Employment Law Legal Terms Frequently Asked Questions
Understanding legal terminology can be challenging. To help you navigate complex legal language, we’ve created this glossary of commonly used terms and their definitions. Whether you’re reviewing a contract or preparing for a legal discussion, this resource is designed to provide clear and straightforward explanations.
What does “without prejudice” mean?
Answer:
“Without prejudice” is a legal phrase meaning that statements or actions made under this label cannot be used against a person in court or as evidence in legal proceedings. These discussions are considered ‘off the record’.
When is “without prejudice” used?
Answer:
This term is most often used during settlement negotiations where there is an ongoing dispute. It allows parties to discuss terms openly, without the risk that these discussions will later be used against them if the case goes to trial.
What is a ‘Protected Conversation’?
Answer:
A protected conversation allows employers and employees to discuss ending the employment relationship without breaching the term of trust in the contract, even where there is no pre-existing dispute. This is similar to the ‘without prejudice’ label but applies under different circumstances.
What makes a conversation “protected” under Section 111A?
Answer:
For a conversation to be protected under Section 111A:
It must take place in the context of a possible dismissal or termination of employment.
The employee must not have already been told that their dismissal is imminent.
Protection does not apply if the conversation involves discrimination, whistleblowing, or other unlawful actions.
If the discussion is discriminatory or involves illegal acts, it is not protected.
What is a “PIP” (Performance Improvement Plan)?
Answer
A Performance Improvement Plan (PIP) is a formal process used by employers to help employees improve performance when they are not meeting expectations. A PIP typically:
Identifies performance issues.
Sets clear, specific, and achievable goals.
Provides support and resources, such as training or mentoring.
Includes regular check-ins to monitor progress.
Outlines consequences if goals are not met within the given timeframe.
A PIP gives employees an opportunity to improve before any formal disciplinary action is taken. If performance does not improve, it may result in termination.
What is “Gross Misconduct”?
Answer
Gross misconduct refers to behaviour or actions by an employee that are so serious they justify immediate dismissal, also known as ‘summary dismissal’, without notice or payment in lieu of notice.
Common examples include:
Theft or fraud
Violence or threatening behaviour
Serious insulting behaviour or harassment
Substance abuse at work
Gross insubordination
Health and safety violations
Serious breaches of confidentiality
Key considerations for employers:
Was the conduct a fundamental breach of contract?
Was it a deliberate or wilful breach, or gross negligence?
Could a pattern of conduct undermine trust and confidence?
Employers should carry out a reasonable investigation and follow a fair disciplinary procedure.
How is “Misconduct” different from “Gross Misconduct”?
Answer
Misconduct covers less severe breaches of workplace rules, often resulting in warnings or lesser sanctions. Gross misconduct involves actions so serious that they destroy the employment relationship, justifying immediate dismissal. The distinction often depends on the facts and the employer’s policies.
What is a “Disability” under the Equality Act 2010?
Answer
A disability is defined as a physical or mental impairment that has a substantial and long-term adverse effect on a person’s ability to carry out normal day-to-day activities.
Key points:
Physical or mental impairments include mobility issues, chronic illnesses, mental health conditions, neurodiversity, and some learning disabilities.
“Substantial” means the effect is more than minor or trivial.
“Long-term” means the effect lasts, or is expected to last, at least 12 months or for the rest of the person’s life.
Progressive conditions (e.g., multiple sclerosis) may be considered disabilities even if effects are not immediately obvious.
Temporary conditions (e.g., a broken leg) are not disabilities unless lasting 12 months or more.
People perceived to have a disability may also be protected.
What are “Reasonable Adjustments” under the Equality Act 2010?
Answer
Reasonable adjustments are changes or modifications made to ensure individuals with disabilities or specific needs can participate equally and fairly, without disadvantage.
Examples include:
Adjusting duties or working hours
Providing equipment or assistive technology
Improving accessibility (e.g., ramps, accessible toilets)
Offering accessible communication methods or sign language interpreters
When is the duty to make reasonable adjustments triggered?
When a workplace policy, physical feature, or lack of an auxiliary aid puts a disabled person at a substantial disadvantage compared to others.
The duty applies to recruitment and arrangements for existing staff.
What is a “Settlement Agreement”?
Answer
A settlement agreement (sometimes called a compromise agreement) is a legally binding contract between an employer and an employee. It is used to settle potential claims or disputes and avoid going to an employment tribunal or court.
How does it work?
Usually marks the end of employment but can be used to settle disputes while employment continues.
The employee receives a financial settlement in exchange for agreeing not to pursue further legal action.
The employee waives current and future legal claims against the employer, with some exceptions.
The agreement may include confidentiality clauses.
The employee must seek independent legal advice before signing, and the employer often pays for this advice.
Contact Osborne & Wise for Employment Advice
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