The traditional and most formal working relationship is that of employer and employee. Employees generally work under an employment contract and are afforded the full protection of employment law rights, such as:
- Minimum or living wage;
- Statutory holiday and sick pay;
- Statutory maternity, paternity, adoption and shared parental leave and pay;
- Minimum statutory notice periods (initially one week);
- Unfair dismissal rights (after two years of continuous employment);
- The right to request flexible working (after 26 weeks of continuous employment);
- Statutory redundancy pay (after two years of continuous employment);
- Working time limits and minimum rest breaks; and
- Whistleblowing rights.
As well as fulfilling their employment law obligations, employers also need to handle the tax arrangements for their employees through PAYE.