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Monday, May 18, 2026

How new employee rights raise the bar on workplace investigations - People Management

Changes in the Employment Rights Act will make robust investigatory processes even more important, says Chloë Leyland

A thorough and fair workplace investigation is essential for any organisation dealing with a workplace dispute.

For dismissals, under the current Employment Rights Act 1996 a dismissal can be unfair if the employer fails to act reasonably in both substance and procedure. When handling misconduct cases, tribunals will examine whether the employer undertook an investigation that was as thorough as the circumstances reasonably required.

The Acas code of practice requires employers to establish the facts without unreasonable delay, and tribunals can adjust compensation by up to 25 per cent where a party unreasonably fails to comply with the Acas code.

Key legal changes

The Employment Rights Act introduces critical changes that directly impact the importance of workplace investigations.

These include:

  • Changes to the qualifying period for unfair dismissal: the period for claims will be reduced from two years to six months, effective for dismissals from 1 January 2027. This means that organisations will need to adopt a more formal process for those employees who would previously not have had the right to challenge an investigation as part of an unfair dismissal claim.
  • Increase to the compensatory award cap: this currently stands at 118,223 or 52 weeks' gross pay, whichever is lower, but is set to be abolished entirely from next year.
  • Extension to limitation...


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