Employment Law Basics: What Every Worker Should Know

Employment Law Basics: What Every Worker Should Know

Navigating the workplace can sometimes feel like maneuvering through a maze, especially when it comes to understanding your rights. But don’t worry! This comprehensive guide aims to simplify employment law for you, discussing your rights and how they protect you in the workplace.Understanding Employment Law: A Friendly Guide for Workers
Employment law might sound complex at first glance, but it’s essentially a set of rules that govern the relationship between employers and employees. It specifies what your employer can expect from you, what you can expect from them, and how both parties should conduct themselves in the workplace. The aim of these laws is to ensure fairness, protect employees, and maintain a healthy and productive working environment for everyone involved. Employment law includes legislation covering recruitment, holidays, working hours, health and safety, and more. Employment regulations encompass a variety of areas within the workplace, including contracts, working hours, pay and benefits, discrimination, health and safety, and grievance procedures. While navigating this landscape might seem daunting, understanding the basics of these laws is empowering and instrumental for your workplace well-being.

Why Employment Law Is Here to Help You

So, why does employment law exist in the first place? Simply put, it’s there to protect you. Without these laws, employers might neglect the fair treatment of their employees, potentially leading to exploitation or discrimination. Employment law levels the playing field between you and your employer, providing a clear framework for resolving disputes and ensuring that everyone is treated with respect and dignity. The Employment Rights Act 1996 covers rights in situations such as dismissal, paternity leave, and redundancy. These laws also create a stable work environment, offering security and structure to employees and businesses alike. By defining the rights and responsibilities of each party, employment laws facilitate a mutual understanding that helps prevent conflicts and misunderstandings.

Essential Employment Rights Everyone Should Know
Here are some of the key rights you should be aware of: – Right to a Fair Wage: Thanks to the National Minimum Wage Act 1998, you’re entitled to a minimum wage based on your age. The government regularly reviews and adjusts these rates to reflect the cost of living, ensuring you’re fairly compensated for your work. Employees aged over 21 are entitled to at least the National Living Wage, which ensures a basic standard of living.
– Equal Pay: Under employment law, you should receive equal pay for equal work, regardless of gender. The right to equal pay ensures gender equality in the workplace and is crucial for promoting workplace diversity and fairness.
– Protection Against Discrimination: The Equality Act 2010 guards against discrimination at work based on characteristics such as race, gender, age, religion, and disability. Discrimination in any form is unlawful, and the Act offers a robust framework for protection against unfair treatment.
– Safe Working Environment: The Health and Safety at Work etc Act 1974 places a duty on employers to protect the health, safety, and welfare of all on the premises. Employers have a duty of care to provide a work environment that minimizes risk and addresses any hazards promptly.
– Rights to Leave: You are entitled to various types of leave, including sickness, maternity, paternity, and parental leave. Statutory leave encompasses maternity and paternity leave, holiday entitlement, and sick pay. These provisions offer support during critical life events and ensure that you can balance work commitments with personal responsibilities.

Unpacking the Different Types of Employment Status
Understanding your employment status is crucial as it dictates your rights and responsibilities within the workplace. In the UK, there are three main categories: – Employee: This is the most protected group. Employees enjoy comprehensive rights, including protection against unfair dismissal after two years of service and entitlement to statutory leave and pay. Employees have contractual obligations and are typically subject to the employer’s direction and control, indicating a standard employer-employee relationship.
– Worker: Workers have fewer rights than employees but are still protected by core regulations such as the right to a minimum wage and paid holidays. Worker status is a more flexible arrangement, often involving contracts that allow for casual, part-time, or temporary work engagements. The Agency Workers Regulations 2010 entitle agency workers to the same basic conditions as direct recruits after 12 weeks. Workers provide services personally but without the full responsibilities or benefits of employed status.
– Self-Employed: This group has few statutory rights because they operate their own businesses and provide services to clients or customers, not employers. As independent contractors, they have more control over their working conditions but are not covered by employment protection laws applicable to employees or workers.

The Most Important Employment Contracts You Need to Know About
Contracts are the foundation of your employment relationship. As an employee or worker, you should receive a written statement of your employment terms. This document outlines key elements like your job title, salary, working hours, and other essential details. Contracts of employment cover types of worker, employee rights, overtime, and changes to contracts. It clarifies expectations and responsibilities for both parties and includes provisions such as notice periods and grievance procedures.Having a formal contract helps prevent misunderstandings and provides a reference point if disputes arise. It serves as a legal document that can be consulted in the event of conflict resolution, ensuring both you and your employer understand the terms of your engagement.

