UK employers must comply with the Working Time Regulations 1998, the National Minimum Wage Act 1998, and HMRC's PAYE requirements. Employees are protected by statutory rights covering weekly hours, rest breaks, annual leave, and sick pay, enforced by HMRC and the Employment Tribunal system.
Workers cannot be forced to work more than an average of 48 hours per week, measured over a reference period of 17 weeks. Employees may sign a voluntary opt-out agreement, which must be in writing and can be cancelled by the employee with 7 days' notice (or up to 3 months per the contract).
How ClockIt Helps
ClockIt tracks rolling average hours and alerts managers when a staff member is approaching the 48-hour limit across the reference period, flagging opt-out status on each worker's profile.
From April 2024, the National Living Wage (21+) is £11.44/hour. Lower rates apply for younger workers and apprentices. Employers face civil penalties of up to 200% of underpayments and public naming for non-compliance. HMRC conducts regular audits.
How ClockIt Helps
ClockIt flags any schedule that would result in an effective hourly rate below the NLW or NMW threshold before payroll is processed, preventing costly underpayment.
Workers are entitled to 5.6 weeks (28 days for a full-time worker) of paid annual leave per year, inclusive of public holidays. Holiday pay must be calculated using the worker's 'normal' remuneration including regular overtime and commission over the previous 52 weeks.
How ClockIt Helps
ClockIt's holiday pay calculator uses the 52-week look-back rule to correctly compute holiday pay including variable pay elements, avoiding the common underpayment errors that trigger Employment Tribunal claims.
Employees earn SSP of £116.75 per week (from April 2025) for up to 28 weeks if off sick for 4 or more consecutive days. Employers must keep records of all SSP payments. SSP can no longer be reclaimed from HMRC (the Small Employers' Relief scheme ended in 2014).
How ClockIt Helps
ClockIt tracks qualifying absence days (QADs), automatically calculates SSP entitlement, and generates HMRC-compliant records of all sick leave and statutory pay.
Employers must report PAYE information to HMRC in real time via Full Payment Submissions (FPS) on or before each pay day. Late submissions attract automatic penalties starting at £100. Employers also file an Employer Payment Summary (EPS) to claim statutory payment recoveries.
How ClockIt Helps
ClockIt's payroll module prepares FPS-compatible data exports aligned with your payroll schedule, minimising manual re-entry into payroll software and reducing RTI submission errors.
Workers are entitled to: an uninterrupted 20-minute rest break when working more than 6 hours; 11 consecutive hours of rest between working days; and one uninterrupted 24-hour rest period per week (or 48 hours per fortnight). Young workers (under 18) have stricter entitlements.
How ClockIt Helps
ClockIt's break enforcement feature logs actual break times against statutory minimums and generates a compliance report highlighting any missed or short breaks across your entire workforce.
Start your free trial and automate your labour law compliance — from overtime to payslips.
Start Free Trial