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British Labour law
TALINK 2024-05-09

The core content of labor law
The UK Labour law is derived from EU legislation, but is still quite different from the rest of Europe. British law values individual agreements between employers and employees with legal rights, while in many EU countries employment relationships are governed by industrial collective agreements.

【 Main provisions of UK Labour Law 】 The core contents of UK Labour law are as follows:

(1) Every employee has the right to receive, within two months from the commencement of employment, a statement of the terms of employment, which must include basic terms such as hours of work, wages, sick leave, holidays, notice periods, grievance procedures and disciplinary procedures;
(2) Working hours ordinances are generally used to limit the working hours of employees;
(3) Every employee is entitled to the statutory minimum period of notice;
(4) In general, if an employee has been employed continuously for at least 51 weeks, he is entitled to claim for unfair dismissal if he is dismissed or forced to resign;
(5) In the event of dismissal, each employee shall be entitled to compensation for unfair dismissal in an amount exceeding the sum of the employee's wages, bonuses and benefits during the notice period;
(6) The court may award an increase in the amount of compensation if the employer fails to enforce the order to reinstate or reemploy the employee;
(7) Whether it is fair to dismiss an employee by redundancy or other means depends on whether the dismissal has followed established procedures. In a few cases, employers can dismiss employees for extreme behavior without paying compensation;
(8) Compensation for employee claims is only possible through a legally binding settlement agreement signed by the employee and his lawyer;
(9) If the company is sold, employees automatically move with the company. In general, it is necessary for the employee to be assured by the seller of compensation in respect of redundancy or unfair dismissal payments, or of all other payment obligations that the buyer would take over in the absence of such guarantees;
(10) When an employer has five or more employees, the employer is obliged to appoint a pension trustee to assist in pension arrangements.

The Employment Relations Act 1999 and 2004 provided for and strengthened the powers of trade unions to negotiate on behalf of employees with employers. The Employment Act 2002 further expanded provisions such as family leave, dispute resolution and fixed-term employee rights. The 2008 European Communication and Consultation Directive obliges businesses with more than 50 employees to keep employees regularly informed about their company. Other legal provisions include the prohibition of sex discrimination, the rights of pregnant workers and employee stock ownership.

Employees over the age of 18 shall not work more than 48 hours per week, unless the employee voluntarily works overtime or the industry has special regulations. Actual execution hours averaged 39 hours per week. If an employee works overtime, the employer has to pay twice as much as the usual salary on Sundays and holidays.

[National Minimum Wage] (1) £6.31 / hour for employees over 21 years of age; (2)
Employees aged 18-20, £5.03 / hour; (3) £3.72 per hour for employees under the age of 18; (4)
£2.68 per hour for apprentices or first year apprenticeships under the age of 19.

The United Kingdom implements a unified pension scheme - the National Secondary Pension Scheme (S2P).
At present, the UK is gradually implementing a pension scheme according to the number of employees, and employers are obliged to automatically declare pension insurance for employees (divided into occupational pension schemes and out-of-plan), and will cover all employers before February 2018, and employees can voluntarily choose whether to join the scheme (see section 2.7.2).

Social Insurance (NIC) : UK Government insurance benefits for workers' compensation, sickness, unemployment and old age (see section 3.3.2).

Full-time employees are entitled to 28 days of paid leave per year, including 8 public holidays.

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