What legislation covers the employment relationship?

What is employment legislation?

Employment legislation sets out many of the rights and responsibilities that apply between employers and the people who work for them.

It covers areas such as:

• employment contracts and written terms
• pay and working hours
• holidays and other types of leave
• equality and discrimination
• health and safety at work
• flexible working
• disciplinary procedures and grievances
• redundancy and dismissal.

The rights someone has can depend on their employment status. For example, some rights apply to employees, while others also apply to workers.

Employment law changes over time, so employers should make sure their policies, contracts and working practices reflect current requirements. ACAS and GOV.UK employment guidance provide current information for employers.

When do I need to think about employment law?

Employment law applies throughout your relationship with the people who work for you; from recruitment through to when they leave your business.

Key areas to consider include:

Your responsibilities will depend on the circumstances and the employment status of the person concerned, so check the current rules before making decisions that could affect someone’s employment rights.

What are the main pieces of employment legislation?

Employment Rights Acts

The Employment Rights Act 1996 provides the basis for many important employment rights, including rights relating to written employment particulars; pay, time off, family-related rights, redundancy and dismissal.

The Employment Rights Act 2025 introduced significant changes to employment law, with different provisions taking effect at different times during 2026 and 2027. Employers should check current guidance to understand which changes are already in force and which, if any, are still to come.

Equality Act 2010

The Equality Act 2010 protects people from discrimination in the workplace and during recruitment. It identifies nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. Employers also have responsibilities relating to matters such as reasonable adjustments for disabled workers and preventing sexual harassment.

Health and Safety at Work etc. Act 1974

The Health and Safety at Work etc. Act 1974 is a key piece of workplace health and safety legislation.

Employers have a duty to protect, so far as reasonably practicable, the health, safety and welfare of their employees, as well as others who may be affected by their business.

Data protection legislation

Employers collect and use personal information about job applicants, employees and other workers. The UK GDPR and Data Protection Act 2018 set out requirements for how personal information must be collected, used, stored and protected.

Employment records can include particularly sensitive information, such as health information, so businesses need appropriate procedures for managing access to and protecting this data.

Working Time Regulations 1998

The Working Time Regulations 1998 provide rights and protections relating to working time. They cover areas including maximum weekly working time, rest periods and breaks, night work and paid annual leave. Different rules and exceptions can apply to particular types of work, so you should check the requirements relevant to your workers.

Other laws

These aren’t the only laws that can affect the employment relationship. Other legislation covers areas such as minimum wages, pensions, trade unions, agency workers, part-time and fixed-term workers and transfers of businesses. Employment law can change frequently and significantly, so you should always use current guidance when making employment decisions.

How can I resolve a dispute with an employee?

Workplace disagreements can arise for many reasons, including communication problems, concerns about treatment at work, performance, working relationships, bullying or harassment.

Where appropriate, it’s usually best to address problems early and informally. Talk to the employee, give them an opportunity to explain their concerns and listen carefully to what they say. Some issues can be resolved quickly through discussion.

If the issue can’t be resolved informally, you may need to follow a formal grievance or disciplinary procedure, depending on the circumstances. Make sure you follow your own workplace procedures and the relevant ACAS guidance.

Keep appropriate records of the issue and the steps taken to deal with it, including relevant correspondence and notes of meetings.

In some circumstances, mediation can help the parties reach an agreement. If a dispute could lead to an employment tribunal claim, you should consider taking professional advice.

Having clear workplace policies and encouraging good communication can help prevent problems from developing into formal disputes. Managers should also understand how to deal with grievances and disciplinary matters fairly and consistently.

What happens if I’m taken to an employment tribunal?

An employee or worker may be able to make a claim to an employment tribunal if they believe their employment rights have been breached.

Before most tribunal claims can be made, the claimant must notify ACAS. ACAS will normally offer early conciliation, which provides an opportunity to try to resolve the dispute without going to a tribunal.

If a claim proceeds, you’ll normally receive details of the claim and will need to respond within the specified time. You should take the claim seriously, gather relevant records and evidence and consider whether you need professional legal advice.

If the tribunal decides against you, the outcome will depend on the type of claim. It may, for example, order you to pay compensation or money owed to the claimant. In certain cases involving unfair dismissal, a tribunal can order reinstatement or re-engagement.

Employment tribunal cases can involve significant time and cost, so following fair procedures and dealing with workplace problems promptly can help reduce the risk of disputes escalating.

When should I get professional legal advice?

You won’t necessarily need a solicitor for every employment issue. ACAS provides free and impartial information and advice on workplace rights, rules and good practice, and this may help you deal with many routine employment matters.

However, you should consider getting professional legal advice where an issue is complex, could have significant financial consequences or may lead to legal action. This could include disputes involving dismissal, discrimination, redundancy, significant changes to employment contracts or an employment tribunal claim.

Taking advice at an early stage can sometimes prevent a problem from becoming more serious and help ensure you follow the correct procedures.

If you decide to use a solicitor, consider choosing one with appropriate employment law experience. You can search for a solicitor through the Law Society.