Terms and conditions of employment

Employment law

Employment law is made up of:

statutory rights (the legal minimum), and
contractual rights (particular terms and conditions agreed between employers and their workers).

Most employment rights outlined here apply only to ‘employees’, unless we state that the rights also cover other ‘workers’.

Employee, worker or self-employed

You may be an employee

if you have worked continuously for the same person/company for some time and expect to continue there; the company decides when you work, what you do and how and when you do it, and provides all the equipment for your work; and the company deducts tax and National Insurance from your pay.

You will probably be a worker

if you can choose whether to accept an assignment or not and arrange your own work hours; but your employer or agency deducts tax and National Insurance from your pay.

You are self-employed

if you work for yourself (even if you contract out services to others); and you pay your own Class 2 National Insurance contributions and are responsible for your own tax.

Part-time workers

Part-time workers have the same rights, proportionally, to pay, leave, training opportunities, occupational pensions and holidays as full timers doing the same type of work for the same employer, unless your employer has a good business reason for treating part timers differently.

These part-time workers’ rights apply not only to employees but also to other workers, including the self-employed and agency workers.

Employment contracts

All employees have contracts – check yours to make sure it gives you at least the statutory minimum, and to see where it may be more generous. Also, check the health and safety requirements where you work.

Your contract may be written or simply a verbal agreement between you and your employer. It consists of express terms, implied terms and statutory terms.

Express terms

Express terms are details agreed with your employer, for example, your pay and hours, your duties, holiday arrangements, and your probationary period. Other issues may be agreed or they may be in your staff handbook, such as overtime, pension contributions, absence from work and disciplinary procedures.

Implied terms

These are terms which probably do not need to be spelled out, for example:

there should be trust and confidence on both sides;
your employer should provide a safe working environment; and
you will carry out your employer’s reasonable and lawful orders.

Statutory terms

Your minimum employment rights as laid down by law, outlined in this booklet, include:

a minimum notice period;
redundancy pay;
not to be unfairly dismissed;
not to be discriminated against on grounds of race, sex or disability; and
not to be given less favourable terms and conditions than someone of the opposite sex doing similar work or work of equal value as you.

NB: The law specifically excludes members of the armed forces, merchant seamen and women, and this booklet excludes these categories of employees.

Disagreement about your contractual rights

If you have a disagreement with your employer about any aspect of your employment rights, for information on action you can take, see the ‘Disputes At Work’ leaflet. Before you take any action seek specialist advice,see the ‘Further help on your employment rights’ leaflet.

Working arrangements

Written particulars of your job

Employees have the right to a written statement of your main terms and conditions, within two months of starting, including:

the names of you and your employer;
date you started;
your job title, brief description of your duties, hours of work, and how much and when you are to be paid;
place of work, including any mobility requirements, and your employer’s address;
holiday entitlement, including public holidays and holiday pay; and sickness and injury arrangements, including sick pay;
length of notice required by you and your employer;
details of any disciplinary or grievance rules and stating who you can apply to if you are unhappy with a disciplinary decision or if you have a grievance.

You should also be given information about:

any pension scheme (if there are more than 20 people where you work, your employer must offer a stakeholder pension scheme);
length of your contract if it is temporary or fixed term; and
details of any collective agreement.

Changes to your terms and conditions

set out in the written statement must be given to you in writing within one month of the change. Some contracts allow in advance for possible changes.

If you do not agree to the changes, object as soon as possible, otherwise it could be taken that you have accepted them, see see the ‘Disputes At Work’ leaflet.

Notice of ending your job

You must be given a minimum of 1 week’s notice when you have worked in a job there for 1 month or more, and after 2 years, 1 week’s notice for each whole year of continuous employment up to a maximum of 12 weeks.

Once you have been employed for a month or more, you must give your employer at least one week’s notice when resigning.

Your contract may come to an end without notice on either side when, for example, your employer does not pay your wages, or you commit a gross misconduct (summary dismissal).

Your contract will normally state the notice required and if there is a possibility of payment instead of notice.

Working hours and annual leave

Regulations apply to most ‘workers’ but not to the self-employed or workers in transport, sea fishing and other work at sea, doctors in training, and the armed forces, police and emergency services. The specific rules applying to young workers are not covered here.

Restrictions on working time

Your employer cannot force you to work more than an average of 48 hours each week. If you are happy to work more, you can sign an ‘opt-out’ agreement which you can later cancel by giving at least 7 days’ notice, or longer if this has been agreed.

You can be required to have daily and weekly rest periods except if there is a need for continuity of service, for example, work in hospitals, prisons, the media or tourism.

Nightworkers can only be asked to work an average of 8 hours in each 24 hours. Your employer must offer you a free health assessment before you start working nights, and at regular intervals afterwards.

Annual leave entitlement

is a minimum of 20 days paid annual leave in each workplace leave year. This may include bank holidays. If you are a part-time worker, or in the first year of your job, days off are calculated pro rata. Some contracts allow you to carry forward some untaken leave into the next leave year.

Leave dates may be set by your employer or must be agreed with the required amount of notice. Your employer cannot offer you payment in lieu of taking your annual leave – except if you have some untaken leave when your job ends, you are entitled to be paid for this.

Always remember, if you have a problem about exercising your rights, the quickest and most effective way to resolve an issue is to speak with your employer, and to seek specialist advice before considering formal action.