Must-have
employment
LAW FACTSHEET
UK Factsheet
Introduction
In this factsheet, we set out the key employment law
obligations that all employers need to know about,
together with some likely changes on the horizon
following the introduction of the government’s
Employment Rights Bill.
Getting these things right is super important as government agencies such as HMRC
and the Health & Safety Executive have powers to investigate and prosecute employers
for breaches of employment laws, as well as employees being able to make their own
claims for non-compliance.
This can lead to hefty fines and costly legal fees, but perhaps more importantly,
can cause reputational damage and low staff morale.
Help is on hand, however, and here at Employment Hero we have a range of tools
and services to help you remain compliant. This checklist is a handy first step in helping
you understand your basic obligations and to keep you on the right side of the law.
Disclaimer: The information in this factsheet is current as at 15 May 2025, and has been prepared by Employment Hero
Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this factsheet
are general information only, are provided in good faith to assist employers and their employees, and should not be relied
on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be
accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or
fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such
data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or
inability to use any information provided in this article. You should undertake your own research and to seek
professional advice before making any decisions or relying on the information in this factsheet.
2 Employment Law Factsheet
1 Employment Law checklist 2 Employment contract
3 Minimum wage
and workplace policies
Do you understand the three categories of worker,
Do you give a written employment contract and essential Do you pay all employees and workers at least
and which category applies to each of your people? workplace policies to all new employees and workers? the minimum wage?
→
Employee - generally has a set pattern of hour s
→
Although there is no legal requirement to have
The minimum wage as of 1 April 2025 is:
(has lots of rights )
a written employment contract, all employees and
£12.21 for those 21 years above
→
Worker - generally works irregular hour s
workers are entitled to a written statement settin g
→
£10.00 for 18 to 20 year olds
(has less rights )
out the basic terms on which they are engaged such
→
£7.55 for 16 and 17 year olds
S
→ elf-employed - running their own business and c
as hours, location, pay, et
→
providing a service to you (has even less rights ) ! →
The most convenient way to issue this is to includ e
Employers are also required to provide an itemised
B it in an employment contrac t
payslip to all employees and workers and to keep
The Employment Rights ill proposes to place a ban
z
on certain types of ero hour contracts. nder the U H
→
aving an employment contract in place is best payroll records for 6 years to show that they have
practice in any event as it allows you to create
z
proposed legislation, workers on ero hour contracts
certainty around terms of conditions and wha t
been paying all staff the correct minimum wage.
have a right to be guaranteed a number of hours work ,
fi
if they work regular hours over a de ned period.
is expected of the employee before and after
t
employmen 4 Maximum working hours
H owever, workers may opt to remain on a ero hour z → Employers are also required to have certain workplace and breaks
contract if they wish to do so.
policies in place by law ie
Health and safety policy (where the business Do you ensure employees and workers do not work
has five or more employees
more than 48 hours per week unless they have opted
Disciplinary policy (unless included in
out of their rights under the Working Time Regulations
the contract The Working Time Regulations state that employees
G rievance policy (unless included i n
and workers must generally not work more than
the contract 48 hours per week, averaged over a 17 week period,
Whistleblowing policy (for listed companies, unless they have opted out of this righ
fi
public companies, certain nancia l
An opt-out agreement can be included as part
companies, etc) of an employment contrac
Employees and workers who are under 18 cannot
It is strongly advised that employers also have a number work more than 8 hours a day or 40 hours a wee
of other policies in place such as:
The regulations also have rules which state that all
→
Equal opportunitie s
employees and workers must have: a 20-minute rest
S
→
exual harassmen t
break if they’re expected to work more than 6 hours
→
Flexible workin g
during the day; a break of at least 11 hours between
→ Leave shifts; and at least 24 hours off every 7 working days
(or 48 hours every 14 working days)
3 Employment Law Factsheet
5 Leave 6 Flexible working requests 7 Discrimination and
sexual harassment
Do you understand your obligations to provide leave Do you know how to respond to a flexible Do you understand your obligations regarding
including statutory sick pay, paid annual leave and leave working request? discrimination and sexual harassment
associated with pregnancy and childbirth?
