Anaya Nolan
The history of labour law in the United Kingdom dates back to Roman and medieval times, but its evolution has been particularly prominent since the 19th century, when employees were considered servants to their 'master' employers with minimal rights and protection. Over time, UK employment law has undergone significant changes, addressing issues such as wage fairness, health and safety, union representation, and anti-discrimination. The UK's relationship with the European Union and its legislation has also influenced the development of UK employment law, with the country's departure from the EU in 2020 leading to new considerations and reforms. Today, employment law in the UK is set by the UK government or devolved, with Great Britain (England, Scotland, and Wales) largely reserving matters, while Northern Ireland devolves most areas of employment law.
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Labour law history
Labour law in the United Kingdom has a long history, dating back to Roman and medieval times. Before the Industrial Revolution, the regulation of workplace relations was based on status rather than contracts or trade unions. Serfdom was the prevailing status for most people, except artisans in towns who had some self-regulation through guilds. The Act of Apprentices 1563 mandated that wages in each district be assessed by justices of the peace.
In the 19th century, employees were considered servants to their 'master' employers, with little to no employment rights or protection. Acts such as the Master and Servant Act 1867 and the Employer and Workman Act 1875 recognised the need for greater protection of workers' health and safety and the prevention of unfair wage contracts.
The 20th century saw the introduction of various acts and reforms, including the Trade Boards Act 1909, which set minimum wages for different sectors. The first anti-discrimination statutes emerged in the 1960s, focusing on gender and race, followed by prohibitions on discrimination based on disability in 1995, sexual orientation and religion in 2003, and age in 2006. The Contracts of Employment Act 1963 granted workers a growing list of minimum statutory rights, such as reasonable notice before dismissal and redundancy payments.
The UK joined the EU's Social Chapter in 1997, which has been a significant source of reform for UK labour law. The National Minimum Wage Act of 1998 established a country-wide minimum wage. The Employment Relations Act 1999 introduced a procedure requiring employers to recognise and bargain with unions.
In 2010, the Equality Act unified anti-discrimination laws, providing comprehensive protection in the workplace. In recent years, there has been a focus on enhancing workers' rights, with significant employment law reforms promised by the new Labour Government for 2025-2026, including changes to HR processes, employee relations, and compliance enforcement.
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Discrimination laws
The UK's employment law has evolved from Roman and medieval times to the present day. The first statutes to prohibit discrimination emerged in the 1960s, focusing on gender and race. The UK's equality legislation has been unified under the Equality Act 2010, which replaced previous anti-discrimination laws with a single Act. This Act makes it unlawful to discriminate against people with 'protected characteristics' in employment, as well as in wider society.
Protected Characteristics
The Equality Act 2010 protects people from discrimination based on the following characteristics:
- Age
- Disability
- Gender reassignment
- Marriage and civil partnership
- Race
- Religion or belief
- Sex
- Pregnancy and maternity
- Sexual orientation
History of Discrimination Laws in the UK
The UK's history of discrimination laws can be traced back to the 1960s, when the Civil Rights Act was passed in the United States. Following this, the UK introduced its first statutes prohibiting discrimination on the grounds of race in 1965, gender in 1975, and disability in 1995. The Equality Act 2006 established a new Equality and Human Rights Commission, which focused on research, promotion, raising awareness, and enforcement of equality standards.
In 2003, discrimination on the grounds of sexual orientation and religion was prohibited. In 2006, age discrimination was also included in the Equality Act. The UK joined the Social Chapter of the European Union treaties, mirroring a series of EU Directives on equality. In 2010, the Equality Act came into force, providing a comprehensive code for anti-discrimination laws and replacing previous legislation.
Examples of Prohibited Discrimination
Prohibited discrimination can occur when individuals are treated less favourably compared to others without a protected characteristic. This can include indirect discrimination, where everyone is treated the same, but those with protected characteristics are put at a disadvantage. Harassment related to a protected characteristic and victimisation resulting from involvement in a discrimination complaint are also prohibited.
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Minimum wage
The UK's labour law has a long history, dating back to Roman and medieval times. However, the concept of a minimum wage in the UK is a more recent development.
Prior to the introduction of a standardised minimum wage, the UK had a variety of systems in place to control wages in specific industries. The Trade Boards Act of 1909 set minimum wages according to the needs of different sectors. This was followed by the Wages Councils Act of 1945, which applied sectoral minimum wages. These councils were gradually dismantled, and the final 26 were abolished in 1993, leaving many workers vulnerable to low pay.
The National Minimum Wage Act of 1998 was the first time a standardised minimum wage was introduced in the UK. It established a country-wide minimum wage, set at £3.60 per hour, with a reduced rate of £3.00 for workers aged 18-21. This act was significant as it aimed to address the issue of poverty pay and ensure that earnings provided a living wage. The minimum wage rates are reviewed annually by the Low Pay Commission, which advises the government on any necessary changes.
