UK HR terms, explained in plain English
Short, source-led definitions of the words that turn up in contracts, payslips and GOV.UK guidance: what each one means for a small employer, and what to do about it.
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Leaving & redundancyFeatured
Definition, checklist and sourceRead →
Redundancy
Redundancy is a dismissal caused by business closure, workplace closure or a reduced need for employees to do particular work.
Definition, checklist and sourceRead →A
- Absence triggerAn absence trigger is a defined attendance level that prompts an employer to review an employee's sickness absence and support needs.
- Acas early conciliationAcas early conciliation is the Great Britain process for trying to settle a workplace dispute before an Employment Tribunal claim.
- Access to WorkAccess to Work is government support for extra workplace costs arising from a disability, illness or physical or mental health condition.
- Adoption leaveAdoption leave is statutory time away from work for an eligible employee who adopts a child or becomes a parent through surrogacy.
- Agency workerAn agency worker is supplied by an employment agency to work temporarily under a hiring organisation's direction.
- Annual leaveAnnual leave is paid time away from work, including the statutory holiday entitlement most UK workers receive.
- Annualised hoursAnnualised hours set an employee's contractual working time as a total for the year, scheduled unevenly to match demand.
- Antenatal appointmentsAntenatal appointments are pregnancy-related appointments with different time-off rights for a pregnant employee and an eligible companion.
- ApprenticeAn apprentice combines structured learning with workplace experience; whether it is paid employment depends on the programme and UK nation.
- Attachment of Earnings OrderAn Attachment of Earnings Order tells an employer to deduct debt repayments from someone's wages and send them as the order directs.
- Automated decision-makingAutomated decision-making is deciding through automated processing without meaningful human involvement in the decision itself.
- Automatic re-enrolmentAutomatic re-enrolment is the employer duty to put certain staff back into qualifying pension saving, usually around every three years.
- Automatic-enrolment opt-outAn automatic-enrolment opt-out is a jobholder's formal choice to undo pension membership during the statutory opt-out period.
- Automatic-enrolment postponementAutomatic-enrolment postponement lets an employer delay assessing a worker for pension duties until a chosen deferral date.
- Automatic-enrolment worker categoriesAutomatic-enrolment worker categories decide whether a worker must be enrolled, may opt in or may join a workplace pension.
B
- Bank holiday entitlementBank holiday entitlement is the contractual treatment of bank and public holidays within or in addition to a worker's annual leave.
- Benefit in kindA benefit in kind is a benefit or expense an employer provides that may have a taxable value even though it is not ordinary cash salary.
- Bereaved Partner’s Paternity LeaveBereaved Partner’s Paternity Leave is unpaid statutory leave in Great Britain when a child’s mother, main adopter or main intended parent dies.
- Bereavement leaveBereavement leave is time away from work after a death, combining specific statutory rights with the employer's own policy.
- Biometric dataBiometric data is personal data produced by technical processing of physical or behavioural traits that can identify someone uniquely.
- Bradford FactorThe Bradford Factor is an attendance measure that weights repeated short sickness absences more heavily than the same days in fewer episodes.
- BullyingBullying at work is unwanted behaviour that is offensive, intimidating, malicious or insulting, or that misuses power to undermine someone.
C
- Capability procedureA capability procedure is a fair process for addressing whether an employee can perform their job to the required standard.
- Carer’s LeaveCarer’s Leave is a Great Britain employee’s right to one unpaid working week off in 12 months to care for a dependant with a long-term need.
- Carry-over of annual leaveCarry-over of annual leave is unused holiday moved into a later leave year under an agreement or a statutory rule.
- Compensatory restCompensatory rest is equivalent time away from work provided when a worker cannot take a normal statutory rest period.
- Constructive dismissalConstructive dismissal is when an employee resigns because the employer has seriously breached the employment contract.
- Continuous employmentContinuous employment is an employee's unbroken service with an employer, including certain absences and changes that do not reset it.
- Contract of employmentA contract of employment is the legal agreement that sets an employee's terms, rights, responsibilities and duties.
