Applicable law—which system of law applies to the contract or employment relationship
Produced in partnership with Edward Kemp of Littleton Chambers
Applicable law—which system of law applies to the contract or employment relationship

The following Employment guidance note Produced in partnership with Edward Kemp of Littleton Chambers provides comprehensive and up to date legal information covering:

  • Applicable law—which system of law applies to the contract or employment relationship
  • Brexit impact
  • Initial considerations
  • Overview of Rome Convention and Rome I
  • Rome I—generally
  • Rome I—employment contracts
  • Determining which mandatory law applies
  • Determining which mandatory law applies—the ‘habitual place of work’ test
  • Determining which mandatory law applies—the ‘closer connection’ test
  • Determining which mandatory law applies—the non-derogable provisions
  • more

This Practice Note examines how to determine which system of law is applicable to a contract of employment or employment relationship.

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the transitional arrangements provided in Part 4 of the October 2019 Withdrawal Agreement, the UK has entered an implementation period. During this period, the UK continues to be treated by the EU as a Member State for many purposes. While it will not participate in the political institutions and governance structures of the EU, the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union, in accordance with the October 2019 Withdrawal Agreement.

The repeal of the European Communities Act 1972, effective on exit day, is subject to specific savings provisions to allow for the operation of the implementation period in UK domestic law. Key provisions of the European Union (Withdrawal) Act 2018 (EU(W)A 2018), and associated Brexit-related legislation (including Brexit SIs), are amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) where required to reflect the transitional arrangements. This includes deferring the adoption of retained EU law and commencement of related