United Kingdom labour law

[7] Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work.

Examples include requiring that employers do not act in an authoritarian manner,[70] do not call employees names behind their back,[71] do not treat workers unequally when upgrading pay,[72] do not run the company as a front for international crime,[73] or do not exercise discretion to award a bonus capriciously.

[74] There has been disagreement among judges about the extent to which the core implied term of mutual trust and confidence can be 'contracted out of', with the House of Lords having held that the parties may when they are "free" to do so, while others approach the question as a matter of construction of the agreement which is within exclusive judicial competence to define.

This, however, does not cover industrial action,[83] so following 18th century common law on part performance of work, employees who refused to 3 out of 37 hours a week in minor workplace disobedience had their pay cut for the full 37.

Because pension schemes save up significant amounts of money, which many people rely on in retirement, protection against an employer's insolvency, or dishonesty, or risks from the stock market were seen as necessary after the 1992 Robert Maxwell scandal.

First, it is an offence under the Regulation of Investigatory Powers Act 2000 section 1(3) for an employer to intercept any private communication, such as reading email, searching an inbox, or tracking calls or websites, without lawful authority.

In Halford v United Kingdom the European Court of Human Rights held that intercepting an employee's phone calls violated their private life, particularly since they had not been told of any extent of monitoring, and they had been given a reasonable expectation of privacy.

Collective agreements, which unions make with employers, usually aim to set fair scales of pay and working hours, require pensions, training and workplace facilities, and update standards as the enterprise changes.

Minor procedural irregularities that would not affect outcomes do not undermine an election,[221] but otherwise a Certification Officer can hear complaints about malpractice, make inquiries, and issue enforcement orders, which can in turn be appealed to the High Court.

[228] For example, in Edwards v Halliwell[229] a decision of the executive committee of the National Union of Vehicle Builders to increase membership fees was restrained, because the constitution required a two-thirds vote of members first.

Since the early success of the UK Labour Party in promoting working people's welfare through Parliament, both courts and Conservative governments attempted to suppress unions' political voice,[232] particularly compared to funding by employers through control of corporations.

[265] The long, problematic procedure, was partly based on the model of the US National Labor Relations Act 1935, but because of its cumbersome nature it strongly encourages the parties to seek voluntary agreement in the spirit of cooperation and good faith.

Though most collective agreements will come about voluntarily, the law has sought to ensure that workers have true freedom of association by prohibiting employers from deterring union membership, and by creating positive rights for members.

[309] There are a limited number of outright prohibitions on strike action, but in accordance with ILO Convention 87 this is only for workplaces that involve the truly essential functions of the state (for armed forces, police,[b] and prison officers[313][c]), and only when impartial arbitration is used as an alternative.

In the 1977 Report of the committee of inquiry on industrial democracy[378] the Government proposed, in line with the new German Codetermination Act 1976, and mirroring an EU Draft Fifth Company Law Directive, that the board of directors should have an equal number of representatives elected by employees as there were for shareholders.

There have, at the initiative of the European Union been a growing number of "work councils" and "information and consultation committees", but unless an employer voluntarily concedes to staff having a binding say, there is no legal right to participate in specific questions of workplace policy.

[419] The ECJ, mostly in cases concerning sex discrimination under TFEU art 157, has held that an employer must show a "real need" for the practice that has a disparate impact, and it must be "unrelated" to the protected characteristic.

[425] In Enderby v Frenchay Health Authority[426] the ECJ held that although a speech therapist being paid less than a male counterpart could not be justified only on the ground that this resulted from different collective agreements, if a disparity came from market forces, this was an objective justification.

[434] Because treating disabled people equally based on ability to perform tasks could easily result in persistence of exclusion from the workforce, employers are bound to do as much as reasonably possible to ensure participation is not hindered in practice.

For characteristics other than disability, "hard" positive discrimination, through privileged contract terms, hiring and firing based on gender, race, sexuality, belief or age, or setting quotas for underrepresented groups in most jobs, is generally unlawful in the EU.

So in Eastwood v Magnox Electric plc,[494] a school teacher who also suffered psychiatric injury, but as a result of harassment and victimisation while he still worked, could claim for a full measure of damages for the breach of mutual trust and confidence.

