Employee compensation meaning

This checklist highlights the key points to weigh up when preparing an ET1 claim or an ET3 reply. It addresses jurisdictional matters, such as the claimant’s right to pursue unfair dismissal and whether the claim was filed within time. It considers the reason for dismissal and ill-health capability, including sporadic absences, long-term absence and diminished performance. It also assesses the substantive and procedural fairness of the dismissal. Finally, it identifies remedy issues to think about, eg reinstatement, re-engagement and compensation. Both parties Was the Claimant an employee? See Practice Notes: Entitlement to claim unfair dismissal-Eligibility and Employee status Does the Claimant have the necessary qualifying service? See Practice Note: Qualifying period for unfair dismissal Has the Claimant met the early conciliation requirement, or does an exemption apply? See Practice Note: The early conciliation requirement Was the claim submitted within three months, or within the extended period where early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement-Extension to...

In this issue: Horizon scanning Worker status and categories Immigration Pay Remuneration Taxation Diversity and the gender pay gap Maternity, parents and carers Whistleblowing Data protection and staff information Confidentiality, obligations and restrictions: enforcement Financial services and banking: employment matters Bribery, modern slavery, tax evasion and fraud Issues arising on termination Employment Tribunals Civil courts and alternative dispute resolution Dates for your diary Trackers Employment resources on Lexis+® LexTalk® Employment: a Lexis®Nexis community Daily and weekly news alerts Horizon scanning Updated Employment Rights Bill to be considered by the House of Lords The updated Employment Rights Bill (ERB), transmitted from the House of Commons to the House of Lords, was issued on 14 March 2025. Its second reading in the House of Lords is scheduled for 27 March 2025...

In this issue: Horizon scanning Recruitment Public sector Pay Tax Protected characteristics Equality of terms (equal pay) Whistleblowing Employee duties and restrictions on competition Unfair dismissal Employment Tribunals Dates for your diary Trackers New Q&As Employment resources on Lexis+® LexTalk®Employment: a Lexis®Nexis community Daily and weekly news alerts Horizon scanning Government U-turns on day-one unfair dismissal rights and announces compensation cap ‘will be lifted’ On 27 November 2025, the Department for Business and Trade (DBT) confirmed that, following a round of ‘constructive conversations’ with trade unions and business representatives, the discussions settled on a ‘workable package’: shortening the unfair dismissal qualifying period from two years to six months, while preserving existing day-one protection against discrimination and for automatically unfair reasons for dismissal. To reinforce these safeguards, the government further pledged that any alteration to the unfair dismissal qualifying period will only be possible through primary legislation,...

According to the Department for Business and Trade, a former Insolvency Service employee, who remains anonymous, supplied The Times, the Financial Times and Sky News in November 2023 with confidential details about the agency’s plan to seek director disqualification against Greensill. The government’s High Court defence, dated 29 April 2024 and now public, asserts this constituted unlawful processing of the Australian businessman’s personal data under the UK GDPR, together with a breach of confidence and misuse of private information. However, the government rejected the contention that the disclosures caused Greensill “significant anxiety and distress”. By then, the department argued, the ex-Citigroup and Morgan Stanley banker’s standing as a businessman was “already significantly, if not irreparably, damaged”. Greensill issued proceedings against the government in March 2024, seeking damages and compensation, contending that the Insolvency Service’s investigation was “an obviously confidential and private process”. He alleges the staff member, referred to only as X, infringed his privacy by tipping off the media about the scope and key areas of focus in the...

The Acas Code of Practice on disciplinary and grievance procedures (Acas Code) The Acas Code of Practice on disciplinary and grievance procedures (Acas Code) defines baseline expectations of fair conduct for handling discipline and grievances at work, and requires both staff and management to adhere to its rules and procedures. These are minimum standards of reasonable behaviour for workplace disciplinary and grievance situations, imposing duties on employees and employers to comply with the Code’s provisions. As a statutory code, it influences a broad range of employment claims; non-compliance can be considered when assessing liability and may affect the level of compensation awarded, in relevant cases. The non-statutory Acas guide on discipline and grievances at work (Acas guide) sits alongside the Code and offers best practice guidance for managing disciplinary and grievance matters in the workplace. Where the Code’s interpretation is uncertain, tribunals may look to and follow the Acas guide. For more detail on the Acas guide, see Practice Note: Acas disciplinary and grievance code—application—Guidance to the Acas Code...

