6 legal requirements for all UK businesses

Mike Page's picture
Authored by Mike Page
Posted Thursday, September 28, 2017 - 4:28pm

Every small or large company has a legal and moral responsibility to their employees. Any employer who attempts to avoid their responsibilities could face legal and reputational consequences, as a result. We are therefore offering the six legal requirements for all UK businesses.

1. Wages and Taxes

Every UK employer is required to pay the National Minimum Wage by law. The amount you pay will be determined by the category of the worker. For example, people aged 25 and above must receive £7.20 or above per hour, while people below 21 to 24 can receive £6.70, and people aged 18 or under must receive up to £3.87 per hour. You’ll also be required to deduct tax and national insurance for most employees, as well as student loan repayments and pension contributions, if applicable.

2. Health and Safety

Every business is legally required to provide and maintain a safe working environment for all employees. The standards a company will need to follow will also be determined by their industry. For example, a small marketing company will have to follow less regulations in comparison to a construction site, who will have to provide employees with onsite management safety training to NRSWA street works training course. An employer’s health and safety requirements will also include issues relating to bullying, discrimination, maternity and paternity.

3. Insurance

Every business owner must regard insurance as a necessity. In fact, there are some insurance types that the law requires every business to have, while there are other forms that entrepreneurs should sign-up to for their personal and corporate protection. For example, every business must take out employers’ liability insurance, insurance for certain engineering equipment, insurance required for contracts and motor insurance (if appropriate).

4. Statutory Rights

Every UK business must adhere to an employee’s statutory rights. For example, every employee has the right to a written contract, a minimum of 28 days paid holiday (including bank holidays), an itemised pay slip, the national minimum wage, and paid maternity or paternity leave. A failure to adhere to the above responsibilities can result in a substantial fine.

5. A Workplace Pension Scheme

A new law has been introduced that requires all employers to enrol their employees into a workplace pension scheme by 2018, if the member of staff is between the ages of 22 and pension age and earns more than £10,000 per year in the UK.

6. Statutory Sick Pay

There will be times when a member of staff is forced to phone in sick, which is why you must understand your legal requirements when it comes to sick days. Every UK worker is legally entitled to statutory sick pay, which commences on the fourth consecutive day (including non-work days) that they are unable to attend work due to an illness. This entitles a poorly member of staff to £89.95 per week, and it must be paid by an employer for up to 28 weeks.

Do you have any advice to help a business owner adhere to their obligations to their workers? Share your thoughts and tips in the comment area below.