Termination of Employment Contracts
Expert-defined terms from the Specialist Certification in Employment Law in the European Union course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Ab initio** #
**Ab initio**
: From the beginning; a contract that is terminated ab initio is considered to h… #
: From the beginning; a contract that is terminated ab initio is considered to have never existed.
**Constructive dismissal** #
**Constructive dismissal**
: A form of termination of employment where an employer makes changes to an empl… #
: A form of termination of employment where an employer makes changes to an employee's working conditions that are so significant that the employee is forced to resign.
**Damages** #
**Damages**
: The financial compensation an employee may be entitled to receive as a result… #
: The financial compensation an employee may be entitled to receive as a result of a wrongful termination.
**Discrimination** #
**Discrimination**
: The unfair treatment of an employee based on certain protected characteristics… #
: The unfair treatment of an employee based on certain protected characteristics, such as race, gender, age, or disability.
**Dismissal** #
**Dismissal**
: The termination of an employment contract by an employer #
: The termination of an employment contract by an employer.
**Employment contract** #
**Employment contract**
: A legally binding agreement between an employer and an employee that outlines… #
: A legally binding agreement between an employer and an employee that outlines the terms and conditions of their working relationship.
**Employment tribunal** #
**Employment tribunal**
: A legal body in the European Union that hears and makes decisions on employmen… #
: A legal body in the European Union that hears and makes decisions on employment-related disputes.
**European Union (EU)** #
**European Union (EU)**
: A political and economic union of 27 European countries that operates under a… #
: A political and economic union of 27 European countries that operates under a system of shared sovereignty.
**Fair dismissal** #
**Fair dismissal**
: A dismissal that is based on a valid reason and is carried out in a fair and r… #
: A dismissal that is based on a valid reason and is carried out in a fair and reasonable manner.
**Fixed #
term contract**
: An employment contract that has a specific end date #
: An employment contract that has a specific end date.
**Garden leave** #
**Garden leave**
: A period of time during which an employee is suspended from their duties but r… #
: A period of time during which an employee is suspended from their duties but remains employed and is paid their normal salary.
**Grievance procedure** #
**Grievance procedure**
: A formal process for addressing and resolving workplace issues or complaints #
: A formal process for addressing and resolving workplace issues or complaints.
**Indefinite contract** #
**Indefinite contract**
: An employment contract that does not have a specific end date #
: An employment contract that does not have a specific end date.
**Invalid dismissal** #
**Invalid dismissal**
: A dismissal that is not based on a valid reason or is carried out in an unfair… #
: A dismissal that is not based on a valid reason or is carried out in an unfair or unreasonable manner.
**Notice period** #
**Notice period**
: The amount of time an employer must give an employee before terminating their… #
: The amount of time an employer must give an employee before terminating their employment.
**Redundancy** #
**Redundancy**
: A form of termination of employment that occurs when an employer needs to redu… #
: A form of termination of employment that occurs when an employer needs to reduce the size of its workforce.
**Redundancy selection criteria** #
**Redundancy selection criteria**
: The criteria used by an employer to determine which employees will be made red… #
: The criteria used by an employer to determine which employees will be made redundant.
**Summary dismissal** #
**Summary dismissal**
: A form of termination of employment that occurs immediately, without notice, f… #
: A form of termination of employment that occurs immediately, without notice, for serious misconduct.
**Termination of employment** #
**Termination of employment**
: The ending of an employment contract, either by the employer or the employee #
: The ending of an employment contract, either by the employer or the employee.
**Unfair dismissal** #
**Unfair dismissal**
: A dismissal that is not based on a valid reason or is carried out in an unfair… #
: A dismissal that is not based on a valid reason or is carried out in an unfair or unreasonable manner.
**Valid reason for dismissal** #
**Valid reason for dismissal**
: A reason for terminating an employment contract that is legally permissible an… #
: A reason for terminating an employment contract that is legally permissible and justifiable.
**Wrongful dismissal** #
**Wrongful dismissal**
: A dismissal that is in breach of the terms of the employment contract or is in… #
: A dismissal that is in breach of the terms of the employment contract or is in violation of employment law.
**Zero #
hours contract**
: An employment contract that does not guarantee a minimum number of hours of wo… #
: An employment contract that does not guarantee a minimum number of hours of work.
Ab initio termination of employment contracts refers to the situation where a co… #
This can occur when a contract is entered into fraudulently, or when it is impossible to fulfill the terms of the contract.
Constructive dismissal is a form of termination of employment where an employer… #
This can include changes to an employee's salary, job duties, or work location. In order for a constructive dismissal to be considered valid, the employee must have resigned in response to the employer's actions and the employer must have intended to force the employee to resign.
Damages are the financial compensation an employee may be entitled to receive as… #
This can include lost wages, lost benefits, and compensation for emotional distress.
Discrimination is the unfair treatment of an employee based on certain protected… #
Discrimination is illegal in the European Union and can be a valid reason for terminating an employment contract.
Dismissal is the termination of an employment contract by an employer #
This can occur for a variety of reasons, including poor performance, misconduct, or redundancy.
An employment tribunal is a legal body in the European Union that hears and make… #
Employment tribunals have the power to award damages to employees who have been wrongfully dismissed.
