Employment law in the UK: an essential guide for employers and HR leaders

Employment law is complex, covering everything from the minimum wage to maternity leave. As a result, it’s vital for employers and HR leaders to understand the basics.

This guide to employment law for HR professionals and employers includes everything you need to get up to speed quickly.

Let’s dive in.

What is employment law?

Employment law in the UK has been an ongoing process since the 19th century. Back then, legislation was developing into the Abolition of Slavery Act and the Factory Act 1833, which made it illegal to employ children under the age of nine.

It exists because the relationship between an employee and employer is not one which is equal in power. Employment law arose out of a need to protect employer and employee relations, and ensure people are treated reasonably and fairly.

Over the years, courts and successive governments have tried to protect employees from unfair and unsafe employment practices. That can be anything from ensuring employers give breaks and paid time off, making sure the workplace is safe, and ensuring they follow the terms and conditions of signed employment contracts.

What happens if employers don’t comply with the law?

The big difference between a worker and an employee is that a worker is not obliged to accept offers of work and therefore the work is viewed as casual.

Here’s how that difference can play out.

An employee is contracted to be in the office, working five days a week. So, unless they are unwell or have booked annual leave, they must show up. If they don’t, an employer can discipline them or even dismiss them.

However, there’s no such expectation of a casual worker. If an employer offers a worker five days’ work one week, and the worker accepts, the worker will be expected to attend work. But once that ‘assignment ends’ a worker is not expected or required to work the next week. So, if the employer offers work the following week, the worker can turn it down.

Rights for self-employed workers

When an employer commits a serious breach of contract, the employee has the right to terminate the agreement immediately by leaving their role. This is known as constructive dismissal and may form the basis for a legal claim against the employer.

Examples of breaches of express terms in the contract include:

• Failing to pay the employee as agreed
• Requiring them to perform duties not outlined in their employment contract

Alternatively, a breach of implied terms may occur if the employer creates an untenable working environment, such as:

• Allowing bullying or humiliating treatment
• Failing to provide a safe workplace

For a constructive dismissal claim to be successful, the breach must be serious enough to justify the employee’s decision to resign.

Wrongful dismissal

This is the process to be followed when an employee wants to raise a formal complaint.

A grievance procedure typically involves an employee setting out concerns in writing and sending them to the person named in the policy, who will then consider the issue at a grievance meeting and provide a written outcome, with a right of appeal.

Most issues should be resolved informally so grievances are usually serious. They can include:

• Bullying
• Discrimination
• Unfair treatment

Employers are expected to follow the Acas Code of Practices on grievances, and not doing so may result in an uplift of up to 25% of any compensation awarded to an employee.

Ignoring or mishandling a grievance can also be a basis for employment claims, such as constructive dismissal.

Working Time regulations

A protected disclosure is a qualifying disclosure made in good faith by a worker who believes it reveals serious misconduct or breaches of the law. Employers are prohibited from subjecting whistleblowers to detriment or dismissal as a result of their actions. Importantly, the usual two-year service requirement for unfair dismissal claims does not apply to cases of whistleblowing dismissal.

This legal protection ensures that employees can safely raise concerns about unethical or illegal behaviour without fear of retaliation.

Maternity and family leave

For HR professionals and employers, staying informed about maternity and family leave regulations is essential to ensure legal compliance and create a supportive workplace for employees. Family leave policies not only protect employees’ rights but also foster a culture of inclusivity and respect, which benefits overall organisational success.

What are Maternity and Paternity leave?

While statutory pay and leave provide a baseline, many employers go further by offering enhanced benefits, such as higher pay rates or extended leave periods. These benefits are often tied to conditions such as requiring the employee to stay with the company for an additional six to twelve months post-leave.

Providing enhanced benefits can:

• Boost company culture by showing commitment to employee wellbeing
• Improve recruitment by making the organisation more attractive to potential hires
• Enhance retention by fostering loyalty among current employees

Ultimately, investing in family-friendly policies is a critical part of building an inclusive workplace where parents feel supported in balancing their professional and personal responsibilities. This not only benefits employees but also strengthens the organisation as a whole.

Trade Union membership

Trade union membership gives employees the opportunity to seek support, representation, and collective bargaining within the workplace. Understanding the rights surrounding trade union membership is essential for employers to ensure compliance with employment law and foster positive employee relations.

Employee rights regarding Trade Union membership