What is employment law

The government uses legislation to regulate businesses’ behaviour and prevent them from exploiting people. There are laws to protect workers employed by businesses.

Principles of employment law

The term ‘employment law’ refers to any piece of government legislation designed to protect employees from exploitation. In the UK, there are four areas of employment legislation that form the basis of employee rights in the workplace:

Recruitment, pay, discrimination and health and safety

recruitment – this legislation outlines what employers can and cannot do when recruiting staff, and what their responsibilities are once a job offer has been made
pay – this legislation covers pay and is designed to ensure that the pay workers receive is above a set minimum level
discrimination – this area of employment law is designed to ensure that employers treat all people fairly
health and safety – legislation around health and safety is designed to keep employees safe while they are at work

Recruitment

When recruiting new staff, employers need to make sure that they are complying with any relevant government legislation during each stage of the process.

While recruiting new staff

During this stage, businesses must consider the Equality Act (2010), which requires employers to treat people fairly and not discriminate in any way. This means, for example, that a business cannot advertise a vacancy as only being open to people under the age of 30.

Recruiting involves collecting and using personal data, so businesses also need to ensure they are complying with the Data Protection Act (2018). All candidates applying for a job must give permission for their personal information to be used. They can also ask the business to delete any information that the business holds on them – for example, if they were unsuccessful in their application.

Once new staff have been recruited

When an employee starts a new job, the Employment Rights Act (1996) requires that they are provided with a written statement outlining the details of their employment within two months of them starting. This written statement must include basic details, such as:

the job title and place of work
the date the employment started
the hours of work
the salary or wage

The Pensions Act (2008) may require new staff to be enrolled into a pension scheme. Both the business and the employer will make contributions to the scheme.

Pay

There are two significant laws that determine what businesses must and must not do when it comes to paying their workers. These are the National Minimum Wage Act (1998) and the Equality Act (2010).

What businesses must do

Under the National Minimum Wage Act (1998), all businesses must pay their staff a minimum hourly rate. There is no exemption for small employers or discounts for geographical areas. The aim is to increase the incomes of the low paid. The rates are set each year by the government.

For people aged 16 to 24, this is called the national minimum wage. It varies according to different categories (under 18, over 18, over 21 and apprenticeships).

For people aged 25 or over, it is called the national living wage.

What businesses must not do

The Equality Act (2010) makes it illegal for a business to pay people different rates of pay if they are doing the same job or similar jobs. This means, for example, that a business cannot pay a male member of staff more than a female member of staff if they are employed in the same role.

When opening up recuritment The XL team will have identified areas within the organsiation and set out the required skills for the role.

By ensuring the job description is accurate and reflective of the job role. Team XL will attract the right candiates.

Throughout the recuitment process the XL Team will ensure we only hire the most qualifed person.

Discrimination

The Equality Act (2010) is designed to prevent discrimination on a number of grounds. These grounds are called ‘protected characteristics’ and include

A provision criterion or practice (PCP) is a legal term used in discrimination law.

The employee must be able to prove that the PCP, when applied to them, puts them at a disadvantage because of their race, sex, age etc.

The Equality Act does not define “provision criterion or practice”. This means it can have a very broad meaning. In reality, the the employee simply has to establish that something at work, whether it’s a rule, a practice, a requirement or a condition, puts them at a disadvantage.

A provision criterion or practice, is a rule which, when applied to all, puts certain individuals at a disadvantage. If the individual can prove this, they may be able to make a claim for indirect discrimination.

Protected characteristic

Requirements of the Equality Act (2010)

Age

No preference can be given to someone based solely on their age unless there is a specific reason for doing so, eg being old enough to hold a driving licence for a job that involves driving.

Disability

Businesses cannot discriminate against disabled people. They must also take reasonable steps to enable access to the workplace and provide any appropriate equipment that disabled people need to work.