Since its introduction, the National Minimum Wage Act has undergone several adjustments. In 2004, a rate for 16-17-year-olds was introduced, and in 2010, a separate apprentice rate was added. The minimum age threshold has also been adjusted over time, with the most recent change being the inclusion of workers over 21 in the National Living Wage from April 2024.
The minimum wage has had a significant impact on low-income workers, particularly women, who comprised 70% of the beneficiaries. It has become a publicly accepted part of the UK's economic framework, with the long-term aim of ensuring that pay meets the standards of a living wage.
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Unions
Trade unions in the United Kingdom emerged in the early 19th century but were regarded as criminal organisations until the Combination Act 1825. They were decriminalised under the recommendation of a Royal Commission in 1867 and legalised in 1871. The Trade Union Movement sought to reform socio-economic conditions for working men in British industries. Unions grew rapidly from 1900 to 1920 and were well-established by the 1920s.
In the 1980s, the Conservative government under Margaret Thatcher weakened the powers of unions by making it more difficult to strike legally. Reforms to the internal structure of unions mandated that representatives be elected and that a ballot be taken before a strike. From 1980 to 1998, the proportion of employees who were union members fell from 52% to 30%. Union membership declined steeply in the 1980s and 1990s, falling from 13 million in 1979 to around 7.3 million in 2000. Membership continued to decline into the 2000s, dropping below 6 million in 2012 for the first time since the 1940s.
In 1997, the new Labour government brought the UK into the EU's Social Chapter, which has been the source of most reform in UK law since that time. The Employment Relations Act 1999 introduced a 60-page procedure requiring employers to compulsorily recognise and bargain with unions, though union membership remained at a steady 30% level. The National Minimum Wage Act 1998 established a country-wide minimum wage but did not attempt to reinvigorate the Wage Board system.
The Trades Union Congress (TUC), founded in 1867, is the principal national trade union centre in the UK. Most trade union law for Great Britain is contained in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992), which has been amended several times, most recently through the Trade Union Act 2016.
The right of workers to collectively bargain with employers for a "fair day's wage for a fair day's work" is regarded as a fundamental right in common law, by the European Convention on Human Rights Article 11, and in international law. While unions in Great Britain effectively have the freedom to take collective action, this is only in circumstances protected by domestic law. To gain protections against action in tort, unions must comply with all the statutory requirements for industrial action.
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Employment rights
The history of labour law in the United Kingdom dates back to Roman and medieval times, but the focus here is on employment rights from the 19th century onwards.
From the middle of the 19th century, there was a growing recognition that workers needed greater protection to promote their health and safety and prevent unfair practices in wage contracts. Acts such as the Master and Servant Act 1867 and the Employers and Workmen Act 1875 were passed to address these issues.
In the 20th century, the Trade Boards Act 1909 set minimum wages according to the specific needs of different sectors of work. The first statutes to prohibit discrimination based on gender and race emerged in the 1960s, influenced by the Civil Rights Act passed in the United States. The Contracts of Employment Act 1963 gave workers a growing list of minimum statutory rights, such as the right to reasonable notice before a fair dismissal and redundancy payment. Discrimination in employment was formally prohibited on grounds of race in 1965, gender in 1975, and disability in 1995.
In the 1980s, ten major acts reduced the power of trade unions, and reforms were made to their internal structure, including the requirement for representatives to be elected and ballots to be taken before strikes. From 1986, the minimum wages set by the Trade Boards Act 1909 were eroded and then repealed in 1993. The National Minimum Wage Act was introduced in 1998 to bring the UK back into compliance with international law.
In 1997, the new Labour government brought the UK into the EU's Social Chapter, which has been the source of most reforms in UK law since then. The Employment Relations Act 1999 introduced a procedure requiring employers to compulsorily recognise and bargain with unions.
In the 21st century, the Equality Act 2010 unified anti-discrimination laws, providing comprehensive protection in the workplace covering sex, race, ethnicity, sexual orientation, disability, and other factors. The Working Time Regulations 1998 limited average working time to 48 hours per week and provided rights to rest periods and breaks. The Employment Rights Act 1996 gave employees the right not to be unfairly dismissed, with a qualifying service of two years.
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Frequently asked questions
The history of labour law in the UK dates back to Roman and medieval times, but the first major labour laws were passed in the 19th century, recognising the need to protect workers' health and safety and prevent unfair wage practices.
UK employment law has evolved significantly over the years, with key developments including the Trade Boards Act 1909, which set minimum wages for different sectors, and the Contracts of Employment Act 1963, which granted workers a growing list of minimum statutory rights. In 1972, the UK acceded to the European Communities Act, and in 1997, the new Labour government brought the UK into the EU's Social Chapter, which has been the source of most reforms in UK law since.
Recent changes to UK employment law include the Equality Act 2010, which unified anti-discrimination laws, and the National Minimum Wage Act 1998, which established a country-wide minimum wage. In 2024, there were developments in holiday pay rights, equalities, paternity leave, protections for pregnant employees, and flexible working. In 2025 and beyond, the Labour Government's Plan to Make Work Pay promises significant reforms, including changes to HR processes, employee relations, and compliance enforcement.
