# Employment / Labor Lexicon

Standard English terminology for employment agreements: employment contracts, executive
service agreements, restrictive covenants, severance agreements, collective bargaining agreements,
works council documentation, secondment agreements, and related instruments.

## Core Employment Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| employment contract / employment agreement | Agreement creating legal relationship between employer and employee | "employment arrangement" (informal); "service agreement" (historical term) |
| permanent employment contract | Employment contract with no fixed end date; terminable only for cause or mutual agreement | "indefinite contract" (less precise); "open-ended contract" |
| fixed-term employment contract | Employment contract with specified end date; terminates automatically unless renewed | "temporary contract" (may imply short duration); "time-limited contract" |
| part-time employment contract | Employment contract specifying working hours below full-time standard | "part-time agreement" (less formal) |
| consultancy agreement / contractor agreement | Contract engaging independent contractor for specified services without employment relationship | "independent contractor agreement" (more precise but lengthy); "service agreement" (ambiguous) |
| project-based contract | Contract engaging worker for specified project or defined deliverable | "project contract" (informal); "task-based agreement" |
| letter of appointment / offer letter | Document setting out key employment terms, salary, and date of commencement | "employment offer" (less formal); "offer of employment" |
| non-compete agreement / non-competition covenant | Restrictive covenant preventing employee from competing with employer during/after employment | "non-compete clause" (less formal); "restrictive covenant" (broader category) |
| non-solicitation agreement | Restrictive covenant preventing employee from soliciting employer's customers or employees | "non-poaching agreement" (informal) |
| confidentiality agreement | Agreement protecting employer's confidential business information and trade secrets | "non-disclosure agreement" (NDA) (often broader); "secrecy agreement" (informal) |
| minimum term clause / lock-in clause | Clause requiring employee to remain employed for minimum period or repay training costs | "lock-in provision" (informal); "minimum service period" (less legal) |
| probationary period / trial period | Initial employment period (typically 1-6 months) during which either party may terminate without notice | "trial employment" (informal); "probation period" |
| mutual termination agreement | Agreement between employer and employee to end employment on specified terms | "severance agreement" (specifically about payment); "termination settlement" |
| severance agreement | Agreement providing payment/benefits upon termination in exchange for waiver of claims | "settlement agreement" (UK term, more precise); "settlement arrangement" (informal) |
| whistleblowing / protected disclosure | Employee reporting of legal, regulatory, or ethical violations; protected from retaliation under EU Directive 2019/1937 and national legislation (UK: Public Interest Disclosure Act 1998) | Reporting violations (less precise); Informing (too vague) |
| settlement agreement | Compromise agreement in UK employment law (replacing "compromise agreement" post-2013) settling disputes/claims in exchange for payment | "compromise agreement" (archaic UK term, pre-2013); "settlement package" (informal) |

