If you’re expanding your team, you’ve already handled the basics of contracts and payroll covered in [Hiring and Managing Staff in the UK]. This article serves as the vital next step: it dives into the essential entitlements and protections every UK employer must understand after the onboarding process. UK employment law is built to protect employees, so compliance isn’t just about avoiding fines; it’s about establishing a respected, reliable brand.

1. Statutory Time Off and Pay

Beyond the National Living Wage (which you must legally pay, as covered previously), two key areas govern employee time away from the workplace: Annual Leave and Sick Pay.

Annual Leave Entitlement

Every employee, regardless of whether they are full-time, part-time, or on a zero-hours contract, is entitled to paid annual leave.

• The Minimum: The statutory minimum is 5.6 weeks paid holiday per year. This usually equates to 28 days for someone working five days a week.
• Accrual: Employees begin accruing (earning) holiday entitlement from their very first day. The amount accrued must be calculated correctly, especially for part-time or seasonal staff.
• Carry-Over: Generally, employees must take their full allowance within the year, but limited carry-over into the next year may be agreed upon, typically up to four weeks if the employee was unable to take it due to maternity leave or long-term sickness.
• Calculation Tool: Use the to ensure you are calculating leave correctly for all staff types.

Statutory Sick Pay (SSP)

If an employee is too ill to work for four or more days in a row (including non-working days), they may be entitled to Statutory Sick Pay (SSP).

• Eligibility: SSP is paid by the employer for up to 28 weeks. To be eligible, the employee must earn at least the Lower Earnings Limit (LEL) and must have told you they are sick within your deadline (or within 7 days if you don’t have one).
• Evidence: For absences lasting more than seven days, the employee must provide medical evidence (a fit note) from a doctor.

2. Equality and Protection in the Workplace

Protecting staff against discrimination and upholding family-friendly rights is fundamental to UK employment law.

The Law on Discrimination

The Equality Act 2010 protects employees from discrimination relating to nine ‘Protected Characteristics’: age,disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion/belief, sex, and sexual orientation.

• Your Duty: Discrimination can be direct (treating someone worse because of a protected characteristic) or indirect (having a rule that disadvantages people with a protected characteristic). Your role as an employer is to ensure your policies and culture—from recruitment to promotion—are fair and unbiased.

Statutory Family Leave

Employees have rights to take time off for family reasons, and your policies must clearly outline these entitlements.

• Maternity, Paternity, and Adoption Leave: Employees are legally entitled to statutory leave and, in many cases,statutory pay (SMP, SPP).
• Shared Parental Leave (SPL): Parents can choose to share maternity/adoption leave and pay, allowing flexibility for both parents to care for their child.
• Time Off for Dependants: Employees are entitled to unpaid time off to deal with emergencies involving a dependant (e.g., a child becoming ill).

The provides excellent templates and guidance.

3. Managing Departures and Dismissal

Handling dismissals or redundancies incorrectly is the single largest cause of legal disputes for small businesses.

Fair Dismissal and the 2-Year Rule

To legally dismiss an employee (not due to gross misconduct) without significant risk of an unfair dismissal claim, the employee must have less than two years of continuous service.

• Over Two Years: Once an employee passes the two-year mark, you must be able to prove both a fair reason for dismissal (e.g., conduct, capability, redundancy) and that you followed a fair process.
• Gross Misconduct: For serious offences (e.g., theft, violence), dismissal without notice (summary dismissal) is possible, but you must still follow a fair disciplinary procedure first.

Redundancy

If you dismiss staff because the work they do is no longer needed (e.g., you close a division or change technology), it is redundancy.

• Fair Selection: The selection process must be objective and fair.
• Consultation: You must meaningfully consult with the affected staff members.
• Notice Period: The employee is entitled to their contractual or statutory notice period.

Our advice: Never start a dismissal or redundancy process without first consulting a specialist. The free, impartial advice line provided by is your best first point of contact for navigating any complex employment law issue, protecting both your business and your employees’ rights.