The Employment Rights Act 2025: Unfair Dismissal Changes Every Employer Needs to Know

The upcoming Employment Rights Act 2025 is set to bring one of the most significant shifts in UK employment law in recent years — particularly when it comes to unfair dismissal.

At Aston Bond, we’re launching a weekly series to break down these changes and what they mean for your business. First up: the reduction in the qualifying period for unfair dismissal claims.

What Is Changing?

Under current law, employees typically need 2 years continuous service before they can bring a claim for unfair dismissal.

The new legislation is expected to reduce this qualifying period to just 6 months.

This means employees will gain legal protection far earlier in their employment — a change that will reshape how businesses approach hiring, onboarding, and performance management.

A Quick Refresher: What Is Unfair Dismissal?

Unfair dismissal occurs where an employee is dismissed:

  • Without a fair reason, or
  • Without following a fair and reasonable procedure

Fair reasons for dismissal include:

  • Conduct
  • Capability or performance
  • Redundancy
  • Legal restrictions
  • Some other substantial reason

However, even where a fair reason exists, employers must still follow a proper process, including investigation, communication, and the opportunity to respond.

Why This Change Matters

1. Earlier Legal Risk for Employers

With protection kicking in after just 6 months, employers will face potential claims much earlier in the employment relationship.

2. Probation Periods Are No Longer “Low Risk”

Many employers have traditionally relied on the first year (or two) as a period of flexibility. That margin will now be significantly reduced, meaning probation periods must be handled more carefully and strategically.

3. Increased Importance of Documentation

From day one, employers should:

  • Keep clear records of performance
  • Address concerns promptly
  • Document all meetings and outcomes

A lack of evidence could make defending a claim far more difficult.

4. Greater Emphasis on Fair Process

Even for relatively new employees, employers will need to ensure:

  • Proper investigations are carried out
  • Employees are given the opportunity to respond
  • Decisions are reasonable and proportionate
  • Appeals are offered where appropriate

5. Potential Increase in Tribunal Claims

With more employees eligible to bring claims, businesses should expect a likely rise in employment tribunal cases.

What Should Employers Do Now?

To prepare for these changes, businesses should start reviewing their internal processes now:

  • Reassess and strengthen probation procedures
  • Train managers on handling performance issues early
  • Ensure HR policies reflect fair and consistent processes
  • Seek legal advice when dealing with dismissals — even within the first 6 months

The changes under the Employment Rights Act 2025 are not just a legal update — they represent a cultural shift in how employers must manage their people.

If you’re unsure how these reforms may impact your business, our employment law specialists are here to help you prepare with confidence.

Big changes to unfair dismissal right- Here’s what you need to know

An “Unfair Dismissal Factsheet” was added to the government’s page on the Employment Rights Act 2025.  This sets out two very important changes which come into effect in January 2027.   While this didn’t attract much attention at first, the changes are significant.

Let’s break it down…

1. The statutory cap on unfair dismissal compensation is being removed

The current cap on unfair dismissal compensation will be abolished. This means, there will no longer be a maximum limit on how much compensation an employee can be awarded for unfair dismissal.

What is the cap now?

At present, compensation for unfair dismissal is capped at the lower of:

One year’s gross pay, or

£118,223 (current statutory limit)

From 2027, this cap will no longer apply.

Removing the cap means:

Compensation awards could be significantly higher

Financial risk for employers will increase

Tribunal claims may become more valuable and more contested

2. The six-month qualifying period is still going ahead

The government has also confirmed that the new six-month qualifying period for unfair dismissal will come into force in January 2027.

How this will work:

Employees who already have six months’ service will automatically gain unfair dismissal protection from that date.

Employees with less than six months’ service will gain protection once they reach six months.

This is a major change and a world away from the current two-year qualifying period.  

What does this mean in practice?

For employers:

Higher financial exposure in unfair dismissal claims

Greater importance on:

  • Clear procedures
  • Proper documentation
  • Fair decision-making from much earlier in employment
  • Increased need for training managers on dismissals and performance management

For employees:

  • Earlier access to unfair dismissal protection
  • Potentially higher compensation where dismissals are found to be unfair
  • Stronger legal position in workplace disputes

What should you be doing now?

Although these changes don’t take effect until 2027, they are significant enough that businesses and HR teams should start planning ahead now, including:

  • Reviewing contracts and policies
  • Re-thinking probation and dismissal processes
  • Budgeting for increased employment tribunal risk

If you have any queries, or would like to discuss your situation, please contact our Head of Employment Ilinca Mardarescu.

T:    01753 486 777

E:    imardarescu@astonbond.co.uk

The Employment Rights Act 2025 Is Here – Preparation Starts Now

After much speculation, the Employment Rights Bill finally passed on 16 December, has just received Royal Assent.  It is now the Employment Rights Act 2025.


