UK EWCs: And then there were just two…

After Brexit, only two UK law EWCs remain. The CAC rules 2 Sisters Food Group need not establish one, questioning the future of UK EWCs.

Why This Matters:  This decision highlights the dwindling relevance of UK law (based) EWCs post-Brexit. With only two remaining, and both effectively duplicating EU law obligations, the rationale for maintaining UK law EWCs is increasingly questionable.

Key points in CAC decision: 

• 2 Sisters Food Group was first validly requested to establish a UK law EWC well before the end of the Brexit transition period on 31 December 2020;
• the CAC decided in January 2023 that transitional provisions in the UK’s Brexit legislation meant that 2 Sisters Food Group had to continue to establish a new UK law EWC even after the end of the Brexit transition period, despite that being the time after which no new requests for a UK law EWC could be made;
• in the autumn of 2024, and after a significant delay in 2 Sisters Food Group establishing its UK law EWC, 2 Sisters Food Group’s corporate group sold its EU operations and so now only has UK employees; and
• as 2 Sisters Food Group is no longer a transnational business, the CAC decided that it no longer falls within the scope of the UK’s EWC legislation and so does not need to continue with establishing a UK law EWC.

What Might Happen Next: Attention now turns to the UK Government’s long-awaited response to its consultation on abolishing UK law EWCs. The sector awaits clarity on whether the concept will finally be retired.

What You Should Be Doing: If you operate in the UK, review your EWC arrangements to ensure compliance and be ready to adapt should the government move to abolish UK law EWCs.

• CAC decision  
• UK Government consultation on abolishing UK law EWCs 

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