AbstractThis paper follows the pattern of most of its predecessors, first in serving as a record of events and developments in some areas germane to the employment relationship in Britain between October 1994 and October 1995, and second in offering some interpretative comment on elements of continuity and change. The decelerating economic recovery brought continuing but modest reductions in unemployment and some increase in price inflation. However, tax increases, perceived job insecurity, generally low earnings increases and other factors inhibited any widespread sense of economic well‐being and restrained consumer demand. Among the key events were the TUC's strategic initiative on employee representation and union recognition, and the debates surrounding the Greenbury Report on executive remuneration packages and a national minimum wage. Industrial disputes reached record lows. Employment prospects, job insecurity and work‐related stress were recurrent issues, with the different approaches of the main political parties to employment matters being clarified ahead of the coming general elect