UK employers have extensive statutory obligations around pay, working hours, breaks and the treatment of different categories of staff. These laws set a baseline of protection for both employees and limb (b) workers, while still allowing organisations room to design working patterns that meet operational and commercial needs. A solid grasp of the key legislation, including the Employment Rights Act 1996, the Working Time Regulations 1998, the National Minimum Wage Act 1998 and the Agency Workers Regulations 2010, is critical to effective HR practice and to managing legal and regulatory risk.
What this article is about
This article gives employers and HR practitioners a structured overview of the main UK legal requirements relating to pay and working hours. It signposts core issues such as wages and deductions, minimum wage compliance, statutory sick pay, flexible working rights, entitlements for different worker types and the rules on working time and rest. The objective is to help employers identify the correct legal position for each issue, highlight where more detailed compliance guidance will be needed, and underline the importance of recording decisions and keeping accurate records to evidence compliance.
Different individuals will have different rights to pay, breaks and working hours depending on their employment status, age, working pattern and contractual terms. Employers must factor these distinctions into their policy design, pay structures and workforce planning. By correctly determining employment status, applying all relevant statutory protections and aligning policies with current legislation and official guidance, employers can maintain lawful practice, support staff engagement and build organisational resilience.
Section A: Pay, Wages and Deductions
Pay is one of the most heavily regulated elements of the employment relationship. Employers must ensure that all pay practices comply with statutory requirements and that workers are paid correctly, transparently and on time. The law imposes specific rules on minimum wage, statutory pay, deductions, pay during sickness, payments on termination and how overtime, training time, bonuses, commission, pension contributions and related benefits are handled. Core legislation includes the Employment Rights Act 1996 and the National Minimum Wage Act 1998 and associated regulations. Clear, consistent and well-controlled payroll processes are essential to avoid unlawful deductions, underpayment claims and breaches of minimum wage law.
You can read our extensive guide to Pay and Deductions here >>
National Minimum Wage and National Living Wage
Most workers in the UK are entitled to be paid at least the applicable National Minimum Wage (NMW) or National Living Wage (NLW), depending on their age and status. These statutory rates are reviewed and updated each year, so employers must ensure that payroll systems are promptly updated when new rates take effect. If a worker is paid less than the correct rate, the employer may be required to pay arrears and can face financial penalties and public naming by HMRC.
NMW and NLW compliance is assessed over a “pay reference period”, which usually aligns with the worker’s pay cycle (for example, weekly or monthly). Employers must ensure that when total pay in that period is divided by the hours that count as working time, the resulting average hourly rate is at or above the relevant statutory rate.
In doing this, employers must identify all time that counts as working time for minimum wage purposes. This may include time spent actually working, some types of travel time, and, in many cases, time spent “on call” at the workplace or another place where the worker is required to be. Accommodation provided by the employer is subject to a specific statutory accommodation offset, and only within that capped amount can accommodation costs reduce pay for minimum wage calculations. Particular care is needed to ensure that deductions, unpaid working time, uniform or equipment costs and similar charges do not reduce pay below the minimum wage in any pay reference period.
Statutory Sick Pay
Employees may qualify for Statutory Sick Pay (SSP) if they meet the relevant earnings threshold and satisfy the statutory conditions for sickness absence. SSP is normally payable for up to 28 weeks in any period of incapacity for work. Employers must administer SSP correctly, apply their sickness reporting procedures consistently and keep accurate records of sickness absence.
By law, medical evidence such as a fit note is only required after 7 calendar days of sickness absence, although employers may choose to require self-certification for shorter periods. Following the abolition of historic reimbursement schemes, employers can no longer reclaim SSP from HMRC and must fund SSP costs in full through payroll.
Many organisations offer enhanced company sick pay on top of SSP. Where a contractual sick pay scheme is in place, it must be operated in a fair and consistent manner and must sit alongside the statutory SSP framework rather than replace it. Contracts and policies should clearly explain whether company sick pay is discretionary or contractual, how entitlement is calculated, how it interacts with SSP and in what circumstances payments may be withheld or stopped.
