exit) Regulations 2019, which provided for the cessation of certain directly effective rights (concerning freedom of establishment and free movement of services among other things) retained in domestic law under EU(W)A 2018, s 4.
The following table summarises the legislative intention for retained EU law inclusions as set out in the explanatory notes to the EU(W)A 2018:
The following table provides examples of legislation that the UK indicated a specific intention to retain to some extent (subject to any amendments, repeals and revocations):
Preserved legislation | ||
---|---|---|
Converted legislation | ||
EU-derived domestic legislation
| Direct EU legislation
| Rights etc.
|
Supporting information on the EU(W)A 2018 published by the government also included a summary list of exclusions from retained EU law. Examples include:
EU(WA)A 2020 amended the EU(W)A 2018 provisions on retained EU law to clarify that only EU legislation applicable in UK law under the transitional arrangements in Part 4 of the Withdrawal Agreement would be retained on IP completion day. The inclusion of this provision meant that some of the exclusions under EU(W)A 2018, for instance for EU decisions addressed to Member States other than the UK, were removed.
EU(W)A 2018, s 21 and Sch 5 contain provisions on the publication of certain information relating to retained EU law by the Queen's Printer (which is part of The National Archives).
The provisions are intended to ensure that retained EU law is publicly accessible. However, although the key section on publication is entitled 'Publication of retained direct EU legislation etc.', this is potentially slightly misleading. It implies that there is a published source of retained direct EU legislation, ie specifying the instruments caught by the definition of 'retained direct EU legislation' and preserved in domestic law.
In fact, the duty to publish uses the different terms 'relevant instrument' and 'relevant international agreements', which are defined separately:
'"relevant instrument" means-
(a) an EU regulation
(b) an EU decision, and
(c) EU tertiary legislation;
"relevant international agreements" means-
(a) the Treaty on European Union
(b) the Treaty on the Functioning of the European Union
(c) the Euratom Treaty, and
(d) the EEA agreement;'
These are broad terms covering a range of instruments which may or may not have been retained. The Queen's Printer does not have a duty to specify whether the instruments published under this duty fall within the definition of retained EU law, or not. It is important to remember that an instrument being published by the Queen's Printer under these duties does not automatically mean it is retained in domestic law. That is a matter of statutory interpretation.
The Queen's Printer also has wide discretion to make arrangements for the publication of Court of Justice of the European Union decisions and opinions, other documents published by an EU entity, and anything else it considers useful in connection with its duty to publish. Government ministers may issue directions to the Queen's Printer specifying particular instruments or categories of instruments to be excluded from the duty to publish. These ministerial directions must also be published.
EU(W)A 2018, s 6 contains provisions on interpretation of retained EU law, including provisions governing the relationship between UK and EU courts and the status of EU case law following IP completion day.
EU(W)A 2018, ss 6(3) and 6(6), which are referred to in the definition of retained EU law, make provision for UK courts and tribunals determining questions on the meaning of retained EU law in accordance with relevant 'retained case law' and 'retained general principles of EU law', with variations depending on whether or not the retained EU law in question has been modified by UK law.
The relevant terms concerning retained case law are defined as follows:
'"retained domestic case law" means any principles laid down by, and any decisions of, a court or tribunal in the United Kingdom, as they have effect immediately before IP completion day and so far as they-
(a) relate to anything to which section 2, 3 or 4 applies, and
(b) are not excluded by section 5 or Schedule 1,
(as those principles and decisions are modified by or under [EU(W)A 2018] or by other domestic law from time to time);
"retained EU case law" means any principles laid down by, and any decisions of, the European Court, as they have effect in EU law immediately before IP completion day and so far as they-
(a) relate to anything to which section 2, 3 or 4 applies, and
(b) are not excluded by section 5 or Schedule 1,
(as those principles and decisions are modified by or under [EU(W)A 2018] or by other domestic law from time to time);
"Retained general principles of EU law" means the general principles of EU law as they have effect in EU law immediately before IP completion day and so far as they-
(a) relate to retained EU law, and
(b) are not excluded by section 5 or Schedule 1,
(as those principles are are modified by or under [EU(W)A 2018] or by other domestic law from time to time);'
The relevance of retained case law and retained general principles of EU law for the purpose of interpretation of retained EU law will depend to some extent on whether the retained EU law in question has been modified (see below).