## Compensation and Benefits

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| remuneration / salary | Total compensation paid by employer to employee for work performed | "pay" (informal); "compensation" (may include benefits) |
| gross annual salary | Total salary before deductions (tax, social security, etc.) | "annual salary" (ambiguous); "base salary" (may exclude bonuses) |
| net salary | Salary after all statutory and voluntary deductions | "take-home pay" (informal); "actual salary" |
| payslip | Document showing gross salary, deductions, and net payment for pay period | "pay stub" (US term); "salary statement" (less formal) |
| thirteenth month's salary | Additional month's salary paid to employee at year-end or holiday (European practice) | "13th month bonus" (less precise); "year-end bonus" (different concept) |
| fourteenth month's salary | Additional month's salary paid at second specified time (European practice) | "14th month bonus" (less precise) |
| severance indemnity / end-of-service allowance | Statutory entitlement accruing throughout employment, paid upon termination; exists in many civil law jurisdictions with varying calculation methods | "severance pay" (narrower); "termination payment" (informal) |
| severance pay | Payment to employee upon termination/redundancy (may be statutory or contractual) | "termination payment" (less formal); "exit payment" (informal) |
| payment in lieu of notice | Payment by employer to employee in place of working notice period | "PILON" (UK abbreviation); "notice payment" (less precise) |
| severance package / ex gratia payment | Additional discretionary payment upon termination beyond statutory entitlement | "goodwill payment" (informal); "separation incentive" |
| supplementary allowance | Additional fixed payment beyond base salary (industry-specific) | "top-up" (informal); "supplementary pay" (less formal) |
| performance bonus | Variable payment based on achieving specified performance targets | "bonus" (ambiguous); "performance incentive" |
| MBO / management bonus | Management by objectives system linking bonus to organizational/individual goals | "objectives-based bonus" (less standard); "goal-based bonus" |
| stock options | Right to purchase company shares at specified price within specified period | "share options" (less precise); "equity options" |
| incentive plan | Structured scheme providing cash/equity incentives for performance | "incentive scheme" (less formal); "performance plan" |
| benefit / fringe benefit | Non-cash compensation (insurance, retirement, vehicle, etc.) provided by employer | "perk" (informal); "indirect compensation" (less precise) |
| company car | Vehicle provided by employer for business and personal use | "company vehicle" (broader); "executive car" (narrower) |
| supplementary health insurance | Health insurance beyond statutory coverage, funded by employer or shared | "additional health coverage" (less precise); "top-up health insurance" |
| golden parachute | Enhanced severance/compensation package triggered by change of control or termination without cause for senior executives | Golden handshake (different — general severance); Executive severance (less specific) |
| clawback | Employer's contractual or regulatory right to recover previously paid bonuses or incentive compensation upon specified events (misconduct, restatement of accounts) | Recovery of bonus (less standard); Repayment clause (less specific) |
| vesting / equity vesting | Process by which employee's right to stock options or equity awards becomes unconditional over time (e.g., 4-year vesting with 1-year cliff) | Share vesting (acceptable); Option vesting (narrower) |
| supplementary pension fund | Occupational or individual pension plan beyond mandatory state scheme | "private pension" (less precise); "additional pension" |
| social security contributions | Mandatory employer/employee payments to social security system | "social contributions" (less precise); "payroll taxes" (informal) |
| employer contributions | Employer's mandatory social security/pension contributions | "employer taxes" (informal); "employer payroll contributions" |
| employee contributions | Employee's mandatory social security/pension contributions (typically deducted from salary) | "employee taxes" (informal); "payroll deductions" (broader) |

## Working Conditions

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| working hours | Time during which employee performs work; may include standard and overtime hours | "work hours" (informal); "hours of work" |
| full-time hours | Standard working hours per week (typically 35-40 hours; jurisdiction-specific) | "full hours" (informal) |
| overtime | Work performed beyond standard working hours; usually paid at premium rate | "extra hours" (informal); "additional hours" (ambiguous) |
| night work | Work performed during designated night period (typically 22:00-06:00 or similar) | "night shift" (less precise, may refer to shift pattern); "night-time work" |
| work on public holidays | Work performed on statutory public holidays; may be paid at premium or with time off in lieu | "holiday work" (ambiguous); "work on holidays" |
| annual leave / holiday entitlement | Paid time off for rest and recreation; statutory minimum typically 20-30 days per year | "vacation" (US term); "holiday" (UK term, may be ambiguous) |
| paid leave | Time off work with continued salary payment | "paid time off (PTO)" (less formal); "paid absence" |
| maternity leave | Paid time off for female employee before/after childbirth | "pregnancy leave" (less precise); "maternity absence" |
| paternity leave | Paid time off for male employee upon child's birth | "parental leave" (broader); "father's leave" (informal) |
| parental leave | Paid/unpaid time off for employee (either parent) to care for young child | "childcare leave" (less precise); "family leave" (broader) |
| sick leave | Time off work due to illness; may be paid up to statutory maximum | "illness leave" (less precise); "absence due to illness" |
| protected sick leave period | Maximum period during which employer must continue salary despite absence for illness; varies by jurisdiction and collective agreement | "sickness period" (ambiguous); "illness protection period" |
| workplace accident / occupational injury | Physical injury to employee arising from work or work-related activity | "work-related injury" (broader); "occupational accident" (less precise) |
| place of work | Location where employee performs work (office, factory, field, etc.) | "work location" (informal); "workplace" (broader, includes facilities) |
| business travel / posting | Temporary assignment requiring employee to work in different location | "business trip" (less precise); "work posting" (formal but used for posted workers specifically) |
| remote working / agile working | Work performed from location other than employer's premises using electronic communication | "work from home" (less formal); "flexible working" (may include other arrangements) |
| telework | Regular work from home or remote location using telecommunications | "remote work" (more modern term); "work from home" (less formal) |
| duties / role | Tasks and responsibilities assigned to employee | "job duties" (informal); "functions" (less precise) |
| classification / grading | Assignment of employee to organizational level/category for pay/benefits purposes | "job classification" (broader); "grade level" |
| contractual grade / pay grade | Specific wage category assigned to employee under collective agreement | "pay level" (less formal); "salary level" (informal) |
| job title / qualification | Official designation of employee's position and required qualifications | "position title" (less formal); "job description" (different concept) |