Payslips
All workers, not only employees, are entitled to receive an itemised payslip for each pay period. A payslip must show gross pay, each type of deduction and net pay. Where a worker’s pay varies by the amount of time worked, the payslip must also show the number of hours being paid for, or information that allows those hours to be identified.
Failing to provide compliant payslips can lead to claims in the employment tribunal, especially where workers believe their pay has been miscalculated or that deductions have been applied incorrectly. Employers should ensure that payroll systems are configured to produce clear, itemised and accurate payslip information and that any queries are handled promptly and transparently.
If Wages Are Not Paid
Non-payment or late payment of wages can amount to an unlawful deduction under section 13 of the Employment Rights Act 1996 and may also represent a breach of contract. Workers can bring unlawful deduction claims in the employment tribunal, usually within three months of the last deduction or non-payment, or they may pursue contractual claims in the civil courts. For employees, repeated failures to pay wages or serious underpayments may contribute to a claim for constructive dismissal if they resign in response to a fundamental breach of contract.
Employers must therefore ensure that payroll processes are reliable, that contractual changes to pay are implemented correctly and that any errors are investigated and rectified without delay. Where disputes arise about pay, employers should encourage early resolution through internal grievance or dispute procedures, documenting the investigation and outcome. Strong internal controls, robust approval processes and regular reconciliations help reduce the risk of errors and unlawful deductions.
Deductions from Pay and Wages
There are strict limits on when employers can make deductions from wages. In general, deductions are only lawful if they are:
- required or authorised by statute (for example, tax and National Insurance contributions or court orders such as attachment of earnings orders);
- expressly permitted by the worker’s contract; or
- agreed to in writing by the worker before the deduction is made.
Contractual deductions may relate to salary advances, loans, overpayments, agreed training costs or the cost of equipment or other items. Contract terms authorising deductions must be clearly drafted, brought to the worker’s attention and applied consistently.
Any deduction must be considered in light of minimum wage compliance. Deductions relating to work, such as uniforms, equipment, meals or similar items, can reduce pay for NMW purposes and must not pull the worker’s pay below the relevant NMW or NLW rate in the pay reference period. Deductions for training costs should reflect genuine losses to the employer, be reasonable in amount and be supported by clear contractual wording. While employers generally have a right to recover genuine overpayments of wages without prior consent, that right must be exercised fairly, with appropriate communication and a reasonable repayment plan where necessary.
Final Pay When Someone Leaves a Job
When employment ends, the final payment must include all wages due up to the termination date, any accrued but untaken statutory and contractual holiday pay and any other contractual earnings, such as commission or bonuses, where the conditions for payment have been met under the relevant schemes. Holiday pay must be calculated in accordance with the Working Time Regulations 1998 and any enhanced contractual provisions.
Legitimate deductions may be made from final pay, for example for unreturned company property, agreed training costs or salary advances, but only where the contract or a separate written agreement clearly authorises such deductions and where minimum wage obligations are not breached in the final pay reference period.
Where the employer makes a payment in lieu of notice (PILON), the tax treatment will depend on whether the contract contains a clear right to pay in lieu or whether the payment is made as damages for breach of contract. Precise contractual drafting and consistent practice help to reduce the risk of disputes about final pay and to ensure correct tax and National Insurance treatment.
Pay for Working Extra Hours
Where workers work overtime or additional hours, employers must ensure that their average hourly pay, when all pay is divided by all hours worked in the pay reference period, remains at or above the applicable NMW or NLW rate. Contracts should spell out whether overtime is compulsory or voluntary, how it will be authorised, how it is recorded and whether it attracts enhanced rates.
Overtime arrangements must be considered alongside working time rules, including the 48-hour average weekly limit and statutory rest rights. For salaried-hours workers, specific NMW rules apply, and employers must ensure that salary levels, when spread across all basic and additional hours the worker is required to work, meet or exceed the relevant minimum wage over the reference period. Unpaid overtime or additional hours will only be lawful where they are consistent with the contract and where they do not result in the average hourly rate falling below the minimum wage.