The European Union (EU) is a political and economic union of 27 European countri… #
The EU has established a number of laws and regulations that govern the employment relationship, including those related to termination of employment.
A fair dismissal is a dismissal that is based on a valid reason and is carried o… #
A fair dismissal does not necessarily mean that the employee agrees with the decision to terminate their employment; rather, it means that the employer has followed the proper procedures and has acted reasonably under the circumstances.
A fixed #
term contract is an employment contract that has a specific end date. Fixed-term contracts are commonly used for temporary or seasonal work.
Garden leave is a period of time during which an employee is suspended from thei… #
Garden leave is often used as a way to ease the transition for an employee who is leaving the company, or as a way to prevent the employee from competing with the company during their notice period.
A grievance procedure is a formal process for addressing and resolving workplace… #
Grievance procedures are typically outlined in an employer's policies and procedures manual and provide a step-by-step process for employees to follow when they have a concern or complaint.
An indefinite contract is an employment contract that does not have a specific e… #
Indefinite contracts are the most common type of employment contract in the European Union.
Invalid dismissal is a dismissal that is not based on a valid reason or is carri… #
An invalid dismissal can be challenged in an employment tribunal and may result in the employee being awarded damages.
Notice period is the amount of time an employer must give an employee before ter… #
The notice period is typically outlined in the employment contract and can vary depending on the length of employment and the reason for termination.
Redundancy is a form of termination of employment that occurs when an employer n… #
Redundancy can occur for a variety of reasons, including a decrease in business, the introduction of new technology, or the relocation of the business.
Redundancy selection criteria are the criteria used by an employer to determine… #
Selection criteria must be fair and objective and cannot be based on protected characteristics, such as race, gender, or age.
Summary dismissal is a form of termination of employment that occurs immediately… #
Serious misconduct can include acts such as theft, violence, or gross negligence.
Termination of employment is the ending of an employment contract, either by the… #
Termination of employment can occur for a variety of reasons, including poor performance, misconduct, redundancy, or the expiration of a fixed-term contract.
Unfair dismissal is a dismissal that is not based on a valid reason or is carrie… #
Unfair dismissal is illegal in the European Union and can be challenged in an employment tribunal.
A valid reason for dismissal is a reason for terminating an employment contract… #
Valid reasons for dismissal can include poor performance, misconduct, redundancy, or the expiration of a fixed-term contract.
Wrongful dismissal is a dismissal that is in breach of the terms of the employme… #
Wrongful dismissal can occur when an employer fails to give proper notice, terminates an employee for discriminatory reasons, or breaches the terms of the employment contract.
A zero #
hours contract is an employment contract that does not guarantee a minimum number of hours of work. Zero-hours contracts are commonly used in the service industry and allow employers to hire employees on an as-needed basis.
Ab initio #
A Latin term meaning "from the beginning." In the context of employment law, a contract may be terminated ab initio, meaning it is void from the start as if it never existed.
Constructive dismissal #
A form of termination where an employee resigns due to the employer's conduct, which effectively forces the employee to resign. The employer's actions breach the employment contract, making continued employment intolerable.
Damages in lieu of notice #
Compensation paid to an employee when the employer fails to provide the required notice period before termination. This payment is intended to put the employee in the same financial position as if they had worked through the notice period.
Employment contract #
A legally binding agreement between an employer and employee outlining the terms and conditions of employment, including compensation, duties, and termination provisions.
Employment protection legislation #
Laws designed to protect employees from unfair or wrongful termination, providing guidelines for notice periods, severance pay, and redundancy procedures.
European Union (EU) #
A political and economic union of 27 European countries, establishing a single market with free movement of goods, services, capital, and people.
Fixed #
term contract: An employment contract with a pre-determined end date, often used for temporary or project-based work.
Framed #
in dismissal: A termination initiated by the employer, giving the employee notice or payment in lieu of notice, following the proper procedures outlined in employment protection legislation.
Garden leave #
A provision in an employment contract that requires an employee to stay away from work during the notice period, while still receiving their salary and benefits.
Objective justification #
A defense used by employers in unfair dismissal cases, where they can prove that the dismissal was based on a legitimate business reason and was carried out in a reasonable manner.
Redundancy #
The termination of an employee due to the employer's operational needs, often resulting from organizational changes, restructuring, or technological advancements.
Severance pay #
A payment made to an employee upon termination, typically based on length of service and contract terms, to provide financial assistance during the transition to new employment.
Statutory notice period #
The minimum notice period required by law for an employer to terminate an employee's contract, varying based on the employee's length of service.
Summary dismissal #
A termination for serious misconduct, allowing the employer to terminate the contract immediately without notice or payment in lieu of notice.
Termination #
The ending of an employment contract, either by mutual agreement, the employee's resignation, or the employer's initiative.
Termination of employment contracts #
The process of ending an employment relationship, governed by employment protection legislation and contract terms, often involving notice periods, severance pay, and potential redundancy procedures.
Unfair dismissal #
A termination that is procedurally or substantively unreasonable, lacking objective justification, or in breach of the employment contract.
Wrongful dismissal #
A termination that breaches the terms of the employment contract, such as failing to provide proper notice or payment in lieu of notice.
For more information on each term, consult the Specialist Certification in Emplo… #
For more information on each term, consult the Specialist Certification in Employment Law in the European Union course materials.