United Kingdom

Labor Compliance Guide

Labor Requirements

The Employment Rights Act 1996 contains the primary statutory rights of employees. Other key laws affecting employment include the Equal Pay Act 1970 and the Equality Act 2010.

Hours & Pay Regulations

Normal Working Hours

The maximum workweek is 48 hours averaged over a period of 17 weeks. Certain sectors, such as transport, are exempt from the working hours restriction, as are employees who qualify as “autonomous decision makers” and are free to manage their own time. Employees may agree to “opt out” of the 48 hour maximum limit by giving written consent. Employers are required to keep certain records regarding working time.

 

Every employee in the U.K. with an employment contract longer than 26 weeks now has the statutory “right to request” flexible working arrangements. Employees can make one request in any 12­month period, and employers must make a decision within three months of receiving a request and have a sound business reason for denying it. Sound reasons include inability to reorganize work among existing staff, detrimental impact on quality or performance and insufficiency of work during the periods the employee proposes to work.

Overtime

Employers are not required to pay employees a premium for overtime work. The only requirement is that an employee’s average pay for total hours worked not fall below the national minimum wage.

Night Work

Employees may work only eight hours per night shift and must be offered free health and safety checks. Night time for work purposes is between 11.00 pm and 6.00 am, but an employer and employee can agree on a different definition. Employees who only occasionally work at night would not be considered to be night workers.

 

Night workers should not work more than an average of eight hours in each 24-hour period – excluding overtime. Employees cannot opt out of this night working limit.

Breaks

Under the Working Time Regulations, employees are entitled to:

  • A rest break of 20 minutes for every six hours of continuous work.

An employer who requires his/her employees to work during the break shall provide an equivalent period of compensatory rest to such employees. Compensatory rest breaks are the same length of time as the break (or part of it) that they’ve missed.

 

Daily Rest

The employee is entitled to daily rest of 11 hours of daily rest each 24 hr period.

 

Weekly Rest

An employee is entitled to an uninterrupted rest period of not less than 24 hours in each 7 day period during which he works for the employer. or,

 

An employee shall be entitled to either of the below rest periods:

    • 2 uninterrupted rest periods each of not less than 24 hours in each 14 day period during which he works for the employer; or 
    • 1 uninterrupted rest period of not less than 48 hours in each such 14 day period.

    Public Holidays

    Certain days that are public holidays in England and Wales are not public holidays in Scotland and vice ­versa. In the UK, bank holidays do not have to be given as paid leave. Employers can choose to include bank holidays as part of a worker’s statutory annual leave.

     

    When employees work on a national holiday, they have no statutory right to extra pay.

     

    The following are national holidays in England and Wales, but employers are not legally bound to give these days off:

    • New Year’s Day
    • Good Friday
    • Easter Monday
    • Early May bank holiday (early May, precise date varies year to year)
    • Spring bank holiday (late May, precise date varies year to year)
    • Summer bank holiday (late August, precise date varies year to year)
    • Christmas Day
    • Boxing Day

    Banking and Financial Dealings Act 1971, ch. 80; U.K. Bank Holidays.

     

    The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 (SI 2018/1378) increase the reference period used for determining a week’s pay when calculating holiday pay for workers with irregular hours from 12 weeks to 52 weeks. 

     

    From 6 April 2020, the reference period for determining an average week’s pay for Employees with variable remuneration in order to calculate statutory holiday pay will increase from 12 weeks to 52 weeks, or the number of complete weeks for which the individual has been employed if this is not yet 52 weeks. The aim is that Employees who have an irregular working pattern over the year are not disadvantaged where their holiday pay may have previously been calculated by reference to a less busy part of the year.

    Annual Leave

    Under the Working Time Regulations, full­time employees are entitled to a minimum of 28 days of paid annual leave each year. Unless the employment contract states otherwise, the annual leave entitlement includes bank holidays. Vacation pay is usually based on the average pay over the 12 weeks prior to the vacation.

     

    Payment cannot be substituted for days off except where the worker’s employment is terminated. Employees start to accrue annual leave from the start of their employment. During the first year of employment, annual leave accrues at the rate of one twelfth of a full year’s entitlement at the beginning of each month.

