GCC Laws
United Kingdom
Employment Contracts and Wages

Employment Contracts and Wages

Q: Do employers have to provide employees with a written contract or terms of employment?
A: Yes, by law, every employee (and worker) must receive a written statement of their main terms and conditions on or before their first day of work. This “written particulars” should include key details like job title, pay, hours, holiday entitlement, notice periods, etc. (If you have <5 employees, it need not be a formal contract, but basic written terms are still required.)

gov.uk
Source: GOV.UK – Written statement of employment particulars (legal duty)

Q: Can an employer in the UK change an employee’s contract terms (such as hours or pay)?
A: Contract changes normally require the employee’s agreement. You should consult with and obtain consent from the relevant parties before altering the terms and conditions. Imposing changes without agreement can breach the contract and expose the parties to legal claims. (If changes are needed, try to negotiate or explore alternatives, using “fire and rehire” as a last resort and with great caution.)

acas.org.ukacas.org.uk
Source: Acas – Changing an employment contract (agreement needed)

Q: What’s the difference between an employee, a worker, and a self‑employed contractor in UK labor law?
A: Employees work under a contract of employment and have the full range of employment rights (like sick pay, maternity leave, unfair dismissal protection after 2 years, redundancy pay, etc.). 

Workers (including many casual or zero-hours staff) have more limited rights; they’re entitled to basics like the minimum wage, paid holiday, rest breaks, and protection against discrimination, but not unfair dismissal or redundancy pay.

Self-employed contractors are essentially their own business – they generally aren’t covered by employment laws (beyond health and safety and anti-discrimination) and aren’t entitled to employee benefits or statutory payments.

acas.org.ukacas.org.uk.
Source: Acas – Employment status (employee vs worker vs self-employed)

Q: Do part-time workers in the UK have the same rights as full-time workers?
A: Yes, by law, part-time employees must not be treated less favourably than comparable full-time staff. This means they’re entitled to the same rate of pay, the same access to benefits (pro-rata if applicable), and equal opportunities for training and promotion. In short, part-time workers should get the same treatment as full-timers, just in proportion to their hours.

acas.org.ukacas.org.uk
Source: Acas – Employee rights (protection for part-time workers)

Q: Must employers give employees payslips, and what information should a payslip show?
A: Yes, all employees and workers are entitled to an itemised payslip on or before each payday. The payslip must show the gross pay, any deductions (such as tax, National Insurance, and pension contributions), and the net pay. If pay varies by hours worked, it should also include the number of hours for which pay is being calculated.

Gov.uk.
Source: GOV.UK – Payslips: employee rights

Q: What is the National Minimum Wage (NMW) and National Living Wage in the UK, and what are the current rates in the UK?
A: The National Minimum Wage is the legal minimum hourly pay. The top rate is called the National Living Wage (for workers aged 23 and over). As of April 2024, the National Living Wage is £11.44 per hour. Younger ages have lower minimum rates – for example, 21–22-year-olds: £11.44; 18–20: £8.60; under 18: £6.40; and apprentices (under 19 or in first year): £6.40 per hour. These rates usually increase annually every April.

gov.uk
Source: GOV.UK – National Minimum Wage rates (2024)

Q: Do employers have to pay extra for overtime, or a higher rate for night and weekend work in the UK?
A: There’s no automatic legal right to a higher overtime or weekend/night rate; it depends on the contract or company policy. Legally, you must ensure that, averaged out, the employee’s pay doesn’t fall below the minimum wage for the total hours worked. Many employers do pay a premium for overtime or unsocial hours, but it isn’t required by law unless your contract promises it.

gov.uk

Source: GOV.UK – Overtime: your rights (no statutory overtime pay rate)

Q: Do employers in the UK have to pay employees who are off sick?
A: By law, if an eligible employee is off sick for at least 4 calendar days in a row, you must pay Statutory Sick Pay (SSP). SSP is a fixed weekly amount – currently £118.75 per week (2025–2026 rate) – and can be paid for up to 28 weeks. (Employees qualify if they earn at least the minimum threshold, which is £123/week, and meet other conditions. Some employers offer more generous company sick pay by contract.)

gov. ukgov.uk
Source: GOV.UK – Statutory Sick Pay rates (2025)

Q: Do employers need to enroll employees in a pension scheme in the UK?
A: Yes, under auto-enrolment rules, every employer must put eligible workers into a workplace pension and contribute to it. Eligible workers are those aged 22 up to State Pension age who earn over £10,000 a year. Employers must enroll them and pay at least the minimum employer pension contributions (currently 3% of qualifying earnings). Workers can opt out, but you must offer the pension in the first place.

Gov. ukgov.uk
Source: DWP – Automatic enrolment (employer duties)

Q: When can an employer in the UK legally deduct money from an employee’s wages?
A: You can only make deductions from wages if it’s legally allowed or agreed. Deductions are lawful if they’re required by law (tax, NI), authorised by the employee’s contract or a written agreement, to recover an earlier overpayment, or made by court order. Except for those cases, taking money from pay without consent is an unlawful deduction. (Also, even with consent, deductions generally must not take pay below minimum wage except for specific exceptions like tax or pension contributions)

gov.uk.
Source: GOV.UK – Deductions from wages (legal conditions)

Q: Are zero-hours contracts legal, and can we stop zero-hours staff from working elsewhere in the UK?
A: Yes, zero-hours contracts (with no guaranteed hours) are legal in the UK. However, exclusivity clauses in such contracts, which bar workers from taking jobs with other employers, are prohibited by law. In practice, zero-hours workers have the right to work for another employer if they wish, and they still must receive at least minimum wage for hours worked and other basic rights (holiday pay, etc.).

Govv. ukgov.uk

Source: UK Government – Exclusivity clauses ban (Zero Hours Contracts, 2015)

Q: What is the minimum notice period in the UK that an employer must give when terminating an employee’s employment?
A: Statutory minimum notice depends on length of service. After one month’s service, an employee is entitled to at least 1 week’s notice if they are dismissed. This increases to 1 week per year of service after 2 years, up to a maximum of 12 weeks’ notice for 12 or more years of continuous service. (Your contracts can give more notice than the legal minimum, but not less. Gross misconduct dismissals can be without notice.)

acas.org.ukacas.org.uk
Source: Acas – Notice periods for dismissal (statutory minimums)

Related Laws

Exploring Emirati Talent for Your Team?
Hire Emirati Talent Now!
Want the full article?
Thank you! Enjoy your article.
Oops! Something went wrong while submitting the form.