Employment Rights Act 2025: Employers concerned about new unfair dismissal protections
Acas, the workplace expert, have carried out research to find out which changes in the Employments Right Act 2025 are the hardest for businesses to adopt.
Almost 1 in 3 employers have said that the new unfair dismissal protections are a top concern.
Protection from unfair dismissal will become a right after 6 months of being in a job from 1 January 2027. This reduces the current two-year qualifying period.
The compensation limit for unfair dismissal will also be removed.
The changes may affect how employers handle probation periods, with some considering reducing the period to less than 6 months before the law changes. It should however be remembered that employees still have protections during probation, including discrimination, whistleblowing, and breach of contract.
Acas advise that probation periods need to be considered carefully and they have updated their advice to reflect the upcoming changes on unfair dismissals.
Baroness Maggie Jones, Acas Chair, said: “The reforms in the Employment Rights Act are the biggest shake-up to employment law in a generation, and it is vital that employers get up to speed quickly.”
For Small to Medium-Sized Enterprises (SMEs), the issue of late payments can mean the difference between survival or liquidation. The Department for Business & Trade estimates it costs the economy £11 billion annually, forcing 38 businesses to close their doors every day.
Manufacturers, importers, wholesalers and retailers are being warned that significant regulatory change is coming under the Deposit Return Scheme (DRS).