Legal & Compliance
Employment Law Basics
Key employment laws you need to know when hiring your first employees.
By Free Business Registration Ltd · 1 min read
Hiring employees brings legal obligations. Understanding UK employment law helps you avoid costly tribunal claims and build good employer-employee relationships.
In this guide
Before You Hire
- Register as employer with HMRC for PAYE
- Get employers' liability insurance (legal requirement)
- Decide: Employee vs worker vs contractor
- Check right to work in UK
- Non-discrimination in recruitment
- Consider Apprenticeship Levy if payroll over £3m
Minimum Requirements
- National Minimum Wage (varies by age)
- Working Time Regulations - 48 hour week limit
- Most workers are entitled to 5.6 weeks of paid annual leave, adjusted for their working pattern; bank holidays can count towards this
- Statutory sick pay (SSP) when eligible
- Auto-enrolment pension (if earn over £10,000)
- Provide the principal written statement on day one; the wider statement is due within 2 months
Key Protections
- Check current unfair-dismissal qualifying rules and exceptions; some protections apply from day one
- Discrimination protection from day one
- Maternity/paternity leave and pay
- Flexible working requests
- Protection for whistleblowing
- Redundancy pay after 2 years
Official guidance
This is general guidance. Check the current official rules and get advice for your circumstances before making tax, legal or financial decisions.