This Practice Note focuses on the additional employment duties that are unique to local government in relation to the appointment and dismissal of statutory officers including the Joint Negotiating Committee (JNC) for Local Authority Chief Officers terms, green book conditions, occupation specific conditions of service and authorities’ employment procedure rules. It identifies the different rules which apply between categories of officers. It also explains the role and involvement of leaders or elected mayors and cabinet under executive arrangements and the Chief Executive. Discussion of employment issues in local government fall into three areas: • normal employment law issues, such as those concerning discrimination, fair or unfair dismissal (including redundancy), TUPE, etc • contractual requirements, which will require consultation with national conditions of service except where local agreements have been made. In this scenario those contractual requirements will fall into one of three categories, being: ◦ JNC for Local authority Chief Officers conditions of service for chief executives and chief officers ◦ other managers and staff under the single status (local government

Share Incentives analysis: The Supreme Court held that a director of a company who exercised a securities option fell to have the gain acquired on the exercise of that option taxed as employment related income as opposed to capital gains. In so doing, the Supreme Court considered that the key test is that found in section 471(3) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003); namely whether the securities option was granted by the employer of the holder. If it was, then the gain fell to be taxed as employment income, as opposed to a capital gain. Written by Christopher Snell, barrister at New Square Chambers.

FORTHCOMING CHANGE: On 23 June 2026, the Department for Business and Trade (now the Department for Business, Innovation, Science and Trade) published the outcome to the consultation Make Work Pay: protection from detriments for taking industrial action. According to the response, the government will introduce regulations prohibiting all detriments imposed on workers for the sole or main purpose of penalising, preventing or deterring them from taking industrial action. The regulations also add claims under section 236A of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992) to TULR(C)A 1992, Sch 2, enabling employment tribunals to adjust compensation awards by up to 25% where there has been an unreasonable failure to follow the Acas Code of Practice on Disciplinary and Grievance Procedures. The draft Protection Against Detriment (Industrial Action) Regulations 2026 were published on 25 June 2026 and are set to come into force on 30 October 2026. For further information, see News Analysis: Government opts to prohibit all detriments for taking industrial action. This Practice Note will be updated in due course. FORTHCOMING

Employment status is a contractual state outlining how the employee is related to the employer, which determines their rights and their employer's responsibilities in regard to them.

This Practice Note considers the tripartite relationship between an agency worker, the agency with which the agency worker has a contract and the hirer or end user (sometimes known as the principal) and, in particular, whether the agency worker may be a worker or employee of the agency or the end user. There are four important areas in which the law affects agency workers: • the regulation of employment agencies and businesses • equal treatment of agency workers under the Agency Workers Regulations 2010 (AWR 2010), SI 2010/93 • the employment protection rights derived from their status as agency workers, and • the employment protection rights derived from their status as a worker or, in some cases, an employee These areas operate independently of each other. For example, rights under AWR 2010, SI 2010/93 are not dependent on employee status at common law, nor do they affect or simplify that status; nor do AWR 2010, SI 2010/93 affect the major rules on the conduct of employment agencies and businesses. For further information on: • the

This Practice Note has been written by Anne Redston, Barrister. It is her personal view; she is not authorised to speak for the Tribunals Service or the judiciary. Whether a person is employed or self-employed has significant consequences for income tax and National Insurance contributions (NICs) purposes. There are also employment law and negligence liability implications, see Practice Note: Employment status—why it matters. This Practice Note should be read in conjunction with: Establishing employment status—from a tax and NICs perspective, which also considers HMRC’s Check Employment Status for Tax (CEST) tool. Despite the importance of the distinction between employment and self-employment, there is no clear definition of what makes someone employed or self-employed. Instead, there is an extensive collection of court decisions. From this case law, various principles have been established, known as status tests. This Practice Note explains the status tests and looks at some of the leading cases. This Practice Note, and the other Practice Notes on employment status, are only a summary of the applicable law and do not cover

This Practice Note has been written by Anne Redston, Barrister. It is her personal view; she is not authorised to speak for the Tribunals Service or the judiciary. This Practice Note sets out the main differences between employment and self-employment. It discusses the timing of payment of income tax, National Insurance contributions (NICs), expenses, statutory payments, leave entitlements and (briefly) employment rights. It does not cover those who work through agencies (for which, see Practice Notes: Onshore employment intermediaries—income tax provisions, Onshore employment intermediaries—key practical considerations and Offshore employment intermediaries—income tax provisions and key practical considerations). From the individual’s perspective, employment status matters, because it determines the income tax and NICs on earnings, as well as the employee’s statutory rights. From the engager’s perspective, miscategorisation may trigger PAYE and NICs assessments as well as claims for employment rights and/or statutory payments. Getting employment status wrong can be very expensive. This Practice Note, and the other Practice Notes on employment status, are only a summary of the applicable law and do not cover all situations. In particular,

When employees are transferred along with the business in which they work pursuant to the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 2006, SI 2006/246, there will be numerous employment tax implications to consider, including: • PAYE obligations • National Insurance contribution (NICs) liabilities, and • the tax treatment of payments made to employees on the transfer If the transferring employees have been granted share incentives, care should be taken in respect of those arrangements. For detail, see Practice Note: Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) and share incentives. This Practice Note does not consider the non-tax aspects of a TUPE transfer, as they are comprehensively considered in the TUPE subtopic, see: TUPE and asset purchases—overview. PAYE obligations Employers are required to deduct tax from relevant payments to employees under the PAYE regime. On a TUPE transfer, given there will be two entities that hold the position of employer (albeit at different times), it will be important to ascertain which entity is responsible for complying with the PAYE requirements

The principal forum for the hearing of employment related complaints between an employee and employer.

The President of Employment Tribunals in England and Wales, Judge Barry Clarke, and the President of Employment Tribunals in Scotland, Judge Susan Walker, have produced joint Presidential Guidance on applications for interim relief. The guidance has been produced in response to the increased use of artificial intelligence in applications and significant increase in the number of documents which accompany applications, which has created more complexity and delay in dealing with cases. It aims to provide an overview to assist claimants in deciding whether to seek interim relief. Tribunals must have regard to this guidance but are not bound by it. The guidance comes into effect from 22 June 2026.

Employment analysis: The employment tribunals continue to be under pressure, with an increase on the number of single claimant cases received, yet fewer single claimant cases disposed of, in Q3 2023–24 compared to the same period a year ago, and an increase in the number of multiple claimant cases received compared to Q2 and the same quarter a year ago, according to statistics published by the Ministry of Justice (MOJ) in its latest quarterly report.

Statistics published by the Ministry of Justice show that for the financial year from April 2018 to March 2019 a total of 121,111 claims were accepted by employment tribunals, as compared with 109,685 last year. Compensation figures reveal that awards were made in 660 unfair dismissal claims (up 23% compared to 2017–18) and in 110 discrimination cases (as compared with 136 cases in 2017–18). The statistics include additional details per case type, including the largest award, the mean (average) award and the median award. Details of costs orders made are also included. In 2018–9, disability discrimination claims received the largest average (mean) award (£28,000) compared to other discrimination jurisdictions. The highest maximum award made in 2018–19 was for unfair dismissal at £948,000. Figures published for the EAT show that 1,291 appeals were received in 2018–19, an increase of 30% on those received in 2017–18.