While some of the headline changes don’t take effect until 2026, the smart move is to review your practices and policies sooner rather than later.

So, a quick recap on some of the provisions and what is changing:

–           Statutory Sick Pay – no more 3-day waiting period (from April 2026)

  • Unfair dismissal protection starts at 6 months (not 2 years)
  • Stronger workplace harassment protections
  • “Fire and rehire” restricted
  • Immediate rights to paternity and parental leave from day one
  • Ban on most exploitative zero-hours contracts
  • Stronger rules on shift cancellations and guaranteed hours
  • Expanded rights for trade unions – more facility time, fewer strike restrictions


The government has committed to publishing an impact assessment on the impact of removing the unfair dismissal compensation cap before implementing the unfair dismissal sections of the new Act, so we will have to wait until next year for this.  However, starting the new year on the right foot is always a good idea. 

If you would like to book in for a review in early 2026, contact us now.

ACAS Updates: How the 12-Week Early Conciliation Process Could Impact You

From the 1st of December 2025, the ACAS Early Conciliation period is being extended from six weeks to twelve weeks, with the amendment being established by means of The Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025.

What is ACAS Early Conciliation, what are the changes and why?

Early Conciliation is a mandatory process which must be followed prior to claims proceeding to the employment tribunal. During the Early Conciliation stage, an ACAS conciliator will aim to negotiate a settlement between both parties to avoid formal proceedings and going to the employment tribunal.

An employee will only be able make a claim to the employment tribunal when the process has finished and the conciliator issues a certificate.  During this conciliation period, the time in which employees have to issue proceedings pauses.  The government has stated the change from six weeks to twelve for Early Conciliation is being implemented in order to ease the pressure on ACAS.  ACAS has struggled to keep up with demand due to the high volume of cases and complexity of early conciliation requests being received.  In the most recent annual report, the number of Early Conciliation cases was up 20,000 from the year before.  ACAS has also reported that it was taking them a minimum of 4 weeks to contact parties to commence the process.  This means that in a large number of cases, the time for conciliation whilst the ‘clock remains stopped’ can be less than 2 weeks. In some cases, ACAS conciliators are not managing to contact parties within the current 6-week period at all.

What will the change mean for employers and employees?

Whilst proving valuable for ACAS, the change will mean that employers may face uncertainty in regard to potential claims for a prolonged period of time, sometimes up to six months or potentially longer in certain cases.  Ultimately, this may well lead to an increase in the volume of claims against them as not as many employees will be “time-barred” from issuing proceedings.

For employees they will have a bigger timeframe within which they are able to resolve disputes through ACAS before resorting to a formal employment tribunal claim.  Overall, this should mean that it encourages employees to more actively engage with process from the onset, leading to a better overall experience with more time for resolution, improved access to justice and less procedural pressure.  It will also give employees more time in which to consider their case and potentially obtain advice.

How Aston Bond can assist and support you

The change in timeframe of the ACAS Early Conciliation process will undoubtedly signify a shift in how employment law cases are run. Whether you are an employee or an employer, you may want to know how these changes affect your rights and your ability to make a claim.  At Aston Bond, we understand that employment law is a fast-moving area of law, so we take pride in keeping abreast of all the latest developments, ensuring that our advice to you is accurate, concise and constructive.

If you have any queries, or would like to discuss your situation, please contact our Head of Employment Ilinca Mardarescu.

T:    01753 486 777 
E:    imardarescu@astonbond.co.uk

Upcoming changes to sick pay rulings

Ilinca breaks down the upcoming changes to sick pay rules coming into effect from April 2026.

These reforms will impact both employers and employees, so now is the time to understand what’s changing and how to prepare.

At Aston Bond, we stay ahead of legislative updates to ensure our clients are fully informed and protected.

Listen here to find out more:

Free Employment Law Health Check for Small Business Owners

Running a small business is exciting, but it also comes with challenges — not least making sure you’re meeting your obligations as an employer. With ever-changing employment laws, contracts to manage, and workplace policies to update, it’s easy for important details to be overlooked. That’s why our Employment Solicitor is now offering a free Employment Law Health Check for small business owners.

Why an Employment Law Health Check?

Employment legislation in the UK is complex and constantly evolving. Even well-meaning business owners can find themselves unintentionally exposed to risk. A simple oversight in an employment contract, outdated policies, or gaps in compliance can leave your business vulnerable to costly disputes, tribunal claims, or reputational damage.

Our health check is designed to give you peace of mind. Think of it as a “MOT” for your business — we’ll review your existing employment practices and highlight any areas that may need attention.

What Does the Health Check Cover?