In practice, the Court of Appeal has given conflicting judgments and remains unable to articulate what the test means, prompting the question of how a "hypothetical reasonable employer" standard under section 98(4)(a) should actually be applied.

For example, in a conduct case, HSBC Bank plc v Madden,[517] the Court of Appeal held that it was acceptable for a Tribunal to have decided that dismissing an employee for potential involvement in theft of credit cards was fair, even though an actual police investigation turned up no evidence.

[518] By contrast, in Bowater v Northwest London Hospitals NHS Trust,[519] an employer argued a nurse who, while physically restraining a naked patient who was unconscious and having a seizure, said "It's been a few months since I have been in this position with a man underneath me" was lewd and deserved dismissal for her misconduct.

[521] Nevertheless, in Polkey v AE Dayton Services Ltd[522] the House of Lords held that, in a case where a van driver was told he was redundant on the spot, if an employer can show the dismissal would be made regardless of whether a procedure was followed, damages can be reduced to zero.

The Court of Appeal agreed with the union that this represented a proportionate means of achieving a legitimate aim of rewarding seniority, particularly since older workers might find alternative employment much harder to secure.

While this theory lacked evidence,[571] From 1979, the new Conservative government led by Margaret Thatcher abandoned full employment as a goal, and triggered soaring inflation, as it began attacking organised labour.

Paying insurance was thought to impel the government to encourage full employment, while it also increases labour's bargaining power: workers need not accept any job on starvation wages, because they will have a minimum income to survive.

The desire to keep a cohesive workforce, and avoid the possibility of strike action, is the primary incentive for employers to negotiate in good faith with employee representatives, and ensure that there is a joint approach to upholding all workplace rights, such as pay, working time, safety, equal treatment and job security.

Proponents of an integrated approach have called for a "social clause" to be inserted into the GATT agreements, for example by amending article XX, which gives an exception to the general trade barrier reduction rules allowing imposition of sanctions for breaches of human rights.

