header-logo header-logo

03 December 2025
Issue: 8142 / Categories: Legal News , Employment , Disciplinary&grievance procedures , Compensation
printer mail-detail

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

Mishcon de Reya—trainees

Mishcon de Reya—trainees

Mishcon de Reya announces trainee retention rate of 86%

Sackers—Charlotte Adams & Fraser Sutton

Sackers—Charlotte Adams & Fraser Sutton

Sackers welcomes two new Graduate Solicitor Apprentices

Broadfield—David Brennand

Broadfield—David Brennand

Corporate partner appointment strengthens firm’s investment funds practice

NEWS
LexisNexis will mark the 80th anniversary of Shawcross and Beaumont on Air Law with a live podcast exploring the evolution of aviation law from the Chicago Convention to the challenges facing modern aerospace, taking place on Tuesday 29 September
Harmony Christian Ministries is the latest charity to benefit from a £500 donation from AlphaBiolabs via the company’s Giving Back initiative
Foreign judgment creditors have gained a route to recovery after the Supreme Court’s ruling in Drelle v Servis-Terminal
Surrogacy is growing in popularity, but parents-to-be face a complex legal framework
Winning a judgment may be only the beginning of an expensive enforcement battle, writes Professor Dominic Regan in this week's NLJ
back-to-top-scroll