Doing Business In... 2025

UK Law and Practice Contributed by: Paolo Palmigiano, Rachael Roberts, Helen Farr, Debbie Heywood and Louise Popple, Taylor Wessing LLP

Other Sources of Law and Regulation In addition to the above-mentioned statutes, the following are also important sources of legal rules that govern employment relationships. • Case law (common law): The UK uses a com - mon law system whereby judges make deci - sions interpreting statutes and cases estab - lishing legal principles. Case law establishes precedent, which is then followed by other tribunals deciding employment disputes. • Collective bargaining agreements: These are agreements made between employ - ers (or employers’ organisations) and trade unions representing workers. They govern key employment terms including pay, working hours, holidays and other working conditions. • Employment contracts: Individual contracts between an employer and employee estab - lish the contractual terms that apply to the employment relationship such as duties, remuneration, benefits and termination proce - dures. • Regulatory materials: Guidance from regu - latory bodies, such as the Health & Safety Executive or Information Commissioner’s Office, also plays a significant role in shaping workplace practices. 4.2 Characteristics of Employment Contracts An employment contract between an employee and employer is a legally binding agreement. An employee has the right to a “written statement of employment particulars” in accordance with Section 1 of the Employment Rights Act 1996. A Section 1 statement sets out the main terms of employment, and there is a list of mandatory terms that must be given to every employee. An employer will be treated as having met its obligations to provide a Section 1 statement

where it gives an employee a written contract containing information satisfying the employer’s Section 1 obligations, and the document is pro - vided no later than the beginning of employment. The characteristics of a typical employment con - tract include: • a job title and description; • commencement date of the employment and duration – specifying when employment begins, its duration and if it is intended to be for a fixed term; • location of work; • salary and benefits – details of pay, payment frequency and benefits; • hours of work; • probationary period – the length and terms of any probation; • notice period; • holiday pay – paid holiday entitlement and procedures; • sick leave and pay – sick-leave policies and statutory sick pay; • notice period – the notice period required for termination by either party; • training – any training entitlement that the employer requires the worker to complete; • disciplinary and grievance procedure – pro - cesses for handling disciplinary actions and grievances; • variation of terms – this explains how chang - es to the employment contract are made, typically requiring mutual agreement in writ - ing; and • non-compete or restrictive covenants – this sets out any post-employment restrictions. 4.3 Working Time In the UK, the regulation of working hours for workers (which includes employees) is gov - erned by the Working Time Regulations 1998

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