When hiring people, employers often stick to such a thing as a probationary period. The main purpose of this duration is to analyze candidate’s suitability for a job, see the difficulties that may arise, and decide whether to sign an employment contract with this person. As well as any cooperation, the probationary period has regulations on which both parties have to mutually agree in the contract.
The information according to the probationary period is usually included in the employment contract. There should be outlined such things as its duration, performance standards, scope of work, evaluation process, termination notice period, etc.
There is also the option of signing a fixed-term internship contract that slightly differs from the probationary period employment contract. The primary purpose of this document is more educational, as training may be applied after accomplishing which the person will be able to get a specific role.
In a situation when the employer isn’t sure about the candidate’s abilities, particularly if he or she has no professional experience, a test assignment agreement is often used. It is focused on specific tasks the candidate is considered for.
The duration of a probationary period often varies between 3 and 6 months. It’s generally recommended to stick to this timeframe as courts rarely accept probationary periods exceeding 6 months.
For employees changing roles within the same company, a probation period usually lasts no more than three months.
During the probationary period, employees typically perform the regular duties associated with the position for which they are hired. Employers may provide additional training and support during the probationary period to help people adapt better.
There is no minimum termination notice during the probation period. However, a minimum statutory notice of 1 week applies as to 1 month of work, even during the probation period. This rule is relevant for both parties. In certain situations, such as gross misconduct, the employer has the right to terminate the employee without providing notice. Nevertheless, in most cases, the standard statutory notice requirements are applicable.
To avoid legal compliance issues, as well as unfair dismissal claims, AdminTech suggests:
You can always use our fixed-term internship, test assignment, or employment contract templates to ensure legal compliance with the regulations you specify in your document.
Almost all employees classed as workers are legally entitled to a minimum paid holiday a year which is also known as statutory leave entitlement or annual leave. This is a paid period off work that employees can use whatever they like with no loss in their salary. It applies to:
The annual leave is usually limited to 28 days for those, who work full-time 5-6 days a week.
The duration for part-time employees can be calculated by the next formula:
The number of their average weekly working days × 5.6.
According to those, who work irregular hours, their holiday entitlement is calculated by the amount of hours they’ve worked in the previous 52 weeks × 12,07%. The result will be equal to the hours these people can take off.
The holiday pay is estimated according to the usual hours someone works.
Payment in lieu of holidays is not allowed, except for the termination of the agreement when the employee could not have taken all the holiday entitlement.
Holiday entitlement builds up during certain types of leave, including maternity, paternity, adoption, or sick leave.
Before taking time off the employee has to inform the employer about that. Here it’s better to keep in mind that the sooner the worker tells about the leave, the better. The notice should be no less than twice as long as the amount of days off the employee wants to take, plus one day. So, for example, if the person wants to take 5 days off, he or she should inform the employer in 11-day time.
It’s also vital to remember, that the employer has the right to refuse the request and notify the employee about their decision no less than the amount of days off the employee wants to take, plus one day. So, if the employer doesn’t agree to give the leave for 5 days, the employee has to be notified about that 6 days before or earlier.
There are such periods, when employees aren’t allowed to take paid leave. These situations are usually specified in the employment contracts and are referred to as busy periods that vary depending on the industry. There might also be cases when employers notify their employees of the days when it’s better to take a paid holiday or even require them to use their leave within a certain timeframe or lose it.
Bank holidays do not have to be given as paid leave. An employer can choose to include bank holidays as part of a worker’s statutory annual leave.
Employers should be aware of and adhere to the legal requirements that are mentioned above. To avoid legal consequences and ensure fair treatment, AdminTech suggests:
Each employer has to adhere to the regulations according to the minimum wage. This amount is set by the government to make sure that workers can receive enough money to cover their basic needs. Any social security contributions and taxes payable by the employer apply to the minimum wage and not to the lower actual wage. The minimum wage is often changed from one year to the next, requiring regular employment contracts to be adapted.
The employee needs to be at least of a school leaving age to qualify for the National Minimum Wage (NMW). The rate is divided into different age brackets, with lower rates for younger workers. The NMW applies to most workers, including those who work full-time and part-time.
Workers aged 23 and over are entitled to a higher minimum wage rate which is also called the National Living Wage (NLW).
Apprentices are entitled to the reduced apprentice rate if they’re either aged under 19 or for the first year of their apprenticeship, but in no case if they are of at least of the qualifying age for the NLW as indicated above.
There are certain categories of people that aren’t entitled to get NMW or NLW. These include:
As for today, the wage looks the following way.
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
| £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
However, the rate changes every year, and from 1 April 2024, the amounts will be slightly different.
| 21 and over | 18 to 20 | Under 18 | Apprentice |
| £11.44 | £8.60 | £6.40 | £6.40 |
Amounts taken into account for calculating the minimum wage include:
Amounts not included in the calculation of the minimum wage:
Employers in the UK who fail to pay the minimum wage may face legal penalties. To avoid this, AdminTech suggests:
You can always modify your employment contract and the wage that is included there using valid document templates. Just fill in the needed information, save it, and come to your employment contract whenever you want to edit any detail.
Employment status outlines the nature of the business relationship, classifying people according to the terms and conditions of their employment. These statuses slightly differ in obligations, taxes, social security, etc. Subsequently, business documents used for cooperation between two parties are also unlike.
As you see, there is no straightforward definition of what it means to be employed or self-employed. So, a case-by-case assessment is necessary.
The person is likely to be an employee if he or she:
Things differ once the person is self-employed, while he or she:
Please note: these criteria are not cumulative, and each criterion may carry more weight than the others, depending on the individual situation.
Employees are protected by labor laws and have the following rights:
Since self-employed people are their employers, they fall outside the scope of employment law. Still, however, they have:
During the hiring process, regulations also slightly differ. So, if you decide that a particular person will work for you as a self-employed individual, it’s advisable to:
In the situation of hiring a person as an employee, one of the main points is to establish a valid employment contract that will help to ensure clarity, compliance, and a positive working relationship between both parties.
You can take advantage of our legal employment contract templates and adapt them to the type of work and the employee. Just navigate the rules of employment law with our information boxes, which provide guidance and make your work fast and secure.
AdminTech team is always ready to help you with legal agreements and ensure their legal compliance.