- Contract variationA contract variation is an agreed change to an employee's existing terms and conditions of employment.
- COT3A COT3 is a legally binding Great Britain settlement recorded with Acas after conciliation resolves an employment dispute.
- Criminal offence dataCriminal offence data is personal data about convictions, offences or related security measures, protected by a separate UK GDPR regime.
- Criminal record checkA criminal record check is an authorised disclosure of criminal-record information used to assess someone's suitability for work.
D
- Data controllerA data controller decides why and how personal data is processed, alone or jointly with another organisation.
- Data processorA data processor handles personal data for a controller and follows the controller's documented instructions.
- Data protection impact assessmentA data protection impact assessment identifies and reduces privacy risks before processing that is likely to create high risk for people.
- Data protection officerA data protection officer is an independent adviser who monitors data-protection compliance and acts as a contact for people and the ICO.
- Data retentionData retention is how long an organisation keeps personal data for a stated purpose before reviewing, deleting or anonymising it.
- Data subjectA data subject is the identified or identifiable living person whom particular personal data is about.
- Declaration of complianceA declaration of compliance is the employer's online filing to The Pensions Regulator explaining how workplace pension duties were met.
- Deductions from payDeductions from pay are amounts an employer takes from a worker’s wages where the law, contract or prior written agreement allows it.
- Direct discriminationDirect discrimination is less favourable treatment because of a protected characteristic, including perceived or associated characteristics in some cases.
- Disability-related absenceDisability-related absence is time away from work because of a disabled person's condition, treatment or related support needs.
- Disciplinary procedureA disciplinary procedure is the formal process an employer follows when examining alleged misconduct or an employee's capability.
- Discrimination at workDiscrimination at work is unlawful treatment connected to a protected characteristic, including victimisation for doing a protected act.
- DismissalDismissal is when an employer ends an employee's employment; the law also treats fixed-term non-renewal and some resignations as dismissal.
- Dismissal and re-engagementDismissal and re-engagement is ending an employee's contract and offering new employment on changed terms.
- DSAR (data subject access request)A DSAR is a request from a person for their personal data and information about how an organisation uses it.
E
- Effective date of terminationThe effective date of termination is the statutory date employment is treated as ending for unfair-dismissal rights and time limits.
- EmployeeAn employee is a person who works under a contract of employment and has the rights attached to employee status, subject to eligibility rules.
- Employee assistance programmeAn employee assistance programme is an optional workplace service offering confidential information and short-term support for personal or work concerns.
- Employer Payment SummaryAn Employer Payment Summary (EPS) reports employer-level PAYE adjustments, a no-pay period or other information that an FPS does not carry.
- Employer pension contributionsEmployer pension contributions are amounts an employer must pay into a worker's workplace pension under the scheme rules and pension duties.
- Employment AllowanceEmployment Allowance reduces eligible employers' secondary Class 1 National Insurance bills through payroll each tax year.
- Employment recordsEmployment records are personal information an employer keeps about workers, from recruitment and pay to performance, absence and leaving.
- Employment referenceAn employment reference is information an employer provides about a current or former worker for another organisation's decision.
- Employment statusEmployment status is a person's legal status at work, which determines the employment rights and responsibilities that apply.
- Employment TribunalAn Employment Tribunal is an independent judicial body that decides many workplace claims in England, Wales and Scotland.
- Equal payEqual pay is the right to equal contractual pay and terms for equal work, compared with a person of the other sex in the same employment.
F
- Fit noteA fit note is a healthcare professional's advice that someone is not fit for work or may be fit with workplace support.
- Fixed-term contractA fixed-term contract is an employment contract that ends on a stated date, after a task or when a specified event happens.
- Flexible workingFlexible working is an agreed change to when, where or how many hours an employee works.
- FlexitimeFlexitime lets an employee choose start and finish times within agreed limits while completing the required hours for an accounting period.
- Full Payment SubmissionA Full Payment Submission (FPS) is the payroll report an employer normally sends HMRC on or before each payday for employees it has paid.
