However, even more exciting is the prospect of starting your own business. However, the need to know and protect employee rights comes with the benefit of being an employer. Employment law knowledge, for starters. Understanding the basics of employment law is essential for any entrepreneur looking to create a positive workplace environment and avoid legal traps that can damage the business.
In this blog, we separate the fundamental employee rights that every new business owner needs to know. From fair pay to safe working conditions, awareness of these rights is essential to creating a supportive, compliant workplace that attracts and retains talented employees.
The right to a written contract
Under statutory law in the UK, employers have a legal duty to give those starting with them a script of terms within two months of starting work. This contract must provide details of the employment relationship, including the job title, responsibilities, pay per hour, hours worked, holiday entitlement, and notice period for termination. Having a clear, written contract helps protect employees and establishes expectations early on to minimize the chances of misunderstandings later.
Specialized contracts should be customized to specific duties and obligations, ensuring employees know what they are getting into. For entrepreneurs, starting with legally sound contracts can save them disputes down the line, helping them create a transparent and professional working relationship from the outset.
Minimum Wage and Fair Pay
Employers must honor one of the most fundamental rights by ensuring fair pay for employees. The UK sets a statutory National Minimum Wage (NMW) and an age-dependent National Living Wage (NLW), updated yearly. As of April 2023, the NLW is £10.42 for workers aged 23 and over, while younger workers, including apprentices, are entitled to different rates.
Entrepreneurs must educate themselves about these wages and ensure they pay all employees at or above the minimum rate for their age group. Fair wages help to keep up with the law, but more importantly, they go a long way toward fostering a culture of respect where employees feel valued.
The right to paid annual leave
The Working Time Regulations entitle all employees in the UK to a minimum of 5.6 weeks of paid annual leave per year. This entitlement applies to full-time and part-time employees, with part-time employees receiving a pro-rated amount relative to their hours.
Maintaining a Healthy Work-Life Balance: Employees break free from their work commitments and spend time with their loved ones. Holiday requests need to be monitored, especially for new business owners, to ensure employees are not dissuaded from taking their entitled leave. Many small businesses turn to automated leave tracking systems to streamline holiday management and keep accurate records.
Statutory Sick Pay and Leave
In the UK, employees who are unwell and unable to work can claim Statutory Sick Pay (SSP) if they meet certain conditions. To qualify for SSP, an employee must be off sick for at least four days in a row and earn at least the minimum amount set by the government (currently £123 per week as of 2023). The government pays SSP at a flat rate of £109.40 per week for a maximum of 28 weeks.
This ensures staff understand their sick pay benefits are upheld and reassures them they won’t face penalties for taking time off when ill, reinforcing a positive workplace atmosphere. Accurate tracking of sick days and pay protects entrepreneurs against employment law violations.
Safeguards Against Discriminatory Practices
According to the Equality Act 2010, discrimination in the workplace is not allowed based on characteristics such as age, gender, race, disability, religion, sexual orientation, and others. This is why all hiring, promotion, and employment practices must be fair and non-discriminatory—and why employers have to scrutinize them meticulously.
Failing to create an inclusive workplace with equal respect and dignity for all employees is not only morally wrong but also bad business. Discrimination can result in legal claims, reputational damage, and the loss of talented employees. Introducing equal opportunities policies alongside diversity and inclusion training for aspiring entrepreneurs helps prevent discrimination and build a supportive workplace culture.
The Right to a Safe Working Environment
Providing a safe workplace is one of an employer’s primary duties. The Health and Safety at Work Act 1974 states that all employers must ensure that they provide a working environment with minimum risk to health and safety. This ranges from offering appropriate equipment and training to creating a hazard-free workspace.
Regular risk assessments are essential for anyone doing business, especially if employees will be working with toxic or potentially dangerous equipment or in any situation requiring safety precautions. In remote work situations, employers still have a duty of care to ensure employees are safe so that they may provide ergonomic advice or access necessary equipment.
