- What must be in a contract of employment, and when does it have to be provided?
- Can an employer change an employee’s terms and conditions?
- Is this person an employee, a worker or self-employed, and why does it matter?
- What is a fair process for dismissing someone?
- How does a fair redundancy process work, and when is collective consultation required?
- What is a settlement agreement, and what should each side check before signing?
- Are restrictive covenants enforceable, and on what grounds can they be challenged?
- Does TUPE apply when a business or service is bought, sold or outsourced?
- What must an employer do to prevent harassment at work?
- What happens once an employment tribunal claim is issued?
- How should a grievance or disciplinary investigation be handled?
- Can an employer monitor employees’ emails, devices or location?
- I have been offered an exit package. How do I know whether it is fair?
- How is the Employment Rights Act 2025 changing what employers need to do?
1 – What must be in a contract of employment, and when does it have to be provided?
Employers must give employees and workers a written statement of their main employment terms on or before their first day of work, under section 1 Employment Rights Act 1996. It can be in the form of a contract of employment, an appointment letter or a statement of terms and conditions (sometimes known as a section 1 statement). The statement must cover matters including pay, working hours and days, holiday entitlement, place of work, job title, probationary period, benefits and obligatory training. Other information, including pensions, collective agreements and disciplinary and grievance procedures, can be provided by the employer separately within two months. Our team regularly advises on employment contracts and documentation.
2 – Can an employer change an employee’s terms and conditions?
An employer can change contractual terms if the employee consents to the change or a collective agreement with a trade union permits the change. The employer should explain the proposed changes and consult with affected employees before making them. Imposing a change without agreement can lead to claims for breach of contract, unlawful deductions from wages or constructive unfair dismissal.
3 – Is this person an employee, a worker or self-employed, and why does it matter?
Employment status matters because employees, workers and self-employed contractors have different employment rights and tax treatment. Employees have the highest level of employment rights, and contractors have very few. An assessment of the correct status depends on the reality of the working relationship, not simply the label used in the contract. It is a complex area of law but relevant factors to consider include personal service, control over the work, the obligation to offer and accept work, any right to provide a substitute and whether the individual is genuinely operating an independent business.
4 – What is a fair process for dismissing someone?
A fair dismissal requires identifying a potentially fair reason – one of the five provided under the Employment Rights Act 1996 – and showing that it was a reasonable decision by the employer to treat that reason as sufficient for dismissal. The appropriate process to follow depends on whether the reason concerns the employee’s conduct, capability, redundancy, illegality or ‘some other substantial reason’ within the statutory provisions, but will usually require investigation, a fair hearing and offering the employee the opportunity to an appeal. Even where gross misconduct is alleged, the employer should fully investigate and follow a fair disciplinary process before deciding whether to dismiss. For more information and advice, contact our experts.
5 – How does a fair redundancy process work, and when is collective consultation required?
A fair redundancy process should involve consultation, an appropriate selection pool, objective selection criteria and consideration of ways to avoid dismissal, including whether any suitable alternative employment is available. Collective consultation, with trade union or elected employee representatives, is currently required where an employer proposes to make 20 or more redundancy dismissals at one establishment (generally a single place of work) within a period of 90 days. Consultation must begin at least 30 days before the first dismissal takes effect, increasing to a minimum of 45 days where 100 or more dismissals are proposed. Individual consultation will usually still be required alongside the collective process. Our experts regularly advise on redundancy and workforce restructuring processes.
6 – What is a settlement agreement, and what should each side check before signing?
A settlement agreement is a voluntary, legally binding written agreement under which an individual usually waives the right to pursue specified employment claims in return for an agreed settlement package. To be valid, it must identify the particular claim(s) being settled and the individual must receive advice on the terms and effect of the agreement from an insured, independent adviser (usually a qualified lawyer) who is named in the agreement. Both sides should carefully check the termination arrangements, payments due under the agreement and the appropriate tax treatment, benefit entitlements, reference provisions, confidentiality obligations, legal fees, post-termination restrictions and any rights or claims that are not being waived. Our experts regularly advise both employers and individuals on termination and settlement agreements.
7 – Are restrictive covenants enforceable, and on what grounds can they be challenged?
Restrictive covenants can be enforceable if they protect the employer’s legitimate business interest and go no further than is reasonably necessary to protect those interests. In deciding whether a covenant is enforceable, the court will consider matters including the precise wording, duration, geographical reach, restricted activities and the employee’s role when the covenant was agreed. A restriction may be challenged if it is wider than reasonably necessary or operates merely to prevent lawful competition. The process of challenging and enforcing restrictive covenants in the courts often requires very urgent action and can be very costly for both parties. Contact our restrictive covenant experts for more information.
