Taking on staff turns a business owner into an employer, and employers in England and Wales carry a set of legal responsibilities from day one. You do not need to be an HR expert, but you do need to know where the main duties lie. Here is a plain-English tour of the key ones.
Written terms and employment status
Every employee and worker is entitled to a written statement of their main terms, and since April 2020 this is a "day-one" right under the Employment Rights Act 1996. Getting status right matters too: employees, workers and the genuinely self-employed have different rights, and mislabelling someone does not change their true status in the eyes of a tribunal or HMRC.
Pay and working time
You must pay at least the National Minimum Wage / National Living Wage (National Minimum Wage Act 1998), keep records, and respect the Working Time Regulations 1998, limits on weekly hours, rest breaks, and paid annual leave. Add the statutory rules on sick pay and family leave (maternity, paternity, adoption and shared parental leave).
Discrimination and fair treatment
The Equality Act 2010 prohibits discrimination, harassment and victimisation connected to nine protected characteristics (such as age, disability, race, religion, sex and sexual orientation). This runs from recruitment adverts through to dismissal, and there is now a specific duty on employers to take reasonable steps to prevent sexual harassment of staff.
Health and safety
Under the Health and Safety at Work etc Act 1974 and its regulations, you must take reasonable care of your workers' health and safety, including carrying out risk assessments, providing a safe system of work, and (for most businesses with five or more employees) a written health and safety policy. Employers' liability insurance is generally compulsory.
Pensions
Under the Pensions Act 2008, most employers must automatically enrol eligible staff into a workplace pension and make minimum contributions. This is a recurring duty, not a one-off.
Dismissals and procedures
Once an employee has the qualifying period of service, they are protected from ordinary unfair dismissal, and following a fair procedure (in line with the ACAS Code of Practice) matters as much as having a fair reason. Some dismissals, however, are automatically unfair (for example for pregnancy, whistleblowing or asserting certain statutory rights) and need no qualifying period. Note also that employment law is subject to ongoing reform (with further changes to worker protections proposed), so check the current position before acting on dismissals or new contracts.
You can be liable for your employees' actions
Through vicarious liability, an employer can be held legally responsible for wrongful acts an employee commits in the course of their employment, another reason that training, supervision and clear policies are worth the effort.
Staff data
Employee records contain personal data, so the UK GDPR and Data Protection Act 2018 apply to how you collect, store and use information about your staff.
Key takeaways
- Give every employee and worker a written statement of terms from day one.
- Meet minimum wage, working time, holiday, pension auto-enrolment and health and safety duties.
- Follow the Equality Act 2010 from recruitment to exit, including the duty to prevent harassment.
- Use fair procedures for dismissals, and remember you can be vicariously liable for staff conduct.
- Employment law is subject to ongoing reform, so keep up to date.
Sources
- Employment Rights Act 1996 (and ongoing employment-law reform proposals)
- Equality Act 2010
- National Minimum Wage Act 1998; Working Time Regulations 1998
- Health and Safety at Work etc Act 1974
- Pensions Act 2008 (automatic enrolment)
- UK GDPR and Data Protection Act 2018
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.