G
- Garden leaveGarden leave is a notice-period arrangement where an employee remains employed and paid but is not required to work.
- Gender pay gap reportingGender pay gap reporting is the Great Britain duty for covered employers to publish prescribed measures comparing women's and men's pay.
- Grievance procedureA grievance procedure is the formal route an employee uses to raise a workplace problem or complaint with their employer.
- Gross pay and net payGross pay and net pay describe earnings before payroll deductions and the amount left after those deductions.
H
- Harassment at workHarassment at work can include unwanted conduct linked to certain characteristics or sexual in nature that violates dignity or creates a hostile environment.
- Holiday accrualHoliday accrual is the process by which a worker builds up statutory and contractual annual leave over time.
- Holiday payHoliday pay is the pay a worker receives for statutory annual leave, calculated from their working pattern and normal or basic pay as applicable.
- Holiday pay reference periodA holiday pay reference period is the set of earlier paid weeks used to average holiday pay when a worker's pay varies.
- HomeworkingHomeworking is an agreed arrangement in which an employee regularly performs some or all of their work from home.
I
- Indirect discriminationIndirect discrimination is a rule or practice that disadvantages a protected group and a person in it, unless the employer can objectively justify it.
- InternAn intern is someone on a work-experience arrangement whose actual duties and agreement determine their employment rights and pay.
- International data transferAn international data transfer sends or makes UK personal data accessible to a separate organisation outside the United Kingdom.
- Irregular-hours workerAn irregular-hours worker is a worker whose paid hours in each pay period are wholly or mostly variable under their contract.
J
- Job offerA job offer is an employer's clear proposal of a role and its main terms, which may depend on stated conditions being met.
- Job sharingJob sharing is an arrangement where two employees divide the hours and responsibilities of one role between them.
- Jury serviceJury service is compulsory court attendance by a summoned juror, for which an employer must allow the required time away from work.
L
- Lawful basisA lawful basis is the valid legal reason an organisation identifies before it starts processing personal data for a particular purpose.
- Lay-off and short-time workingLay-off and short-time working are temporary reductions in work: a complete working day without work, or reduced work and pay.
- Long-term sickness absenceLong-term sickness absence is a continuous period of sick leave lasting more than four weeks, although that is not a fixed legal threshold.
M
- Maternity leaveMaternity leave is statutory time away from work for an employee who is pregnant and gives birth, lasting for up to 52 weeks.
- Maternity suspensionMaternity suspension is paid time away from work for an eligible employee when a pregnancy-related workplace risk cannot be controlled safely.
- Mediation at workMediation at work is a voluntary, normally confidential process in which an impartial mediator helps people seek their own workplace resolution.
- Medical suspensionMedical suspension is when an employer stops an employee working because specified workplace exposure puts their health or safety at risk.
- MisconductMisconduct is an employee's unacceptable behaviour or action that breaks the organisation's rules.
N
- National Insurance contributionsClass 1 National Insurance contributions (NICs) include amounts deducted from employee earnings and separate amounts paid by employers.
- Neonatal Care LeaveNeonatal Care Leave is statutory time off in Great Britain for an eligible parent whose baby receives qualifying neonatal care after birth.
- Night workerA night worker is someone who regularly works at least three hours during the legally defined night-time period.
- Notice periodA notice period is the time between notice being given to end employment and the employment ending.
O
- Occupational healthOccupational health is a medical service that advises how work affects health and how health may affect someone's work.
- Occupational requirementAn occupational requirement is a narrow lawful exception allowing a protected characteristic to be required where the role and context genuinely demand it.
- Occupational sick payOccupational sick pay is pay an employer provides under its contract or policy during sickness absence, usually above Statutory Sick Pay.
- Off-payroll working (IR35)Off-payroll working (IR35) decides who assesses and accounts for employment taxes when someone works through their own intermediary.
- On-call timeOn-call time is a period when a worker must remain available to respond to work outside their ordinary duties or hours.
