An Overview of Main Labour Laws in the United Kingdom

28 de April, 2023

As an HR manager or business owner in the UK, you’ll want to make sure you know the labour laws that apply in the region. Not only is it important to stay on top of data protection and working time regulations, but it’s crucial to understand the rights of your employees and how best to protect them.

It’s not easy to keep up with every change in labour law but, fortunately, Sesame has got your back. With our HR software you can keep all of your documents centralizes with the document management tool.

In this article, we’ll run through all of the laws you need to be aware of as an employer and explain how our software can help streamline your workflows so everything stays legally compliant. With our help, UK labour laws won’t have to be a headache anymore!

The Employment Rights Act 1996

As an employer in the United Kingdom, it is essential that you understand the Employment Rights Act 1996. This act sets out the basic contractual rights and obligations of employees and employers, ensuring that all workers are treated fairly and lawfully.

Here are a few important points to note:

• All workers have a right to be issued with a written statement of employment particulars no later than two months after they start work.
• Employers are required to pay workers at least the National Minimum Wage or Living Wage, depending on the worker’s age.
• Employees have the right not to be unfairly dismissed and must receive at least one week’s notice for every year worked (up to 12 weeks).
• Workers can make written requests for flexible working arrangements, which must be considered seriously by their employers.

While this is just a selection of laws from the Employment Rights Act 1996, all employers should understand that failure to adhere to these rulings can result in hefty fines or legal action. Therefore, it is vital for all business owners to familiarise themselves with their responsibilities as employers.

National Minimum Wage Act 1998

Are you an employer in the UK? Then you need to know about the National Minimum Wage Act 1998. This Act all but guarantees that no worker in the UK should be paid less than the minimum wage, which is reviewed every year and is different depending on employee age and location.

Currently, workers over 25 get a higher minimum wage rate, though that could change soon. As a business owner or HR manager, you’ll have to keep up with any changes that could affect your business.

The National Minimum Wage Act also ensures that companies are paying their employees for travel time and any work done offsite as part of their job. Not abiding by these rules can result in hefty penalties and fines so it’s best to stay current on them.

So, if you’re looking to hire employees in the UK, make sure to have a comprehensive understanding of this law and its implications for your staff.

Working Time Regulations 1998

The Working Time Regulations 1998 is legislation that covers a number of areas related to employment. Its main purpose is to limit the hours employees can be asked to work, and to make sure they have adequate rest breaks between shifts.

Under the regulations, employers are required to give all workers at least:

• 28 days of paid leave each year
• 11 consecutive hours of rest in any 24 hour period
• At least one 20 minute break if their working day is longer than 6 hours

Employers must also keep a record of their employees’ working hours, usually for two years. If employees refuse to sign it, or make false statements about their hours, employers can take disciplinary action against them. Finally, this legislation makes it illegal for employers to force their employees to work more than 48 hours a week on average (unless the employee agrees).

In short, the Working Time Regulations 1998 is set up with the intention of ensuring that employees get adequate rest and paid holidays. It’s important for employers in the UK understand this legislation and follow its guidelines when managing employee working time.

Equality Act 2010

The Equality Act 2010 is an essential law that all employers in the United Kingdom must abide by. Virtually all aspects of the employment process—including recruitment, onboarding, development, promotion should be free from discrimination.

Protected Characteristics

The Equality Act 2010 prohibits discrimination based on the following “protected characteristics”:

• Age
• Disability
• Gender reassignment
• Marriage and civil partnership
• Pregnancy and maternity
• Race (which includes nationality and ethnicity)
• Religion or belief
• Sex
• Sexual orientation

To avoid potential claims of discrimination, it’s important to make sure that your hiring processes are fair and consistent for every candidate. That’s where Sesame can help—with well-implemented HR software, you can ensure that every candidate has an equal opportunity for consideration.

Age Discrimination & Unfair Dismissal

Have you heard of the Equality Act 2010? This piece of legislation makes it illegal to discriminate against employees based on age. This means that employers can’t treat someone differently because of their age. In other words, you can’t be dismissed or treated unfairly because of your age.

There are, however, exceptions and special cases where discrimination can be allowed – but only if it is proven to be a “proportionate means of achieving a legitimate aim”. In other words, it has to be necessary for the business.

So what happens if an employee feels they have been discriminated against based on their age? They should follow the ACAS Code of Practise on Disciplinary and Grievance Procedures. That will include:

• Informing the employer about the complaint in writing
• If needed, going through a disciplinary procedure or entering into an informal discussion with their employer
• If all else fails, submitting a claim to an employment tribunal within three months of the dismissal taking place

Employers will also want to make sure they have fair procedures in place to handle such grievances – something that Sesame can help them with! With our award-winning HR software, employers have access to all the tools they need to create proper employment records and compliant policies tailored specifically for their business.

To sum up, UK labour laws are complex but critical for any employers operating in the United Kingdom. As a business owner, it is essential that you thoroughly understand the laws, and how they impact your company.

Sesame is here to help – no matter your HR needs, labour laws, onboarding, recruitment and payroll, our cloud-based software is designed to make HR easier. Get 14-day trial for free now!