The Startup Guide to Employment Law

Startups require employees, so that means you need to know about the ins and outs of employment law. This guide will help fill in the gaps in your knowledge.

Terms of Contract

Every employee working for your business needs a contract signed by both parties. This contract will outline the terms and details of employment. Every written contract needs to include their name, job title, job description, place of work, start date (and end date if it’s a fixed term contract), and other terms discussed below. When this contract is being put together and signed by the relevant parties, it’s always best if a lawyer oversees proceedings. Employment law is tricky, and you don’t want to make any legal slip-ups.

Hours & Leave

One of the most important things in the employment contract is the part that outlines the hours of work and how much leave they have. Most employees can only be given a maximum of 48 working hours a week. Employees who agree to work more hours than that will have to sign a written statement confirming the arrangement. Employees are entitled to a minimum of 5.6 weeks of annual leave.

Discrimination

If you discriminate in any way, this is against the law. It is illegal to treat someone differently or less favourably on the basis of their gender, age, race, disability, sexual orientation, religion or trade union affiliation. If an employee feels that they are being discriminated against, they’ll be free to take you to an industrial tribunal. So, it’s vital to make sure no discrimination takes place in the workplace.

Pay

The employment contract should also make clear the employee’s rate of pay. You should follow the most recent minimum wage regulations and stick to them. It’s also important to remember that if you want to keep hold of staff members, it’s a good idea to pay them more than the minimum wage. Otherwise, they’ll move on as soon as they get the chance. The living wage initiate is becoming very popular at the moment. And, don’t forget, men and women must be given equal pay for equal work.

Sickness

Sick pay regards how much money you pay to an employee when they have to take time off work due to illness. Regulations state that SSP (statutory sick pay) has to be paid for up to 28 weeks for any one illness that the employee goes through while employed by you. The minimum level of sick pay is currently £88.45 per week, but a lot of employers choose to pay more than that. Length of service is irrelevant, and this applies to part-time staff as well as full-time employees.

Dismissals

The employment contract should contain a notice period. The employer can end the employment of the worker at any time during this period. But after that notice period has ended, the employer is required to give a reasonable period before dismissal, usually a couple of weeks. And after an employee has been with the company for more than two years, they can claim unfair dismissal if they’re not happy with the reason given for being fired.