1. A contract of employment is a contract of service or apprenticeship.
It is to be contrasted with a contract 'for services', which is a contract by which one person agrees to do something for another on an independent basis.

2. Employer-employee relationship
a) At common law, the employer is vicariously liable for wrongs committed to others by his employee in the course of his employment.
b) All employees, from chargehand to managing director, owe a duty of fidelity to their employer.
c) Rules relating to these contracts are laid down in the Employment Protection (Consolidation) Act 1978 ('EPCA').
Those rules cannot be disregarded by agreements between employer and employee.

3. Employee's rights
a) Reception of a written statement with particulars about about hours, remuneration, holiday etc. Reception of an itemized pay statement.
b) Guaranty payments - workless days; unless employee refuses reasonable alternative employment.
c) Membership in trade unions (positive/negative).
d) Maternity leave of 14 weeks; return to work after a max. of 29 weeks; paid time off for antenatal care.

4. Termination of employment
a) Notice is required (less than two years - one week; less than 12 years - one week for each year; more than 12 years - 12 weeks). Employee must give one week's notice. Notice may be waived by either party.
b) Termination without notice by reason of conduct - what would amount to fundamental breach.
c) Always written statement of reasons.

5. Unfair dismissal
a) 'Wrongful' dismissal - damages at law.
b) 'Unfair' dismissal - dismissal fo the employee for an inadmisible reason. Compensation or re-engagement.

6. Redundancy payments
a) Employment no less than two years; no lawful dismissal without notice.
b) Lay-off due to redundancy (bad business etc.).
c) Employer may get help from public funds.

7. Employer's Insolvency
a) Employee may apply to Secretary of State for Employment for payment of the debt from public funds.
b) No more than L 210 in respect of any one week of unpaid wages.