Is the statutory cap on unfair dismissal gone for good, without further consultation?
The Government has quietly updated its factsheet on the new unfair dismissal measures coming in from January 2027 under the Employment Rights Act 2025.
We already know that the qualifying period will drop from 2 years to 6 months for unfair dismissal claims. They have now confirmed that this will apply immediately to all employees who have over 6 months service at that point, not just those who commence work after 1 January 2027. That’s not entirely surprising.
What is more alarming, is that they have confirmed plans to remove the statutory cap without further consultation with either unions or employers. An impact assessment was promised but there is no further word on that as yet.
Read the factsheet in full here (it was last updated on 21st January).