Navigating Discrimination and Harassment at Work
Unfortunately, discrimination at work is a reality for some, but it is strictly prohibited under employment law. Discrimination can manifest in various forms: – Direct Discrimination: Treating someone less favorably because of a protected characteristic, such as gender, race, or disability. This includes denying promotions or job opportunities based on these characteristics.
– Indirect Discrimination: Policies that disadvantage specific groups unless they can be justified. For instance, a rule requiring all employees to work on specific religious holidays could disproportionately affect those from certain religious backgrounds.
– Harassment: Unwanted conduct related to a protected characteristic that creates a hostile or offensive environment. Examples include making derogatory remarks or jokes about someone’s race, religion, or disability.
– Victimization: Treating someone poorly because they’ve made or supported a complaint under the Equality Act.

If you experience discrimination, know that the Equality Act 2010 is there to protect you. Employers are required to make reasonable adjustments for employees with disabilities and ensure a workplace free of harassment and victimization.

How to Handle Unfair Dismissal Claims
Unfair dismissal occurs when your employer has not followed fair procedures or lacks a valid reason for terminating your employment. If you’ve been continuously employed for two years, you can bring an unfair dismissal claim against your employer. This emphasizes the importance of maintaining a robust contract and understanding your entitlements.Dismissing staff includes resignations, dismissals, disciplinaries, and redundancy pay. Unfair dismissal can arise from scenarios such as dismissal without proper warning or failing to follow the company’s own disciplinary procedures. Additionally, certain dismissals are automatically deemed unfair, such as firing someone for whistleblowing or raising health and safety concerns. Knowing your rights is crucial in defending yourself against wrongful termination.Diving into the Importance of Health and Safety at the Workplace

Your workplace should prioritize your health and safety. This involves conducting risk assessments, offering adequate training, and providing necessary safety equipment. You have the right to refuse unsafe work without fear of reprisal, a provision backed by the Health and Safety at Work Act 1974.You are out of credits.
Employers are obligated to create safe working environments by identifying potential hazards, implementing safety protocols, and ensuring compliance with health and safety regulations. Employees should be trained to recognize risks and respond appropriately, reducing the likelihood of accidents or injury. The Health and Safety at Work etc Act 1974 ensures a workplace that operates safely. Ensuring a safe workplace not only protects you but contributes to a healthier and more productive work environment.

What You Should Know About Pay and Benefits
Getting paid correctly and on time is essential. Your pay, benefits, and any bonuses are stipulated in your employment contract. This document should outline everything from your basic salary to additional perks like holiday entitlements and bonuses.Understanding your compensation package helps ensure you’re adequately rewarded for your efforts. It’s essential to know your entitlements, such as the eligibility for overtime pay, performance bonuses, and contributions to pension schemes. Familiarize yourself with the specifics to make sure you’re receiving everything you’re entitled to avoid any discrepancies.Making Sense of Maternity, Paternity, and Parental Leave
Expanding your family is an exciting journey, and knowing your leave rights can ease this transition. In the UK, you’re entitled to: – Maternity Leave: Up to 52 weeks, with statutory maternity pay for 39 weeks. This allows mothers to take time off work to care for their newborns without sacrificing job security or income.
– Paternity Leave: Fathers or partners can take up to two weeks of leave to support their partner after the birth of a child. Paternity leave ensures that both parents can participate in early childcare and bond with their child.
– Parental Leave: Unpaid leave of up to 18 weeks per child, available until the child is 18. This flexible option enables parents to take time off to care for their children, attend important events, or deal with emergencies.

These frameworks ensure you have the support you need during significant life changes. Employers are prohibited from treating employees unfavorably due to pregnancy or parental responsibilities and must adhere to legal obligations regarding leave and pay.Remember, your workplace rights are there to protect you and should be taken seriously. Understanding employment law equips you with the knowledge to work confidently and seek help should disputes arise. Employment law regulates the relationship between employers and employees. Stay informed, and don’t hesitate to reach out for legal advice if needed. Knowledge is power, and in the workplace, it ensures you are treated fairly and with respect. By advocating for a better understanding of your rights, you contribute to a healthier, happier work environment for everyone.

Compensation for Unfair Dismissal: What Are You Entitled to Claim?

Unfair dismissal is one of the most common claims brought before the Employment Tribunal in the United Kingdom. If your dismissal was not for a fair reason, or your employer failed to follow a fair process, you may be entitled to compensation. Understanding how that compensation is calculated can help you assess the potential value of your claim.

What Is Unfair Dismissal?

Under the Employment Rights Act 1996, an employee with at least two years’ continuous service has the right not to be unfairly dismissed. A dismissal may be deemed unfair if:

• There was no valid reason for dismissal (e.g., misconduct, redundancy, capability, statutory ban, or some other substantial reason);

• The employer failed to follow a fair procedure;

• The dismissal was automatically unfair, such as in cases involving pregnancy, whistleblowing, or asserting statutory rights (no qualifying service needed).

