Jo Keddie comments in the Financial Times on rising unfair dismissal risk for high earners
How are employers responding to the next wave of employment law reform?
The Financial Times has reported a clear shift in behaviour across sectors such as finance and tech, ahead of changes under the Employment Rights Act. From January 2027, the current £123,543 cap on unfair dismissal compensation will be removed – raising the stakes for employers managing senior talent.
We’re already seeing boards take a more proactive approach. With employees gaining protection after six months’ service, and the potential for uncapped awards, businesses are reviewing performance more closely and bringing forward decisions that could lead to exits ahead of the removal of the compensation cap next January.
Jo Keddie, Head of Employment, comments in the piece highlighting the growing urgency: “Any management or strategic decision that could lead to people being made redundant or removed will be accelerated.”
As Jo highlights, employers are focusing on performance and conduct issues now, acting ahead of the new regime.
The article underlines how quickly these changes have become a board-level priority, with employers balancing legal exposure against workforce strategy as the new regime approaches. Organisations are moving early to stay ahead of the change.
Read the full article here. (Paywall)
To understand more, read our article: The unfair dismissal changes in depth: what are the changes and how can employers prepare?
Subcribe to news and viewsAny management or strategic decision that could lead to people being made redundant or removed will be accelerated.
https://www.ft.com/content/8e715e64-849d-4a91-b6e2-69d8aef06e86?syn-25a6b1a6=1
