The Essential Employment Law Terms Every Business Leader Must Know

Although there are many things to do as a leader of a company, you have the advantage of having a great team to help ensure your company runs smoothly. These employees may have expectations or issues that you need to be aware of. You may also have a legal responsibility to address these issues.

While you don’t need to have a law degree in order to understand these obligations, it is helpful to know some key terms that are likely to be used. This article will provide all the information you need.

Important Employment Law Terms

1. Contract Of Employment

A contract of employment is an agreement between you, your employee and a written document. The contract of employment should detail the employee’s duties and what they will get in return. This document should include information about payment, company benefits, as well as the amount of compassionate and bereavement leaves they are entitled.

Employees who fail to follow the obligations listed in this document may be found in breach of contract and can be fired. If an employee files a lawsuit for unfair dismissal, the contract can be used to support their case. If the employer does not keep their word, however, constructive dismissal may occur. The employer’s negligence can result in the employee being allowed to leave the company with no penalty.

These are the terms you need to keep in mind when creating employee contracts.

2. Employment Regulation Orders

Employers and employees can agree to employment regulations orders if they are members of a union. This order is an additional set that both the employer and employees must follow in order to secure higher pay rates.

Employers can impose legally binding agreements to settle disputes if an employee violates this regulation order. Employers can easily find a specialist in employment law solicitor such as Davenport Solicitors.

3. Contract for a Specified Purpose

Sometimes, a job is available that can be completed in a certain time period. You will need to create a contract for a specific purpose in this case. The employment contract is only valid until the work is done.

An employee cannot be fired without cause while the contract is still active. If you want them to stay with your company after the contract expires, you’ll need to have them sign a formal employment contract.

4. Probationary Period

A probationary period is usually activated when a person starts work. This is a time period that serves as a trial period for the new employee. Employees may be fired at any time during this probation period. They do not need to sign a long-term contract.

Probationary periods can be used to protect the business from unfit employees. It is a way to remove troublesome employees without causing any harm to the law.


These are some terms that you should be aware of when dealing directly with employees. These terms will not apply if everyone behaves respectfully. It is a good idea to keep this information on hand for business leaders.

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