In this article
Introduction
Employment law exists to protect the rights of workers and to regulate the relationships between employees and employers to prevent unfairness, illegal practices or exploitation. Employment laws and legislation govern various aspects of our working lives, from pay and working conditions to health and safety responsibilities.
In this article we will look at the fundamentals of employment law in the UK, including employee rights, employer responsibilities and how to resolve disputes. Lastly, we will look at how employment law is evolving by exploring the recent developments and trends.
Fundamentals of Employment Law
Employment law regulates most aspects of our working lives and sets out minimum standards that employers have to meet in order to provide a fair, compliant and safe workplace.
Key areas covered by employment law include:
- Employment contracts
- Health and safety
- Working hours
- Minimum wage
- Holiday entitlement
- Parental rights (including maternity, paternity and adoption leave)
- Recruitment
- Grievance procedures, disciplinaries and whistleblowing
- Breaks at work
- Discrimination (based on protected characteristics)
- Bullying and harassment
- Redundancy
- Notice periods and dismissal
Key pieces of legislation around employment law include:
- Employment Rights Act 1996
- The Equality Act 2010
- Employment Rights Flexible Working Act 2023
The Equality Act replaced and consolidated various pieces of legislation such as the Sex Discrimination Act 1975 and the Race Relations Act 1976.
The Equality Act, which came into law in 2010, covers UK citizens and contains legislation designed to protect them from:
- Discrimination
- Harassment
- Victimisation
The Act outlines the nine ‘protected characteristics’ as follows:
- Age
- Disability
- Gender reassignment
- Marriage and civil partnership
- Pregnancy and maternity
- Race
- Religion or belief
- Sex
- Sexual orientation
By law, employers are not allowed to discriminate against anyone based on their protected characteristics both at work and during the hiring process. They are also expected to make ‘reasonable adjustments’ at work to make sure that employees with disabilities or health conditions are not put at a disadvantage.
Employee Rights
As an employee, you should have a written contract in place that clearly states important information about your employment such as:
- Your start date
- Working hours and rate of pay
- Usual work location
- Holiday entitlement and pay rate
- Rights around maternity/paternity/adoption leave and pay
- Rules around sickness leave and pay
- Your notice period
By law, you must be paid on average at least the national minimum wage for the hours that you work.
Current rates as of April 2024 are:
Wage band | Rate of pay |
Age 21 and over | £11.44 |
Age 18 to 20 | £8.60 |
Under 18 | £6.40 |
Apprentice | £6.40 |
Each year, the government reviews the minimum wage and may raise it (this usually happens in April). Your employer has to pay you in line with the new minimum wage once it has come into force – they have no choice about this. The new rate of pay is usually in the next wage cycle after the changes come in (for monthly paid employees that usually means the following month).
The apprentice rate applies if you’re an apprentice:
- Below the age of 19
- Aged 19 or over (and in the first year of your current apprenticeship agreement)
If you are 19 or over and have completed the first year of your current apprenticeship, you should be paid at least the minimum wage for your age.
You are also entitled to paid holidays throughout each year. Basic holiday entitlement is 5.6 weeks of paid leave. For an employee who works 5 days per week this is 28 days per year. Part-time employees are also entitled to holiday pay, which is usually calculated on a pro-rata basis. Workers and zero-hours contract employees also get holiday pay which is sometimes calculated on an ‘accrual’ basis. You can read more about how holiday pay is calculated here.
You are also entitled to additional rights, such as:
- Feeling safe at work and protected from harm – employers must conduct risk assessments and put controls in place to protect workers. They must also provide basic welfare facilities.
- Protected from unfair dismissal – you must have worked for your employer for a minimum period before you qualify for the right to claim unfair dismissal at a tribunal (2 years if you started after 6 April 2012, 1 year if you started before).
- Protected from discrimination and harassment – as per the Equality Act 2010.
- A notice period – this varies depending on your length of service, but you must get at least the ‘statutory notice period’ upon termination of your employment.
If your employer ignores your employee rights, you may be able to take them to an employment tribunal and they may have to pay you compensation. There may be additional fines and sanctions for employers who break the law, including imprisonment if the offence is serious, therefore it is crucial that employers understand their responsibilities.
Employer Responsibilities
Basic employer responsibilities:
Some of the main responsibilities that employers have include:
- Providing a written contract
- Paying at least the minimum wage
- Giving other benefits such as basic holiday entitlement or maternity leave
- Keeping the workplace safe (conducting risk assessments and controlling risks)
- Protecting staff from discrimination at work
- Conducting ‘fair’ recruitment
Employers should also have in place:
- An anti-bullying policy
- A grievance procedure
- A disciplinary procedure
It is recommended that employers periodically monitor and review any policies and procedures that they have in place to ensure compliance with law and legislation, as well as to uphold best practice.
