Meaning tribunal payouts could become unlimited—and employer risk rises overnight.
🔍 Why It Matters
No cap means no clear worst-case scenario.
Businesses will need tighter hiring, better documentation, and stronger HR processes to stay protected.
⚠️ What Experts Expect
More tribunal claims
Slower, more cautious hiring
Tougher probation periods
Early exits for underperformers
Greater risk for senior roles
And some are calling the proposal “bonkers”—for good reason.
📅 Six-Month Unfair Dismissal Rights
From January 2027, employees gain unfair dismissal rights after just six months (not two years).
This makes:
structured probation essential
day-one documentation non-negotiable
informal HR practices a real liability
Zero-hours and variable workers are also covered.
✊ Unions Gain More Power
Blocking union access could lead to fines—meaning union involvement now carries legal weight.
✅ What Employers Should Do Now
1️⃣ Strengthen probation processes
2️⃣ Review dismissal procedures early
3️⃣ Document performance for senior roles
4️⃣ Build proper HR governance before the rules hit
The businesses that prepare now will avoid costly mistakes later.
#HRConsulting #EmploymentLaw #HRStrategy #HRGovernance #UnfairDismissal #PeopleManagement #FutureOfWork #HRCompliance #UKEmploymentLaw