Monitoring overtime patterns and regularly reviewing pay structures are crucial to maintaining compliance and preventing systemic underpayment issues.
Getting Paid for Mandatory Training
Time spent on training that is required by the employer will usually count as working time and must be paid accordingly. This covers induction training, mandatory compliance training and any other training that the worker is expected to undertake, even if it falls outside normal working hours or on days when the worker would not usually work.
Employers must factor compulsory training time into both pay and working time calculations. If this time is unpaid or incorrectly recorded, workers may fall below the minimum wage or be pushed into breach of working time limits. Optional or genuinely voluntary training may be treated differently, but the distinction must be clear and communicated transparently.
Policies and communications should make it explicit when training is compulsory, how it will be scheduled and how it will be paid. Records of training attendance and hours spent provide important evidence of compliance with NMW and working time obligations.
Pay Rises
Employers may review pay periodically, for example through annual pay reviews, cost-of-living adjustments or performance-related increases. Where there is a contractual entitlement to pay rises, or where pay is governed by collective agreements, employers must comply with those terms.
Even where pay rises are discretionary, decisions must be made fairly and in line with equality law to minimise the risk of discrimination or equal pay claims. Employers should consider their obligations under the Equality Act 2010 when designing pay structures and awarding increases. Workers carrying out like work, work rated as equivalent or work of equal value should be paid equally unless the employer can objectively justify any difference.
Documented pay frameworks, clear criteria and consistent decision-making help demonstrate that pay decisions are based on legitimate, non-discriminatory factors and assist in defending any challenge that may arise.
Bonuses and Commission
Bonus and commission schemes may be contractual or discretionary. Where a scheme is contractual, the employer must comply with the agreed rules on eligibility, performance measures, calculation and timing of payment, applying criteria consistently and objectively. Discretionary schemes give employers more flexibility over whether to award bonuses and at what level, but decisions must still be taken reasonably, in good faith and without discrimination.
Case law has established that in some situations holiday pay must reflect a worker’s “normal remuneration”, which can include regular commission and recurring bonus elements. Employers should therefore review how bonus and commission schemes interact with holiday pay calculations and seek advice where necessary. Failure to factor regular variable pay into holiday pay, where required, can result in underpayment liabilities.
Clear scheme documentation, transparent performance metrics and accurate records of variable pay all help to ensure compliance and reduce the risk of disputes about entitlement and calculation.
Expenses
Employers should have a clear expenses policy setting out which business costs will be reimbursed, how claims should be submitted, what evidence must be provided and which approvals are required. If legitimate expenses incurred on the employer’s behalf are not reimbursed, this may give rise to breach of contract or unlawful deduction claims.
The tax treatment of expenses is determined by HMRC rules, which specify when reimbursements can be paid free of tax and when they count as taxable earnings. Employers should ensure their policy reflects current HMRC guidance and that payroll and finance processes are aligned with the correct tax treatment of different types of expenses.
Using practical examples and guidance within the policy can help workers understand what can and cannot be claimed and reduce the likelihood of non-compliant or disputed claims.
Tips and Service Charges
Where an employer has control or significant influence over tips, gratuities and service charges, they must comply with the Employment (Allocation of Tips) Act 2023 and the associated statutory Code of Practice. In broad terms, this regime requires such sums to be passed on to workers in full, other than lawful deductions for tax and National Insurance.
Tips, gratuities and service charges must be shared in a fair and transparent way in accordance with a written tipping policy that is accessible to workers and consistent with the statutory framework. Employers must keep records of how tips are received and distributed and retain these records for the required period, generally three years.
Workers may bring claims where tips have not been properly allocated. Employers operating a tronc or similar arrangements should review their systems and agreements to ensure they comply with both tax rules and the allocation requirements under the tips legislation and Code of Practice.
Workplace Pensions
Employers must comply with their automatic enrolment duties in relation to workplace pensions. This includes identifying eligible jobholders, enrolling them in a qualifying pension scheme, paying at least the minimum statutory contributions and issuing the prescribed statutory communications.