If the Tribunal finds the dismissal unfair, compensation is usually awarded in the form of a basic award and a compensatory award.

The Basic Award

The basic award is calculated in the same way as statutory redundancy pay. It is based on:

• Length of service (up to 20 years),

• Age during each year of service, and

• Weekly gross pay (capped at £700 as of April 2024).

You receive:

• 1.5 weeks’ pay for each full year of service aged 41 or over

• 1 week’s pay for each year aged 22 to 40

• 0.5 week’s pay for each year under 22

The maximum basic award is £21,000 (for 20 years at the maximum weekly cap and age-related multiplier).

The Compensatory Award

The compensatory award is intended to cover financial losses arising directly from the unfair dismissal, such as:

• Loss of earnings (including future loss)

• Loss of pension or bonuses

• Loss of statutory rights

• Expenses incurred seeking new employment

The compensatory award is capped at the lower of one year’s gross pay or £105,707 (as of April 2024), unless the dismissal was for whistleblowing or health and safety reasons, in which case no cap applies.

Examples of Compensation Calculation

Example 1: Lower Range Case (2 years’ service)

• Age: 30

• Weekly pay: £500

• Length of service: 2 years

• Time out of work: 3 months

Basic award:

1 week x £500 x 2 years = £1,000

Compensatory award:

£500 x 13 weeks = £6,500

Total award: £7,500

Example 2: Mid-Range Case (10 years’ service, older worker)

• Age: 50

• Weekly pay: £700 (max cap)

• Length of service: 10 years

• Time out of work: 6 months

Basic award:

10 years at 1.5 weeks = 15 x £700 = £10,500

Compensatory award:

£700 x 26 weeks = £18,200

Total award: £28,700

Example 3: High-End Case (20 years’ service, older worker, high pay)

• Age: 58

• Weekly pay: £1,000 (capped at £700)

• Length of service: 20 years

• Time out of work: 12 months

Basic award:

20 years at 1.5 weeks = 30 x £700 = £21,000 (maximum)

Compensatory award:

Capped at one year’s pay = £700 x 52 = £36,400

Total award: £57,400

Reductions and Adjustments

The Tribunal may reduce your compensation if:

• You failed to mitigate your losses by not seeking alternative work;

• You contributed to your dismissal through misconduct;

• You would have been fairly dismissed anyway after a short period (e.g., in redundancy cases).

Final Notes

• Compensation is tax-free for the first £30,000 in most cases.

• You may also recover loss of statutory rights, expenses, and future losses.

• Interest may be added to certain elements of the award.

What Should You Do Next?

If you believe you’ve been unfairly dismissed, act quickly:

1. Submit an Acas Early Conciliation notification within 3 months minus one day of your dismissal: https://ec.acas.org.uk

2. Lodge your ET1 claim if conciliation is unsuccessful: https://www.gov.uk/employment-tribunals

3. Seek advice from an employment lawyer to maximise your chances of success and ensure proper calculation of your entitlements.

Discrimination at Work: Your Rights and What You Can Claim

Discrimination in the workplace remains a significant concern for employees across the UK. While much progress has been made, unlawful treatment based on protected characteristics continues to affect individuals at all levels of employment. If you have experienced discrimination at work, you may have a legal claim under the Equality Act 2010 and could be entitled to compensation—including damages for injury to feelings, assessed using the Vento bands.

What Is Workplace Discrimination?

Workplace discrimination occurs when an employee or job applicant is treated unfairly because of a protected characteristic, such as:

• Age

• Disability

• Gender reassignment

• Marriage and civil partnership

• Pregnancy and maternity

• Race

• Religion or belief

• Sex

• Sexual orientation

The Equality Act 2010 prohibits various forms of discriminatory conduct, including:

• Direct discrimination – treating someone less favourably because of a protected characteristic.

• Indirect discrimination – applying a policy or rule that disadvantages people with a protected characteristic.

• Harassment – unwanted conduct related to a protected characteristic that creates a hostile or offensive environment.

• Victimisation – subjecting someone to a detriment because they made or supported a complaint of discrimination.

What Should You Do If You Experience Discrimination?

If you believe you have been discriminated against, you should take the following steps:

1. Keep a detailed record of the incident(s), including dates, individuals involved, and any witnesses.

2. Raise a grievance with your employer, following the internal grievance procedure.

3. Seek legal advice to understand your rights and potential remedies.

4. Engage in Acas Early Conciliation, which is a mandatory step before lodging a claim with the Employment Tribunal.

5. Submit an ET1 claim form within the relevant time limit (usually three months minus one day from the last discriminatory act).

