Governs a trader’s ability to restrict his liability. Any clause restricting negligence liability for death/injury is void. The following clauses will be void unless reasonable. (a) those attempting to restrict negligence liability for loss or damage to property; (b) standard term clauses limiting liability for breach contract; (iii) those requiring a consumer to indemnify any other party for negligence or breach of contract. It also provides that a trader cannot exclude a consumer’s statutory rights under the Sale of Goods Act 1979. The Act lays down a test of reasonableness. Insurance policies are exempt from the Act.

A statutory claim (Employment Rights Act 1996) entitling eligible employees to a compensation award by a tribunal. Dismissal is unfair if the employer fails to bring it within one of five permitted reasons: viz; conduct; capability; redundancy; illegality; or some other substantial reason. Employers can insure under Employment Practices Liability Insurance. Compare with wrongful dismissal.

Stipulates that a term which has not been individually negotiated in a consumer contract is unfair if it causes a significant imbalance in the rights and obligations of the parties to the consumer’s detriment. The Director General of Fair Trading must consider any complaint made to him about the fairness of any contract term drawn up for general use The Regulations apply generally and so affect all insurance contracts with private individuals, but terms defining the product are not covered. This means that an insurer can limit the cover by including an excess. Other insurance terms may be deemed unfair.

A pay as you go’ pension scheme that does not acquire and build up assets to fund the pension. State pensions are unfunded.

Pension arrangement for which IR approval is not sought and under which there is no pre-funding. The employer provides benefits out of income for employees earning more than the earnings cap. See FUNDED UNAPPROVED RETIREMENT BENEFITS (FURBS).