Unfair Dismissal eligibility requirements changes

Employment Solicitor, Julia Woodhouse in Leamington Spa, provides a further update regarding changes to the eligibility requirements to claim Unfair Dismissal

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Employers and employees should take note that the change to the qualifying period for ordinary unfair dismissal, under the Employment Rights Act 2025, is due to become law on 1 January 2027. This change will reduce the eligibility requirement to claim ordinary unfair dismissal, from two years’ continuous employment to six months.

In addition, the current cap on the amount of the compensatory award for unfair dismissals, will be removed.

Under the current eligibility requirement, some employers will have postponed making a decision about whether to keep an employee in post. Leading up to a change in the law, we are likely to see an increase in dismissals as employers decide to terminate the employment of certain employees, before they gain ordinary unfair dismissal rights, on 1 January 2027.

However, employers and employees should be mindful that the change in the eligibility requirement does not change the protections against discrimination (on a protected characteristic) and automatic unfair dismissal: for discrimination and most automatic unfair dismissal claims, there is no need to have any period of continuous service, to be eligible to make these claims.

In a possible rush to terminate the employment of shorter serving employees, to avoid them gaining ordinary unfair dismissal eligibility, employers may find that their actions give rise to other claims. We recommend that employers and employees seek legal advice, if they are in doubt about any legal situation.

The above does not constitute legal advice

If you would like to discuss any employment matter contact Julia Woodhouse at 01926 831231 or jhw@blytheliggins.co.uk 

Julia is an Employment Solicitor based in Leamington Spa and advises clients across Leamington Spa, Warwick, Kenilworth, Coventry, Rugby, Nuneaton, Atherstone and further afield.

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Changes to The Employment Rights Act 2025

Employment Solicitor, Julia Woodhouse in Leamington Spa, provides a further update regarding employment law changes, effective 6 April 2026

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The Employment Rights Act 2025 is now in force but the changes under the law will be delivered in phases so that employers and workers have time to plan and prepare.

There will be changes throughout 2026 and 2027 but in this article, we will only set out the changes listed below which came into effect on 6 April 2026:

  • – Statutory Sick Pay (SSP) – will be paid from the first day of illness (rather than waiting until the fourth day) and the Lower Earnings Limit will be removed so that workers will no longer be required to earn a minimum amount of pay, before being eligible for Statutory Sick Pay.
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  • – There is a new obligation on employers to keep records relating to compliance with statutory annual leave entitlements and payment of holiday pay, including payment in lieu, on termination. The records do not need to be created or maintained in any particular manner or format but must be retained for six years from the date on which they were made. Failure to comply is a criminal offence punishable by a fine, with enforcement ultimately expected to sit with the newly established, Fair Work Agency.
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  • – Paternity leave and (unpaid) Parental leave will become a “day one right”, removing the need for any minimum period of service before becoming eligible for the rights. In addition, the restriction on taking Paternity leave after shared parental leave, will be removed.
  • – If a child’s mother or primary carer dies during the first 52 weeks after birth or placement with them for adoption, employees who are the child’s father or the partner of the child’s primary carer, are entitled to take unpaid Bereaved Partner’s Paternity leave. This is a “day one” right and the leave can last up to 52 weeks.
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  • – Sexual harassment will become a “qualifying disclosure” under the law on whistleblowing, giving protection from detriment and unfair dismissal to whistleblowers who make a sexual harassment disclosure.
  • – Where there is a failure to inform and consult in collective redundancy situations, the maximum “protective” award which an Employment Tribunal can award, will double from 90 days’ pay to 180 days’ pay.
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  • – The process for recognising a trade union will be simplified.
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  • – Employers with 250 or more employees will be encouraged to produce and publish a voluntary action plan, alongside their gender pay gap data. Action plans will show the steps being taken by employers to reduce the organisation’s gender pay gap and support employees experiencing menopause. The plans will become mandatory from 2027.

The above does not constitute legal advice

If you would like to discuss any employment matter contact Julia Woodhouse at 01926 831231 or jhw@blytheliggins.co.uk 

Julia is an Employment Solicitor based in Leamington Spa and advises clients across Leamington Spa, Warwick, Kenilworth, Coventry, Rugby, Nuneaton, Atherstone and further afield.