     

    Employees entitled to 28 days’ leave per year can carry over up to eight unused days of annual leave into the next year. The general notice period for taking leave is at least twice as long as the amount of leave a worker wants to take (e.g. 2 days’ notice for 1 day’s leave). An employer can refuse a leave request but they must give as much notice as the amount of leave requested (e.g. 2 weeks’ notice if the leave requested was 2 weeks). Working Time Regulations 1998, No. 1833; Working Time (Amendment) Regulations 2001, No. 3256; Working Time (Amendment) Regulations 2007, No. 2079; Holiday Entitlement.

     

    Every worker is entitled to 5.6 weeks’ (28 days’) annual leave under the Working Time Regulations 1998 (WTR), pro-rated for part-time Employees. However, employers should be aware that this entitlement derives from two separate regulations. The first four weeks (20 days) of this entitlement is set out under regulation 13 and gives effect to the Working Time Directive requirement. The additional 1.6 weeks (eight days) leave is covered by regulation 13A and is a matter of domestic law, being over and above the requirements of the Working Time Directive.

     

    There is a general prohibition against carrying over holiday leave so the general starting point is that if a worker has not taken their full holiday entitlement during a leave year, it cannot be carried over. However, following much case law, exceptions apply regarding the carry over rule in relation to those on sickness absence, family-related leave and those incorrectly classed by their employer as self-employed.

     

    Holiday pay

    Workers are entitled to a week’s pay for each week of statutory leave that they take.

     

    Rolled-up holiday

    Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’). A week’s pay is worked out according to the kind of hours someone works and how they are paid for the hours. This includes full-time, part-time, term-time and casual workers.

    Minimum Wage

    Effective April 1, 2021, the minimum wage in the UK is GBP 8.91/hour. 

     

     

     

     

     

    The above information on minimum wages might not be up to date & subject to change. Kindly access this link for the current rates.

    Special Leave

    Sick Leave

    An employee who earns over 113 pounds a week and is incapable of working for more than four consecutive days is entitled to statutory sick pay of £96.35 per week from the fourth day of absence from work paid by the employer for up to 28 weeks. To be eligible, an employee must notify the employer of the absence and supply evidence of illness. The amount of SSP is set by statute and regularly revised. Employees do not receive SSP for the first three days of any sickness absence. SSP is paid by the employer and is not recoverable from the government. Employers cannot require employees to contribute towards sick leave payments. Employers are required to keep records of sick payments. Employer noncompliance with SSP obligations can be a criminal offense. A health and work assessment and advisory service is available to offer free occupational health for employees and employers. The service includes an occupational health assessment after four weeks of absence due to an illness. Social Security Contributions and Benefits Act 1992, § 151.

    Maternity Leave

    Pregnant employees are entitled to 52 weeks’ maternity leave. The first 26 weeks is known as ‘Ordinary Maternity Leave’ (OML), the last 26 weeks as ‘Additional Maternity Leave’ (AML). Although employees do not have to take all 52 weeks of their maternity entitlement, they must take two weeks’ leave once the baby is born. It is a criminal offense for an employer to allow an employee to return to work within two weeks of giving birth. The earliest that leave can be taken is 11 weeks before the expected week of childbirth. Pregnant employees also are entitled to receive up to 39 weeks of statutory maternity pay (SMP) if they have worked for the employer for at least 26 weeks and meet minimum earnings requirements. Maternity pay is currently 90 percent of the employee’s average earnings for the first six weeks of maternity leave, £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks. Employers can recover most of the cost of statutory maternity pay from the state. Many employers make payments in addition to this statutory minimum. During the maternity leave, the contract of employment continues and the employee is entitled to receive all her contractual benefits except commission, contractual bonus, wages and salary. A woman returning to work from pregnancy leave must be reinstated to her former position or, if she takes more than 26 weeks of maternity leave, must be given an equivalent job, unless the employer qualifies for certain statutory exceptions. Dismissal on grounds of pregnancy is invalid and qualifies as sex discrimination. Employment Rights Act 1996, ch. 18 §§ 71­75; Children and Families Act 2014, Part 7; Maternity Pay and Leave.

    Paternity Leave

    Eligible employees can currently take two consecutive weeks’ paid paternity leave within eight weeks of a child’s birth or adoption in blocks of a week at a time. To be eligible, an employee must have 26 weeks of continuous service, have or expect to have responsibility for the upbringing of the child, and be the biological father of the child or married to or the civil partner of the child’s mother. Paternity pay is currently £145.18 per week or 90 percent of the employee’s average weekly earnings if this is less. An employee returning from paternity leave must be returned to his former position. Employment Rights Act 1996, ch. 18 §§ 80A­80E; Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 2002.

