New Employment Bill and unfair dismissal rights

The Government has had to make concessions to the Employment Rights Bill to get it through the Lords. The big headline is that the right to claim unfair dismissal, which is currently after 2 years, will now be available after 6 months. This is a change from the initial proposal of day 1 rights, but with a 9 month probationary period built in, which would have been a nightmare.

In addition, the change means that the timetable may be moving forward, with the new 6 months right coming into force in 2026, not 2027.

In addition, a further change has occurred removing the cap of one year’s wages for unfair dismissal, but leaving the maximum award at £118,000. This means staff on £40k for example, could win up to 3 years wages in damages for an unfair dismissal.

We will bring you UP TO DATE and PLAIN ENGLISH summaries of all the changes, as well as advice on dealing with these matters, at our annual legal update on 14th January at Kingsholm in Gloucester. Book here now if you haven’t already.