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How Should Businesses Abide by Employment Law?

Posted by : Premraj | Posted on : Friday, April 13, 2018


At work, both the employee and employer should be aware of their responsibilities. Those at the top of the food chain need to make sure the business is profitable and viable, whilst those lower down the pyramid need to provide the products and services for customers.

As for their rights, that can be a difficult issue to address. What are employees entitled to, besides a fair wage, reasonable working hours and a safe working environment? As for employers, are they free to hire whoever they choose? There are a number of laws that businesses need to be aware of, starting with employment contracts.

This should contain all kinds of info about what the employee and employer should do whilst it runs. In the UK, there are contract types for full-time, part-time, agency, freelance and zero hour workers. As an employer, you must make sure that they are watertight and that the employee is paid the appropriate salary and is paying the right amount of tax.

Directors’ Rights

Those who are directors of limited companies have a different set of rights and responsibilities to other employees. They have to sign different contracts and abide by different rules relating to task. However, any tasks performed under that role that fall outside of their remit as a director could see them become entitled to the same rights as employees.

When drawing up employment contracts, seeking legal advice is essential. Even the smallest loophole could play into the hands of the employee if they are dismissed. To guard yourself against that possibility, look at hiring an employment law specialist to go through the contracts with you, whether they are for full-time staff, directors or agency workers.

Dismissal Procedures

If you feel the need to dismiss an employee for reasons such as poor performance and saving money, there is a procedure that you must follow. It should be done as a last resort, after speaking to the employee(s) whose jobs are on the line about ways to improve their position.

Any dismissal of an employee sees their contract terminated. They must be given a valid reason for being let go e.g. not fulfilling their duties as detailed in the job description. If they are unfairly dismissed and have worked continuously with you for at least two years, they can take you to an employment tribunal.

To make sure this does not happen, pay employees at least the legal minimum wage or a living wage. Do not discriminate against workers on the grounds of gender, sexuality, disability, race or religious beliefs. Provide a safe working environment and offer employees a reasonable amount of paid holiday.

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