## Restrictive Covenants

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| restrictive covenant | General category of clauses limiting employee's post-employment conduct | "non-compete" (narrower, specific type) |
| non-compete clause | Covenant preventing employee from competing with employer after employment termination | "non-competition clause" (variant); "restrictive covenant" (broader category) |
| non-solicitation covenant | Covenant preventing employee from soliciting employer's customers or employees post-termination | "non-solicit clause" (informal); "non-poaching covenant" |
| non-dealing covenant | Covenant preventing employee from contracting with employer's customers post-termination | "customer non-dealing clause" (less standard); not to be confused with non-solicitation |
| garden leave | Employer's right to require employee to remain at home during notice period while maintaining salary and benefits; effectively enforces non-compete during notice | Gardening leave (variant, acceptable); Paid suspension (different concept) |

## Termination Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| dismissal / termination | Termination of employment by employer | "firing" (informal); "discharge" (archaic) |
| dismissal for just cause / summary dismissal | Immediate termination by employer for serious misconduct without notice | "dismissal for cause" (ambiguous); "termination for cause" (may include other grounds) |
| dismissal for justified subjective reason | Termination by employer based on personal conduct of employee; civil law concept with specific legal consequences distinct from "just cause" | "dismissal for gross misconduct" (narrower); "disciplinary dismissal" (may be formal procedure) |
| dismissal for justified objective reason | Termination by employer based on business needs/restructuring; civil law concept distinct from common-law redundancy | "dismissal for redundancy" (narrower, different consequences); "layoff" (informal) |
| collective dismissal / redundancy | Termination of multiple employees due to business closure/restructuring | "group termination" (less legal); "mass layoff" (informal) |
| disciplinary dismissal | Termination following formal disciplinary procedure for employee misconduct | "dismissal for discipline" (less formal); "termination for cause" (ambiguous) |
| resignation | Termination of employment by employee; typically requires notice period | "quitting" (informal); "giving notice" (narrower, describes notice-giving) |
| constructive dismissal / resignation for just cause | Employee's resignation justified by employer's serious breach of contract; may entitle employee to severance | "constructive termination" (less precise); "forced resignation" (informal) |
| notice period | Duration employee/employer must wait before termination becomes effective; varies by contract/law | "notice" (informal); "advance notice" (redundant) |
| challenge of dismissal / unfair dismissal claim | Employee's legal action contesting dismissal legality/fairness; jurisdiction-specific remedies | "wrongful termination claim" (US term, narrower legal standard); "dismissal dispute" |
| reinstatement | Remedy requiring employer to restore dismissed employee to former position or equivalent | "reemployment" (less precise); "restoration" |
| compensatory indemnity / damages | Payment awarded to employee upon wrongful/unfair dismissal | "severance" (may be contractual); "damages" (broader legal concept) |
| reinstatement remedy | Remedy requiring reinstatement of wrongfully dismissed employee; available in some civil law jurisdictions | "substantive protection" (less precise); "specific performance" (broader) |
| compensation remedy | Remedy providing compensation instead of reinstatement for unfair dismissal; alternative to reinstatement in many jurisdictions | "financial protection" (informal); "damages award" (broader) |
| change of control | See canonical definition in finance-banking.md. Employment context: executive contracts may provide accelerated vesting, enhanced severance, or termination rights upon change of control. | — |

