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UK employment law governs everything from employment status and contracts to pay, discrimination, dismissals and health and safety. Understanding these rules helps businesses stay compliant, avoid tribunals, and build productive, legally sound workplaces - especially as legal reforms continue post-Brexit.

A clear overview of UK employment law, including contracts, worker rights, discrimination, dismissals and more.

<p>There are three key sources of employment law in England and Wales: common law principles derived from case law, statute (e.g. legislation such as the <a href="https://www.legislation.gov.uk/ukpga/1996/18/contents" target="_blank" rel="noopener">Equality Act 2010</a>, the <a href="https://www.legislation.gov.uk/ukpga/1996/18/contents" target="_blank" rel="noopener">Employment Rights Act 1996</a>, the <a href="https://www.legislation.gov.uk/ukpga/1974/37/contents" target="_blank" rel="noopener">Health and Safety at Work Act 1974</a>), and – to some extent – European law, although this is developing at a fast pace following Brexit.</p>
<p>It’s important that businesses maintain a good grasp of employment law, as not being compliant can unravel years of hard work and be incredibly costly. It’s well known that employment can be a thorny area of law. For one, not all workers are employees, and being an independent contractor isn’t the same as being a worker. And each classification (employee, contractor, worker) affords different rights.</p>
<p>Moreover, the growth of remote and hybrid working, recent changes to the Equality Act of 2010 and the UK’s developing relationship with EU employment law (as mentioned above) have all expanded the rulebook.</p>
<p>Understanding these rules isn’t just about avoiding fines or tribunals. It’s about building a workplace that thrives within clear, fair boundaries.</p>
<h3>Employment contracts and written statements of employment</h3>
<p>Employment contracts are the terms and conditions of employment. They protect businesses and employees while providing a blueprint for understanding the relationship between both parties. But an employment contract doesn’t always have to be in writing to exist – it can be formed as soon as an employee accepts a job offer.</p>
<p>There are certain prescribed statements of information that employers are legally required to provide: a ‘principal statement’ by the first day of employment, and a ‘written statement of particulars’ within two months of the start date.</p>
<p>Agency workers and those on zero-hour contracts are also entitled to written statements of employment particulars.</p>
<p>Failing to comply with these rules could result in an employment tribunal claim against the employers. It’s always best practice to draft a thorough employment contract that covers all legal obligations and clearly sets out the relationships between worker and employer, as well as expectations.</p>
<p>A well-drafted contract reduces misunderstandings and disputes, so it is important to invest in tailoring contracts to the business’s needs.</p>
<h3>Worker status classification</h3>
<p>Not all people who work are considered ‘employees’. Employment status falls into three main categories:</p>
<ul>
<li>Employee: entitled to full employment rights, including sick pay, redundancy protection and unfair dismissal claims</li>
<li>Worker: a hybrid status, with rights such as holiday pay and minimum wage entitlement but fewer protections than employees</li>
<li>Self-employed: independent contractors who generally have no employment rights but are entitled to contractual protections</li>
</ul>
<p>Someone’s employment status is defined by their employment contract or ‘written statement of employment particulars’, which is why it is important to get this stage right at the outset. Employers should assess roles carefully and seek legal advice when in doubt.</p>
<h3>Pay and working hours</h3>
<h4>National Minimum and Living Wage</h4>
<p>Employers must pay employees at least the National Minimum Wage or National Living Wage based on their age. Rates are updated annually, and non-compliance can result in fines, backdated payments and reputational damage.</p>
<h4>Working Time Regulations</h4>
<p>The <a href="https://www.legislation.gov.uk/uksi/1998/1833/contents" target="_blank" rel="noopener">Working Time Regulations 1998</a> impose limits on working hours and ensure employees receive adequate rest. Key obligations include:</p>
<ul>
<li>Ensuring employees don’t work more than an average of 48 hours per week, unless they opt out</li>