Gender

Unless there is a specific exception (eg a school may choose to recruit a PE teacher of the same gender as the students they will be teaching), a business cannot treat men and women differently, or treat one gender less favourably.

Gender Reassignment

Gender reassignment is changing from one gender to another, and the Equality Act (2010) states you can’t treat an employee less favourably because they are trans or are associated with someone who is.

This also protects employees who have changed genders without undergoing any medical procedures. As an employer, you need to identify any measures that might put a trans employee at a disadvantage and take the necessary steps to adjust them, so those employees are equally represented

Marital status

People should not be treated differently because they are single, married or in a civil partnership.

Pregnancy and maternity

Women cannot be discriminated against on the grounds of being pregnant, or during the period following the birth of their baby.

Sexual orientation

People cannot be discriminated against on the grounds of their sexual orientation (whether they are lesbian, gay, bisexual or heterosexual). They also cannot be discriminated against if they are transgender.

Race

Discrimination on the grounds of nationality, race, colour or ethnicity is not permitted.

Religion

Discriminating against people based on their religious beliefs, including those who have no religious beliefs, is not allowed.

Health and safety

In order to prevent accidents and keep workers safe, the Health and Safety at Work Act (1974) outlines the responsibilities that both employers and employees have in keeping the working environment safe.

Employers should provide:

staff training
safety equipment, including tools and clothing where appropriate
drinking water
toilets and suitable washing facilities
first aid equipment

Employees are expected to:

complete training provided by their employer
use safety equipment tools and wear safety clothing
take responsibility for their own safety in the workplace
report any risks to their employer

In addition, the Working Time Regulations (1998, amended 2003) place limits on the number of hours that employers can expect staff to work. They also specify the breaks employees are entitled to. The regulations ensure that staff:

can only be asked to work, on average, up to 48 hours per week
are entitled to a minimum of 5.6 weeks’ holidays per year
have a minimum of one day off each week
have at least 11 consecutive hours off in every 24-hour period
take a 20-minute break when working more than 6 hours

Costs

Businesses must comply with government legislation, but this means that they incur a range of additional costs in terms of time and money. Some of these costs are incurred because of the time required to produce documents, follow procedures and make sure legal obligations are met.

Examples of these additional costs include:

Act

Example of additional costs

Health and Safety at Work Act (1974)

Supply training and safety equipment

Consumer Protection Act (1987)

Test products to ensure that they meet minimum safety standards

Employment Rights Act (1996)

Provide a written statement of employment details within two months

National Minimum Wage Act (1998)

Pay staff higher wages

Working Time Regulations (1998, amended 2003)

Employ additional staff to cover hours required

Pensions Act (2008)

Make financial contributions to employee pensions

Equality Act (2010)

Put processes in place and then check that they are being implemented

Consumer Rights Act (2015)

Check that promotional material is accurate and implement quality control

Data Protection Act (2018)

Review the data that is held, and delete it when it is no longer required

Consequences of meeting and not meeting obligations

Consequences of meeting legal obligations

Providing products and services that meet or exceed legal requirements will gain a business a good reputation for reliable and trustworthy products. As this reputation grows, sales are likely to increase, as more customers are attracted.

Complying with employment law means that staff will feel more confident that they will be safe at work and that their employer takes its responsibilities seriously. This can bring a number of benefits:

staff are more likely to work harder, which results in the business being more efficient
staff are more likely to stay working for the business, which reduces recruitment costs
the business is more likely to gain a good reputation, which makes it easier to recruit new staff

Consequences of not meeting legal obligations

Businesses that choose not to comply with the law are likely to face a number of issues:

employers could find themselves in court or an employment tribunal which means they may have to pay expensive legal fees
employers may have to pay fines and compensation if they break employment laws
The inappropriate conduct towards someone with a protected characteristics is Harrassment.
the business’ reputation could be damaged by bad publicity, which could result in a loss of sales and staff
suppliers and stakeholders may be reluctant to be associated with the business

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