Our Employment Solicitor will take the time to understand your business and review key documents, including:

  • Employment contracts – are they up to date and legally compliant?
  • Staff handbooks and workplace policies – do they reflect current legislation and best practice?
  • HR procedures – from recruitment and disciplinary processes to redundancy and dismissal procedures.
  • Compliance with recent legal changes – ensuring your business is prepared for upcoming legislative updates.

This isn’t a one-size-fits-all exercise. We’ll tailor our review to your business, providing practical, straightforward advice so you know where you stand and what steps (if any) you need to take.

Who Is It For?

This service is ideal for:

  • Small business owners who don’t have an in-house HR or legal team.
  • Employers looking to grow and take on new staff.
  • Business owners who haven’t updated their contracts or policies in the last 12–18 months.
  • Anyone who wants the reassurance that their business is legally protected.

Why Are We Offering It for Free?

We know that legal support can sometimes feel out of reach for small businesses. By offering this complimentary health check, we hope to build long-term relationships with business owners in our community, giving you a taste of the practical, business-focused advice we provide.

Take Advantage Today

Don’t miss the opportunity to protect your business. Our free Employment Law Health Check could save you significant time, stress, and money in the long run.

Get in touch with us today to book your free session with our Employment Solicitor. Spaces are limited, so don’t delay.

Remote Revolution: Navigating the Legal Landscape of Remote Work Policies

The company landscape has completely changed as a result of the seismic shift towards remote work, necessitating careful consideration of the legal issues surrounding remote work. This blog post takes readers on a tour of the legal nuances surrounding remote working in the UK, covering the issues that both employers and employees need to be aware of as the workplace changes.

Understanding the Legal Framework.

The UK’s legal framework for remote work policies includes employment laws, data protection regulations including cyber-security, and health and safety standards. . The government also provides guidance on ergonomics, mental health support, and employer duty of care. Employers must stay updated on evolving regulations to ensure compliance on all of these matters when agreeing to and providing remote working for its employees.

Employment Contracts and Remote Work

To successfully integrate remote work clauses into employment contracts, employers must create comprehensive and enforceable agreements. These should outline the terms and conditions of remote work, including working hours, communication protocols, and performance metrics. These should ensure compliance with employment laws, GDPR compliance, and health and safety provisions. Contracts and policies should be regularly reviewed to adapt to changing circumstances and legal requirements..

Compliance with Employment Laws

The Employment Rights Act 1996 and related regulations are key to ensuring the fair treatment for remote workers. Employers must define working hours, break times, and the right to disconnect in employment contracts. Establishing clear boundaries between work and personal time is essential for a healthy work environment. Regular communication between employers and remote workers is crucial for addressing concerns and ensuring compliance with employment laws. By incorporating these aspects into employment policies, employers can promote a fair and compliant working environment for all employees.

Hours of Work and Overtime

In the remote work context, employers should clearly define working hours, breaks, and overtime compensation to create a transparent and equitable relationship. This includes specifying the start and end times of the workday, addressing breaks, and outlining the process for requesting and approving overtime. Effective communication and collaboration between employers and remote employees are crucial for establishing mutual understanding and compliance with these expectations. Clear policies and employment contracts can help foster a positive and productive remote work environment.

Termination and Remote Work:

To terminate remote work arrangements, employers must follow a clear and transparent process that adheres to legal standards and fairness. This includes reviewing termination provisions in contracts, engaging in open conversations with remote employees, and maintaining a respectful tone. Legal considerations, such as anti-discrimination regulations, must be prioritized, and documentation of termination reasons is crucial. Practical considerations, such as returning company property and handling sensitive information, should also be addressed. Employers should stay informed about evolving regulations and seek legal advice when navigating complex termination scenarios.

Insurance Coverage for Remote Work:

Employers need to assess their existing insurance policies for remote employees to ensure adequate protection. Traditional policies, such as workers’ compensation and liability insurance, may need to be reviewed and supplemented to account for remote work scenarios. Employers may need to explore insurance options for personal property damage, loss, and cybersecurity. Additionally, they should ensure remote employees are covered for home office accidents, which may not be automatically covered by traditional workers’ compensation. Effective communication with remote employees about insurance coverage and additional measures is crucial.

There are numerous issues which need to be considered and obtaining legal advice prior to implementing remote working is key to ensure compliance. Employers and employees alike must have a solid grasp of the legal environment as the trend of remote work becomes more widespread..

If you require any assistance with this or  any other employment matters, please don’t hesitate to contact our employment solicitor here at Aston Bond: Ilinca Mardarescu at imardarescu@astonbond.oc.uk

COVID 19 On The Rise

The number of people in hospitals has drastically gone up.

