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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

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

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A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
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