The[1] Employment Rights Act 2025 (ERA 2025), which received Royal Assent on 18 December 2025, could represent a structural shift in how dismissal disputes involving football managers will be handled. Historically, such disputes have been channelled through private arbitration, most notably the Managers’ Arbitration Tribunal, rather than the Employment Tribunal. As explained in Article 1, this was driven by two key statutory barriers: the two-year qualifying period and the statutory cap on the compensatory award for ‘ordinary’ unfair dismissal claims, which rendered unfair dismissal rights largely irrelevant and not commercially prudent for managers whose average tenure remains well below two years.[2]
From 1 January 2027, the combination of a six‑month qualifying period and the removal of the statutory cap will dramatically increase managers’ ability to pursue unfair‑dismissal claims. For managers—whose contractual terms already govern both the structure of their working relationship and the mechanics of their departure—this represents a significant shift in negotiating power. These statutory reforms also intersect with the unique volatility of managerial employment, where dismissals occur throughout the season due to performance pressures, ownership changes and broader structural expectations.
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