This Practice Note examines the statutory right to paid time off for antenatal care for pregnant employees and agency workers This Practice Note considers the statutory entitlement under the Employment Rights Act 1996 (ERA 1996). An employer—or, where relevant, a temporary work agency or hirer—must not unreasonably prevent a pregnant employee, or a pregnant agency worker, from taking time away from work to attend antenatal appointments for antenatal care. Such time off for antenatal appointments must be paid. There is also a distinct entitlement to unpaid time off during working hours to accompany a pregnant woman to an antenatal care appointment: see The right to time off to accompany to antenatal appointments, below. Comparable provisions apply for time off to attend adoption appointments—see Practice Note: Time off work for adoption appointments. Certain categories are excluded from these rights: share fishermen and fisherwomen and certain other mariners, as well as those employed in ‘police service’ (as defined). For a sample policy addressing time off for antenatal appointments, see...

This Practice Note examines when reinstatement will be ordered as a remedy under section 112 of the Employment Rights Act 1996 (ERA 1996) following a finding of unfair dismissal. The key factors are: whether the employee seeks reinstatement; whether returning them is feasible in practice; and whether doing so would be fair in the circumstances. It also covers what a reinstatement order must contain, its legal effect once made, and how arrears of salary and associated benefits are to be quantified. Where an employer does not comply, in whole or in part, a further hearing on reinstatement will be convened. At that stage, the tribunal assesses whether compliance was in fact practicable and, if so, calculates an additional compensatory award under ERA 1996, s 117 in consequence of the failure to honour a reinstatement or re-engagement order. Reinstatement is one of the orders available to a tribunal under ERA 1996, s 112 after an unfair dismissal finding. For analysis...

Insert in para 8.2 of claim form ET1 [ The [ enter name of union, eg UVW union ] is an independent trade union formally acknowledged by the Respondent in relation to [ enter details, eg all catering workers ] working within its undertaking at [ insert address ]. OR The Claimant is an employee representative, being a member of the Respondent organisation’s elected representative body for [ enter details of the staff represented by the elected representatives, eg all catering workers ] engaged within its undertaking at [ insert address ]. ]...

This overview sets out general information and guidance on unfair dismissal claims, the deadlines for issuing a claim, who may qualify to bring one, the statutory tests for fairness where an employer intends to end an employee’s employment, and the remedies available if a claim succeeds. Your employment solicitor can offer tailored advice based on your situation and circumstances if required. What is an unfair dismissal? Under the Employment Rights Act 1996 (ERA 1996), an employee has the right not to be unfairly dismissed by their employer. A dismissal is unfair if it fails to meet the requirements of the ERA 1996...

This Precedent is a template advisory letter for an employee about a draft settlement agreement, intended to be customised to match the settlement terms and the particular client specifically. It proceeds on the basis that the Precedent Settlement agreement (employment) (long form) is being used. It explains the effect of the agreement and guides the employee through the provisions it contains in detail. [ insert name and address of client ] Private and confidential Dear [ insert name ] Draft settlement agreement with [ name of employer ] I enclose a draft settlement agreement [ drafted by your employer’s solicitors ] for your consideration. You will notice that [ there are a number of options for you to consider and ] certain sections appear in square brackets. Please get in touch promptly once you have had the chance to review the draft so that we can finalise it. I outline below the matters you should consider in relation to the various clauses set out within...

Termination payments qualifying for £30,000 exemption As set out in Practice Note: Termination payments qualifying for £30,000 exemption, where a compensation payment for loss of office or employment is made in circumstances where it does not fall to be taxed as: earnings within section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) (see Practice Note: Termination payments taxed as earnings) benefits-in-kind (see Practice Note: How employment income is taxed—non-cash earnings or benefits) benefits from an employer-financed retirement benefits scheme employment-related securities (see: Employment-related securities—overview) disguised remuneration, where termination payments or benefits are provided by a third party (such as an employee benefit trust) rather than the employer (see: Disguised remuneration and EBTs—overview) restrictive undertakings (see Practice Note: Taxation of payments for restrictive covenants or undertakings) and for terminations for loss of office since 6 April 2018...