## Collective Labor Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| national collective bargaining agreement (NCBA) | Master collective agreement negotiated between employer associations/unions at national level | "national labor agreement" (informal); "sectoral agreement" (narrower scope) |
| company-level collective agreement | Collective agreement negotiated between employer and unions/workers representatives at company level | "site agreement" (informal); "enterprise agreement" |
| trade union agreement | Agreement reached between employer and trade union on employment matters | "union agreement" (informal); "collective agreement" (broader term) |
| trade union | Formal organization representing workers' interests in negotiations with employers (US: "labor union" is also standard; UK: "trade union" is preferred and uses spelling "organisation") | "union" (informal as primary term) |
| company trade union representation | Works council-equivalent body representing worker interests at company level; structure varies by jurisdiction | "union representation" (less precise); "worker representatives" (broader) |
| unified trade union representation | Multi-union worker representation structure at company level; common in civil law jurisdictions | "unified representation" (informal); "joint union representation" |
| workers' assembly | Formal meeting of employees to discuss collective matters | "employee assembly" (less formal); "staff meeting" (different purpose) |
| right to strike | Legal entitlement of workers to withhold labor as industrial action | "strike right" (less formal); "strike protection" |
| wage supplementation fund / short-time working scheme | Government support program providing partial income when employer reduces hours; many EU jurisdictions have equivalent schemes | "unemployment insurance" (narrower); "job protection scheme" (informal) |
| ordinary wage supplementation | Wage supplementation for temporary economic difficulties; typically shorter duration and less stringent criteria | "regular benefit" (less precise); "ordinary support" (informal) |
| extraordinary wage supplementation | Wage supplementation for major restructuring/crisis; longer duration, stricter requirements | "extended benefit" (informal); "crisis support" |
| redundancy scheme | Government program assisting workers displaced by restructuring; may include retraining, placement, and income support | "retraining program" (different purpose); "displacement scheme" (less standard) |
| transfer of undertakings / TUPE (UK) | Automatic transfer of employment contracts upon business sale/transfer (EU Directive 2001/23/EC; UK: Transfer of Undertakings (Protection of Employment) Regulations 2006) | Business transfer (less precise); Succession (broader) |
| collective redundancy procedure | Legal process for terminating multiple employees; typically requires notice, consultation, social plan | "layoff procedure" (informal); "mass dismissal process" |
| trade union consultation | Mandatory employer discussion with unions/worker representatives on significant employment decisions | "union meeting" (informal); "worker consultation" (less precise) |

## Secondment and Agency Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| secondment | Temporary assignment of employee from home employer to work for host company; home employer typically retains employment relationship | "detachment" (civil law literal translation); "posting" (narrower, EU-specific) |
| cross-border posting / transnational secondment | Secondment of employee from one country to work in another (EU Posted Workers Directive applies) | "international posting" (less precise); "cross-border assignment" |
| seconding company | Employer retaining legal employment relationship with seconded worker | "home employer" (less formal); "original employer" |
| host company | Employer using services of seconded worker but typically not party to employment contract | "receiving company" (less formal); "destination employer" |
| seconded employee / posted worker | Employee temporarily working for host company while retained by seconding company | "seconded worker" (variant); "posted worker" (EU term, specific legal status) |
| temporary agency work | Supply of workers by employment agency to client employer for temporary assignment | "temp work" (informal); "temporary staffing" |
| temporary employment agency | Business engaged to recruit and supply temporary workers to client employers | "staffing agency" (less formal); "employment agency" (broader) |
| agency worker / temporary worker | Worker supplied by employment agency to client employer for defined period | "temp" (informal); "temporary employee" (less precise, may be direct hire) |

