Summary
The government plans to introduce a new rule in 2027 allowing workers to claim unfair dismissal after six months of employment, shorter than the current two-year period. This change comes after discussions with business groups and unions, who expressed concerns about the initial proposals. Additionally, the government intends to remove current limits on compensation for unfair dismissal cases.
Key Facts
- The unfair dismissal claim period will change to six months of employment starting January 2027.
- Initially, there were plans to allow claims from day one on the job, which faced pushback from businesses.
- The current period to claim unfair dismissal is after two years with a company.
- Compensation limits for unfair dismissal cases will be removed, aligning with certain other types of dismissal claims.
- The proposed change follows discussions between the government, business groups, and unions.
- Plans for new day-one rights for sick pay and paternity leave are set for April 2026.
- The changes are part of a broader employment rights bill being discussed in Parliament.
- Some MPs and labor groups oppose the delay in implementing the original, more immediate protections.
