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.”
From October 2026, companies will have to comply with new rules on trade unions introduced as part of the Employment Rights Act.
The tax rules on Benefits in Kind (BIKs) are changing. From 6 April 2027, Phase 1 of HMRC’s ‘Mandatory payrolling of Benefits in Kind and expenses’ comes into force. Phase 1 will apply only company cars, car fuel, vans, van fuel and medical benefits.