Unfair dismissal rights
From 1 January 2027, the qualifying periods will change for protection against ‘ordinary’ unfair dismissal, employees’ right to request written reasons for dismissal and protection against unfair dismissal on grounds of spent convictions. The existing cap on the maximum compensatory award that a tribunal can award in unfair dismissal cases will also be removed from 1 January 2027.
Key changes
From 1 January 2027:
- The qualifying period for protection against ‘ordinary’ unfair dismissal will be reduced from two years to six months.
- The qualifying period for employees’ right to request written reasons for dismissal will be reduced from two years to six months.
- The qualifying period for protection against unfair dismissal for reason of spent convictions will be removed.
- The current cap on compensatory awards for unfair dismissal will be removed.
- There will be no change to the basis on which compensatory awards are calculated by the employment tribunal. Claims will continue to be calculated on the basis of actual and projected losses evidenced by the claimant. In practice, the vast majority of awards for unfair dismissal are well below the current monetary cap.
- Currently, the non-renewal of a fixed-term contract on expiry counts as a dismissal, and this will remain unchanged by the Employment Rights Act 2025.
The Employment Rights Act 2025 does not change the current existing day one protections against discrimination and automatically unfair grounds for dismissal.
What this means for you
Extending employee protections against unfair dismissal will strengthen employment rights and reduce one-sided flexibility in the workplace, increasing job security for employees in England, Scotland, and Wales.
Around 6.3 million employees (22% of all employed 16+) have been working with their current employer for between six months and two years, so have only very limited protection against unfair dismissal.
For those employees on fixed-term contracts and who meet the six-month qualifying service threshold, your employer will need to ensure that any non-renewal of the contract on expiry constitutes a fair dismissal.
Actions to take:
For dismissals with an effective date of termination before 1 January 2027, the current system of a two year qualifying period for unfair dismissal protections will still be in force.
If you are planning to make a claim for unfair dismissal:
- You must tell Acas (Advisory, Conciliation and Arbitration Service) that you’re planning to make a claim. There are time limits for employment tribunal claims. You must notify Acas within the time limit – this is usually 3 months minus 1 day.
- You’ll be offered the chance to try and settle the dispute without going to tribunal by using Acas’ free ‘early conciliation’ service. If early conciliation does not work or you choose not to take part, Acas will send you an early conciliation certificate.
- Once you receive your certificate, you’ll have at least one month left to make your claim to an employment tribunal.
Territorial extent
The changes to unfair dismissal apply across England, Scotland and Wales. They do not apply in Northern Ireland, where legislation related to unfair dismissal is devolved.
Where to get help
Unfair dismissal - Dismissals - Acasopens www.acas.org.uk in a new tab
Dismissal: your rights: Unfair and constructive dismissal - GOV.UKopens www.gov.uk in a new tab
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