Change is on the horizon for retail employers. Over the next couple of years, the Employment Rights Act 2025 (ERA 2025) will reshape the employment law landscape as we know it.
In this insight, we set out the top reforms that retailers should have on their radar, together with practical steps you can take now to prepare.
From 1 January 2027, employees will gain unfair dismissal protection after 6 months' service (reduced from 2 years) and the cap on the compensation cap will be removed entirely. From October 2026, the time limit for tribunal claims increases from 3 to 6 months (except for breach of contract claims arising or outstanding on termination of employment).
Employers can expect a higher volume of claims from a wider pool of employees. Senior executives will be able to recover full financial losses (salary, pension, bonuses), making exit negotiations potentially more costly and complex. Settlement discussions may become more challenging without a compensation cap to manage expectations.
Combined with the recently extended Acas early conciliation period (now 12 weeks), retailers may not receive notices of claim for up to 10 months, prolonging uncertainty and potentially affecting witness recollection. This may encourage greater use of mediation and early settlement.
Abu Dhabi -- Dr Anwar Bin Mohammed Gargash, Diplomatic Advisor to the President of the UAE, shared a statement on the "X" platform, noting that Iranian claims of targeting American military bases ...