- Overpayment of wagesAn overpayment of wages is pay given to a worker by mistake that the employer is usually entitled to recover.
- OvertimeOvertime is work done beyond the normal hours set by a worker's contract or the employer's agreed working pattern.
P
- P11DA P11D is an HMRC form used to report taxable expenses and benefits for an employee when those amounts have not been fully reported through payroll.
- P45A P45 is the tax form an employer gives someone when they leave, showing their leaving date, tax code, and pay and tax for the tax year to date.
- P60 (end of year certificate)A P60 is the annual certificate showing total pay and deductions for an employee who still works for the employer on 5 April.
- Parental Bereavement LeaveParental Bereavement Leave is statutory time off after a child dies, a stillbirth, or certain earlier pregnancy losses in Northern Ireland.
- Part-time workerA part-time worker is someone who works fewer hours than a comparable full-time worker in the same organisation.
- Part-year workerA part-year worker has a continuing contract but works only part of the year, including at least one whole week when no work or pay is due.
- Paternity leavePaternity leave is statutory time off for an eligible employee to support a partner and care for a child after birth, adoption or surrogacy.
- PAYEPAYE (Pay As You Earn) is HMRC’s system through which employers report payroll, deduct Income Tax and employee NICs, and account for employer NICs.
- PAYE recordsPAYE records are the payroll evidence an employer keeps to show HMRC what it paid, deducted, reported and paid over.
- Payment in lieu of holidayPayment in lieu of holiday is pay for untaken statutory annual leave when a worker's employment ends.
- Payment in lieu of noticePayment in lieu of notice (PILON) is money paid when employment ends without the employee working some or all of their notice period.
- PayrollPayroll is the employer process for recording pay, calculating deductions, paying people and reporting the figures to HMRC.
- PayslipA payslip is the itemised statement an employer gives on or before payday, showing gross pay, deductions and net pay for that pay period.
- Pension opt-in and joiningPension opt-in and joining are worker rights to request pension membership when automatic enrolment has not put them into a scheme.
- Personal dataPersonal data is information that relates to an identified or identifiable living person, directly or when combined with other information.
- Personal data breachA personal data breach is a security failure causing accidental or unlawful loss, change, destruction, disclosure of or access to personal data.
- Phased return to workA phased return to work is an agreed period in which someone gradually rebuilds their hours, duties or workload after absence.
- Positive actionPositive action is a lawful, proportionate step to reduce disadvantage, meet different needs or improve participation linked to a protected characteristic.
- Pregnancy risk assessment at workPregnancy risk assessment at work is an individual review of workplace risks for a pregnant worker, new mother or breastfeeding worker.
- Pregnancy-related sickness absencePregnancy-related sickness absence is time off because of pregnancy, recorded separately from ordinary sickness for employment decisions.
- Probation periodA probation period is an agreed early stage of employment for reviewing expectations, support and suitability for the role.
- Protected characteristicsProtected characteristics are the nine personal characteristics covered by the Equality Act 2010 against unlawful discrimination in Great Britain.
Q
- Qualifying daysQualifying days are the days an employee normally works and for which Statutory Sick Pay can be due during sickness absence.
- Qualifying earningsQualifying earnings are specified pay components within a statutory band used to assess workplace pension duties and some contributions.
- Qualifying workplace pension schemeA qualifying workplace pension scheme meets the statutory quality requirements for an employer to use it for relevant workplace pension duties.
R
- Real Time InformationReal Time Information (RTI) is HMRC's system for employers to report PAYE payroll information as payments and adjustments happen.
- Reasonable adjustmentsReasonable adjustments are changes an employer makes to remove or reduce a disadvantage connected with a person's disability.
- Record of processing activitiesA record of processing activities is an organisation's structured account of how and why it processes personal data.
- RedundancyRedundancy is a dismissal caused by business closure, workplace closure or a reduced need for employees to do particular work.
- Redundancy consultationRedundancy consultation is a process for discussing proposed redundancies with affected employees or their representatives before decisions are final.