Health and safety responsibilities:
Employers have a fundamental responsibility to support the safety, health and wellbeing of their workforce. According to Health and Safety Executive (HSE) guidance, they must provide welfare facilities and a working environment that is healthy and safe for everyone in the workplace (including disabled people).
Minimally, employers must provide:
- Welfare facilities – enough toilets and washbasins (for the number of people using them), drinking water and a place to rest and eat meals.
- A healthy working environment – a clean workplace with a reasonable working temperature (usually at least 16 degrees), good ventilation, suitable lighting and the right amount of space and seating.
- A safe workplace – equipment that is fit for purpose and well-maintained, with no obstructions in floors and traffic routes, and windows that can be easily opened and cleaned.
To remain compliant as an employer, you should be familiar with all of the key pieces of legislation that relate to employment law, including workplace health and safety, for example:
- The Health and Safety at Work Act 1974
- Provision and Use of Work Equipment Regulations 1998 (PUWER)
- Personal Protective Equipment Enforcement Regulations 2018
- The Manual Handling Operations Regulations 1992 (MHOR)
- Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 1995
Fair employment practices:
Employers must pay their employees at least the national minimum wage (whether they are an employee or a worker). You must do this regardless of the size of your business or how many hours the individual works for you.
Minimum wage applies to all employees and workers, including:
- Agency workers
- Agricultural workers
- Apprentices
- Casual labourers, e.g. someone hired for one day
- Casual workers
- Employees on probation
- Foreign workers
- Home workers
- Offshore workers
- Seafarers
- Workers paid by commission
- Workers paid by the number of items made (piece work)
- Zero-hours workers
The only types of workers that are not covered are those who are:
- Self-employed (by choice)
- A volunteer (by choice)
- A company director
- In the armed forces
- Doing work experience as part of a course
- Work shadowing
- Under school leaving age
As an employer, you should also ensure that your employees and workers have received adequate training for their job role. Ensuring that everyone has had the correct training and that their roles and responsibilities are clearly defined, makes for a more productive workplace where there are fewer disputes and grievances. If a dispute or formal grievance does occur it is vital that it is handled:
- Fairly
- Compliantly
- In line with company policy
As an employer, you must not treat people who have a protected characteristic, as listed in the Equality Act 2010, in an unfair or unjust way as this could be seen as discrimination or victimisation.
Dispute Resolution
Sometimes conflict occurs in the workplace. There are different types of conflict and it is important that employees and employers understand the different terms:
- Workplace dispute – a general term for a conflict at work between colleagues.
- Grievance – when an employee raises an issue, problem or concern with their employer.
- Disciplinary – when an employer raises concerns about an employee’s behaviour, performance or commitment.
All workplace disputes should be treated seriously and dealt with quickly before the situation escalates. If you have to raise a disciplinary against an employee, you need to handle it in line with guidelines or you could be penalised later on if your employee appeals the decision.
The Advisory, Conciliation and Arbitration Service (Acas) Code of Practice clearly sets out the correct disciplinary procedures that businesses should be following:
- Step 1: Understanding the options
- Step 2: Following a fair procedure
- Step 3: Carrying out an investigation
- Step 4: The hearing
- Step 5: Deciding the outcome
- Step 6: After the disciplinary
If you are an employer, you need to ensure that you follow each step of the disciplinary procedure and act with fairness and transparency. You should notify the employee concerned as soon as possible and communicate any delays, clearly document your findings and allow them a right of reply. If you decide to take punitive action such as dismissal or a formal warning, it should be proportional to the issue raised. Remember that your employee is allowed to appeal any decisions made.
If you are an employee and feel that you have a case to raise against your employer there are different ways to try to solve it:
- Raising the issue informally by having a chat with your line manager, boss or HR and allowing them to sort it out.
- Using formal internal procedures (such as company grievance procedure) by putting something in writing as an official grievance.
- Using Acas’ early conciliation services to get disputes resolved fast and free without going to court.
- Using mediation services – a mediator is a third party that can help both sides of the dispute to reach a resolution that is mutually acceptable. Mediators facilitate dialogue between parties but they aren’t responsible for making decisions on the outcome.
- Arbitration services – some disputes are suitable for arbitration. This is when a third party makes a decision about a dispute to resolve it. Both sides must agree to arbitration.
- Employment tribunal – if nothing else has worked or your issue is extremely serious you can take your employer to court. This is known as an employment tribunal. You must notify Acas before you make a claim to an employment tribunal.
It is always best to try to resolve disputes amicably and in the best interests of all parties concerned. Ignoring disputes or allowing them to carry on makes for a poor working environment and causes damage to working relationships.
Recent Developments and Trends
Several changes in employment law that came into effect recently include:
Changes to flexible working
Flexible working is a way of working that suits an employee’s needs. This could be allowing them to have flexible start and finish times, or letting them work from home.