Click here to speak to our Employment Law expert.

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ALL SPOTS SNAPPED UP FOR TWO CASTLES RUN

Thousands of runners have signed up to take part in this year’s Two Castles Run – with the popular event being fully booked for the third year in a row.
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This year's Two Castles run

This year’s run will take place on Sunday 14th June, with runners setting off from Warwick Castle on a 10km route through the countryside, crossing the finish line at Kenilworth Castle.

Organisers from the Kenilworth Runners have been working to open the run up to more participants, offering an increased number of places this year, and will also be making changes to help supporters who turn out to cheer on the runners at the castles.

Richard Clarke, race director from Kenilworth Runners, said: “People often tell us that the Two Castles Run is their favourite race of the year, so it’s great to be able to offer more places to runners for this year’s event.

“We are expecting around 5,000 runners and we’re also working hard on changes to the visitor experience for spectators.

“This year we will be providing buses so that spectators can travel between the two castles to cheer on their friends and family, offering a convenient transport option and meaning they can easily move along the route without having to use their own cars.”

The Two Castles Run helps to raise money for various good causes – runners can collect sponsorship for a charity of their choice and are invited to contribute to The Myton Hospices when they sign up to the race. Around 50 runners from The Myton Hospices will also run the race, raising vital funds through sponsorship.

This year, the run will be sponsored by Leamington-based Blythe Liggins Solicitors. The company has been a long-term supporter of the race, and its team have pledged to sponsor the event for another five years.

Richard said: “With Blythe Liggins committing to sponsoring the race for five more years, it gives us the security of knowing we have that support and funding. Blythe Liggins are part of the race’s DNA, their staff volunteer on the day and many of their team take part in the race, so we’re pleased that they will be continuing to show their support.”

Donna Bothamley, partner at Blythe Liggins Solicitors, said: “The Two Castles Run is a fixture in the local calendar – it’s an event which thousands of runners enjoy taking part in and which raises much-needed funds for important charities, including the Myton Hospices.

“We’re proud to have supported it for many years and look forward to continuing to give our backing over the next five years.”

To join the waiting list for this year’s run, visit www.twocastlesrun.org.uk.

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Unfair Dismissal - Your Questions Answered

Losing your job can be a stressful and uncertain time. If you believe you have been unfairly dismissed, it is important to understand your rights. At Blythe Liggins, we frequently advise individuals and businesses on all aspects of unfair dismissal. Our expert solicitor, Julia Woodhouse, answers some commonly asked questions.

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Q: What is unfair dismissal?

A: An employee has the right not to be unfairly dismissed after they have completed at least two years’ continuous service with their employer (unless the dismissal is for an automatically unfair reason, in which case there is no qualifying period).

A dismissal is unfair if the employer does not have a fair reason for the dismissal and/or if they fail to act reasonably in treating that reason as a sufficient reason to dismiss.

Q: What are the potentially fair reasons for dismissal?

A: The law sets out a limited number of potentially fair reasons for dismissal:

  • Capability or qualifications: If an employee is poorly performing or is sick (capability) or lacks the qualifications required for the job.
  • Conduct: If an employee has committed misconduct.
  • Redundancy: Where there is a closure of a business; the closure of a particular site or office (but not the whole business); or there is a reduced need for workers to do a particular kind of work.
  • Illegality: If continuing to employ someone would breach the law (e.g. if they no longer have the right to work in the UK).

Some other substantial reason (SOSR): This is a broad category which can cover various legitimate business reasons for dismissal, such as a business reorganisation, amongst other reasons

Q: Is my employer acting reasonably?

A: Your employer needs to follow a fair procedure in relation to the reason for your dismissal.

  • Conduct: If there are allegations of misconduct, your employer would need to follow a disciplinary procedure, before dismissing you. Employers should follow a disciplinary procedure which complies, as a minimum, with the ACAS Code of Practice on disciplinary and grievance procedures.
  • Performance: Your employer may also have a separate Capability/Performance procedure which they should follow, if there are allegations of poor performance.

If your employer dismisses you for other potentially fair reasons (sickness, qualifications, redundancy, SOSR or illegality), they will still need to  follow a fair procedure which will depend on the reason.

