Employment law terms: An A – Z glossary
There are many employment law terms and acronyms that you may come across, both on this website and in dealings with your employer or solicitor. Some of the ones you’re most likely to encounter are explained in our A – Z glossary below.
Note: The term ‘employee’ usually denotes employees and workers, whether full or part-time. There may be slight differences between the definitions in England and Wales and those in Scotland and Northern Ireland.
Annual appraisal
An annual appraisal is a review where an employee’s performance is discussed and evaluated by their employer over the past year. It typically involves discussing achievements, challenges, and setting goals for future development. (See also ‘Yearly appraisal’.)
Annual Leave
Annual leave is the paid time off work granted to employees each year. In the UK, most workers are legally entitled to 5.6 weeks of paid holiday per year.
Appeals
An appeal is a formal request by an employee to reconsider a decision made by their employer about things such as disciplinary action or dismissal. It can also be a formal request made against a decision reached by an employment tribunal.
Appeals against dismissal
An employee has a right to challenge or appeal against the decision if they believe their dismissal was unfair. The appeal process typically involves submitting a written statement to a higher authority within the organisation or a designated appeals panel.
Appeals against grievance outcomes
If an employee is dissatisfied with the outcome of a grievance procedure, they can appeal against the findings. This might involve a review of the decision by another manager or an appeal committee, aiming to ensure the grievance was handled properly and fairly.
Appeals against employment tribunal findings
If an employee or employer believes there has been a legal error in a tribunal’s decision, they can appeal against it. Appeals can be made to the Employment Appeal Tribunal (EAT), and must generally focus on points of law rather than disputes over facts.
Bonus
A bonus is an additional payment given to employees on top of their regular salary, often based on performance or company profitability.
Breach of contract
A breach of contract in employment occurs when either the employer or the employee breaks the terms of the employment contract. This could involve not paying salary on time, not providing agreed-upon benefits, or an employee not working their contracted hours without a valid reason.
Bullying and harassment
Bullying involves repeated, offensive, intimidating, malicious, or insulting behaviour. Harassment is unwanted conduct related to age, sex, race, disability, religion, sexual orientation, or any other ‘protected characteristic’ (see P below) that violates a person’s dignity or creates a hostile environment.
Compromise agreement
An agreement between an employee and employer to settle their dispute amicably and avoid legal proceedings that’s nowadays called a Settlement Agreement.
Constructive dismissal
Constructive dismissal occurs when an employee resigns due to their employer’s conduct. The employee must prove that their employer’s actions amounted to a fundamental breach of contract, forcing them to leave their job.
Collective bargaining
Collective bargaining refers to the process of negotiating terms and conditions of employment between an employer and a group of employees, often represented by a trade union.
Discrimination
Discrimination in the workplace happens when an employee is treated less favourably than others because of a ‘protected characteristic’ like age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, sex, or sexual orientation.
Employment tribunal
An employment tribunal is a legal body that resolves disputes between employers and employees over employment rights (called industrial tribunal in N. Ireland). Common issues include unfair dismissal, discrimination, and wage disputes.
Ex gratia payment
An ex gratia payment is a sum of money paid when there was no obligation or liability to pay it. ‘Ex Gratia’ is Latin for “out of goodwill.” It’s often given as a goodwill gesture, for example, when an employee leaves the company.
Flexible working
Flexible working refers to any working pattern adapted to suit an employee’s needs, such as flexible start and finish times, working from home, or part-time working. Employees can apply for flexible working arrangements from the first day of employment.
Grievance procedure
A grievance procedure is a formal way for an employee to raise a concern, problem, or complaint regarding their work role or workplace. Employers are required to have a procedure in place that employees can follow.
Harassment
Harassment in the workplace involves unwanted conduct related to a relevant protected characteristic that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment for that individual.
Holiday pay
Holiday pay is the pay an employee receives for annual leave. UK law requires employers to pay workers their normal pay during their statutory annual leave such as Bank Holidays.
Indirect discrimination
Indirect discrimination occurs when a workplace policy, practice, or procedure applies to everyone but disproportionately affects people with a ‘protected characteristic’ (see P below) more than others, and it cannot be justified as a means of achieving a legitimate aim.
Job description
A job description is a document that outlines the main duties and responsibilities of a specific job or role. It typically includes the job’s purpose, duties, scope, and working conditions.
Key performance indicators (KPIs)
KPIs are measurable values that demonstrate how effectively an employee is achieving key business or organisational objectives. Employers use KPIs at multiple levels to evaluate their success at reaching targets.