<li>Providing 20 days of paid annual leave plus bank holidays for full-time staff</li>
<li>Guaranteeing rest breaks for shifts lasting over six hours</li>
</ul>
<p>There is also a proposed bill before Parliament to introduce a ‘<a href="https://linnearcms.wpenginepowered.com/resources/labours-right-to-switch-off-what-we-know-so-far/">right to switch off</a>’. The UK Labour Party’s ‘Plan to Make Work Pay’ aims to give workers the right to not engage with work emails, telephone calls and messages outside of their contracted working hours, which would bring the UK’s employment law closer in line to other countries in Europe, such as France<strong>. </strong></p>
<h4>Discrimination in the workplace</h4>
<p>The Equality Act 2010 requires that a business must not discriminate against employees, workers or job applicants based on defined ‘protected characteristics’, which include age, disability, race, gender and sexual orientation.</p>
<p>Discrimination can take many forms, including direct discrimination, harassment and victimisation. To avoid legal and reputational risks:</p>
<ul>
<li>Implement clear and written equality and diversity policies</li>
<li>Train staff to prevent unconscious bias and inappropriate behaviour</li>
<li>Make appropriate reasonable adjustments for disabled employees</li>
</ul>
<h4>Closing the gender gap</h4>
<p>The median difference in average earnings between men and women, around <a href="https://www.tuc.org.uk/news/tuc-gender-pay-gap-means-women-work-first-48-days-year-unpaid">13% at the time of writing</a>, is known as the gender pay gap, and the Equality Act 2010 legislates to ensure pay equity between the genders.</p>
<p>This pay gap is even larger in industries such as finance and insurance, where the gender pay gap is around 30%, and for women over the age of 40. For full time workers, as opposed to all workers, the median pay gap is smaller – <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2024" target="_blank" rel="noopener">around 7%</a>.</p>
<p>An employee may bring an equal pay claim if they feel they are being paid at a different rate due to their gender. The employer must prove that the reason for their pay disparity is not related to their gender, or otherwise must be able to objectively justify their reasoning.</p>
<h3>Managing dismissals and redundancies</h3>
<h4>Fair dismissal</h4>
<p>Employees with two years’ service or more are protected from unfair dismissal and can challenge your decision if it lacks valid grounds or a fair process. Acceptable reasons include:</p>
<ul>
<li>Poor performance or misconduct</li>
<li>Redundancy</li>
<li>Breaching legal requirements (e.g. losing the right to work in the UK)</li>
</ul>
<p>This is why it’s vital to properly classify those employed by your business – a contractor treated like an employee could demand unfair dismissal rights.</p>
<p>The qualifying period may be removed in the near future. The current government is proposing to provide day-one unfair dismissal rights.</p>
<h4>Redundancy</h4>
<p>Redundancies are always a last resort, but sometimes they are necessary for the needs of the business. If redundancies are required, businesses must ensure they comply with redundancy laws by consulting affected employees, offering alternative roles where possible, and paying statutory redundancy pay for eligible employees.</p>
<h4>Handling grievances and disciplinary issues</h4>
<p>Workplace disputes are inevitable, but mishandling them can escalate tensions and lead to tribunal claims. <a href="https://www.acas.org.uk/codes-of-practice">The ACAS Code of Practice</a> provides guidance on managing grievances and disciplinary matters.</p>
<p>Ignored issues have the tendency to escalate, and for grievances, businesses should encourage employees to raise concerns internally and resolve issues informally where possible. When it comes to disciplinary matters, try to handle misconduct or performance issues consistently, allowing employees to present their side.</p>
<p>While the ACAS Code isn’t legally binding, compliance with the ACAS Code will be considered in the case of any disputes.</p>
<h3>Work-life balance</h3>
<p>Employees who feel supported at home bring their best selves to work, and there are various provisions under UK employment law to ensure a good work-life balance for employees. Most notably:</p>
<ul>
<li>Maternity leave: up to 52 weeks, with statutory pay for 39 weeks</li>
<li>Paternity leave: two weeks for fathers or co-parents</li>
<li>Shared parental leave: flexibility to split 50 weeks between parents</li>