Compensation for Discrimination: Injury to Feelings and the Vento Bands

If the Employment Tribunal finds that you have been unlawfully discriminated against, it may award compensation. This can include:

• Financial losses, such as lost earnings or pension rights

• Aggravated damages, in exceptional cases

• Injury to feelings, which is awarded based on the severity of the harm suffered

The Vento Bands Explained

Injury to feelings is assessed using guidelines known as the Vento bands, established by the Court of Appeal in Vento v Chief Constable of West Yorkshire Police (No. 2) [2003] IRLR 102. These bands are updated annually by the Presidents of the Employment Tribunals.

As of April 2024, the Vento bands are:

• Lower band (£1,200 to £11,700): appropriate for less serious cases, such as a one-off incident or isolated remarks.

• Middle band (£11,700 to £35,200): for serious cases that do not merit the upper band, often involving repeated or sustained discriminatory behaviour.

• Upper band (£35,200 to £58,700): for the most serious cases, such as lengthy campaigns of harassment or discrimination.

• Exceptional cases may exceed £58,700 where the impact is particularly severe.

The Tribunal will consider factors such as the nature of the discrimination, the degree of distress caused, and whether the employer acted maliciously or with disregard for the employee’s rights.

Key Takeaways

• Discrimination at work is unlawful and can result in substantial compensation.

• The Equality Act 2010 protects individuals against direct and indirect discrimination, harassment, and victimisation.

• If successful, you may be awarded compensation for injury to feelings assessed in accordance with the Vento bands.

• Strict time limits apply, and early legal advice is strongly recommended.

If you believe you have been subjected to discrimination, contact a qualified employment lawyer for tailored advice and representation in bringing a claim before the Employment Tribunal.

Internal appeal may nullify dismissal

Where an employee is dismissed, and then brings an internal appeal against that dismissal, if that appeal overturns the dismissal then in law it will be as if no dismissal had ever occurred, even if the employee made explicitly clear when submitting the appeal that they have no intention of returning to their job.

To make a claim for unfair dismissal, there needs, in law, to have been a dismissal on which the claim can bite:

• that requirement is straightforwardly satisfied when the employer expressly dismisses the employee
• where the employer does not do that, the employee may resign and seek to claim constructive dismissal; but that is a harder path for the employee to take as the employee must demonstrate that the employer acted in such a way as to repudiate the contract

In this context, the situation can be complicated further where the employee, following dismissal, mounts an internal appeal with the employer.

The Court of Appeal cases of Roberts v West Coast Trains and, much more recently, Patel v Folkestone Nursing Home, make clear that by making such an internal appeal:

• the employee is undertaking to be bound by the result
• if the employer, after hearing the appeal, overturns the dismissal, then the dismissal ‘vanishes’ in law, as if it had never happened, with the result that there will no longer be a dismissal on which to found an unfair dismissal claim

If the employee is happy with the outcome of the appeal, the resulting curtailment of the ability to bring an unfair dismissal claim this will be unproblematic. However, in some cases, the employee may not be happy, eg:

• the employer may, in the result of the appeal, have imposed a (perhaps significant) lesser sanction with which the employee is still very unhappy
• it may be that the employee, before the appeal was heard, was so deeply unhappy with the employer’s behaviour that:
  • he or she was not willing, whatever the outcome of the appeal, to return to the job
  • the appeal may have been brought for reasons other than getting the job back, eg to clear the employee’s name so that their future job prospects elsewhere are improved

It seems that, following this case:

• a dismissed employee who brings an internal appeal will be bound in all circumstances by the outcome (whatever their motivation in bringing the appeal), so if the result is the overturning of the dismissal they will lose the right to claim unfair dismissal on the basis of the original express dismissal
• in such cases, the only option then open to the employee will be to pursue the much harder route of seeking to establish that a constructive dismissal has occurred

Redundancy payments for furloughed employees to be based on normal wage

Legislation comes into force on Friday 31 July 2020 to ensure that furloughed employees who receive statutory redundancy payments, and/or statutory notice payments and/or unfair dismissal compensatory awards have those sums calculated on the basis of their full, normal rate of pay rather than any reduced rate they may have been receiving while on furlough under the Coronavirus Job Retention Scheme (CJRS).

A press release by BEIS on 30 July 2020 announced that legislation was to be made to address this issue. The legislation would be designed to ensure that furloughed employees receive statutory redundancy pay (and other statutory payments, as mentioned above, that are calculated on the basis of a week’s pay) based on their normal wages, rather than a reduced furlough rate.

The promised legislation, the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020, SI 2020/814, was made on 29 July 2020, laid before Parliament on 30 July 2020 and comes into force on Friday 31 July 2020.