Staff training legal requirements

23 January 2022

Updated June 2025

Rules governing UK businesses exist for a simple reason: to protect people, ensure fair competition and prevent chaos. When employees understand the legal framework – from GDPR compliance training and tax law to health and safety – they’re better equipped to act responsibly. This is particularly important for UK-based SMEs, where HR and L&D professionals juggle compliance with growth ambitions. Empowered, well-informed teams boost confidence, reduce risk and build a culture of accountability. Here are the key things you need to know about staff training legal requirements. 

The employer’s responsibility

Employers in the UK have a fundamental duty to share essential legal knowledge with staff. Whether you’re onboarding new starters or refreshing long-serving teams, it’s your responsibility to ensure they know:

• their individual legal duties (e.g. GDPR, hygiene rules, financial disclosures)
• how to raise concerns
• what the consequences of non-compliance are

Providing mandatory compliance training for UK employees in SMEs is more than ticking boxes – it’s a core part of your business’s defence. It also aligns with the ‘reasonable steps’ standard under UK law, protecting employers in case of legal challenge.

Some of the most common legal requirements for businesses include the following:

GDPR compliance

UK GDPR and Data Protection Act 2018 are still gold-standard for data protection. Since October 2024, the Data (Use and Access) Bill has continued the evolution of data law – proposing changes around analytics cookie consent and giving the ICO stronger enforcement powers 

In March 2024, the ICO updated its fining guidance for GDPR breaches, emphasising accountability and proportionality. Any SME processing personal data must refresh training on:

• Lawful bases for data processing
• Subject access rights
• Secure data transfers (including the new UK–US Data Bridge) 

Explore our GDPR in the Workplace Certification – a practical, affordable GDPR training for small businesses in the UK.

Health and safety compliance

The Health and Safety at Work Act 1974 requires you to maintain a safe workplace, conduct risk assessments, and provide suitable training. This remains non-negotiable. Staff must know fire procedures, first-aid arrangements, manual-handling risks, and their own responsibility to report hazards.

Try our Basic Fire Safety Awareness Course – an ideal fit for mandatory health and safety training for UK SMEs.

Tax compliance

Employers must operate PAYE, deduct National Insurance correctly and align with HMRC reporting duties. Changes to off-payroll working in 2024 mean businesses must stay alert to IR35 updates and:

• accurately report benefits in kind
• keep clear audit trails
• train finance and payroll teams in the latest protocols

Training staff helps you stay on top of compliance training requirements for people managers in the UK – especially when there’s no in-house tax expert to lean on.

Allow employees to know their rights

Well-trained staff feel valued – and legislation now supports that principle more than ever. The UK’s Employment Rights Bill, introduced in October 2024, represents the most significant update to employment law in a generation. Key employee rights now include:

Payment

• Fair pay practices, including rights to tips under the Allocation of Tips Act 2023 (in force since October 2024) 
• Enhanced sick pay (no lower threshold, no waiting days)

Workplace

• Stronger protection from day-one unfair dismissal
• Expanded rights for paternity, parental, and bereavement leave
• Safer workplaces under the Worker Protection Act – see our Sexual Harassment Awareness Course for a practical, action-focused training option

Hours

• Statutory right to request flexible working from day one
• The Working Time Regulations remain key: breaks, rest periods, and the 48-hour weekly cap all apply

Dismissal

• Stricter rules on probation periods and termination
• Bans on exploitative “fire-and-rehire” practices
• Legal backing for fair procedures and transparent reviews

Avoid misunderstandings in the workplace

Misunderstandings often escalate when expectations aren’t clear. With the right training, staff know what’s expected – reducing friction and protecting morale. 

Training helps clarify:

• contract terms, pay, notice and probation
• booking and taking leave
• anti-discrimination policies and professional conduct
• what constitutes harassment, misconduct, or unfair treatment

Covering these topics supports your team’s wellbeing, too – something we explored in this recommended read: Why employee wellbeing should head up the 2025 HR to-do list. 

Build trust, reduce risk and future-proof your SME

UK compliance is changing rapidly – and that means your training needs to keep pace. With updates to data law, health and safety rules, and employee protections, SMEs must get serious about embedding legal knowledge into day-to-day operations.

Whether you’re delivering online compliance training for remote teams, building a compliance e-learning solution for growing SMEs, or sourcing the best LMS for compliance courses in small businesses – it all starts with clear, consistent education.

Build trust, reduce risk and future-proof your SME.

About Staff Skills academy+

Do you need advice on where to start with meeting your legal requirements? We’d love to hear from you: we specialise in helping HR managers and L&D professionals in small businesses simplify employee training and stay compliant – without the stress.

Whether you’re looking to meet legal requirements or grow your team’s skills in person or online, at Staff Skills academy+ we’re here to help. Our customised LMS makes it simple to assign training, track progress and upskill your workforce. And our range of 700+ CPD and RoSPA-certified courses covers everything from mandatory compliance training to industry-specific knowledge, plus an extensive suite of soft skills courses to boost employee performance. 

We’ve also recently launched our new Wellbeing hub. Clients can now access a library of movement classes from fitness industry leader Les Mills, and mindfulness and meditation classes from mental health platform, MindLabs. Clients now have everything they need to upskill and retain their staff. Could we be the right fit for your business? Why not have a look and see what we do, or book a call with one of our team today.