CILEx L3 Employment Law — Questions and Answers
Question 1: Which statutory right requires an employer to provide a written statement of employment particulars?
- Trade Union and Labour Relations (Consolidation) Act 1992
- Employment Rights Act 1996, s.1 (Correct answer)
- Equality Act 2010
- Employment Act 2002
Correct answer: Employment Rights Act 1996, s.1
Section 1 of the Employment Rights Act 1996 (as amended by the Employment Act 2002 and the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018) requires employers to provide employees with a written statement of employment particulars. Since 6 April 2020, this must be provided on or before the first day of employment and now also applies to workers.
Question 2: What is the qualifying period of continuous employment generally required before an employee can claim ordinary unfair dismissal?
- 6 months
- 1 year
- 2 years (Correct answer)
- 3 years
Correct answer: 2 years
Under s.108 of the Employment Rights Act 1996, an employee must generally have at least 2 years' continuous employment to bring a claim for ordinary unfair dismissal. This qualifying period was increased from 1 year to 2 years in April 2012. However, no qualifying period is needed for automatically unfair dismissals (e.g., dismissal for pregnancy, whistleblowing, or trade union membership).
Question 3: Under the Equality Act 2010, which of the following is NOT a protected characteristic?
- Age
- Political opinion (Correct answer)
- Gender reassignment
- Religion or belief
Correct answer: Political opinion
The nine protected characteristics under s.4 of the Equality Act 2010 are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Political opinion is not a protected characteristic under the Equality Act 2010 in England and Wales (though it is protected in Northern Ireland under separate legislation).
Question 4: What test is used to determine whether a person is an employee or an independent contractor?
- The location test
- The multiple test (also known as the economic reality test) (Correct answer)
- The written agreement test
- The tax status test
Correct answer: The multiple test (also known as the economic reality test)
The courts use the multiple test (or economic reality test) considering various factors including: mutuality of obligation, personal service, control, integration into the business, financial risk, provision of equipment, and the right to work for others. No single factor is determinative. Ready Mixed Concrete v Minister of Pensions [1968] established this approach, and the Supreme Court in Autoclenz v Belcher [2011] confirmed courts should look at the reality of the relationship, not just the written terms.
Question 5: What is constructive dismissal?
- When an employer dismisses an employee for redundancy
- When an employee resigns in response to the employer's fundamental breach of contract (Correct answer)
- When an employer gives an employee notice of termination
- When an employee is dismissed during their probationary period
Correct answer: When an employee resigns in response to the employer's fundamental breach of contract
Constructive dismissal (s.95(1)(c) ERA 1996) occurs when an employee terminates the contract, with or without notice, in circumstances where they are entitled to do so because of the employer's conduct. The employer must have committed a fundamental (repudiatory) breach of contract, such as breaching the implied term of mutual trust and confidence (Malik v BCCI [1998]). The employee must resign in response to the breach and not delay too long (Western Excavating v Sharp [1978]).
Question 6: What is the maximum compensatory award for unfair dismissal (as of 2025/26)?
- £25,000
- £50,000
- £115,115 or 52 weeks' gross pay, whichever is lower (Correct answer)
- There is no maximum limit
Correct answer: £115,115 or 52 weeks' gross pay, whichever is lower
The compensatory award for unfair dismissal is subject to a statutory cap, which is reviewed annually. It is the lower of the statutory maximum (£115,115 for dismissals from April 2024) or 52 weeks' gross pay. The compensatory award is assessed on a 'just and equitable' basis under s.123 ERA 1996. The basic award is calculated separately using a formula based on age, length of service, and weekly pay (also capped).
CILEx L3 Employment Law
Which statutory right requires an employer to provide a written statement of employment particulars?