EU(W)A 2018 includes delegated powers to make secondary legislation modifying retained EU law in order to deal with deficiencies arising upon the UK's withdrawal from the EU. The term 'modify' is defined to include amendments, repeals and revocations.
The power to modify retained EU law, includes modifications to direct EU legislation (which did not exist on the UK statute book, as such prior to IP completion day). Retained direct EU legislation is split into two categories in connection with these powers. These categories are separately defined:
'"retained direct minor EU legislation" means any retained direct EU legislation which is not retained direct principal EU legislation;
"retained direct principal EU legislation" means-
(a) any EU regulation so far as it-
(i) forms part of domestic law on and after exit day by virtue of section 3, and
(ii) was not EU tertiary legislation immediately before IP completion day, or
(b) any Annex to the EEA agreement so far as it-
(i) forms part of domestic law on and after IP completion day by virtue of section 3, and
(ii) refers to, or contains adaptations of, any EU regulation so far as it falls within paragraph (a),
(as modified by or under this Act or by other domestic law from time to time).'
Retained direct principal EU legislation covers EU Regulations and Annexes to the EEA agreement referring to or amending EU Regulations. Retained direct minor EU legislation covers EU tertiary legislation and EU decisions. An example of the difference in terms of the status of these two categories of retained EU law is their treatment for the purpose of the Human Rights Act 1998 (HRA 1998):
Retained direct principal EU legislation is treated as primary legislation for the purpose of the HRA 1998, meaning that if such legislation is found to breach the HRA 1998, a court may issue a declaration of incompatibility in respect of the legislation but may not strike it down. Retained direct minor EU legislation is treated as subordinate legislation, unless it amends primary legislation (in which case it is treated as primary legislation), meaning that if it is found to breach the HRA 1998 a court may strike the legislation down.
Retained direct principal EU legislation covers EU Regulations and Annexes to the EEA agreement referring to or amending EU Regulations. Retained direct minor EU legislation covers EU tertiary legislation and EU decisions. An example of the difference in terms of the status of these two categories of retained EU law is their treatment for the purpose of the Human Rights Act 1998 (HRA 1998):
Retained direct principal EU legislation is treated as primary legislation for the purpose of the HRA 1998, meaning that if such legislation is found to breach the HRA 1998, a court may issue a declaration of incompatibility in respect of the legislation but may not strike it down. Retained direct minor EU legislation is treated as subordinate legislation, unless it amends primary legislation (in which case it is treated as primary legislation), meaning that if it is found to breach the HRA 1998 a court may strike the legislation down.
The approach to be taken in determining questions on the meaning, validity or effect of retained EU law in UK courts depends on whether it has been modified by UK law.
Questions on the meaning of retained EU law which has not been modified are determined in UK courts in accordance with relevant retained case law and principles, using a purposive interpretation where the meaning is unclear (taking into account the original purpose of the underlying EU law, compatibility with the EU Treaties and general principles of EU law, and the limits of EU competence).
Recitals may continue to be used in the interpretation of retained EU law post-exit where relevant, particularly in relation to un-modified retained EU law. Domestic courts can also refer to non-binding EU instruments, recommendations and opinions to assist with this interpretation.
Questions on the meaning of retained EU law which has been modified by UK law may also be determined in UK courts in accordance with relevant retained case law and principles where/to the extent that doing so accords with the intention of the modifications. Recitals may also be used to aid interpretation in these cases, unless that is counter to the legislative intention (eg where recitals have been expressly excluded from the retained version).
