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Only 7 per cent of employers aware of unfair dismissal reforms, survey finds - People Management

Experts urge organisations to review performance procedures, probation and manager training ahead of major legal changes

14 September 2026

Employers are largely unprepared for major changes to unfair dismissal rights under the Employment Rights Act, research has found.

Only 7 per cent of employers knew about all three changes – the six-month qualifying period, removal of the compensation cap and longer tribunal claim window – according to a survey of 1,500 HR and business leaders by software firm HRLocker.

From 1 October 2026, the time limit for most tribunal claims will double from three to six months, before the unfair dismissal qualifying period falls from two years to six months and the compensation cap is removed on 1 January 2027.

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Awareness of each of those changes was also low. Half of employers knew about the shorter qualifying period, 40 per cent were aware of the compensation change and just 28 per cent knew about the longer claim window.

Chloe Grant, senior associate at Bellevue Law, said tackling the growing caseload would require measures that help disputes reach an earlier resolution.

“More robust tribunal case management, firmer Acas intervention and/or greater use of alternative dispute resolution may all help to resolve disputes sooner and reduce the number of cases for judges to determine,”...



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