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How will the January 1, 2027, unfair dismissal reforms impact exits of senior employees or highly paid employees with complex remuneration arrangements?

ASAP

UK Employment Rights Act 2025 Unfair Dismissal Deep Dive Part 2: Uncapped Awards and New Risks for Senior Employee Exits

How will the January 1, 2027, unfair dismissal reforms impact exits of senior employees or highly paid employees with complex remuneration arrangements?

By Ben Smith, David Cohen, and Rory Patterson

  • 1 minute read

The UK Employment Rights Act 2025 (ERA 2025) fundamentally reshapes the law around unfair dismissal, potentially radically changing employers’ risks. From January 1, 2027, employees will need just six months’ continuous service to acquire protection from ordinary unfair dismissal, and the compensatory award element for ordinary unfair dismissal will become uncapped. This month, we’re focusing on how this change might impact on exits of senior employees or highly paid employees with complex remuneration arrangements. 

Continue reading Part 2 of our series here. Read Part 1 of our series here. 

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
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