<li>Flexible working: employees with 26 weeks of service can request this. An employer must deal with requests in a ‘reasonable manner’, and denying these requests could lead to cases being brought before tribunals</li>
</ul>
<h3>Health and safety</h3>
<p>Under the Health and Safety at Work Act 1974, it is an employer’s duty to protect employees from harm. This includes:</p>
<ul>
<li>Conducting regular risk assessments</li>
<li>Providing proper training and equipment</li>
<li>Addressing hazards proactively</li>
</ul>
<p>Neglecting health and safety is a false economy. Accidents can cost far more – financially and reputationally – than prevention.</p>
<h3>Immigration and right-to-work checks</h3>
<p>Right-to-work checks are mandatory processes under immigration law that oblige employers to verify a potential employee’s right to legally work in the UK before starting a job.</p>
<ul>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/labours-new-employment-rights-bill/">Labour’s new Employment Rights Bill</a></li>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/labours-right-to-switch-off-what-we-know-so-far/">Labour’s ‘right to switch off’: what we know so far</a></li>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/employment-law-2024-roundup-key-cases-developments/">Employment law 2024 roundup: key cases and developments</a></li>
</ul>
<p>This process involves examining immigration documents such as visas, passports or birth certificates to confirm the worker’s indemnity and right to work in the UK.</p>
<p>Not complying with these processes can result in significant fines for employers, as well as potential reputational damage.</p>
<h3>Trade Unions and Employers’ Associations</h3>
<p>Employees in the UK can be represented by a variety of organisations, including trade unions, works councils and employee representatives. These all behave in slightly different ways, and it is important for employers to understand the nuances between these different types of organisations.</p>
<p>Employees have the right to choose whether to join a trade union or similar representative body, and one of the changes being brought about by the UK Labour Party in its <a href="https://linnearcms.wpenginepowered.com/resources/labours-new-employment-rights-bill/">Employment Rights Bill</a> is to bolster the visibility of trade unions in the workplace. Employers will be obliged to inform employees of their right to join a trade union, and unions will have the right to request access to places of work for recruitment purposes.</p>
<h3>Whistleblowing</h3>
<p>The Public Interest Disclosure Act 1998 (otherwise known as the Whistleblowing Act) gives employees the right to expose fraudulent, criminal or dangerous behaviour at their workplace, so long as it’s in the public interest to do so.</p>
<p>There is a procedure set out under the Act that a worker seeking to ‘blow the whistle’ must follow. Disclosures must generally be made in good faith to the employer unless the whistleblower has genuine concerns that their employer would do nothing or possibly even destroy evidence – in these cases, there are provisions allowing employees to turn to external organisations.</p>
<h3>We can help</h3>
<p>Employment law can feel like an obstacle course set up to slow and frustrate business, but it’s one well worth mastering. A workplace with properly established terms and conditions for employees helps the business as a whole to thrive.</p>
<p>There are various changes anticipated for the employment law landscape in England and Wales owing to Labour’s proposed changes to employment law, and for more information on that, <a href="https://linnearcms.wpenginepowered.com/resources/labours-new-employment-rights-bill/">see our article on the government’s new Employment Rights Bill</a>.</p>
<p>If you would like to know more about employment law, or would like one of our corporate solicitors to help with other <a href="https://www.linnearlegal.co.uk/employment/">employment law services</a> such as drafting employment contracts, <a href="https://www.linnearlegal.co.uk/get-in-touch/">speak to a lawyer</a> at Linnear Legal today.</p>


Employment law can be complex, but it’s essential for businesses to get it right. We cover the fundamentals, from contracts and pay to employee classification and dismissals.

UK employment law: overview

Learn about the UK's employment law framework, including employment contracts, worker status and upcoming changes to the law.

UK employment law: overview | Linnear Legal

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UK employment law: overview

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