- Redundancy payRedundancy pay is money an eligible employee receives after dismissal because a business or workplace closes, or the need for particular work reduces.
- Redundancy selection criteriaRedundancy selection criteria are the measurable factors an employer uses to choose employees from a fair selection pool.
- ResignationResignation is when an employee tells their employer they are ending their employment, usually by giving the notice their contract requires.
- Rest breaksRest breaks are protected periods away from work during a shift and between working days or weeks.
- Restrictive covenantA restrictive covenant is a contractual term limiting specified competitive activity after an employee leaves.
- RetirementRetirement is usually a worker's decision to stop working; reaching pension age does not normally end employment.
- Return-to-work interviewA return-to-work interview is a private conversation after absence to confirm readiness, support and any agreed return plan.
- RIDDORRIDDOR is the law requiring responsible persons to report and record specified work-related deaths, injuries, diseases and dangerous occurrences.
- Right to erasureThe right to erasure lets a person ask an organisation to delete personal data in specified circumstances, but the right is not absolute.
- Right to objectThe right to object lets a person challenge certain personal-data processing, with the outcome depending on its purpose and lawful basis.
- Right to rectificationThe right to rectification lets a person have inaccurate personal data corrected and incomplete data completed where appropriate.
- Right to workA right-to-work check confirms that a person is allowed to do the proposed work in the UK.
- Rolled-up holiday payRolled-up holiday pay is holiday pay added to each pay packet instead of being paid when the worker takes leave.
S
- SabbaticalA sabbatical is an agreed extended break from work, usually unpaid, whose terms depend on the employee's contract and the employer's policy.
- Salary sacrificeSalary sacrifice is an agreement that reduces an employee’s contractual cash pay, usually in return for a non-cash benefit.
- Self-certificationSelf-certification is an employee's own statement of sickness for the first seven calendar days of an absence.
- Self-employed personA self-employed person runs their own business for clients and takes responsibility for its success or failure.
- Settlement agreementA settlement agreement is a legally binding contract in which a worker gives up specified employment claims in return for agreed terms.
- Shared Parental LeaveShared Parental Leave lets eligible parents share leave remaining after maternity or adoption leave or pay ends early.
- Shift workShift work is an arrangement where different periods of work cover hours beyond one standard daytime schedule.
- Short-term sickness absenceShort-term sickness absence is sick leave taken in brief periods, including occasional or repeated absences, rather than one prolonged absence.
- Sick leaveSick leave is time away from work because illness or injury means an employee cannot do their job.
- Sleep-in shiftA sleep-in shift requires a worker to stay at or near work, with suitable facilities and an expectation they may sleep until needed.
- Special category dataSpecial category data is sensitive personal data that needs an Article 6 lawful basis and a separate Article 9 condition for processing.
- Starter checklistA starter checklist records the information payroll needs when a new employee has no usable P45 or needs to declare student-loan details.
- Statutory Adoption PayStatutory Adoption Pay is employer-paid statutory pay for an eligible primary adopter or intended parent for up to 39 weeks.
- Statutory Maternity PayStatutory Maternity Pay is employer-paid statutory pay for an eligible employee or worker for up to 39 weeks around the birth of their baby.
- Statutory Neonatal Care PayStatutory Neonatal Care Pay is employer-paid statutory pay in Great Britain for an eligible parent whose baby receives qualifying neonatal care.
- Statutory Parental Bereavement PayStatutory Parental Bereavement Pay is employer-paid statutory pay for an eligible parent after a child dies or another qualifying loss.
- Statutory Paternity PayStatutory Paternity Pay is employer-paid statutory pay for eligible employees and some agency or casual workers after a birth, adoption or surrogacy.
- Statutory Shared Parental PayStatutory Shared Parental Pay is employer-paid statutory pay that eligible parents can share after another parental pay entitlement ends early.
- Statutory Sick Pay (SSP)Statutory Sick Pay is the minimum pay an eligible employee may receive when they cannot work because of sickness.