Employers must also handle opt-outs and opt-ins correctly and ensure that payroll systems and pension scheme rules are fully aligned. Every three years, employers must carry out re-enrolment for eligible workers who have previously opted out or left the scheme and must re-declare their compliance to the Pensions Regulator within the specified deadlines.
Ongoing monitoring, accurate records, and timely communication with workers and the pension provider are vital to avoid underpayment of contributions and to demonstrate compliance in the event of an inspection or enquiry.
Section Summary: Pay, Wages and Deductions
Pay is a central area of employment law and a key source of potential disputes if not managed correctly. Employers must operate lawful pay practices, meet statutory entitlements such as minimum wage and statutory sick pay, and only make deductions where legally permitted. Careful handling of final pay, overtime, mandatory training time, bonuses, commission, expenses, tips and pension contributions is essential to avoid underpayments and enforcement action.
Clear pay structures, robust payroll systems, accurate records and well-drafted policies form the backbone of compliance. By regularly reviewing pay practices against current legislation and guidance, and by maintaining strong internal controls and transparent communications, employers can minimise legal risk and support a fair, sustainable reward framework across the organisation.
Section B: Flexible and Hybrid Working
Flexible and hybrid working have become core features of workforce planning in many UK organisations. Statutory rights give employees the ability to request changes to where, when and how they work, while employers must balance these requests against operational needs, service levels and team cohesion. When implemented lawfully and consistently, flexible working can support retention, productivity and wellbeing. Poorly handled requests, or inconsistent decisions, can expose employers to legal risk and damage employee relations.
Statutory Flexible Working Requests
Employees now have a statutory day-one right to make a formal flexible working request. A request can cover changes to hours, times or place of work, including home or hybrid arrangements. Employers must handle requests reasonably, follow the statutory procedure, consult with the employee and communicate a decision within the legal timeframe.
An employer may only refuse a statutory flexible working request for one or more of the business grounds set out in legislation, such as additional costs, detrimental impact on quality or performance, inability to reorganise work among existing staff, detrimental effect on ability to meet customer demand or insufficient work during the proposed working times. The reasoning behind any refusal should be clearly explained and supported by evidence.
Employees can make up to two statutory flexible working requests in any rolling 12-month period. Employers should ensure that HR, line managers and anyone involved in decision-making understands the statutory grounds for refusal, the requirement to consult and the need to keep written records of the process. Keeping a clear audit trail helps demonstrate that requests have been considered on their merits and that decisions are based on legitimate business reasons rather than arbitrary or discriminatory factors.
Implementing Flexible Working
When a flexible working request is agreed, either fully or in part, the employee’s contract should be updated to reflect the new working pattern. This may involve changes to working hours, days, location, reporting lines or other terms. Changes should be confirmed in writing, with updated statements of employment particulars issued within the statutory deadlines.
Employers may introduce a trial period for new arrangements to assess whether they work in practice. Trial periods should have clear start and end dates, defined review points and agreed success criteria. Any extension or termination of a trial period should be justified and documented.
In implementing flexible working, employers must ensure consistency and fairness across teams and avoid practices that disproportionately disadvantage employees with particular protected characteristics, such as women, disabled employees or workers with caring responsibilities. Failure to do so may give rise to discrimination claims or allegations of indirect discrimination if a provision, criterion or practice puts a protected group at a particular disadvantage.
Requests for Home or Hybrid Working
Many flexible working requests focus on home working or hybrid arrangements, where time is split between home and the workplace. Employers should assess whether the role can be performed effectively away from the workplace, taking into account factors such as data security, confidentiality, supervision requirements, health and safety, equipment needs and the impact on service delivery and colleagues.
Health and safety duties under the Health and Safety at Work etc. Act 1974 and related regulations extend to homeworkers. Employers should conduct appropriate risk assessments for home workstations, provide guidance on safe working practices and consider issues such as ergonomics, working time, stress and mental health. Employees should be reminded of their own duty to take reasonable care of their health and safety while working from home.
For hybrid roles, employers should define expectations around office attendance, core hours, availability, team meetings and collaboration. Decisions about who can work remotely, how often and on what terms should be based on objective business criteria and applied consistently. Clear documentation of the rationale for granting or refusing home or hybrid working requests helps demonstrate that decisions are non-discriminatory and aligned with business needs.
