Employment Rights Act is passed
I know, I know, the previous post was meant to be our last for the year BUT
The Employment Rights Act has been passed and should receive Royal Assent today and be on the statute books for the end of 2025.
So, what does this mean for employers? The Act makes many changes but possibly the key ones are that employees no longer have to be employed for 2 years before they can bring a claim for unfair dismissal and it has removed the cap for compensation payments in unfair dismissal claims.
Although the proposed removal of any qualification period is gone, the current 2 year period has been reduced to 6 months. This means that if you employ someone new you’ll need to make a decision sooner as to whether or not they are the right fit and competent for the post and whether to continue to employ them. This may impact on the probationary period you offer and when you review their initial performance.
The 6-month qualification period might be in force from 1st January 2027 although there is no confirmation of the commencement date for the removal of the compensation cap.