Lawyer
Lawyer is a generic term used to describe anyone who is a Licensed Legal Practitioner qualified to give legal advice. Solicitors and Barristers are both types of Lawyers. (See also Solicitor below)
Layoff
Layoff is a temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as cost-cutting measures.
Maternity leave
Maternity leave is the period of time that a mother is legally entitled to be away from her job around the time of childbirth. In the UK, eligible employees can take up to 52 weeks of Maternity Leave.
Notice period
A notice period is the length of time that an employee or employer must give before terminating employment. Notice periods are typically outlined in the employee’s employment contract.
Overtime
Overtime refers to any hours worked beyond the normal working hours agreed in the employee’s employment contract. Employers may pay a higher rate for overtime hours.
Parental leave
Parental leave is the time off that parents can take to look after their child’s welfare, often unpaid, and distinct from maternity or paternity leave. This leave is typically used to spend more time with children, settle children into new childcare arrangements, or visit schools.
Protected characteristic
A protected characteristic refers to attributes or characteristics of a person that are legally safeguarded or protected against discrimination. These include age, disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion/belief, sex, and sexual orientation. People can’t be discriminated against, harassed, or victimised because they possess one of these characteristics.
Qualifying period
The qualifying period is the length of time an employee must be employed to be eligible for certain employment rights, such as unfair dismissal or redundancy payments.
Redundancy
Redundancy occurs when an employer needs to reduce the workforce because a job or several jobs are no longer needed. Redundant employees might be entitled to redundancy pay.
Restrictive covenant
A restrictive covenant is a clause in an employee’s contract which restricts the post-employment activities of the employee for a limited period of time.
Settlement agreement
The name ‘settlement agreement‘ replaced ‘compromise agreement’ (see above) in 2013, but basically refers to the same thing. The terms are still sometimes used interchangeably.
Solicitor
A type of Lawyer (see above) who’s a qualified legal professional and who works directly with clients. A solicitor deals with all the paperwork and communication between the client and employer in order to resolve a case for a client.
If you have contacted a lawyer to handle your employment case, they will usually be a solicitor. However, if the case goes to court a solicitor may not always be able to represent you and may instruct someone with specialist qualifications – often a barrister – to speak on your behalf.
Statutory sick pay (SSP)
SSP is a payment made by employers to employees who are on sick leave and are unable to work for four or more days in a row. The payment is made at a standard rate set by the government.
Tribunal
A ‘tribunal’ is a short version of ‘employment tribunal’ (see above). It is a formal meeting where a panel makes decisions on disputes between employers and employees, typically relating to issues such as unfair dismissal and discrimination.
Unfair dismissal
Unfair dismissal is an act of employment termination made by an employer without good reason or contrary to employment laws. This might include dismissing someone without a fair procedure or for an invalid reason.
Vicarious liability
Vicarious liability is a legal doctrine under which employers can be held responsible for the actions of their employees if these actions are carried out in the course of their employment.
Whistleblowing
Whistleblowing occurs when an employee reports certain types of wrongdoing, which is typically something they’ve seen at work that is illegal, unethical, or not correct. The whistle blower may report it to higher management inside the organisation, to a public body or the press.
Yearly appraisal
Yearly appraisal is a review conducted annually by an employer to review and discuss an employee’s job performance and to set goals for future performance. (See also Annual appraisal.)
Zero hours contract
A zero hours contract is an employment contract in which the employer does not guarantee the employee any hours of work. Employees work only when they are needed, and they are paid only for the hours worked.
Common Acronyms used in Employment Law
Acas – Advisory, Conciliation & Arbitration Service
COT3 – A type of settlement agreement negotiated through an Acas conciliator which is legally binding. Once a COT3 is agreed, a claimant won’t be able to make a future tribunal claim in those matters. If a tribunal claim has already been lodged, it will be closed.
DWP – The government’s Department for Work & Pensions
EDT – Effective date of termination (of employment)
ET1 – Employment tribunal claim form completed by claimant or claimant’s representative
HMCTS – Her Majesty’s Courts & Tribunals Service. A government service responsible for the administration of employment tribunals, amongst other things
PHI – Permanent Health Insurance (aka income protection insurance)
PILON – Pay In Lieu (i.e. instead) Of Notice
PIP – Performance Improvement Plan
TUPE – Transfer of Undertakings (Protection of Employment) regulations. This is relevant to any redundancy decisions or changes in terms and conditions where a business or part of it is transferred from one owner to another.