Home and Hybrid Working Policies
A clear, comprehensive policy on home and hybrid working is an important tool for managing flexible arrangements. The policy should explain eligibility, how to make a request, how requests will be assessed and the factors the employer will consider. It should also cover performance expectations, communication standards, availability requirements and how attendance at the workplace will be scheduled.
Data protection and information security are critical for home and hybrid working. Policies should set out requirements for secure access to systems, password management, storage of documents, use of personal devices and handling of confidential information. Acceptable use rules for IT systems, social media and personal use of company equipment should be aligned with remote working arrangements.
The policy should also address equipment and expenses, clarifying which items the employer will provide, who is responsible for maintenance, and what costs (if any) can be reimbursed. Health and safety responsibilities should be described, including how home risk assessments will be carried out, how workers should set up their home workstations, and the process for reporting accidents, near misses or health concerns while working remotely.
Managing Employees Who Work from Home
Managing remote workers effectively requires intentional communication and oversight. Employers should ensure that homeworkers have clear, measurable objectives and understand how their performance will be monitored. Meetings, check-ins and feedback discussions should happen regularly, using a mix of video calls, phone calls and in-person meetings where appropriate.
Performance, conduct, attendance and capability procedures should apply to home and hybrid workers in the same way as to office-based staff, with any adjustments clearly justified and recorded. Managers should be trained to focus on outputs and outcomes rather than visibility, and to avoid assumptions about commitment or productivity based on where someone works.
Employers should also consider wellbeing and inclusion for remote workers. Regular check-ins, access to support services, proactive discussion of workloads and boundaries, and opportunities for social connection can help reduce isolation and stress. Employers should ensure that homeworkers remain aware of policies on conduct, confidentiality, data protection and use of company systems and that compliance with these policies is monitored and enforced.
Section Summary: Flexible and Hybrid Working
Flexible and hybrid working can deliver significant benefits for both employers and employees when managed lawfully and thoughtfully. Employers must comply with the statutory flexible working regime, treat requests fairly and transparently, and ensure that decisions are based on objective business grounds rather than assumptions or stereotypes.
Well-drafted policies, clear communication, properly documented decisions and consistent management of remote and hybrid workers all help reduce legal risk and support an engaged, productive workforce. By aligning flexible working practices with business strategy, equality duties and health and safety responsibilities, employers can build sustainable working models that meet both operational and individual needs.
Section C: Rights for Different Categories of Workers
UK employment law provides different rights and protections depending on an individual’s employment status, age and contractual arrangements. Employers must understand these distinctions to avoid misclassification, underpayment, breaches of statutory rights and potential discrimination claims. Correctly identifying whether an individual is an employee, a limb (b) worker, an agency worker, a part-time worker, an apprentice or a young worker is essential to lawful workforce management. Clear contractual terms, consistent HR processes and informed decision-making all help ensure statutory entitlements are applied correctly.
Agency Workers
Agency workers benefit from statutory protections under the Agency Workers Regulations 2010. After completing a 12-week qualifying period with the same hirer, they are entitled to the same basic pay and working conditions as comparable directly employed staff. The former ‘Swedish derogation’, which allowed certain differences in pay, has been abolished, meaning equal pay rights now apply after the qualifying period in almost all cases.
From day one of an assignment, agency workers are entitled to access collective facilities such as canteens, childcare and transport services and must also be informed about any internal job vacancies. These rights exist regardless of the qualifying period.
Responsibility for agency worker protections is shared between the agency and the hirer. Agencies are typically responsible for pay, while hirers must provide accurate information about workplace conditions, facilities, job vacancies and relevant policies. Employers should ensure contracts with agencies clearly allocate responsibilities and that internal HR teams understand the equal treatment obligations that apply to agency workers.
Part-time Workers
Part-time workers are protected under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations. They must not be treated less favourably than comparable full-time workers unless the difference in treatment can be objectively justified. Entitlements such as pay, holidays, rest breaks, pension contributions and contractual benefits must normally be pro-rated to reflect the reduced hours.
