Kara Sears
UK employment law is designed to protect employees' rights and ensure dignified living standards. It safeguards workers from discrimination and harassment based on protected characteristics, grants them freedom of association, and ensures they receive reasonable notice before dismissal. Employers must also enrol eligible workers in a workplace pension scheme. The UK's well-developed legal system, transparent regulations, and strong financial infrastructure make it a favourable location for global companies. However, employers must navigate UK employment laws to ensure compliance. In 2025, the UK's employment law underwent significant changes, enhancing workers' rights and increasing compliance burdens on businesses.
| Characteristics | Values |
|---|---|
| Safeguarding employees and workers from workplace discrimination | Protection against direct or indirect discrimination and any type of harassment based on protected characteristics, such as age, disability, gender reassignment, pregnancy, race, sex, sexual orientation, marriage or civil partnership status, religion, or belief |
| Notice period before dismissal | Employees are entitled to reasonable notice before dismissal, and in principle can only be dismissed for a fair reason. The notice period is set out within the employee's contract and must be no less than the statutory entitlement of one week for each year of employment, up to 12 weeks. |
| Redundancy | Employees with over two years of service who are dismissed due to redundancy are entitled to redundancy pay. Employees are also entitled to redundancy pay if their job is no longer economically necessary. |
| Union membership | Workers have the right to join a union, and employers cannot deter or refuse employment based on union membership. |
| Written statement of employment terms | Employers must provide employees with a written statement of employment terms within two months of the start of employment. |
| Minimum wage | There are two categories of statutory minimum wage: the National Living Wage and the National Minimum Wage. |
| Holidays and breaks | Workers are entitled to paid holidays, breaks, and weekends. They must have at least 28 days or four full weeks of paid holidays each year, including public holidays. |
| Parental leave | There are provisions for unpaid carer's leave and paternity leave. |
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What You'll Learn
Safeguarding employees from workplace discrimination
UK employment law serves to protect the rights of employees and workers, while also providing provisions that enable employers to achieve their commercial objectives and protect their businesses. One of the key functions of UK employment law is to safeguard employees from workplace discrimination.
UK employment law protects employees and workers from direct or indirect discrimination, as well as harassment based on protected characteristics. These protected characteristics include age, disability, gender reassignment, pregnancy, race, sex, sexual orientation, marriage or civil partnership status, religion, or belief. The law also prohibits discrimination based on association with someone who possesses a protected characteristic. This means that individuals are protected from discrimination during all stages of employment, from recruitment to post-termination.
In the context of discrimination, "less favourable treatment" refers to any action that puts an individual with a protected characteristic at a disadvantage compared to someone without that characteristic. This could include actions such as providing application forms or aptitude tests without reasonable adjustments for disabled job applicants. It is important to note that discrimination can still occur even if the less favourable treatment was not intentional. Additionally, employers are responsible for the actions of their workers, and can be held vicariously liable for discrimination complaints and employment tribunal claims.
To ensure compliance with UK employment laws, global employers must understand their obligations when hiring British employees. For instance, while not legally obligated, providing written employment contracts is standard in the UK, and these contracts serve as a vital resource for both employers and employees in understanding their rights and responsibilities.
Furthermore, UK employment law provides specific protections for employees, such as the right to not be unfairly dismissed. Employees with over two years of service are entitled to redundancy pay, and employers must contribute to a workplace pension scheme for eligible workers. These provisions ensure that employees are treated fairly and receive the benefits they are entitled to.
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Redundancy and dismissal
Redundancy is a form of dismissal from employment that occurs when an employer needs to reduce their workforce, usually because a certain role is no longer needed. It is important to note that redundancy is not the same as being dismissed for other reasons, such as poor performance or conduct. When an employee is made redundant, it is not a reflection of their abilities or performance.
In the UK, redundancy processes must be fair and non-discriminatory. Employers must ensure that employees are not selected for redundancy based on protected characteristics such as age, gender, disability, or pregnancy. If an employee is selected for redundancy due to these reasons, it could be classified as unfair dismissal.
To ensure fairness, employers should consider alternatives to redundancy, such as changing working hours, offering voluntary redundancy, or providing suitable alternative roles within the organisation. A consultation and selection process is often necessary, and employers should inform their staff as soon as possible about potential redundancies, explaining the reasons and exploring options together.
Employees with over two years of service who are dismissed for redundancy are entitled to redundancy pay. The amount of pay depends on the employee's age and length of service. For those under 22 years old, they receive half a week's pay for each full year of service. For employees aged 22 to 41, it is one week's pay per year, and for those over 41, it is one and a half week's pay per year, with a cap of 20 years of service for redundancy pay calculations.
In the case of more than 20 redundancy dismissals, employers must engage in collective consultation and notify the UK Secretary of State. Failure to do so can result in significant financial penalties and even criminal charges. Employees who believe they have been unfairly selected for redundancy or their employer has not followed a fair process can seek advice from Acas (Advisory, Conciliation, and Arbitration Service) or Citizens Advice. They may also have the right to claim unfair dismissal at a tribunal if they have worked for the employer for two years or more.
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Holiday pay and breaks
UK employment law protects employees' rights and commercial interests. For instance, employees are protected from workplace discrimination based on age, disability, gender, race, sex, etc. Employees with over two years of service also have a statutory right to not be unfairly dismissed.
