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03 December 2025
Issue: 8142 / Categories: Legal News , Employment , Disciplinary&grievance procedures , Compensation
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More changes to the Employment Bill?

MPs will vote next week on an amendment to fast-track the change to the unfair dismissal qualifying period, as the government’s flagship Employment Rights Bill returns to the Commons

Angela Rayner MP’s amendment would implement the change next April rather than April 2027—while the Bill itself is scheduled to come into force in April 2026, the qualifying period is delayed until 2027 to give employers more consultation time.

Last week, ministers scrapped their manifesto plans for day-one protection from unfair dismissal, instead reducing the current 24-month period to six months in order to ensure the legislation passes through the House of Lords in time.

Lawyers have largely welcomed the U-turn.

Jo Mackie, employment partner at Michelmores, said a day-one right to unfair dismissal would have been ‘unwieldy and unworkable and we predicted this would happen as soon as it was launched.

‘Probation periods are important for both employees and employers and the tribunals would really have struggled to keep up with the raft of new claims that would have arisen’.

Rena Magdani, partner at Freeths, said the decision ‘offers clarity to employers and employees and avoids what would likely have been complexity and uncertainty generated by the government’s proposed “light-touch procedure” during an “initial period of employment”’.

Ministers also confirmed last week the unfair dismissal compensation cap will be lifted.

Magdani said: ‘The current compensation cap is the lower of one year’s pay or £118,223. 

‘While the average unfair dismissal award is significantly lower than this cap, if the cap is significantly increased or removed, then the level of exposure to employers in unfair dismissal claims will increase, particularly in cases of high-earners, or those whose dismissal results in them leaving defined benefit pension schemes, or employees who struggle to find alternative employment.’

The Bill will retain day-one rights to sick pay and paternity leave.

MOVERS & SHAKERS

Switalskis—Naila Arif, Harriet Findlay & Ellie Thompson

Switalskis—Naila Arif, Harriet Findlay & Ellie Thompson

Firm awards training contracts to paralegals through internal programme

Ward Hadaway—Matthew Morton

Ward Hadaway—Matthew Morton

Private client disputes specialist joins commercial litigation team

Thomson Hayton Winkley—Nina Hood

Thomson Hayton Winkley—Nina Hood

Cumbria firm appoints new head of residential property

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
Family law must shift from conflict-driven litigation to child-centred problem-solving, according to a major new report. Writing in NLJ this week, Caroline Bowden of Anthony Gold outlines findings showing overwhelming support for reform, with 92% agreeing lawyers owe duties to children as well as clients
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