In this month’s highlights, our team summarises the latest developments in UK employment law and their implications for employers. Catch up on December’s highlights here.
What Changed
The Government has now confirmed—via its newly published Unfair Dismissal Factsheet—that the statutory cap on compensation for ordinary unfair dismissal will be abolished from 1 January 2027. At present, compensation is limited to the lower of 118,233 (this figure is revised annually) or 52 weeks’ gross pay. Starting 1 January 2027 there will be no financial ceiling, bringing unfair dismissal awards into line with discrimination and automatically unfair dismissal cases.
In a significant development, the Government has also confirmed that it will not consult with unions or employers before removing the cap.
The factsheet also confirms that the qualifying period for ordinary unfair dismissal will be reduced from two years to six months, with effect from 1 January 2027. The Government has also clarified that employees who have already completed six months’ service by 1 January 2027 will immediately benefit from unfair dismissal protection, while those with shorter service on that date will acquire protection once they reach six months’ continuous employment.
Why these changes matter—and why the announcement is surprising
When the Employment...
Iran’s Islamic Revolutionary Guard Corps (IRGC) made an unfounded claim that the USS Abraham Lincoln was heavily damaged in an attack. U.S. Central Command denied the report. The IRGC said on Thur...