Having received Royal Assent at the end of last year, reforms introduced by the Employment Rights Act 2025 are due to enter into force over the next few months. The reforms will have a significant impact on the rights of employees and the approach of employers, and football clubs should consider what they can do now to prepare.
One of the key areas of reform under the Employment Rights Act 2025 (the Act) is in relation to unfair dismissal. Employees will only need six months’ continuous service to receive unfair dismissal protection, and this change is due to come into force on 1 January 2027. This means that individuals employed from summer 2026 onwards are likely to be protected.
Furthermore, the statutory cap currently in place for compensation (the lower of 52 weeks’ gross pay or a statutory maximum (currently 118,223)) is to be removed. In the world of sport, and in particular football where salaries can be significant, this reform will have a considerable impact on potential liability and current practices.
Whilst to date it has often been the case that claims of this nature from players, managers, coaching staff and executives are dealt with by way of settlement or arbitration outside of the employment tribunal system, the removal of the compensation cap may make the employment tribunal an attractive forum for resolving these types of disputes.
In such a high-profile sphere, clubs will have to strategically consider the impact of fighting public...
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