- Student loan deductionsStudent loan deductions are repayments taken through payroll when a P45, starter declaration or HMRC notice says they apply and earnings exceed the threshold.
- Suitable alternative employmentSuitable alternative employment is another job an employer offers to an employee at risk of redundancy when the role and terms may reasonably fit.
- Summary dismissalSummary dismissal ends employment without notice or notice pay because the employer finds a sufficiently serious breach.
- Suspension during an investigationSuspension during an investigation is a temporary instruction not to work while facts are examined, used only where it is necessary and kept under review.
T
- Tax codeA tax code tells payroll how to calculate the Income Tax to deduct from an employee's pay under PAYE.
- Tax yearThe UK tax year is the period from 6 April to the following 5 April used for PAYE records, reporting and annual payroll tasks.
- Time off for adoption appointmentsTime off for adoption appointments is paid or unpaid statutory time away from work to attend qualifying pre-placement appointments.
- Time off for dependantsTime off for dependants is an employee's right to reasonable time away from work for an unexpected emergency involving a dependant.
- Time off for public dutiesTime off for public duties is an employee's right to a reasonable amount of time away from work for certain qualifying public roles.
- Time off for trade union duties and activitiesTime off for trade union duties and activities is reasonable work time for qualifying union representation, training or member activity.
- TOIL (time off in lieu)TOIL is agreed time away from work in return for extra hours worked, instead of additional pay.
- Trade union recognitionTrade union recognition is an agreement or statutory declaration allowing a union to bargain for a defined group of workers.
- Travel time for workTravel time for work is journey time connected with job duties, assessed separately for working-time, pay and minimum-wage purposes.
- TUPETUPE protects employees when their employer changes because a business or qualifying service transfers to another organisation.
U
- UK GDPRThe UK GDPR is a core part of UK data protection law, setting principles, rights and duties for using personal data.
- UK minimum wageThe UK minimum wage is the legal hourly pay floor for eligible workers, based on age and apprenticeship status.
- Unauthorised absenceUnauthorised absence is time away from work that the employer has not approved and that is not covered by a recognised reason for absence.
- Unfair dismissalUnfair dismissal is dismissal without a fair reason or fair process, or for a reason the law treats as automatically unfair.
- Unpaid parental leaveUnpaid parental leave is statutory time off for an eligible employee to care for a child, with an allowance that belongs to each child.
- Unpaid work trialAn unpaid work trial is a short recruitment test that may still count as work for which minimum wage is due.
V
- Victimisation at workVictimisation at work is detriment because someone did, or was believed to have done or might do, an Equality Act protected act.
- Voluntary redundancyVoluntary redundancy is redundancy where an employee offers to leave and the employer decides whether to accept the application.
- VolunteerA volunteer freely gives time without a contract to work for reward and can usually stop volunteering without a contractual penalty.
W
- WhistleblowingWhistleblowing is a worker's disclosure of information they reasonably believe shows specified wrongdoing and is made in the public interest.
- Work-related stressWork-related stress is the harmful reaction people can have when work demands or pressures exceed their ability to cope.
- WorkerA worker is someone who must usually provide work personally for reward under a contract and is not running an independent business for the client.
- Working timeWorking time is time when a worker is at the employer's disposal and carrying out work activities, duties or training.
- Working Time Regulations 1998The Working Time Regulations 1998 are Great Britain's rules on weekly hours, rest, night work and paid annual leave.
- Workplace investigationA workplace investigation is a fair evidence-gathering process used to establish the facts before an employer decides what happens next.
- Workplace pensionA workplace pension is a pension arrangement provided through work, with contributions paid under its rules by the employer and usually the worker.
- Workplace pension automatic enrolmentWorkplace pension automatic enrolment is the UK employer duty to assess workers and enrol eligible jobholders into an automatic enrolment scheme.
- Written statement of employment particularsA written statement of employment particulars records the main employment terms an employer must provide in writing.
- Wrongful dismissalWrongful dismissal is dismissal that breaches an employee's contract, usually because the employer gives too little notice or notice pay.
Y
Z
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