- Employees can now make two rather than one request per year for flexible working
- The deadline for employers to respond to requests has been reduced from three to two months
- Employers will also have to explain the reasons for denying any request
- Employees no longer have to explain the impact of their request
- Employees can now request flexible working arrangements from day one of their employment
Changes to paternity leave
Paternity leave is an employee benefit that allows a parent to take paid time off after their child is born.
- Paternity leave can now be split into two one-week blocks rather than being taken consecutively
- Paternity leave can now be taken any time within the first year after a baby is born, rather than only in the first 8 weeks after birth
Further protection from sexual harassment
An amendment to the Equality Act called the Worker Protection Act 2023 is due to come into effect later this year and outlines an employer’s duty to prevent sexual harassment of employees.
The end of zero hours?
The Labour government which came into power in July 2024 have been vocal about their intention to outlaw controversial zero-hours contracts:
- Around one million workers are currently on zero-hours contracts
- The Trade Union Congress (TUC) has described zero-hours contracts as ‘exploitative’
- The Workers (Predictable Terms and Conditions) Act 2023 is an amendment of the Employment Rights Act that strengthens a worker’s right to request a ‘more predictable’ working schedule
- The Labour government are making plans to go a step further with the Employment Rights Bill, which will give workers the right to a contract that accurately reflects the number of hours they usually work
- Zero hours are to be ‘opt-in’ only so that they can only be given to workers who want them due to their flexibility and can’t be forced on anyone
Best Practices for Compliance
Tips for employers to remain compliant with employment law include:
- Stay up to date with current law and legislation, including proposed changes
- Consult with HR professionals, Acas or legal representatives to get expert advice
- Ensure you have adequate policies and procedures in place (draft templates are available online)
- Use fair recruitment practices
- Avoid cutting corners
- Make a genuine commitment to upholding good health and safety practices
- Ask for feedback from employees to gauge workplace satisfaction and avoid disputes
- Be organised and keep clear documentation
- Lead by example
Tips for employees to avoid exploitation and disputes:
- Know your legal rights and how to exercise them
- Raise issues with your employer as soon as possible and allow them to put things right before escalating them
- Contact Acas if you have any concerns about treatment in the workplace
- Play your part in keeping the workplace safe, engage with training, use PPE and equipment responsibly and report near misses
- Comply with company policy and procedure as far as possible
Conclusion
Employment law exists to protect both employees and employers, to provide guidance on how to handle problems at work and to keep everyone safe. Consider seeking expert advice if you have any concerns relating to employment law or if you feel an employer has treated you unfairly.
Resources and Further Reading
If you are interested in reading more about employment law, the history of the minimum wage or becoming a better boss, you may find some of the following books interesting:
- Your Rights at Work: A Complete Guide to Employee Rights and Employer Responsibilities (2021) by Trade Union Congress (TUC)
- How to Be a Great Boss (2016) by Gino Wickman and Rene Boer
- Butterworths Employment Law Handbook 32nd edition by Georgina Leadbetter, David Reade KC and Grahame Anderson
- A Fair Day’s Wage for a Fair Day’s Work?: Sweated Labour and the Origins of Minimum Wage Legislation in Britain (2013) by Sheila Blackburn
- Law Express: Employment Law (2021) by David Cabrelli
If you prefer listening to podcasts, you may enjoy:
- The Travers Smith Employment Law Bitesize Series – the Travers Smith employment team bring you episodes on key areas of UK and international employment law. Episodes cover a range of topics from redundancies and discrimination to disciplinary hearings.
- Daniel Barnett’s Employment Law Matters – hosted by an employment law barrister, this podcast features weekly episodes dedicated to different aspects of employment law from dealing with drugs and alcohol in the workplace to avoiding unfair dismissal pitfalls.
- The Brightmine Podcast – Xpert HR is now Brightmine. This podcast brings you employment law guidance, HR best practice and insights from the UK’s leading online HR resource.
As an employee, to strengthen your employment law rights and responsibilities, you may want to explore the benefits of joining a union. For example:
- Trades Union Congress (TUC)
- UNISON
- Unite the Union
For free and impartial advice from the workplace experts, both employees and employers can contact Acas for advice on employment law, HR processes and good practice in the workplace.
If you want to further your understanding of employment law you may be interested in signing up to our CPD registered Employment Law course here. The course is made up of 5 units, takes around 3 hours to complete and provides an overview of the fundamentals of employment law, including:
- Unit One: Introduction to Employment Law
- Unit Two: Recruiting and Inducting/Onboarding Staff
- Unit Three: Working Arrangements and Employee Leave Entitlements
- Unit Four: Disputes, Discipline and Grievance Procedures in the Workplace
- Unit Five: Employment Terminations and Pensions
Upon successful completion of the course, you will earn 3 CPD points and receive a certificate of completion.
Employment Law
Just £20
Study online and gain a full CPD certificate posted out to you the very next working day.