Unfair dismissal
The Government has confirmed that the amendment to the unfair dismissal qualifying period and the removal of the compensation cap apply only if the effective date of termination is on or after 1 January 2027. HR teams must audit their employee exit timelines and calculate termination dates for dismissals and review contractual rights to use PILON.
The Government has confirmed that the reduced unfair dismissal qualifying period and removal of the compensation cap apply only where the effective date of termination is on or after 1 January 2027. HR should review exit timelines, termination dates and PILON clauses.
Recent legislative updates will remove the qualifying period for ordinary unfair dismissal where the dismissal relates to a spent conviction. This amendment is proposed to come into effect from 1 January 2027.
Updated to confirm that the removal of the unfair dismissal compensation cap applies to dismissals where the effective date of termination is on or after 1 January 2027. This gives HR extra clarity on exactly when their employer faces increased financial risks if it gets a dismissal wrong.
Updated to confirm that the reduction in the unfair dismissal qualifying period applies to dismissals where the effective date of termination is on or after 1 January 2027. This gives HR extra clarity on exactly when their employer faces increased risks if it gets a dismissal wrong.
Employment law expert Darren Newman breaks down one of the most significant reforms contained in the Employment Rights Act 2025: the reduction in the qualifying period for protection from unfair dismissal from two years to six months. This is a change HR can't afford to ignore.
UK employer bodies have written to the government calling for tripartite discussions with ministers and unions on the implementation of trade union access rights in the Employment Rights Act 2025.
Updated to reflect an increase in unfair dismissal compensation limits, effective from 6 April 2026.
The maximum amount of a week's pay for calculating the basic unfair dismissal award is increased for dismissals on or after 6 April 2026.
The maximum amount for a compensatory award is increased for claims about dismissals on or after 6 April 2026.
HR and legal information and guidance relating to unfair dismissal.