Working hours, time off and pay

You must comply with legal restrictions on employees’ working hours, time off and pay. Failing to do so could lead to claims from employees, enforcement action or even prosecution. Giving employees fair holidays, work breaks and pay can also help to improve performance, reduce accidents and cut unauthorised absenteeism.

Working hours and holiday entitlement

The Working Time Regulations set requirements for employees’ holidays, working hours and rest breaks. The regulations are designed to help protect employees’ health, safety and welfare in line with the EU Working Time Directive.

Employees are entitled to work a maximum of 48 hours a week, unless they freely opt out from this limit. The working time regulations also include requirements for work breaks and for rest periods between working days.

Employees have a statutory holiday entitlement of a minimum of 5.6 weeks’ paid leave a year. This applies pro rata to part-time workers: for example, an employee working two days a week has an annual leave entitlement of 11.2 days. The holiday entitlement can include public holidays such as bank holidays.

Special rules apply to young employees, night workers and Sunday working.

Additional time off

Employees have statutory entitlements to maternity and paternity leave. Parents and carers are also entitled to take unpaid parental leave or care leave. For example, employees can take reasonable unpaid time off to deal with an emergency involving a dependant. This includes the right to bereavement leave for a dependant’s funeral.

In addition, employees are entitled to paid or unpaid leave for a variety of activities. For example, you need to allow employee representatives paid time off for carrying out their duties (for example as a health and safety representative). You also need to allow employees unpaid time off for various public service activities such as acting as a magistrate.

If you are making an employee redundant, you must allow time off for job-seeking.

You should have a clear policy on sick leave, disability leave and any discretionary leave you allow, and on the procedures employees must follow to request leave.

Pay and the minimum wage

Almost all workers are entitled to be paid at least the national minimum wage, unless someone is genuinely self-employed. Reduced minimum wage rates apply to workers who are 21 years old or younger.

You can only make deductions from pay that have been agreed in advance (for example, as part of the employment contract) or are legally required (for example tax and National Insurance contributions). You are legally required to give all employees an itemised pay statement.