→
All employees (but not workers) are entitled to
All employees, workers and job applicants are
→
Employees are entitled to Statutory Sick Pay (SSP).
make a flexible working request from day one of
protected from discrimination on certain grounds
It is paid once an employee is sick for more than
employment. This could be to reduce their hours,
including age, disability, pregnancy, race, religion,
3 days in a row at the rate of £118.75 per week
work from home, work compressed hours, etc
sex and sexual orientatio
(as of 1st of April 2025) for up to 28 weeks
→
Employers must respond to the request in writing There are related obligations on businesses with
→
Employees and workers are also entitled to at least within two months, which can only be refused
250 or more employees to report on gender pay gaps
5.6 weeks of paid annual leave per year
on reasonable business grounds
→
All employees (but not workers) are entitled to 52 → If an employer does not handle a request in
From the 26th of October 2024, obligations regarding
weeks’ statutory maternity leave, regardless of length a reasonable manner, the employee can take them to sexual harassment were strengthened by new laws
of service, and this can also be shared with another an employment tribunal who can award compensation which require all employers to ‘take reasonable steps
parent (shared parental leave)
to prevent sexual harassment of their employees’. Aside
In the Employment Rights Bill the government is from having a robust sexual harassment policy in place
→ There are a range of other leave entitlements for
proposing to strengthen individuals’ rights to work this is also likely to mean that employers should be taking
pregnant employees and parents. Employees are also
flexibly by making flexible working the default position
additional proactive steps to stop sexual harassment
entitled to statutory maternity pay (SMP) of up
for all employees, with employers only being able to before it occurs, such as introducing mandatory training,
to 39 weeks if they have been employed for at least
object to this where it is reasonable to do so. carrying out staff surveys to identify areas of risk, having
26 weeks in the 15th week before the expected week
of childbirth multiple ways for complaints to be raised, etc.
In the Employment Rights Bill the government is The Employment Rights Bill also proposes to require
proposing to change the entitlement to SSP so companies with 250 or more employees to publish
employees get access to this on the first day of action plans to show they will deal with gender pay gaps.
sickness. They are also proposing to scrap the current
requirement that employees are only eligible for SSP
when they earn at least £125 per week.
The Bill also contains proposals to introduce protection
from dismissal for recent maternity leave returners for
six months after they return to work unless a specified
reason applies. It also proposes to make parental leave,
paternity leave and bereavement leave a right from
day-one of employment.
4 Employment Law Factsheet
8 Health and safety 10 Redundancy In order to avoid unfair dismissals, employers must
show that they acted reasonably when terminating
Do you understand your obligations regarding health
Do you understand the requirement to pay employees employment (e.g., provided previous formal written
and safety at work including having a health and safety redundancy pay when their employment ends due to warnings in a case of misconduct, allowed the
policy, carrying out regular risk assessments, displaying redundancy employee to appeal any formal decision, and generally
information and consulting staff follow the ACAS Code of Practice on Disciplinary
Employees (but not workers) who have at least two and Grievance Procedures)
All employers with 5 or more employees/workers
years of service are entitled to statutory redundancy
must have a written health and safety polic pay. This is paid in addition to the minimum notice The government’s Employment Rights Bill proposes
Businesses are also required to regularly carry out requirements
to make an unfair dismissal a ‘day one right’ meaning
risk assessments to identify hazards in the workplace employees will be able to claim unfair dismissal from the
They get start of their employment. A proposed exception will be
and appropriate ways to eliminate/minimise the
It is also mandatory to display a health and safety
that an employee will not be able to claim unfair
Half a week’s pay for each full year they were
law poster or provide a leaflet to all staf dismissal during a statutory probationary period and the
under 2
Businesses are also required to regularly consult staff government is consulting on how long this probationary
One week’s pay for each full year they were
on health and safety matters period should be.
22 or older but under 4
One and half week’s pay for each full year they
Under the Bill’s proposals employers will also be
9 Minimum notice periods were 41 or olde prevented from ‘fire and rehire’ practices, and therefore
Length of service is capped at 20 year will no longer be allowed to terminate and re-engage
Employers must also follow a fair selection
workers on less favourable terms.
Do you understand the requirements to provide all and consultation process, or else face a claim
employees with a minimum notice period when in unfair dismissal
terminating their employment
Employees with continuous employment of at least 11 Unfair dismissal Need help?
one month but less than two years are entitled to
at least one week’s notice from the employe Employment Hero has employment
Do you understand the best practice processes to follow contracts and policy templates available.
Employees with two years’ continuous employment
to avoid an unfair dismissal claim
or more are entitled to one week’s notice for each Our HR Advisory service also includes unlimited
complete year of service, up to a maximum
In most cases, an employee needs to have at least access to HR and employment law advice from
of 12 weeks’ notic two years of continuous service to be able to claim a team of experts, as well as representation in
The minimum notice to be given by an employee
unfair dismissa the event of a claim brought by an employee.
with at least one month’s continuous employment
However, certain dismissals are automatically unfair,
is one wee regardless of the length of service (eg those relating With our HR help, we can help you comply with
Workers are not entitled to be provided with any to pregnancy, certain health and safety matters or your employment law obligations and make
minimum period of notice by law trade union membership) sure your workplace is a great place to work.
5 Employment Law Factsheet
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6 Employment Law Factsheet
