Employment Law Glossary — Plain English, No Jargon

Every term your employer's lawyers will use. Explained clearly.

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Are these definitions legally binding?

No — these are plain-English explanations to help you understand the legal process. For advice specific to your case, consult a qualified employment solicitor or use Start My Claim.

Where do these terms come from?

UK employment law derives from statute (Employment Rights Act 1996, Equality Act 2010, TULRCA 1992) and case law from employment tribunals, the EAT, and higher courts.

What is the most important term to understand?

The limitation period. Missing the 3-month deadline to file your ET1 is the most common reason valid claims are lost entirely. Always calculate your deadline first.

Are these the same rules in Scotland and Northern Ireland?

Employment law is largely the same across England, Scotland, and Wales. Northern Ireland has a separate Industrial Tribunal system under devolved legislation, though the principles are similar.

Employment Law Guide

Employment Law Glossary — Plain English, No Jargon

Last updated: April 2026 · Content reviewed against current UK employment law

· Case law referenced · Updated April 2026

ACAS Code of Practice

The ACAS Code of Practice on Disciplinary and Grievance Procedures sets out the minimum fair process employers must follow. Failure to follow it allows the tribunal to increase compensation by up to 25%. It is not legally binding, but deviation from it carries significant consequences. See:

ACAS Early Conciliation

Mandatory process before an employment tribunal claim. You notify ACAS, who contacts your employer to explore settlement. The limitation clock stops during conciliation. If unsuccessful, ACAS issues an EC certificate enabling you to proceed.

Appeal (Employment Appeal Tribunal)

The EAT hears appeals on points of law from employment tribunal decisions only — not appeals based on disagreement with the facts found. Strict time limits apply (42 days from judgment). Legal representation strongly advised.

Automatic Unfair Dismissal

Dismissal that is unfair regardless of reason or procedure — no qualifying period required. Categories include: whistleblowing, pregnancy/maternity, trade union activity, asserting a statutory right, TUPE transfer.

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Band of Reasonable Responses

The legal test for whether a dismissal was fair. The question is not whether the employer made the right decision, but whether their decision fell within the range of responses a reasonable employer could have taken (Iceland Frozen Foods v Jones [1982]).

The first part of unfair dismissal compensation, calculated on the same formula as statutory redundancy pay: years of service × weekly pay (capped at £751) × age multiplier (0.5 under 22, 1.0 age 22-40, 1.5 age 41+). Maximum 20 years of service.

Three-part test for fairness of dismissal for misconduct (BHS v Burchell [1980]): (1) the employer genuinely believed the employee was guilty, (2) there were reasonable grounds for that belief, (3) a reasonable investigation was carried out.

Bundle (Trial Bundle)

The paginated, indexed bundle of all documents used at the hearing — chronologically organised. Both parties agree its contents. The judge reads this before hearing. Usually prepared by you, the person bringing the claim.

Case Management Order (CMO)

The judge's timetable for the case, issued after the ET3 response. Sets deadlines for disclosure, witness statements, bundle, and hearing. Failure to comply can result in sanctions or strike-out.

The person bringing the tribunal claim (usually the employee or former employee).

The second part of unfair dismissal compensation — actual financial loss: past earnings loss, future earnings loss, lost benefits, expenses. Subject to a cap of £123,543 or 52 weeks' pay (whichever is lower). Uncapped for discrimination.

In discrimination claims, a real or hypothetical person who shares the same circumstances as the claimant but does not have the protected characteristic — used to show the claimant was treated less favourably.

Conduct by the claimant that contributed to their dismissal. The tribunal can reduce both the basic and compensatory awards by a just and equitable proportion. Can reduce compensation to zero in extreme cases.

A binding settlement agreement drawn up through ACAS conciliation. Unlike a formal settlement agreement, no independent legal advice is required. Equally enforceable.

Costs Order (Rule 76)

An order that one party pay the other's legal costs. Very rare in employment tribunals — made only where a party acted vexatiously, abusively, or unreasonably, or where a claim had no reasonable prospect of success.

If a tribunal considers a claim has little reasonable prospect of success, it may order a deposit (up to £1,000) as a condition of continuing. If you lose on that issue, the deposit is forfeited and you face a costs risk.

Direct Discrimination

Treating someone less favourably than another because of a protected characteristic. Cannot be justified (except for age discrimination, which can be objectively justified).