Beyond IP completion day, UK courts and tribunals are:
Save to the extent that certain appeal courts may depart from it (see below), retained EU case law is given the same precedent status in UK courts and tribunals as decisions of the UK Supreme Court and Scottish High Court of Justiciary. Though they may have 'regard' to the subsequent case law, UK courts and tribunals are bound by retained EU case law even if the EU courts later depart from it, until the higher UK courts exercise powers to depart from it.
The following 'relevant courts' may depart from retained EU case law:
In deciding whether to depart from retained EU case law, the courts in scope applies the same test as the Supreme Court would apply in deciding whether to depart from its own case law (where it appears right to do so).
Note: The power to depart from retained EU case law is only relevant to the interpretation of retained EU law: 'It will not affect the interpretation of law which is not retained EU law'. For example, EU(W)A 2018, s 7A gives effect to the rights and obligations under the Withdrawal Agreement and Northern Ireland Protocol. These rights must be interpreted in line with the terms of the Withdrawal Agreement (including, where relevant, the jurisprudence of the Court of Justice of the European Union).
Retained EU law is a complex definition and applying it requires an element of statutory interpretation. When looking at a particular enactment, provision or right etc, and trying to work out whether it is retained or not, it is useful to keep in mind the original aim behind it ie legal continuity, maintaining the legal status quo.
The original intention was that 'as a general rule, the same rules and laws will apply on the day after the UK leaves the EU as before' by:
When trying to determine whether an individual instrument, enactment or right etc is retained also remember:
It is important to check for domestic legislation referring to the instrument you are looking at. As noted above, the government and devolved administrations have a network of specific powers to introduce legislation making modifications (including amendments, repeals and revocations) to retained EU law.
Tip: If amending legislation has been introduced using these powers, in relation to the instrument you are looking at, this will give you a head start, by confirming that it is considered in scope of retained EU law to some extent (subject to the amendments, repeals and revocations specified). Some provisions may be retained but immediately repealed.
This table highlights the key provisions of the EU(W)A 2018 relevant to retained EU law:
Subject | Provision |
Repeals | EU(W)A 2018, s 1―Repeal of ECA 1972 EU(W)A 2018, ss 1A-1B―Savings upon repeal of ECA 1972 EU(W)A 2018, Sch 9―Additional repeals |
Retained EU law | EU(W)A 2018, s 2―Saving for EU-derived domestic legislation EU(W)A 2018, s 3―Incorporation of direct EU legislation EU(W)A 2018, s 4―Saving for rights etc under ECA 1972, s 2(1) EU(W)A 2018, s 5―Exceptions to savings and incorporation EU(W)A 2018, s 6―Interpretation of retained EU law EU(W)A 2018, s 7―Status of retained EU law EU(W)A 2018, Sch 1―Further exceptions to savings and incorporation EU(W)A 2018, Sch 6―Exempt EU instruments |
Legislative powers | EU(W)A 2018, ss 8&-8C, 11―Dealing with deficiencies arising from withdrawal (and supplementary powers) EU(W)A 2018, s 22 and Sch 7―Regulations |
Publication | EU(W)A 2018, s 15 and Sch 5―Publication and rules of evidence |
Interpretation | EU(W)A 2018, s 20―Interpretation EU(W)A 2018, s 21―Index of defined expressions |
Commencement, consequential and transitional provisions | EU(W)A 2018, s 23―Consequential and transitional provision EU(W)A 2018, s 25―Commencement EU(W)A 2018, s 8-Consequential, transitional, transitory and saving provision |
No―there is no set list capturing every item of retained EU law.
IP completion day―Retained EU law was due to come into effect on exit day (as defined under EU(W)A 2018, s 20), but this was deferred to IP completion day (as defined under EU(WA)A 2020, s 39) in order to give effect to the transitional arrangements under the Withdrawal Agreement.
Yes―EU(W)A 2018, s 21 provides an index of key defined terms.
Not necessarily―relevant provisions of the EU(W)A 2018 and subsequent legislation introducing modifications may include/exclude all or part of an instrument from the scope of retained EU law.
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