There are a number of critical changes in UK employment law expected this year, and employers and employees need to be aware of them. Employment law constantly evolves to improve the rights and protections of workers while also addressing new challenges from the changing landscape of the workplace.
The responsibility of providing a fair, safe, and healthy workplace sits with employers, and they must adapt quickly to changes in their obligations and legal duties.
In this article, we’ll outline what we expect over the coming year so you can ensure your business is ready, as well as the basics of UK employment law.
Table of Contents
Minimum Wage
From this year, employees over 23 will be entitled to a higher hourly pay rate as the National Minimum Wage increases to £10.42 per hour.
Sick Pay
Statutory sick pay is also due to increase from £96.35 to £103.85. All employees who earn over £120 a week are eligible for SSP, which employers are obliged to pay if they are off work from illness or injury for up to 28 weeks.
Other Statutory Pay
Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Shared Parental Pay, and Parental Bereavement Pay are also increasing to £172.48 per week.
You can find more information about statutory pay and minimum wage on the government website.
The King’s Coronation
As with the Queen’s Platinum Jubilee and funeral last year, the government has announced an extra bank holiday to celebrate King Charles III’s coronation. The holiday is set to fall on Monday, 8th May, but whether employers are obliged to honour it will depend on their ‘Terms and Conditions of Employment’.
Right to Work
The government has recently provided more details on the appropriate ways to check new employees’ Right to Work. It specifies that employers are required to manually check the documents of all new employees.
British and Irish citizens – Right to Work Check can be done using Identity Verification Technology (IDVT) through an Identity Document Scanner Provider (IDSP).
Non-British and Irish citizens – Require a Home Office Right to Work check.
Employers can also conduct right-to-work checks via video link, but they must ensure they receive the original documentation and cannot accept scanned or faxed copies.
The Employment Bill
In 2019, the late Queen announced the Employment Bill in her annual speech. The bill was intended to further support workers and families with some significant employment law reforms. Unfortunately, the bill lost momentum during the pandemic, but recently some of the changes have appeared on private member bills.
These are some of the changes we might see this year:
- The right to flexible working from day one.
- Neonatal leave and pay.
- Carer’s leave.
- Protection against redundancy for pregnant employees.
- Allocation of tips in full.
- Placing a legal duty on employers to prevent sexual harassment in the workplace.
UK Employment Laws Definition
UK employment laws govern the relationship between an employer and an employee. They take into account existing employee rights and establish the work environment you must provide as an employer. This includes how much you pay your employees, leave and sick pay obligations, and the provision of a safe working environment. UK employment laws also regulate various HR processes, including hiring and recruitment, promotions, trade unions, workplace grievances and employment termination.
It is important to have a firm grasp on all your legal obligations. You also need to make sure you are up to date with any changes as and when they are published by the government. The best way to do this is to conduct compliance audits on a monthly or annual basis. Failure to do so could result in a number of tribunal claims and put you at risk of penalties or even imprisonment.
List of UK Employment Laws
- Employment Rights Act 1996: covers the rights of employees relating to employment contracts, unfair dismissal, parental leave, and redundancy.
- National Minimum Wage Act 1998: establishes the current NMW for employees in the UK. Reviewed regularly by the government in line with inflation.
- Employment Relations Act 1999: establishes the right of employees to trade union recognition, derecognition, and industrial actions.
- The Maternity and Parental Leave etc. Regulations 1999: governs the rights of employees to time off for parental duties.
- Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000: protects the rights of part-time workers so that they are entitled to the same treatment as full-time employees doing the same job.
- Agency Workers Regulations 2010: prevents discrimination against agency workers relating to pay, holiday entitlements and safe working conditions.
- Transfer of Undertakings (Protection of Employment) Regulations 2006: ensures employee rights during business transfers.
Other Important Legislation in the UK
To sum up, aside from UK employment laws, you also need to be aware of the following UK legislations:
- Equality Act 2010: prevents discrimination in the workplace and the recruitment process. Forms the basis of anti-discrimination laws in the UK.
- Bribery Act 2010: covers the criminal law relating to any act of bribery.
- Data Protection Act 2018: regulates how you store employee and customer data.
- Working Time Regulations 1998: covers a number of employee rights, including the right to a minimum of 5.6 weeks’ paid annual leave each year and the 48-hour average working week restriction.
- The Health and Safety at Work etc Act 1974: ensures the protection of employee health, safety and welfare in the workplace.
Finally, you also need to be aware of any upcoming changes to UK employment laws. For example, an upcoming new employment bill will bring a number of changes to current employment law. Firstly, there will be a new right to request a more predictable and stable contract after 26 weeks’ service (aim at zero-hours employees). Secondly, there will be extended rights to neonatal leave and pay. Finally, there is also likely to be a job retention scheme update (Coronavirus Job Retention Scheme). Other aspects including Brexit laws, IR35 latest news (off-payroll working) and changes to immigration law UK also need to be considered.
Employment Law FAQs
What is an Employment Contract?
An employment contract is an agreement between an employer and employee, outlining the latter’s terms of employment. In other words, it forms the basis of the legal relationship between both parties. An employment contract contains a number of rights and obligations. These include statutory obligations (such as the right to be paid the National Minimum Wage and the right to paid holidays) and any additional rights granted by the employer.
Although usually formalised in writing, UK law states that, under certain circumstances, a verbal agreement constitutes an employment contract (more common in smaller, less formal companies). However, this puts you at risk of potential disputes in the future so you should ensure all terms are agreed in writing before you onboard a new employee.
Why Do Employment Laws Exist?
Employment laws aim to ensure fairness in all areas of a company. Consequently, they protect an employee’s rights and safeguard companies against potential tribunal disputes. In short, they exist to regulate the relationship between employer and employee so that both parties are aware of their rights and obligations.
In addition, by complying with UK employment laws you can ensure that you provide all employees with a safe and fair workplace where they are free from discrimination. This will help you build a happy, valued and productive workforce.
What Do UK Employment Laws Cover?
UK employment laws aim to provide fairness for all. They cover a wide range of issues relating to the working environment, including:
- Discrimination based on age, race, religion, sexuality or gender
- Bullying and harassment
- Disability
- Employment contracts
- Equal pay
- Holiday pay
- Minimum wage
- Parental leave
- Redundancy
- Working hours
- Dismissal and employee grievances
Written by Cat Symonds and Jessie Curnock; Edited by James Fisher
