Statutory vs. contractual employment rights: What's the difference?

What are statutory rights?

Statutory rights are those that are established through legislation passed by Parliament or other governing bodies. These rights typically set out a minimum entitlement, such as the minimum wage in the case of employees, to which a group are entitled.

Statutory rights are essential legal rights that are mandated by law and apply to everyone, regardless of their individual agreements such as employment contracts.

What are my statutory rights at work?

Statutory rights at work are defined under laws like the Employment Rights Act 1996 and are given to employees by Parliament as set out in primary or secondary legislation. They include the following:

• The right not to be unfairly dismissed. This is usually only available to employees with at least two years’ service however changes in law regarding protection from the first day of employment are expected under the employment rights bill
• The right to a statutory redundancy payment. This is only available to employees with at least two years' service
• The right not to suffer unauthorised deductions from wages
• The right not to be discriminated against. Discrimination on the following grounds is prohibited: sex, maternity, marital status, gender reassignment, racial origin, national origin, disability, sexual orientation, religion/belief, age etc.
• The right to receive at least the minimum wage
• Protection against unfair treatment or dismissal for whistleblowing, trade union membership or union activities
• Various maternity and paternity rights
• Safe work environment
• Statutory sick pay rights (SSP)

What are contractual employment rights?

Contractual rights derive from your contract of employment, but they do not necessarily have to be stated in writing in your contract or even verbally.

They will usually include express rights (the right to payment of salary, the right to holiday entitlement, the right to notice of termination of employment etc.) and implied rights (the right to be treated in a manner consistent with mutual trust and confidence).

Sometimes, contractual rights arise from “custom and practice” as well as what is written into the contract.

What happens if my employer doesn't respect my statutory or contractual rights?

If your employer does not respect your statutory or contractual rights, you may be eligible to make a legal claim against them. In the first instance, you should try discussing the problem with your manager or HR department. If this fails to resolve the issue, you should follow your company's procedure to raise a complaint or formal grievance.

Following this you can seek external help from unions, ACAS, and employment lawyers. If you are a member, contact your trade union as they will be able to provide support and potentially advise if you have a legal standing.

ACAS gives employees free, impartial advice on workplace rights, rules and best practice and can offer you official guidance on your rights being breached. Our experts in employment law can provide specialised advice from a legal perspective and support you in claiming compensation when your rights have been breached.

Supporting legal employment rights

Our leading experts in employment law understand the complexities of navigating situations where your statutory or contractual rights have been breached and are here to offer compassionate guidance and expert advice. Our award-winning team are well-equipped to support you through every stage of your employment dispute, from initial discussions to potential escalations.

Call us today on 0330 041 5869 or contact us online.

Frequently Asked Questions

What is the difference between statutory and contractual sick pay?

Statutory Sick Pay (SSP) is the minimum an employer can pay an employee legally when they are off sick for four consecutive days or more.

Contractual sick pay is any additional sick pay that an employee receives on top of their statutory sick pay. This will be set out in employment contracts or a separate company sick pay scheme. Contractual sick pay is usually more generous than statutory but is not a legal requirement.

What rights do I have if I have no contract of employment?

Even if you do not have an employment contract, you are still entitled to your statutory rights. This includes at least minimum wage, annual leave, rest breaks, protection from discrimination under the equality act 2010, and a written payslip detailing deductions that are lawful.