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United Kingdom labour law information


In the UK in 2021, of the total working population 32.5 million people were employed, there was 4.2% unemployment, and 6.6 million trade union members. The average income was £30,472, and the average working week was 36 hours.[1]

United Kingdom labour law regulates the relations between workers, employers and trade unions.[2] People at work in the UK have a minimum set of employment rights,[3] from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998.[4] The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation.[5] In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties.[6] The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law.[7] Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".

As well as the law's aim for fair treatment, the Equality Act 2010 requires that people are treated equally, unless there is a good justification, based on their sex, race, sexual orientation, religion or belief and age. To combat social exclusion, employers must positively accommodate the needs of disabled people. Part-time staff, agency workers, and people on fixed-term contracts must be treated equally compared to full-time, direct and permanent staff.[8] To tackle unemployment, all employees are entitled to reasonable notice before dismissal after a qualifying period of a month, and in principle can only be dismissed for a fair reason. Employees are also entitled to a redundancy payment if their job was no longer economically necessary.[9] If an enterprise is bought or outsourced, the Transfer of Undertakings (Protection of Employment) Regulations 2006 require that employees' terms cannot be worsened without a good economic, technical or organisational reason. The purpose of these rights is to ensure people have dignified living standards, whether or not they have the relative bargaining power to get good terms and conditions in their contract.[10]

  1. ^ See Office for National Statistics, 'Labour market overview, UK: December 2021' (14 December 2021) and 'Average actual weekly hours of work for full-time workers (seasonally adjusted)' (14 December 2021). DBEIS, Trade Union Membership, UK 1995-2020: Statistical Bulletin (27 May 2021)
  2. ^ Northern Ireland has specific legislation and is excluded from two primary statutes, the ERA 1996 s 244 and Trade Union and Labour Relations (Consolidation) Act 1992 s 301, but has mostly analogous provisions and falls under most of the other Acts and Regulations.
  3. ^ See KW Wedderburn, The Worker and the Law (3rd edn Harmondsworth 1986) 6, referring to a "floor of rights", and Gisda Cyf v Barratt [2010] UKSC 41, [37]
  4. ^ Gov, Uk (April 2024). "National Minimum Wage and National Living Wage rates".
  5. ^ See the Education Reform Act 1988 s 124A and Sch 7A, para 3. NHS Act 2006 Sch 7, paras 3-9. E McGaughey, A Casebook on Labour Law (2019) ch 11, 'Votes at work' and E McGaughey, 'Votes at Work in Britain: Shareholder Monopolisation and the 'Single Channel (2018) 47(1) Industrial Law Journal 76
  6. ^ See the Information and Consultation of Employees Regulations 2004 reg 20 and Junk v Kühnel (2005) C-188/03, [43]
  7. ^ See the Companies Act 2006 ss 110 ff
  8. ^ Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000, Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 and Agency Workers Regulations 2010
  9. ^ ERA 1996 ss 86, 94 and 135. The qualification period is one month for one week's notice, and after two years, employees must have at least two weeks' notice, a fair reason and redundancy pay. The minimum level of notice and redundancy pay increases each year of employment.
  10. ^ See Autoclenz Ltd v Belcher [2011] UKSC 41, [35]

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