## Section Headings

| Correct English heading | Avoid |
|---|---|
| DUTIES AND CLASSIFICATION | "Job duties and grading" (less formal); "Duties and position" |
| REMUNERATION | "Salary" (narrower); "Compensation" (less specific) |
| WORKING HOURS | "Hours of work" (inverted order); "Work schedule" (less formal) |
| LEAVE AND TIME OFF | "Holidays and absences" (informal); "Vacation and sick leave" (enumerated, less formal) |
| EMPLOYEE'S OBLIGATIONS | "Employee duties" (less formal); "Obligations of worker" (inverted order) |
| CONFIDENTIALITY | "Secrecy" (less legal); "Confidential information" (broader concept) |
| NON-COMPETE | "Non-competition" (variant); "Restrictive covenants" (broader category) |
| INTELLECTUAL PROPERTY | "IP rights" (informal); "Ownership of work product" (less standard heading) |
| TERMINATION OF EMPLOYMENT | "Employment termination" (inverted); "Dismissal" (narrower, one type of termination) |
| DISCIPLINARY PROCEDURE | "Disciplinary process" (informal); "Discipline" (less formal) |
| RESTRICTIVE COVENANTS | "Restrictive provisions"; "Non-compete and non-solicitation" (enumerated, less formal) |
| BENEFITS | "Fringe benefits" (less formal); "Additional compensation" (imprecise) |
| COLLECTIVE LABOR MATTERS | "Collective bargaining" (narrower); "Union matters" (informal) |

## Notes

- **Employment categories**: Many civil law jurisdictions use statutory employee classifications (e.g., executive, manager/supervisor, white-collar, blue-collar) with distinct rules on dismissal, notice, benefits, and contractual treatment. In UK/US context, classify by functional description (executive, manager, professional, manual worker). Sub-lexicon provides source-language category mappings.

- **Dismissal grounds**: Civil law jurisdictions often distinguish between "just cause" (immediate termination for serious misconduct) and "justified reason" (termination with notice for conduct or business reasons), each with different legal consequences. Do not force common-law terms ("unfair dismissal", "wrongful termination") onto civil law categories unless source specifically maps to them. Maintain the source jurisdiction's legal framework.

- **Restrictive covenants category**: Non-compete, non-solicitation, and non-dealing are three distinct restrictive
  covenants. Do not use "non-compete" generically to cover all three. Create separate entries where all three appear.

- **Settlement agreement (UK)** / **"Compromise agreement"**: In UK employment law, "settlement agreement" (post-April 2013)
  replaced "compromise agreement" (pre-April 2013). Use "settlement agreement" for current English transactions.

- **PILON**: "Payment in lieu of notice" is standard UK term; other jurisdictions may use "payment instead of notice"
  or similar. When translating, use PILON in UK context with explanation.

- **Garden leave**: UK concept allowing employer to keep employee off work during notice period while maintaining
  salary (restrictive covenant). Include if source discusses this; not standard in all civil law jurisdictions.

- **TUPE / transfer of undertakings**: EU Directive 2001/23/EC automatic transfer of employment upon business sale.
  Use "transfer of undertakings" / "TUPE" in UK context; "business transfer" or "succession in business" in others.

- **Whistleblowing / protected disclosure**: Modern employment law protection for employees reporting legal/regulatory
  violations. Use "whistleblowing" (informal, modern) or "protected disclosure" (formal, UK term under Public Interest
  Disclosure Act). Include if source addresses this concept.

- **National collective agreements**: Employment contracts in many jurisdictions incorporate an applicable national or sectoral collective bargaining agreement. In English translation, retain the original-language name/acronym on first mention but add an English description (e.g., "National Collective Bargaining Agreement for the [sector]"). Sub-lexicon provides source-language mappings.

- **Jurisdiction-specific rules**: Dismissal grounds, notice periods, severance, and remedies vary significantly
  across jurisdictions. Do not force source-jurisdiction law categories onto UK/US law. Translate accurately and note source
  jurisdiction in sub-lexicon.

- **Statutory severance indemnity**: Some civil law jurisdictions have a unique statutory severance entitlement that accrues throughout employment and is paid regardless of termination reason. This has no exact common-law equivalent. Translate as "severance indemnity" or "end-of-service allowance" and retain the source-language acronym in parentheses on first use. Sub-lexicon provides source-language mappings.
