What is changing?
Unfair dismissal Qualifying period will be 6 months, rather than 24. The compensation cap will be “lifted” – at this stage we do not know what “lifted” means, but commentators have suggested the intention is to remove the 52 week cap, but keep the overall ceiling cap (currently £115,115).
When is this changing?
The government road map states 2027, but 2026 has been reported in the press more recently.
How can I prepare?
- Audit Employment Contracts
- Review contracts to see whether they will comply with the new unfair dismissal rights.
- Contracts will need to include clear probation terms and performance expectations.
- Update Policies and Procedures
- Align disciplinary, grievance, performance and probationary procedures with the new unfair dismissal rights.
- Training
- Train managers on fair dismissal practices.
- Strengthen Onboarding and Probation Management
- Use structured onboarding to assess fit and performance capability early.
- Implement formal probation reviews with clear criteria and feedback.
- Document all performance issues and warnings meticulously.
- Prepare for Tribunal Exposure
- Budget for potential legal costs and insurance.
- Consider mediation and early conciliation strategies.
- Keep detailed records of all conversation/meetings.
- Engage Legal and HR teams
- Stay informed on developments relating to the ERA
- Board-Level Engagement
- Secure leadership buy-in for strategic changes.
- Align reforms with broader workforce planning and risk management.