Jessica Scott-Dye and Gareth Edwards explain how businesses can prepare for next year’s Employment Rights Act reforms
On 1 January 2027 the qualifying period for ordinary unfair dismissal falls from two years to six months. The impact will extend beyond dismissals. Employers that have treated the first two years as a low-risk period need to rethink that approach. Recruitment, onboarding and probation will become increasingly important, with managers needing to address performance/conduct concerns much earlier. HR teams should review probationary procedures and consider whether managers have the tools to use them effectively and provide training and support.
Also from 1 January, the statutory cap on compensatory awards will be removed, potentially increasing financial exposure in higher-value claims. While the highest awards are relatively rare at tribunal, the removal of the cap may impact settlement approaches, requiring HR teams to consider their negotiation strategy and the evidence they retain to support dismissals.
January also brings significant restrictions on dismissal and re-engagement to change contractual terms. Dismissals will generally be automatically unfair where the principal reason is that an employee refused a ‘restricted variation’ (a change to core terms such as pay, pensions or hours) or where the employer intends to replace the employee with someone on varied terms who will carry out broadly the same duties.
A limited...
A Wixom, Michigan, business accused of making false statements to obtain a loan has agreed to pay a settlement of just over $1.5 million after it was sued by the federal government, according to th...