The Employment Rights Bill has now passed and introduces two major changes that employers need to be aware of. From 1 January 2027, employees will only need six months’ service, rather than two years, to bring an unfair dismissal claim. In addition, the current cap on compensation will be removed, meaning awards could be significantly higher. The exact date for removing the cap hasn’t been confirmed yet, but it’s coming.
The government will now begin drafting regulations and statutory codes to provide further detail on the changes.
What does this mean for you?
It’s a good idea to start preparing now. To help you stay informed, we’ll be hosting an online ‘Coffee & Catch Up’ at 10am on Wednesday 11 February to discuss these latest changes. Book your free place on our events page.
In the meantime, make sure your contracts and policies are clear and up to date, and consider training managers on fair processes to reduce risk. Keeping an eye on updates will be important too – we’ll share more details as soon as they’re announced.
These changes could have a big impact on how dismissals are handled, so planning ahead will help you stay compliant and avoid costly mistakes.
If you’d like tailored advice for your business, please get in touch with a member of our team.
This is only intended to be a summary and not specific legal advice.