    Adoption Leave

    Adoption leave is available to parents and civil partners who adopt a child up to 18 years of age. Eligible employees are entitled to 52 weeks of adoption leave. Statutory adoption pay is available for 39 weeks, and employees receive the benefit at the rate of 90 percent of their earnings or £144.18 (whichever is lower) for the first six weeks. Employees receive £145.18 a week or 90% of their gross average weekly earnings (whichever is lower) for the next 33 weeks thereafter. Employers can recoup most of the cost of statutory adoption pay from the state.

    Parental Leave

    An employee is entitled to 18 weeks of unpaid parental leave until the child reaches 18 years of age. Each parent is entitled to 4 weeks of parental leave and shall take the leave in a period of one week’s duration unless otherwise agreed between the employer and employee.

    Leave for Employee Representative

    An employee who is an employee representative of the trade union or a candidate in an election in which any person elected will, on being elected, be such an employee representative is entitled to take time off during working hours in order to perform his functions as such an employee representative or candidate.

    Leave for Adoption Appointment

    An employee who has been notified by an adoption agency that a child is to be, or is expected to be, placed for adoption with the employee alone is entitled to be permitted by his/her employer to take time off during the employee’s working hours in order that he/she may attend such an appointment. The duration of time off from work shall be no more than six and half hours. Employees can take such leave for not more than 5 occasions and shall be paid at an appropriate hourly rate which is calculated by dividing one week’s normal pay by the total number of working hours.

     

    Leave for Ante-Natal Care

    An employee who is pregnant and has made an appointment for the purpose of receiving antenatal care is entitled to be permitted by her employer to take time off during the working hours for the purpose of receiving antenatal care. An employee who has a qualifying relationship with a pregnant woman or her expected child is entitled to be permitted by his/her employer to take time off during the employee’s working hours in order that he/she may accompany the woman when she attends by appointment at any place for the purpose of receiving ante-natal care. Such time off can be permitted on two or more occasions and shall be allowed for a duration of six and half hours.

    Leave for looking for a job and attend training

    An employee who is given notice of dismissal by reason of redundancy is entitled to be permitted by his employer to take reasonable time off during the employee’s working hours before the end of his notice in order to look for new employment etc.

    Shared Parental Leave

    Up to 50 weeks of leave can be shared by parents if they meet certain eligibility criteria. Mothers must still take the initial two weeks after birth, but they can then shorten their maternity leave and exchange it for shared parental leave. The parents will then have the choice of how to split up the remainder of the leave entitlement. The law allows parents to take up to three blocks of shared parental leave in the course of the child’s first year. They must give their employer at least eight weeks’ notice before taking the leave. Parental leave pay is currently 90 percent of the employee’s average earnings or £151.97 pounds per week. Children and Families Act 2014, § 75G; Shared Parental Leave and Pay.

    Parental Bereavement Leave

    An employee is entitled to 2 weeks of paid parental bereavement leave if the child dies before the age of 18 or if the employee has a stillbirth after 24 weeks of pregnancy. The death or stillbirth must have happened after April 6, 2020. The leave can start on or after the date of death or stillbirth and must finish within 56 weeks of the date of the death or the stillbirth. Employees taking PBL will be entitled to statutory parental bereavement pay (‘SPBP’), paid at 151.20 per week or 90% of their normal weekly earnings, so long as they meet certain qualifying criteria. Employers will administer SPBP in the same way as existing family-related statutory payments such as maternity, adoption, and paternity pay.

     

    Leave for Ill Family and Dependent

    An employee is entitled to take time off from work during working hours to provide assistance on an occasion when a dependant falls ill, gives birth or is injured or assaulted, in case of death of the dependant etc for a reasonable time.

    Emergency Volunteering Leave

    Effective 25th March, U.K enacted The Coronavirus Act 2020, which sets out Emergency Volunteering leave that allows workers to take unpaid leave from work and support the National Health Service in combating the coronavirus.

     

    The period of leave will be specified by the appropriate authority in the certificate, which can last for two, three, or four consecutive weeks. 

     

    The leave must begin and end in the same volunteering period and cannot be taken more than once in a volunteering period of 16 weeks beginning from the day when the schedule comes into existence. Any other such subsequent period shall be provided by the government authority.

     

    An employee intending to take leave the emergency volunteering leave must notify the employer, the period for which he/she will be absent from work, within 3 days after the issuance of the emergency volunteering certificate.

    Last updated on: April 5th, 2021