10.04 – Understanding Employment Laws
All businesses operate within a legal framework, and it is crucial for owner-managers to be aware of these laws. The following sections summarize some key legal issues relevant to employment. Different types of businesses may face different legal challenges, and employment law is dynamic and subject to change.
The government website at www.gov.uk/browse/employing-people provides definitive, up-to-date guidance on current employment legislation, covering every aspect from recruiting to dismissing staff and everything in between. The Advisory, Conciliation and Arbitration Service (ACAS; www.acas.org.uk) and the British Safety Council (www.britsafe.org) are useful organizations that can help with employment issues. Emplaw (www.emplaw.co.uk) covers basic British employment law information and can direct you to a lawyer specializing in employment law.
Keeping Employment Records
Maintaining accurate records about your employees, both individually and collectively, is essential for smooth employment processes. Some records are legally required, such as accident reports, while others are invaluable in disputes, such as cases of unfair dismissal.
Individual employee records should include:
- Application form
- Interview record and results of any selection tests used
- Job history, including details of promotions and assignments
- Current and past job descriptions
- Current pay and bonus details and a record of any changes
- Details of skills and competences
- Education and training records
- Performance assessments and appraisals
- Absence, lateness, accident, medical and disciplinary records
- Holiday entitlement
- Pension contribution data
- Termination record, including details of exit interview
- Copies of any correspondence between you and the employee
Collective records should include:
- Numbers of staff, grades and job titles
- Absenteeism, staff turnover and lateness statistics
- Accident rates
- Records on age and length of service
- Wage and salary structures
- Employee costs
- Overtime statistics showing hours worked and costs
- Records of grievances and disputes
- Training records
- Gender, ethnic and disability profiles
Employees have three basic rights over the information an employer keeps in their employment records:
- To access their personal data.
- To apply for rectification or erasure of inaccurate data.
- To claim damages for losses caused by inaccurate or unauthorized use of data.
Preparing contracts of employment
You must provide employees with a written statement of certain terms and conditions of their employment within two months of starting work.
The statement should include:
- The employee's full name
- Start Date
- Pay details
- Holiday Entitlement
- Work hours
- Job title or work description
- Work location and conditions for working elsewhere
- Employment duration (if not permanent)
- Management and dispute resolution details
- Sickness or injury terms
- Pension scheme details
- Disciplinary rules
- Notice period
A contract of employment consists of four sets of terms:
- Express Terms: Specifically agreed terms, whether in writing or not.
- Implied Terms: Obvious terms that don’t need spelling out, like complying with reasonable instructions.
- Incorporated Terms: Terms from outside sources, commonly from trade union agreements.
- Statutory Terms: Work requirements laid down by law, such as safety regulations.
Working Time Regulations
The Working Time Regulations apply to staff over the minimum school-leaving age, including temporary workers, home workers, and overseas employees. Employers must keep records showing compliance with working-time limits and provide health assessments for night workers.
Recognising emergency leave
Employees have the right to reasonable unpaid leave for emergencies involving dependents, such as illness, injury, or breakdown in care arrangements. The legislation doesn’t define reasonable time off, but usually one or two days should suffice.
Avoiding Discrimination
Employers must avoid discrimination based on sex, race, age, marital status, religious beliefs, sexual orientation, or union membership.
Discrimination regulations extend to pay, training, and promotion. Victimization and sexual harassment are also forms of discrimination.
Ensure that:
- Your criteria apply equally to all.
- They don’t disproportionately affect any group.
- They can be objectively justified.
Implement an equal opportunities policy, train staff, keep interview records, take complaints seriously, and examine payroll for fairness.
Health and Safety
Employers must provide a safe and healthy environment for employees, visitors, and the public. Measures include:
- Informing the relevant organization about your business activities.
- Getting employer’s liability insurance with a minimum coverage of £2 million.
- Ensuring employees take reasonable care of their health and safety and cooperate with employer requirements.
By adhering to these guidelines, you can ensure a fair, safe, and compliant workplace that fosters a positive working environment and mitigates legal risks.