The process by which both parties exchange all relevant documents with each other before the hearing. Broadly interpreted — if a document is relevant to any issue in the case, it should be disclosed, whether or not it helps your case.

The claim form filed by the claimant to start an employment tribunal case. Must be submitted within the 3-month limitation period (plus any ACAS conciliation period).

The respondent's (employer's) response to the ET1. Must be filed within 28 days of receipt (often extended). Sets out their defence.

A period during notice where the employee is told to stay at home, remains employed and paid, but is excluded from the workplace. They remain bound by all contractual obligations, including any non-compete clauses.

Conduct so serious that it justifies immediate dismissal without notice. Examples include theft, violence, fraud, serious health and safety breaches. Employer must still follow a fair procedure.

Indirect Discrimination

A neutral policy, rule or practice that puts people with a protected characteristic at a particular disadvantage. Can be justified if the employer can show it is a proportionate means of achieving a legitimate aim.

An urgent order from the tribunal that employment continues (or pay continues) until the full hearing. Available only for certain dismissals (whistleblowing, trade union activity). Must be applied for within 7 days of dismissal.

The standard applied when the tribunal decides how much (if any) compensation to award or reduce. Allows the tribunal to do what is fair in all the circumstances.

The deadline by which a claim must be submitted. Usually 3 months minus one day from the date of dismissal or act of discrimination. Extended during ACAS early conciliation.

Litigant in Person (LiP)

A party who represents themselves without a lawyer. Employment judges make allowances for LiPs in terms of procedure, but not in terms of substantive law.

PILON (Pay in Lieu of Notice)

Payment instead of working notice. Only lawful without being wrongful dismissal if permitted by the contract or agreed with the employee.

A reduction in compensation where the tribunal finds that even if a fair procedure had been followed, the employee would have been dismissed anyway. Named after Polkey v AE Dayton Services [1987].

Protected Disclosure

A qualifying disclosure made in the public interest (whistleblowing). Employees who make protected disclosures and suffer dismissal or detriment as a result are protected — no qualifying period, uncapped compensation.

Protected Period (Pregnancy)

The period of pregnancy and maternity leave during which enhanced protection applies. Dismissal or detrimental treatment is automatically unfair if connected to pregnancy or maternity.

Reasonable Adjustments

Steps an employer must take to remove disadvantages faced by disabled employees. What is "reasonable" depends on cost, practicality, resources and effectiveness.

The employer or other party responding to the tribunal claim.

A document setting out all the financial losses claimed, item by item. Required before any remedy hearing; also used in settlement negotiations.

TUPE (Transfer of Undertakings)

Regulations that protect employees when a business or service is transferred to a new employer. Employment terms and conditions transfer automatically; dismissal in connection with the transfer is automatically unfair.

If an employer unreasonably fails to follow the ACAS Code of Practice on disciplinary/grievance procedures, the tribunal may increase compensation by up to 25%.

Three bands of injury to feelings awards in discrimination cases, established in Vento v Chief Constable of West Yorkshire [2002] and regularly updated. Current approximate ranges: lower band £1,300–£12,600, middle band £12,600–£37,700, upper band £37,700–£62,900.

An employer's legal responsibility for discriminatory acts or harassment carried out by its employees in the course of employment. Employer can defend if it took all reasonable steps to prevent the conduct.

Communications made as a genuine attempt to settle a legal dispute cannot be used as evidence at trial. Requires both a genuine existing dispute and a genuine settlement intent.

Working Time Regulations

Regulations implementing the EU Working Time Directive, giving workers the right to 5.6 weeks paid holiday, a 48-hour average working week (unless opted out), minimum rest breaks and daily rest periods.

Frequently Asked Questions

No — these are plain-English explanations intended to help you understand the legal process. For advice specific to your case, you should consult a qualified employment solicitor or use Start My Claim to build your claim with step-by-step guidance.

UK employment law derives from statute (primarily the Employment Rights Act 1996, Equality Act 2010, and Trade Union and Labour Relations (Consolidation) Act 1992) and case law developed by employment tribunals, the Employment Appeal Tribunal, and higher courts.

The limitation period. Missing the 3-month deadline to file your ET1 is the most common reason valid claims are lost entirely. Always calculate your deadline before anything else.

Employment law is largely the same across England, Scotland and Wales — employment tribunals operate under the same rules. Northern Ireland has a separate system under the Industrial Tribunal and is governed by devolved legislation, though the principles are similar.

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