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05 June 2026
Issue: 8164 / Categories: Legal News , Employment , Disciplinary&grievance procedures
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NLJ this week: Unfair dismissal gets a major upgrade

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Employers are being urged to prepare now for far-reaching employment law changes taking effect in January 2027

Writing in NLJ this week, Robert Hargreaves, lecturer in law at York St John University, and Lily Johnston, paralegal at DWF Law, explain how the Employment Rights Act 2025 reduces the qualifying period for ordinary unfair dismissal claims from two years to six months while abolishing the compensation cap entirely.

The authors describe the latter as 'the development nobody anticipated'. Employees hired from July 2026 will gain protection after six months' service, exposing employers to potentially uncapped awards based on actual financial loss.

With government estimates suggesting millions more workers will qualify for protection and thousands of additional tribunal claims each year, probation procedures are set to become 'the new front line' of employment law. Employers are advised to strengthen documentation, manager training and dismissal processes before the reforms arrive. 

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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