Work Permits
Recent figures indicate that about 600,000 people have come to work in the UK from eight nations which joined the European Union in 2004. This new pool of efficient and cheap labour has been a great benefit to the UK economy.
The following do not need work permits:
- Nationals of EEA (European Economic Area) countries (the EEA comprises all current EU member states)
- People born in Gibraltar
- Commonwealth citizens who were allowed to enter or to remain in the UK on the basis that a grandparent was born here
- Husbands, wives and dependent children under 18 of people who hold work permits.
Engagement and dismissal of employees
The labour laws are very flexible in this country and tend to favour the employer, when compared to other EU countries such as France.
No employee may be taken on without a contract of employment but this may take the form of a simple letter.
Subject to some exceptions an employee’s contract of employment may be terminated for any reason within the first year. However, after one year, termination without good reason and without following at least the statutory minimum disciplinary procedures may result in a claim by the employee for unfair dismissal and loss of earnings for a reasonable period of time, but which is normally capped at a maximum of £58,600.
Trade Unions
In recent decades, the powers of the Trade Unions in the UK have been very much reduced. There is no legal requirement for employers to recognise any trade union unless a majority of the work force voting in a ballot vote in favour.
- Agreements between employers and trade unions over pay and conditions are not binding by law between them
- Unions cannot take industrial action without first securing a majority vote in a secret ballot of their members
- There is no legal requirement for employees to be represented on the board of directors of companies