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Key definition
Contract of employment definition

What does Contract of employment mean? A contract of employment is the agreement under which an employee personally performs work for an employer in return for pay and benefits, setting the terms that govern that relationship. In England and Wales and Scotland, it is defined by statute (Employment Rights Act 1996, s.230(2)) as a contract of service or apprenticeship, whether express or implied, oral or in writing; Northern Ireland uses equivalent wording (Employment Rights (Northern Ireland) Order 1996). In Ireland, legislation such as the Terms of Employment (Information) Act 1994 uses the same “contract of service” concept, developed alongside case law. Labels are...

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Applicable law in cross-border employment: UK Rome I/II post‑Brexit—habitual place of work, closer connection, non‑derogable and overriding mandatory rules

Practice notes
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This Practice Note explores how to identify the governing legal system for a Contract of employment or an employment relationship. It reflects the consequences of Brexit, the close of the Withdrawal agreement’s Implementation period at 11pm on 31 December 2020, and the Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023) for this field. For further details, see: Brexit impact, below.

Initial considerations

Where a dispute or claim involves an employee working wholly or partly abroad and/or engaged by a foreign employer, two preliminary questions arise:

  • what rights does the employee have?
  • in which forum should any subsequent litigation be decided?

In addressing these, three principal issues arise:

  • applicable law, namely which legal system governs the employment contract under review?
  • international jurisdiction, that is, which courts and/or tribunals should determine the case?...
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Catherine Taylor
Catherine Taylor

Catherine Taylor is a Partner in the CMS Employment team and Co-Head of the Litigation Arbitration Insurance & Employment Practice Group. She works on employment issues, both contentious and non-contentious and has specific expertise in complex multi-jurisdictional and High Court litigation (especially bonus and employee competition disputes), board level disputes and data protection. Catherine also guides employers through complex investigations, setting the strategy and working with other teams to ensure the best possible client outcome. Her practice is employer focused, with a particular interest in the Financial Services and Technology, Media & Communications sectors. Catherine is joint author of Employee Competition (3rd Edition, published by OUP in 2016). She plays a leading role in the firm’s women’s network, CMS Women....

Web page updated on 21/05/2026

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