8 – Does TUPE apply when a business or service is bought, sold or outsourced?
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (known as ‘TUPE’) may apply where a business or part of a business changes hands, or where an organised service (known as a service provision) is outsourced, brought back in-house or transferred between contractors. It does not normally apply to the sale of shares in a business. If TUPE applies, assigned employees will normally transfer automatically with their contractual terms and continuity of employment preserved, and the employers must comply with strict information and consultation obligations. TUPE is fact-sensitive and should be considered at an early stage of a transaction, particularly where services are fragmented, being reorganised or transferred between several providers. Our expert TUPE team can advise on the process to be followed to avoid costly mistakes.
9 – What must an employer do to prevent harassment at work?
Under the Equality Act 2010, employers should take proactive steps to prevent harassment, including assessing risks, maintaining effective policies, training staff and managers, providing accessible reporting channels and responding promptly to complaints. Employers currently have a legal duty to take ‘reasonable steps’ to prevent the sexual harassment of their employees. From 30 October 2026, as a result of reforms introduced by the Employment Rights Act 2025, this will further strengthen to a duty to take ‘all reasonable steps’ to prevent the sexual harassment of staff, alongside new protections against harassment by third parties on a broader range of grounds (not limited to sexual harassment). For more information and advice, contact our experts in discrimination and harassment issues.
10 – What happens once an employment tribunal claim is issued?
Once the employment tribunal accepts a new claim, it normally sends the claim form to the respondent employer and specifies the deadline for them to submit a formal response. The case will then involve various different steps, depending on the type and complexity of the claim. These are likely to include preliminary hearings, disclosure of relevant documents, exchange of witness statements and a final merits hearing, sometimes followed by a separate remedies hearing. Settlement of the claim can be explored by either party through Acas at any stage. Tribunal directions and response deadlines should be dealt with promptly because failure to comply can affect a party’s ability to defend or pursue the claim. Our experienced team can support you in issuing or responding to a claim.
11 – How should a grievance or disciplinary investigation be handled?
A workplace investigation is a critical stage in the grievance and disciplinary process, and fundamental to a fair dismissal. It should be prompt, impartial and proportionate to the subject matter of the investigation, with the investigator gathering relevant documents, interviewing appropriate witnesses and giving the employee a proper opportunity to explain their position before producing an investigation report. The investigator should consider all the available evidence that both supports and undermines the allegations, distinguish evidence from findings in their report and maintain confidentiality so far as is reasonably possible. Importantly, an investigator should not determine the outcome of a grievance or disciplinary matter. Employers should follow their own internal policies and the Acas Code of Practice on disciplinary and grievance procedures, which sets the minimum standards for disciplinaries and grievances. Our Workplace Investigations team can provide assistance with conducting workplace investigations.
12 – Can an employer monitor employees’ emails, devices or location?
Yes, an employer may monitor workplace emails, devices or location data where it has a clear and lawful purpose and the monitoring is necessary, fair and proportionate. Employees should normally be told what monitoring takes place and why. Under data protection rules, the employer should identify a lawful basis for monitoring, minimise the information collected and consider whether a data protection impact assessment is required. Covert or excessive monitoring carries particular legal risk, especially where it captures private communications or activity outside working hours.
13 – I have been offered an exit package. How do I know whether it is fair?
Whether an exit package is fair depends on your contractual and statutory entitlements, the potential claims you may be asked to waive in return and the financial and practical consequences of leaving. You should check salary, notice pay, accrued holiday, bonus or commission, pension and benefits, redundancy entitlement (where applicable), tax treatment, reference wording, legal fees and any continuing restrictions. A settlement agreement is voluntary and may be negotiated with your employer, so independent advice should assess both the proposed package and the merits and value of any potential claims. Our experts regularly advise both employers and individuals on termination and settlement agreements.
14 – How is the Employment Rights Act 2025 changing what employers need to do?
The Employment Rights Act 2025 is introducing substantial changes to existing employment law in stages, so employers need to review their contracts, policies, payroll arrangements and management processes to ensure compliance with the reforms. Changes already introduced include revised statutory sick pay entitlement, day-one paternity and unpaid parental leave, stronger collective redundancy remedies, holiday pay record-keeping requirements and new enforcement arrangements. Further reforms throughout 2026 and into 2027 concern tribunal time limits, harassment protections, trade union rights, unfair dismissal rules, restrictions on dismissal and re-engagement and protections for zero and low hours workers. Some future implementation dates remain subject to parliamentary processes and may change. See our Employment Rights Act 2025 Hub for more information and the latest developments.
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