Q: What should I do if I believe I have been unfairly dismissed?

A: If you believe you have been unfairly dismissed, you should:

  • Gather any relevant documentation: This includes your employment contract, payslips, letters or emails related to your dismissal and any relevant company policies.
  • Seek legal advice as soon as possible: At Blythe Liggins, we can assess your situation, explain your rights, and advise you on the best course of action.

Q: What remedies are available if an Employment Tribunal finds that I have been unfairly dismissed?

A: If your claim for unfair dismissal is successful, the Employment Tribunal can order compensation or (less often) order your employer to reinstate you to your old job or re-engage you in a comparable job.

Q: Can I settle my Unfair Dismissal claim out of court?

A: Yes – we will explore with you the possibility of seeking to settle any unfair dismissal claim, before making a claim to the Employment Tribunal.

We often approach employers to see if we can reach a mutually agreeable settlement for our employee clients. If you and your employer agree to settle your claim, your employer will usually ask you to do this, by signing a Settlement Agreement. In return for settling your claims, your employer will normally agree to pay you compensation and agree a reference with you, amongst other terms, see Settlement Agreements

Q: Can you help me make an Unfair dismissal claim to the Employment Tribunal?

A: Yes – if you and your employer cannot reach an early settlement or if you prefer to make an Unfair Dismissal claim to the Employment Tribunal, we will advise you about making a claim. We can advise you about the ACAS Early Conciliation process, make a claim to the Employment Tribunal on your behalf, as well as prepare your case for a final hearing.

Q: Can you help me make an Unfair dismissal claim to the Employment Tribunal?

A: Yes – if you and your employer cannot reach an early settlement or if you prefer to make an Unfair Dismissal claim to the Employment Tribunal, we will advise you about making a claim. We can advise you about the ACAS Early Conciliation process, make a claim to the Employment Tribunal on your behalf, as well as prepare your case for a final hearing.

Get in touch on 01926 884745 to find out how Julia can help you with Employment Law.

Disclaimer: *This blog provides general information and does not constitute legal advice. You should always seek professional legal advice in relation to your specific situation.*

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Six months qualifying period for Unfair Dismissal

The Government has announced the scrapping of the proposed Day One right to claim unfair dismissal, as set out in the Employment Rights Bill.

After discussions with trade unions and business representatives, the Government has decided that it will reduce the current two years’ continuous service eligibility requirement to claim ordinary unfair dismissal, to six months. There will still be Day One protection for most claims for dismissals on automatically unfair grounds (eg whistleblowing, amongst other grounds) as is currently the case.

A six-month qualifying period to make a claim for unfair dismissal, is going to be much simpler for employers and employees to navigate than the original Day One right proposal which had been accompanied by the ability to dismiss fairly in an “initial” period of employment, by following a “light touch” procedure.

A six-month qualifying period should give employers more comfort to recruit staff but will inevitably mean that employers will need to be much more focussed on ensuring that the new recruit is right for the job, in the early months of employment. Currently, employers have a buffer of the two-year qualifying period, before unfair dismissal rights accrue which can mean that employers do not always make timely decisions about an employee’s suitability for the role.

Compensation cap for unfair dismissal to be lifted

A further change is that the compensation cap for unfair dismissal will be lifted. Currently the compensatory award for unfair dismissal is one year’s gross pay or £118,223, whichever is lower (the cap does not apply to some automatically unfair dismissal claims).

It is not yet clear whether this change will mean removing the one year’s gross pay cap or the upper cap of £118,223 although it seems likely that the cap of £118,223 will remain. No doubt, clarification will be provided by the Government, in due course.

The change to unfair dismissal rights had been expected to take effect in 2027 but this now may happen as early as 2026. We await clarity on this from the Government.

The above does not constitute legal advice.

If you would like to discuss any employment matter contact, please Julia Woodhouse at 01926 831231 or jhw@blytheliggins.co.uk.

Julia is an Employment Solicitor based in Leamington Spa and advises clients across Leamington Spa, Warwick, Kenilworth, Coventry, Rugby, Nuneaton, Atherstone and further afield.

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