What is a worker?
A worker is classed as anyone providing services for your company in exchange for financial compensation. This agreement may take the form of a written employment contract, but it may also be based on a verbal agreement or unofficial written agreement. Workers are distinct from self-employed contractors or freelancers, who operate independently, in which case, the business is considered a client or customer rather than an employer.
What are workers’ rights?
Workers’ rights in the UK are the legal and regulatory guidelines dictating how employers are required to treat their employees. These rights cover areas such as fair compensation, working hours, leave entitlements, protection from discrimination and health and safety risks, and fair treatment regarding termination or redundancy. The rights of agency workers, contract workers and freelance workers may differ from those of full-time or part-time employees, depending on the nature of their employment.
Minimum wage
Most people in the workforce rely on a steady income to cover their living expenses. This makes the UK’s minimum wage one of the most critical workers’ rights. The National Minimum Wage was first introduced by the Labour government in 1999. Today, there are several tiers of minimum wage, each designed for different categories of workers. Below, we explain these and provide the figures as of 1 April 2024. Minimum wage figures are always expressed at the GBP rate per hour worked.
1. National Minimum Wage
National Minimum Wage (NMW) refers to the lowest amount an employer can pay an employee under the age of 21. The NMW only applies to workers who are at least 16 years of age. For those aged 16–17, the minimum wage is £6.40, while for those aged 18–20 must receive at least £8.60.
2. National Living Wage
National Living Wage (NMW) is the term used to refer to the minimum wage for all employees aged 21 years and over. This rate is set at £11.44.
3. Apprentice rate
In the UK, an apprentice is someone who combines practical work with training to earn a nationally recognised qualification. At least 20% of their working hours involve training or study, either ‘on the job’ or in a classroom setting. Regardless of age, apprentices must be paid a minimum of £6.40 per hour.
Read more: Apprenticeships: how to hire an apprentice and provide them with training
4. Accommodation offset
Employers who provide accommodation to their workers (such as families who employ a live-in au pair) are permitted to offset £9.99 per day against the minimum wage. The simplest way to calculate this is to work out a monthly amount. The worker’s monthly salary plus £9.99 multiplied by the number of days accommodation is provided, must be equal to or greater than the NMW or NLW (depending on the worker’s age) when divided by hours worked. As the accommodation offset can be complicated, we recommend consulting the government’s guidelines for detailed information on this.
5. Real Living Wage and London Living Wage
The Real Living Wage is a non-legally-binding, voluntary wage, established by the Living Wage Foundation. This organisation argues that the legal living wage is insufficient to cover the cost of living in the UK, especially in the capital, where costs like accommodation are typically a lot higher than other parts of the country. The opt-in Real Living Wage the foundation proposes is £12, and its London Living Wage is £13.15.
Maximum working hours
Employees in the UK can work a maximum of 48 hours per week averaged over a 17-week period. For workers under the age of 18, the maximum number of working hours is limited to eight per day and 40 per week. However, those over the age of 18 can choose to opt out of the maximum and work longer hours if they wish.
Types of leave
UK employees have a right paid and unpaid leave. Below, we break down the various types of leave.
1. Annual leave
Workers in the UK are entitled to a minimum of 28 days of paid holiday per year. Bank holidays can be included in this total, but employers are not legally required to offer bank holidays as additional leave, as long as the 28-day minimum is met. For part-time workers, annual leave can be calculated on a pro-rata basis.
2. Statutory sick pay
If a worker is ill or injured and unable to work, employers are required to pay Statutory Sick Pay (SSP) for a minimum amount of £116.75 per week, up to 28 weeks. For companies operating in the agricultural sector, different rules apply, under Agricultural Sick Pay regulations.
Read more: Sick leave in the UK
3. Statutory parental leaves
There are various types of leave that workers who are becoming parents may be eligible for, all of which include a statutory pay structure. These include Maternity Leave, Paternity Leave, Adoption Leave, Shared Parental Leave and Unpaid Parental Leave. These leave and pay structures vary, but there are important factors to consider. Employees taking maternity leave are entitled to 52 weeks of leave (some of which can be unpaid). All types of parental leave are also entitled to:
- The right to return to their same job (or an equivalent or better role in the case of restructuring)
- The right to accrue annual leave
- The right to any relevant pay rises
Read more: Paid parental leave in the UK
4. Other types of leave
Employers are required to provide time off for ‘emergency leave’ if necessary. This refers to any urgent situation involving a dependant, and there is no specified length of time for this. Other types of leave, such as compassionate leave and bereavement leave are optional and granted at the discretion of the employer.
Employee dismissal
All employers who hire any category of worker under an employment contract are required to have a ‘fair reason’ for dismissal. Although the rules surrounding fair dismissal are complex, they generally fall into five categories:
- Misconduct
- Performance/capability
- Redundancy
- Statutory illegality or breach of a legal duty
- Some Other Substantial Reason (SOSR)
Fair dismissal rules do not apply to workers who are not classified as employees. However, it is important to ensure that the reason for terminating an employee’s contract is not considered discriminatory, as workers’ rights protect against discrimination.
Discrimination in the workplace
Engaging in discriminatory practices or allowing discrimination within your company can lead to legal consequences. Discrimination involves treating someone unfairly due to a protected characteristic. In the UK, protected characteristics include:
- Age
- Sex
- Gender identity
- Sexual orientation
- Marital or partnership status
- Pregnancy or being on Maternity Leave
- Disability
- Race/ethnicity
- Nationality
- Religion or belief
Related:
Contract types
Typically, full-time and part-time employees, as well as agency workers, are entitled to the rights discussed in this article, though some of these rights may apply on a pro-rata basis according to number of hours worked. While workers on zero-hour contracts are not guaranteed a set number of working hours, employers must still pay them the relevant minimum wage and provide pro-rated leave. Freelancers are considered self-employed, not workers, and therefore, they are not entitled to rights like minimum wage or leave. However, anyone providing services to you, including freelancers, is still protected from discrimination and must work in an environment where their health and safety are adequately protected.
Before hiring workers for your business, it is important to familiarise yourself with these rights. Keep in mind that these are the minimum legal requirements. To promote the wellbeing of your workforce and enhance your company’s reputation, you may consider going beyond these obligations such as offering more competitive pay, generous annual leave and other discretionary benefits.