In the UK in 2021, of the total working population 32.5 million people were employed, there was 4.2% unemployment , and 6.6 million trade union members . The average income was £30,472, and the average working week was 36 hours. [ 1 ]
Wat Tyler , leader of the Peasants' Revolt is killed in front of King Richard II .
The International Labour Organization was created by the Versailles Treaty in 1919, on the principle that "peace can be established only if it is based on social justice ". [ 21 ]
The UK miners' strike (1984–1985) was a bitter confrontation between the Thatcher government and coal mine workers, which has left resentment till today.
Sidney and Beatrice Webb , in their book Industrial Democracy argued that because workers' inequality of bargaining power meant they could not contract for it themselves, law should create a "national minimum" of workplace rights, with trade unions to secure a living wage .
Modern economic theory suggests a reasonable minimum wage will raise productivity, equality and employment because labour markets are persistently monopsonistic , and people on lower incomes spend more money, stimulating effective aggregate demand for goods and services. [ 88 ]
The top rate of income tax was 80% to 100% from 1940 to 1980. As it fell, income inequality has risen in the UK.
The UK has no explicit statute for minimum hours, although zero hours contracts have been used increasingly since the financial crisis of 2007–2008 . Since Autoclenz Ltd v Belcher [2011] UKSC 41, zero hours clauses have been held to be ineffective, so that workers are legally entitled to a reasonable amount of work according to their usual patterns. [ 111 ]
UK employers are reimbursed by the government when employees take paid leave for child care . [ 127 ]
Unlike the UK, Swedish parental leave is equally available to both parents, though men take around 24% of the leave. [ 143 ]
Every jobholder will from 2012 be automatically enrolled in an occupational pension , and can codetermine how their retirement savings are invested and their voice in company shares is used. [ 160 ]
Nye Bevan , Minister of Health when the NHS was founded
19th century regulations limited child labour and working time in factories and mines, but employers were not always liable for accidents until 1937.
Everyone has a basic right to freedom of expression, including social media posts outside work without any association with the employer. [ 193 ]
UK labour law's central goal since the Trade Disputes Act 1906 has been for people to vote in their workplace, like in Parliament , [ 201 ] to achieve " a fair day's wage for a fair day's work ". [ 202 ] This happens through staff organising unions , using legal participation rights , and collectively bargaining .
Between 2013 and 2022, Frances O'Grady was the General Secretary of the Trades Union Congress , which is the umbrella grouping for trade unions in England and Wales .
Reflecting the democratic tradition of British unions , in 2007, 2010 and 2013 Jerry Hicks challenged the general secretary of Unite the Union , and only lost by small margins in the system of voting by postal ballots among members.
Otto Kahn-Freund (1900–1979), was a Berlin Labour Court judge who was forced out in 1933, heavily influenced the idea of UK labour law as "collective laissez-faire ". [ 249 ]
The European Court of Human Rights has continually held, like the UK courts, [ 266 ] that collective bargaining is a basic right guaranteed by ECHR article 11 . [ 267 ]
Income inequality surged as union membership declined from 1980 , when people stopped being automatically enrolled in their union. [ 273 ] A " closed shop " is unlawful, [ 274 ] but with a right to opt out, unions can collectively agree that staff automatically become members. [ 275 ]
The right to strike , used throughout history like in the Peasants' Revolt of 1381, is a fundamental right in every democracy. TULRCA 1992 sets limits which have been found by the International Labour Organization to violate international standards.
Tony Blair , New Labour Prime Minister from 1997 to 2007, said in 1997 that "changes that we do propose would leave British law the most restrictive on trade unions in the Western world." [ 297 ] This is still seen as accurate. [ 298 ]
Every UK company with over 50 people has a right to elect a work council which management must inform and consult before major workplace changes. [ 337 ] Staff who work for companies that operate in two or more EU countries have a right to start a transnational work council . [ 338 ]
Universities in the UK are generally required to give staff members a right to vote for the board of managers at the head of corporate governance , such as in the Oxford University Act 1854 , [ 376 ] or the Cambridge University Act 1856 . [ 377 ]
The Equality Act 2010 protects against discrimination on grounds of race, gender, belief, disability, age, and sexual orientation.
Under the Equality Act 2006 , the Equality and Human Rights Commission , with offices near City Hall , London , promotes equality by intervening in discrimination cases, providing guidance and making investigations into workplace practices.
People celebrate " Equal Pay Day " in Berlin . The Equal Treatment Directive , [ 413 ] which the Equality Act 2010 sections 64 to 71 follow, covers everyone in the EU, but the law so far has let the gender pay gap persist.
In 2014, the gender pay gap in the EU averaged men being paid 16.2% more than women, and the UK 's gap was higher than average, at 18.3%.
An increasing number of EU member states, though not yet the UK, require company boards of directors to have gender quotas. For example, Finland requires that companies comply with the standard of a 50-50 gender split, or explain to the market if they do not reach the target.
Atypical workers, with people who lost social security and fair incomes, were named the " precariat " class by former ILO director Guy Standing . He advocates a universal basic income to ensure security, funded through tax on wealth. [ 448 ]
After 21 immigrant cockle pickers died at Morecambe Bay licensing was reintroduced for some employment agencies in the Gangmasters (Licensing) Act 2004 .
In Wilson v Racher , involving a gardener denigrated by his employer at Tolethorpe Hall , Edmund Davies LJ held employment relations require "a duty of mutual respect". [ 486 ]
In many EU countries, including Germany , [ 510 ] the work council which is elected by staff may prevent dismissals taking effect until court confirms them as being socially justified. UK employees remain more vulnerable, and must usually be out of work while making claims to an Employment Tribunal .
ACAS , headquartered at Euston Tower , issues a binding Code of Practice on how to handle workplace disputes and potential dismissals.
Unemployment rate 1881 to 2017
Unions, courts and government regulators enforce labour rights. According to the Supreme Court, any worker can seek an injunction in the High Court for breach of contract. [ 577 ]
As one of the few international organisations with real enforcement power through trade sanctions, the WTO has been the target for calls by labour lawyers to incorporate global standards of the International Labour Organization .
In Duncombe , the Supreme Court found an employee of the European School, Karlsruhe in Germany was covered by UK labour rights because their employer was the UK government. [ 593 ] Because labour rights should not be undercut by a " race to the bottom ", conflict of laws principles allow workers to claim rights from the more favourable jurisdiction.