An unwavering commitment to health and safety seeks to enhance employee well-being, lower absenteeism rates, and decrease the potential of legal claims arising from workplace injuries.
Family-Friendly Rights and Parental Leave
Employees have certain rights when balancing new parenthood or caring for small children with their work life. Key entitlements include:
Maternity leave: Qualifying employees can take up to 52 weeks of maternity leave, with Statutory Maternity Pay paid for up to 39 weeks.
Paternity leave: New fathers or partners may take one or two weeks of paternity leave.
Shared parental leave: Parents can share up to 50 weeks of leave and 37 weeks of pay.
Parental leave: Employees with at least a year of service with the company may take up to 18 weeks of unpaid parental leave after each child’s birth or adoption until the child’s 18th birthday.
Policies such as these belong in the law enforcement system. They help bring together family members who are playing their roles in maintaining a work-life balance and providing a supportive workplace and an environment where employees can manage their responsibilities in work and family discord as they see fit. As an entrepreneur, knowing these rights ahead of time and having policies that support employees during these times is vital to retaining skilled talent.
The Right to Request Flexible Working
Flexible working is now a better-known benefit. Since June 2014, all UK employees who have 26 weeks of continuous service in a role have the legal right to request flexible working. This may be in the ability to work from home, flexi-time, or the option to reduce the number of days working in the office per week.
Employers are not required to grant every request, but they must consider requests fairly and give valid reasons for denying them. Thus, entrepreneurs should do their best to encourage flexible working wherever they can, allowing a more flexible work environment that promotes productivity and employee well-being.
Warrant Against Unfair Dismissal
Employees who have worked for the same employer for at least two years are protected from unfair dismissal. Employers can no longer dismiss employees without a legitimate reason or fail to follow a fair process. In this regard, dismissal for any of the following reasons may be valid: reasons of performance, conduct, redundancy, or other substantial reasons. Employers must follow a fair disciplinary or redundancy process, allowing employees to respond.
Knowing the rules for fair dismissal is key for new businesses and entrepreneurs to avoid legal trouble and preserve their company’s reputation. Professional employment law services provide expert advice and ensure that any instructions for dismissal are legitimate and just.
Freedom from Harassment and Bullying
All employees are entitled to a workplace free from bullying and harassment, which can include verbal abuse, inappropriate jokes, or unreasonable behavior from colleagues or supervisors. Harassment relating to any protected characteristic, gender, race, religion, etc, is unlawful under the Equality Act 2010;
They should have policies against harassment and a clear process for employees to report any harassment. By developing a no-tolerance policy on harassment of any kind, they can prevent mixed messages with superiors or HR about smoke or mirror policies.
The Right to Form Trade Unions and Bargain Collectively
UK employees have the right to join trade unions and participate in collective bargaining, whereby a body of employees negotiates working conditions with the employer. This means employers cannot discriminate against employees for unionizing or engaging in any union activity.
Although small businesses may not deal much with unions, entrepreneurs should respect employees’ rights to organize and negotiate collectively.Employers must comply with these rights to foster good relations with staff and demonstrate their commitment to fairness.
Conclusion
Educate yourself on employee rights to be a motivated entrepreneur as you create a compliant, respectful, and productive workplace. These rights—pay that reflects the work done, safe working conditions, protection from discrimination, and support for family commitments—form the bedrock of a positive employee experience.
For entrepreneurs, maintaining these rights means more than dodging a legal disaster; it means creating a workplace that attracts and retains talent, promotes morale, and instills loyalty. Instead, by ensuring compliance, new business owners can facilitate a working environment where employees can thrive because they feel valued — and empowered.
While daunting, entrepreneurs with the right information and legal guidance from employment lawyers will be in a much stronger position to navigate the compliance pathways necessary to be successful. Nothing is more essential to the successful growth of your business in the long term than the knowledge of and adherence to employee rights.
