Employment Law Glossary

Plain-English definitions of the terms you're most likely to come across in a settlement agreement, redundancy process, or employment tribunal claim.

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ACAS Early Conciliation

A mandatory step before most employment tribunal claims can be issued. ACAS contacts both sides to see if the dispute can be resolved without going to a hearing. Many cases settle at this stage, or shortly after.

Basic Award

One part of unfair dismissal compensation, calculated from your age, length of service and weekly pay using a formula similar to statutory redundancy pay.

Compensatory Award

The second part of unfair dismissal compensation, reflecting your actual financial losses such as lost earnings and benefits, subject to a statutory cap reviewed every April. See our unfair dismissal page for more detail.

Constructive Dismissal

Resigning — with or without notice — in response to your employer fundamentally breaching your contract. The law treats this as a dismissal rather than a voluntary resignation. Full guide →

Continuous Employment

An unbroken period of employment with one employer, used to work out whether you qualify for certain rights, such as ordinary unfair dismissal (usually two years) or statutory redundancy pay.

Discrimination

Being treated unfavourably because of a protected characteristic. There is no minimum length of service required, and compensation is uncapped. Full guide →

Employment Tribunal

The specialist court in England and Wales that hears employment disputes, including unfair dismissal, discrimination and redundancy claims.

Genuine Occupational Requirement

A narrow legal exception allowing an employer to require a particular protected characteristic for a specific role, where it is a genuine and proportionate requirement of that job.

Injury to Feelings

An award of compensation for the distress caused by discrimination, assessed against tribunal guideline bands that reflect how serious the treatment was.

Notice Pay (PILON)

"Payment in lieu of notice" — a lump sum paid instead of requiring you to work out your notice period.

Protected Characteristic

One of nine categories protected from discrimination under the Equality Act 2010: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

Protected Conversation (Section 111A)

A without prejudice discussion about ending your employment on agreed terms that, under section 111A of the Employment Rights Act 1996, cannot be used as evidence in an ordinary unfair dismissal claim — even if there was no existing dispute beforehand.

Qualifying Period

The minimum length of continuous employment needed to bring certain claims — usually two years for ordinary unfair dismissal. It does not apply to automatically unfair reasons (such as whistleblowing) or to discrimination claims.

Redundancy

A dismissal because your employer no longer needs your role to be done, or needs fewer people to do it. Full guide →

Restrictive Covenant

A clause restricting what you can do after leaving a job, such as a non-compete or non-solicitation clause. Only enforceable if it protects a genuine business interest and goes no further than necessary. Full guide →

Settlement Agreement

A legally binding contract that ends your employment on agreed terms, usually in exchange for a payment. It is only valid once you have received independent legal advice. Full guide →

TUPE

Regulations that protect your employment when a business, or part of one, transfers to a new employer, or a service is outsourced or changes contractor. Full guide →

Unfair Dismissal

A dismissal without a fair reason, or without a fair process, even where the reason itself is fair. Full guide →

Whistleblowing (Protected Disclosure)

Raising a genuine public interest concern about wrongdoing at work. Protected from dismissal and detriment, with no minimum length of service and uncapped compensation. Full guide →

Without Prejudice

A legal principle that protects genuine settlement negotiations from being used as evidence later, encouraging both sides to negotiate openly without it counting against them.

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