What do you need to know about English employment law? Here are some key pointers.
Individual vs collective
Unlike many other jurisdictions the relationship with the employee is typically governed by the individual contract of employment and rights tend to be based on the individual rather than the collective. There are some important exceptions to this rule such as where a large-scale redundancy or restructuring exercise is being carried out.
Contracts and Policies
We love them. Rights and obligations, processes and procedures are usually set out in writing in the form of contracts and policies. There are certain minimum statutory requirements regarding the content of the employment contract. As the contracts and policies form the keystone of the relationship it’s important to get them right.
Employment Status
The rights that an individual has will depend on their employment classification. Under English law an individual can be an employee, a worker or a self-employed contractor. All employees are also workers but not all workers will be employees. Only employees will have rights to claim unfair dismissal, to be paid a statutory redundancy payment and to take certain types of family leave. The rules around classification are complex and advice should be taken if there is doubt over the correct status.
Minimum Insurance and Benefits
All employers in England must hold employer’s liability insurance with cover of at least £5 million. This insurance will help employers pay compensation if an employee is injured or becomes ill because of the work they do for the employer. There are no other mandated insurances. However, under the auto-enrolment regime all employers in the UK are required to automatically enrol eligible workers in a workplace pension scheme and pay minimum contributions into the scheme.
Termination of Employment
There are statutory minimum periods of notice for employer and employee and these vary depending on length of service.
In addition, employees who have at least 2 continuous years of service have the right not to be unfairly dismissed. The key elements for a fair dismissal are that the dismissal must be for a fair reason and the employer must have acted reasonably in dismissing the employee for that reason. Potentially fair reasons include: capability, conduct, and redundancy. The 2-year rule does not always apply: certain dismissals are automatically unfair. For example, dismissals relating to the employee’s pregnancy, certain health and safety matters, trade union membership and trade union activities.
European Law
Employees in England have acquired additional rights (and employers have acquired additional obligations) as a result of European law, particularly in the areas of discrimination, equal pay, « family-friendly » rights and working time. Brexit means that the UK is now able to amend EU-derived rights; however, so far only minimal changes have been proposed and English employment law continues to conform to European standards.