Just under two million people are currently estimated to have symptomatic Covid in the UK, according to data from the ZOE Covid study app.  However, as testing is no longer a requirement, these figures can only be an estimate.

It might all feel a bit 2021. But covid is on the rise again.

Here’s some of our top asked questions:

What are the main symptoms of Covid?

  • Continuous cough
  • High temperature, fever or chills
  • Loss of, or change in, your normal sense of taste or smell
  • Shortness of breath
  • Unexplained tiredness, lack of energy
  • Muscle aches or pains not due to exercise
  • Not wanting to eat or not feeling hungry
  • Headache that is unusual or longer lasting than usual
  •  Sore throat, stuffy or runny nose
  • Diarrhoea, feeling sick or being sick

Do I have to self isolate after testing positive?

‘Self-isolating’ (staying at home) is no longer a legal requirement.

Indeed, the Government is no longer providing free Covid tests to the general population, and all restrictions have been dropped, including self-isolation rules.  Testing kits can still be purchased at pharmacies however for a few pounds.

If you do test positive, it is still recommended that you stay at home where possible and avoid contact with others.  NHS guidance states you should try and stay at home for 3 days after you test positive if you are under 18 and for 5 days for those 18 years and over.  This is because those under 18 tend to recover quicker.  The advice is also to keep up-to-date with your vaccinations, if you are eligible.  Currently, o those aged 65 and over or at increased risk will be offered the vaccine.

Employees should speak to their employer if they have any concerns or are not sure about whether they should self-isolate.

It would be wise for employers to try to arrange for home-working where possible to avoid the risk of spreading Covid to others in the workplace.  That is not always possible in some roles however and if that is the case, each employer will need to undertake a risk-assessment to see how best to deal with situations.  Each workplace will have its own risks which should be taken into consideration.

Sick pay entitlement

If an employee is not able to work because they’re ill with COVID-19, normal sick pay rules apply.

Employees are entitled to statutory sick pay (“SSP”) as normal when off ill, unless their contract specifies an enhanced entitlement to sick pay.

Employees should check their organisation’s absence policy to see what it says about reporting and proving sickness absence.

If you have any questions or concerns related to COVID-19 and its impact on your workplace, please do not hesitate to reach out to Ilinca Mardarescu our employment solicitor on imardarescu@astonbond.co.uk or 01753 486 777.

 We are here to provide the guidance and legal support you need.

Working in the winter season: How it can affect Employment

As the days grow shorter, and a crisp chill fills the air, the arrival of the cold weather season profoundly impacts employment across various industries.

While winter brings snowfall and cosy evenings, it also presents unique challenges for both employers and employees.

So what does the law say about working in cold temperatures?

For many workers, there are no specific laws that give a limit at which a workplace may not operate.

The Workplace (Health, Safety and Welfare) Regulations 1992 put an obligation under law for employers to maintain a “reasonable” temperature in the workplace.

However employers, still have a duty of care for employee health and safety. Risk assessments should be conducted to determine if extremes of temperature pose a risk to health and wellbeing at work.

Can You Refuse to Work if It’s Too Cold?

Your employer should be aware of any uncomfortable working conditions. They should make any reasonable adjustments to maintain their duty of care responsibilities.

However, simply refusing to work without legal justification may result in disciplinary actions or termination, so it’s advisable to seek guidance and follow proper procedures if you believe that the conditions are unsafe.

In the event of frozen pipes and no running water, it may be necessary for staff to go home or the premises to be closed until the issue can be rectified. However, ideally you shouldn’t walk out of work in any circumstances but should come to some agreement with your employer.  Having no running water would be a breach of Health & Safety regulations so it is likely your employer will make alternative arrangements with you.

Working in cold temperatures

Everyone has the right to be comfortable at work. It can be tricky to achieve this when it is freezing but there are some steps your employer can take.

  • Making sure the building is kept as warm as possible, ideally 16℃ or above.
  • Ensuring there is fresh running water.
  • Allowing extra breaks for warm drinks.
  • Allowing you to wear warm clothing such as jumpers and coats
  • Keeping an eye on the weather for worsening conditions.

Duty of Care

The duty of care that an employer owes to its staff may also extend to travelling in to work where conditions are dangerous.  For instance when it is particularly icy and the roads have not yet been treated or where there are other weather-warnings, employers should take heed and consider whether alternatives are available.

The cold weather season brings unique challenges to the world of employment, from workplace safety and seasonal unemployment to issues related to remote work and employee wellbeing.

It is essential for both employers and employees to be aware of the legal aspects surrounding these challenges, and to take proactive steps to ensure a safe, productive, and compliant work environment during the winter months.

For more information, please contact our employment solicitor at imardarescu@astonbond.co.uk or 01753 486 777.

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