The US-UK trade deal has been lauded for its efforts to save the UK car and steel industries and for lowering the tariff rates imposed by President Trump on exports from the UK to the US.
However, employee rights in the UK are more extensive than those in the US. For example, the UK offers protection against unfair dismissal, greater protections for redundancy, paid sickness absence with statutory sick pay, specific protections against discrimination and longer notice periods. And that’s not to mention the significantly greater annual-leave quota enjoyed by workers in the UK: a minimum of 5.6 weeks, compared to the USA where only public holidays are mandated and any other leave is merely customary.
The threat to equality law
The Trump administration has explicitly threatened to withdraw work from companies that comply with EU equality law. In the UK this refers to the Equality Act 2010, which provides protection against discrimination on the grounds of nine characteristics including age, race, sex and disability.
The US threat arrived in the form of a letter to EU companies, asking them to prove that they complied with a Trump-signed executive order banning diversity, equity and inclusion schemes. Recipients were told not to “operate any programmes promoting DEI”.
Esther Lynch, who is the general secretary of the European Trade Union Confederation, countered that this may have been an unlawful request. Speaking at the Trade Unions Against Discrimination Conference in Berlin last month, she said: “The near witch hunt against diversity, equity and inclusion programmes coming from the Trump administration is no role model for Europe to follow. Attempts by US officials to intimidate European companies over DEI programs are both politically inappropriate and legally questionable under EU law.”
Of course, the UK has its own legal framework and the actions taken by the US government do not have a legal impact on companies here. However, in an increasingly difficult economy, firms are starting to move towards compliance with the US’s executive order. Some organisations have removed or watered down DEI commitments, including Accenture, BAE systems and BT, as well as law firms White & Case and Freshfields.
It’s important to note that many of these companies still express a commitment to the principles of diversity. But the rolling back is real.
It is also worth remembering that, with the trade deal between UK and India, the government has agreed to allow secondees from India to UK companies on short-term visas, both they and their employers should be exempt from paying national insurance contributions. This is a move anticipated to cost about £100m in lost revenue to the Treasury.
As the UK-India agreement shows, the government is willing to bend the rules to get trade deals over the line. As the details of the US agreement are ironed out, the Equality Act and protections against discrimination could be at risk.
Employee rights, standards and protections should not be part of any bargaining or else it will be workers that pay the price.
Jo Mackie is partner and director of employment at Burlingtons Legal LLP
The US-UK trade deal has been lauded for its efforts to save the UK car and steel industries and for lowering the tariff rates imposed by President Trump on exports from the UK to the US.
However, employee rights in the UK are more extensive than those in the US. For example, the UK offers protection against unfair dismissal, greater protections for redundancy, paid sickness absence with statutory sick pay, specific protections against discrimination and longer notice periods. And that's not to mention the significantly greater annual-leave quota enjoyed by workers in the UK: a minimum of 5.6 weeks, compared to the USA where only public holidays are mandated and any other leave is merely customary.