Recruitment, promotion, performance management and training opportunities must be made available on equal terms. Policies or working practices that place part-time workers at a disadvantage—for example, scheduling essential meetings outside their working hours—may amount to unlawful less favourable treatment unless justified by a legitimate business aim pursued proportionately.
Employers should regularly review working practices and conduct equality impact assessments to ensure part-time workers are not inadvertently disadvantaged and that decisions affecting them can be justified if challenged.
Zero-hours Contracts
Individuals engaged under zero-hours contracts have no guaranteed hours, but they retain key statutory rights, including entitlement to the National Minimum Wage, paid annual leave, rest breaks and protection from unlawful deductions. Exclusivity clauses that prevent zero-hours workers from taking work with other employers are generally prohibited, reflecting legal reforms aimed at preventing unfair restrictions on individuals with uncertain hours.
Where a zero-hours worker is required to attend the workplace and remain available for work, this time may count as working time for minimum wage purposes, even if no tasks are assigned. Employers should provide clarity on how shifts will be offered, expectations around flexibility, how availability is managed and how hours are allocated.
Transparent scheduling and fair distribution of work are important for maintaining trust and reducing disputes. Policies should set out how work is offered, whether workers can decline assignments and how cancellations or short-notice changes are handled, ensuring compliance with statutory protections and good practice.
Apprentices
Apprenticeship arrangements can take the form of statutory apprenticeship agreements or traditional common law apprenticeships. The distinction is significant because common law apprentices enjoy enhanced protection and can be far more difficult—and potentially costly—to dismiss. Statutory apprenticeship agreements, where properly drafted and compliant with the relevant legislation, offer employers greater flexibility and are generally preferred from a risk-management perspective.
Apprentices must receive at least the applicable apprentice minimum wage and must be given protected time to undertake the training element of the apprenticeship, whether on or off the job. Working hours must comply with the Working Time Regulations, and employers should provide appropriate supervision, mentoring and structured learning opportunities as part of their obligations.
Employers must ensure their apprenticeship documentation is correctly drafted to meet statutory requirements and that training providers are fulfilling their responsibilities. Failure to comply may undermine the validity of the agreement and increase the employer’s legal exposure.
Young Workers
Young workers aged 16–17 benefit from enhanced legal protections around working hours, rest breaks and night work. They must not normally work more than 8 hours per day or 40 hours per week and are generally prohibited from working at night except in limited circumstances. They are also entitled to longer rest breaks and increased daily and weekly rest periods compared with adult workers.
Children below school leaving age are subject to even stricter rules, including limitations on the type of work they can undertake, the hours they may work and, in many cases, the requirement for permits issued by local authorities. Employers must also conduct thorough risk assessments, considering the additional hazards and vulnerabilities associated with younger workers.
Non-compliance with young worker protections can result in enforcement action, reputational damage and significant legal risk. Employers must ensure rostering and scheduling practices reflect statutory limits and that adequate supervision, training and health and safety measures are in place.
Section Summary: Rights for Different Categories of Workers
Worker rights vary significantly depending on employment status, age and contractual terms. Misclassification can lead to substantial liabilities, including unpaid holiday, breaches of minimum wage law, discrimination claims and regulatory enforcement. Employers must ensure they accurately identify each worker’s status, apply the correct statutory protections and maintain clear contracts and policies.
A structured approach—combining accurate status assessments, thorough documentation, transparent communication and regular policy reviews—helps employers manage their workforce lawfully, treat individuals fairly and minimise legal challenges across all worker categories.
Section D: Working Time and Rest
Working time rules in the UK are designed to prevent excessive working hours, protect worker health and safety and ensure that individuals receive adequate rest. These rules apply across a wide range of working arrangements, including shift work, night work, hybrid models and irregular hours. The Working Time Regulations 1998 (WTR) implement limits on weekly working time, prescribe rest breaks and rest periods, set requirements for night workers and impose record-keeping obligations on employers. Non-compliance can lead to enforcement action, business disruption and increased risk of accidents or ill health.