In the UK, almost all workers are entitled to 5.6 weeks of paid holiday each year, also known as statutory leave entitlement or annual leave. This amounts to 28 days of paid leave for those working 5 days a week. Part-time workers who work regular hours throughout the year are entitled to at least 5.6 weeks of paid holiday, but this will be fewer than 28 days. For instance, if they work 3 days a week, they are entitled to at least 16.8 days of leave per year.
The UK government introduced new regulations in January 2024, which included changes to the definition of a week's pay for holiday pay calculations. From 1 April 2024, holiday entitlement for irregular hours and part-year workers will be calculated as 12.07% of actual hours worked in a pay period. This means that these workers will accrue holiday entitlement as they work, rather than receiving it upfront at the beginning of the year.
Employers can choose to include bank holidays as part of a worker's statutory annual leave. They can also offer more leave than the legal minimum and apply different rules to this extra leave. It is important to note that bank holidays do not have to be given as paid leave, and employers do not need to provide paid time off for these days unless they make up the overall annual leave entitlement.
In terms of pay, workers are entitled to a week's pay for each week of statutory leave they take. The 'normal' rate of pay includes commission, regular overtime payments, and any payments related to length of service or professional qualifications. It does not usually include bonus payments. Employers can use 'rolled-up' holiday pay, where holiday pay is included in the basic pay, for irregular hours and part-year workers. However, this practice is not allowed for regular-hours workers.
If a worker believes their rights to leave and pay are not being met, there are several ways to resolve the dispute. They can use the holiday entitlement calculator to estimate their leave entitlement and contact the Advisory, Conciliation, and Arbitration Service (Acas) for guidance on general holiday pay issues.
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Trade unions
The history of trade unions in the UK dates back to the early 19th century, facing punitive laws initially before being decriminalised in 1867 and legalised in 1871 with the Trade Union Act. The Trade Union Movement sought to improve socio-economic conditions for working men in British industries. Union membership grew rapidly from 1900 to 1920, and they became well-established by the 1920s, with many members supporting the Labour Party.
However, during the 1980s, Margaret Thatcher's Conservative government viewed trade unions as an impediment to economic growth and passed legislation to weaken their powers, making it more challenging to strike legally. This led to a steep decline in union membership, especially in traditional industries like steel, coal, printing, and docks.
Today, trade unions continue to play a crucial role in employee representation, alongside works councils and employee representatives. They have the right to appoint health and safety representatives and are consulted on related matters. Employees have the right to be accompanied by a union representative or official during disciplinary and grievance hearings.
Trade union law in Great Britain is primarily governed by the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992), which has been amended over time, most recently by the Trade Union Act 2016. While union membership has been on a downward trend, it has been gradually rising since 2012, with 6.44 million members in 2019 and 6.55 million in 2022.
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Statutory minimum wage
Employment laws in the UK are designed to safeguard employees and workers from workplace discrimination, including direct or indirect discrimination, and any type of harassment based on protected characteristics such as age, disability, gender, pregnancy, race, sex, sexual orientation, marriage or civil partnership status, religion, or belief. These laws also protect employees from unfair dismissal and ensure they receive certain benefits, such as redundancy pay and pensions.
The National Minimum Wage (NMW) is the minimum amount per hour that most workers in the UK over the compulsory school leaving age are legally entitled to be paid. The hourly rate for the minimum wage depends on the worker's age and whether they are an apprentice. The rates change on 1 April every year.
From April 2025, the UK minimum wage for adults over the age of 21 will be £12.21 per hour. For the 2025/26 financial year, there will be four minimum wage categories: three based on age and one for apprentice workers. Apprentices and workers under the age of 18 will have a minimum wage of £7.55 per hour, increasing to £10 for those aged 18 to 20.
The National Living Wage (NLW) is for those aged 21 and over. From April 2025, apprentices under the age of 19 or aged 19 or over and in the first year of their apprenticeship are entitled to a minimum hourly rate of £7.55. This rate does not apply to Higher Level Apprenticeships.
If an employee's accommodation is provided by their employer, the value of this can be counted towards their NMW pay. This is called the accommodation offset. The employer cannot count more than the accommodation offset rate, which is £74.62 per week (£10.66 a day) from April 2025.
If an employee believes they are not receiving the minimum wage they are entitled to, they should first talk to their employer. If this does not solve the problem, they can ask their employer in writing to see their payment records, which must be produced within 14 days. The employee can take someone with them to inspect the records, as long as their written request states this, and they can copy the records. If the issue is still not resolved, the employee can report it online to HMRC, who will investigate. The employee can remain anonymous to their employer and can report them even if they no longer work for them.
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Frequently asked questions
Employment law in the UK exists to protect employees' rights and ensure they have dignified living standards. It also contains provisions to help employers achieve their commercial objectives and protect their business interests.
UK employment law grants employees the right to paid holidays, breaks, and weekends. It also protects employees from workplace discrimination, including direct and indirect discrimination, and any type of harassment based on protected characteristics such as age, disability, gender reassignment, pregnancy, race, sex, sexual orientation, marriage or civil partnership status, religion, or belief. Employees are also entitled to reasonable notice before dismissal and redundancy payments if their job is no longer economically necessary.
One key difference is that the UK does not recognise the concept of "at-will" employment, meaning employers cannot dismiss employees without notice and must have a good, justifiable reason for termination. Another difference is that UK employment law provides for pre-termination negotiations, allowing employers to agree on an early exit with an employee in exchange for a financial package.
