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Employment law
Know your rights
Understanding your legal rights as an employer or employee can often be a
minefield; miscommunication and a lack of information in the workplace can lead to
misunderstandings, upset and worse. The simplest way to avoid this situation is to
be prepared and know what you’re entitled to. By Michelle Hayes
pay, working hours, holiday entitlement,
maternity rights, arrangements for sick pay,
notice periods for termination of contract
and information about disciplinary and
grievance procedures.
• If your employer moves to a new location
or is taken over by another company,
your existing terms and conditions should
continue, but new owners should provide
an amended written statement in their
company name.
Pay
• Almost all UK workers, excluding self-
employed individuals, are legally entitled
to the national minimum wage (£5.73 per
hour for those aged 22 or older, £4.77 per
hour for people aged 17-21 as of 1 October
2008). The government sets this level every
year on the recommendation of the Low
A contract of employment
Pay Commission.
automatically gives you • Employers mustn’t discriminate in the
certain rights
amount paid to workers, e.g. paying men
and women equally who are doing the
W
orking rights are based on two “worker” or “self-employed”. You are same job.
major elements: statutory rights regarded as an employee if you work under • All employees are entitled to a written
and the contract of employment. a contract of employment. A worker is any payslip, either before or at the time that
Statutory rights are established on laws individual working for an employer, under a they are paid.
passed by Parliament and almost all workers contract of employment or any other contract • The payslip shows gross pay (before
are entitled to these basic legal rights. where they perform work or services, such tax or National Insurance deductions),
Your contract of employment sets out your as an agency worker or freelancer. You any deduction amount changes from week
rights and also your responsibilities to your don’t have a contract of employment with to week and what they are for, total fixed
employer. This cannot take away any rights an employer if you’re self-employed and are deductions (e.g. union fees) and the total
you are entitled to by law, but it affords you normally running your own business. amount of net pay.
greater privileges than those given by law. • Employers are allowed by law to make
Employees are entitled to the following with certain deductions, depending on what
Contracts regard to contracts: counts as “pay”; not tips or expenses.
A contract of employment is an agreement • A written statement of the main terms and • Employers are required to deduct tax and
between the employee and employer. This conditions of employment within two National Insurance from employee pay and
always exists, even if it is not in writing. It is months of starting work. can also make any deductions agreed to
made as soon as you accept a job offer and • Any new information on contract changes in your employee’s contract (e.g. pension).
agree to work for your employer in return in writing from your employer within one Such deductions can only be lawfully made
for pay. Your employment rights depend on month. if your employee is given a written copy of
whether you are classed as an “employee”, • The statement must include details of the contract clause beforehand.
40 TODAY’S BUSINESS WOMAN
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