Working Time Rules
The WTR limit the average weekly working time to 48 hours, averaged over a 17-week reference period unless a different reference period applies. Workers may voluntarily agree in writing to opt out of the 48-hour limit, but such agreements must be freely given, and workers must not suffer detriment for choosing not to opt out. Employers must keep records showing compliance with the working-time limits for at least two years.
The Regulations also impose specific requirements for night workers. In general, a night worker must not work more than an average of 8 hours in any 24-hour period, averaged over the applicable reference period. Night work is typically defined as at least three hours worked during the night period, which runs from 11pm to 6am unless varied by agreement. Employers must offer night workers a free health assessment before they start night work and at regular intervals thereafter.
Some roles, such as those in emergency services, armed forces, sea transport or roles requiring continuity of service, may be subject to modified or exempt working-time rules. Employers in these sectors must ensure they understand the specific rules that apply and maintain appropriate compensatory rest where standard entitlements cannot be provided.
Rests and Breaks at Work
Most adult workers are entitled to minimum rest entitlements under the WTR. These include:
- a rest break of at least 20 minutes during any working day exceeding six hours;
- a daily rest period of at least 11 consecutive hours between working days; and
- a weekly rest period of at least 24 consecutive hours (or 48 hours in any 14-day period).
Rest breaks must be taken during the shift, not added to the beginning or end of the working day. Employers should ensure breaks are scheduled in a way that supports health and safety and allows appropriate downtime during work.
Some sectors that operate non-standard patterns, such as emergency services, transport or seasonal industries, may provide compensatory rest instead of standard rest entitlements. Compensatory rest must be equivalent in value to the missed rest and should be provided as soon as reasonably practicable.
Young workers have enhanced protections. Individuals aged 16–17 are entitled to a 30-minute rest break when working more than 4.5 hours, at least 12 consecutive hours’ daily rest and at least 48 hours’ weekly rest. Employers must ensure that scheduling and rostering for young workers reflects these statutory limits.
Lay-offs and Short-time Working
Lay-offs and short-time working may be used when an employer experiences a temporary reduction in work. These arrangements are only lawful where expressly permitted by the employment contract or where the employee agrees to them. Without contractual authority or explicit consent, placing an employee on reduced hours or no work may amount to breach of contract or unlawful deduction of wages.
During periods of lay-off, employees may be entitled to statutory guarantee pay, subject to daily and weekly caps. Guarantee pay is payable for a limited number of days in any three-month period. Employers should inform affected employees in writing, confirm the expected duration of the arrangement and provide updates as circumstances evolve.
Extended periods of lay-off or short-time working may give employees the right to claim redundancy under sections 135–151 of the Employment Rights Act 1996. Employers should therefore closely monitor the duration of such arrangements, assess workforce planning implications and consider alternatives if the reduction in work appears likely to continue. Early consultation, transparent communication and clear contractual drafting can help reduce disputes and legal risk.
Section Summary: Working Time and Rest
Employers must apply working time rules consistently and ensure that workers receive the rest breaks and rest periods required by law. Robust scheduling, reliable time-recording systems, accurate documentation and clear communication all help to maintain compliance. Where temporary measures such as lay-offs or short-time working are required, employers must ensure they are contractually authorised, fairly implemented and monitored carefully.
By understanding the legal framework governing working hours, rest and night work—and by embedding these rules into everyday HR and management practices—employers can safeguard worker wellbeing, reduce operational risks and protect the organisation from legal challenge.
FAQs
What rights do workers have to breaks and rest?
Most workers are entitled to a 20-minute uninterrupted rest break during shifts of more than six hours, 11 hours’ daily rest and 24 hours’ weekly rest (or 48 hours in a 14-day period). Young workers are entitled to longer rest periods. Certain sectors with non-standard working patterns may provide compensatory rest where standard entitlements cannot be given.
Can employers make deductions from pay without written consent?
Deductions are lawful only if required by statute, clearly authorised by the worker’s contract or agreed to in writing in advance. Any other deduction risks amounting to an unlawful deduction from wages under the Employment Rights Act 1996.
Who can make a statutory flexible working request?
Employees have a statutory day-one right to request flexible working. They may make up to two requests in any 12-month period. Employers must handle requests reasonably, consult with the employee and make decisions based only on the statutory business grounds.
How does worker status affect rights to hours and pay?
Employment status determines entitlement to statutory rights such as paid holiday, rest breaks, equal treatment, pay protections and notice rights. Employees, limb (b) workers, agency workers, part-time staff, zero-hours workers, apprentices and young workers all have different entitlements.
What records must employers keep for working time compliance?
Employers must maintain records demonstrating compliance with working time limits, rest entitlements and night work rules for at least two years. Good record-keeping supports lawful rostering, overtime management and regulatory compliance.
What happens if an employer fails to pay the minimum wage?
If a worker is paid below the applicable National Minimum Wage or National Living Wage, the employer must pay arrears and may face financial penalties. HMRC may also publish the names of employers found to be in breach.
Can overtime be compulsory?
Overtime can be compulsory only where the employment contract expressly allows it. Even then, employers must ensure that overtime arrangements comply with minimum wage calculations and do not lead to breaches of working time limits.
Conclusion
Hours and pay sit at the heart of the employment relationship, shaping how organisations structure work, reward staff and maintain compliance with UK employment law. Employers who understand and apply the rules governing pay, deductions, working hours, flexible arrangements and worker entitlements are far better placed to minimise disputes, support workforce stability and meet regulatory expectations.
Clear contracts, well-maintained records, transparent policies and consistent decision-making all contribute to a compliant and productive working environment. By integrating the detailed requirements around minimum wage, working time, rest breaks, flexible working and rights for different categories of workers, organisations can build fair, lawful and effective working practices that support both operational needs and staff wellbeing.
Glossary
| Agency Worker | An individual supplied by an agency to work temporarily for a hirer, entitled to equal treatment in basic working and employment conditions after the 12-week qualifying period. |
| Apprentice | A person employed under either a statutory apprenticeship agreement or a common law apprenticeship, combining paid work with structured training and entitled to specific wage rates and protections. |
| Flexible Working Request | A statutory request made by an employee to change their hours, times or location of work, which employers must consider reasonably and respond to within legal timeframes. |
| Lay-off | A temporary period when an employer provides no work and no pay, lawful only where contractually permitted or agreed, and subject to statutory guarantee pay. |
| National Minimum Wage (NMW) | The statutory minimum hourly rate most workers are entitled to, varying by age and working status. |
| National Living Wage (NLW) | The statutory minimum wage rate for older workers, reviewed annually. |
| Short-time Working | A temporary reduction in working hours and pay, lawful only with contractual authority or the employee’s agreement. |
| Statutory Sick Pay (SSP) | A statutory payment made by employers to eligible employees unable to work due to illness, payable for up to 28 weeks. |
| Working Time Regulations | Legislation governing weekly working hours, rest breaks, night work and related protections. |
| Zero-hours Contract | A contract offering no guaranteed hours but providing workers with key statutory rights, including minimum wage, holiday pay and rest entitlements. |
Useful Links
| Hours and Pay – Employer Guide | Comprehensive guidance on UK hours and pay obligations |
| GOV.UK – Minimum Wage Rates | National Minimum Wage and National Living Wage guidance |
| GOV.UK – Statutory Sick Pay (SSP) | Eligibility, evidence and payment rules for SSP |
| GOV.UK – Payslips | Legal requirements for itemised payslips |
| GOV.UK – Flexible Working | Rules for statutory flexible working requests |
| GOV.UK – Agency Worker Rights | Equal treatment rules for agency workers |
| GOV.UK – Working Time Regulations | Guidance on weekly working hours and rest breaks |
| GOV.UK – Lay-offs and Short-time Working | Guidance on contractual requirements and guarantee pay |
| GOV.UK – Tips and Service Charges | Allocation of Tips Act and statutory Code of Practice |
| GOV.UK – Workplace Pensions | Auto-enrolment duties for employers |
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.
