09/12/2025
Big changes are coming in employment law, but not everything is set in stone just yet...
The government has proposed removing the cap on unfair dismissal compensation, which is currently the lower of £118,223 or 52 weeks’ pay. If passed, this would mean ordinary unfair dismissal awards could become uncapped for the first time.
But here’s the key point: the Employment Rights Bill is still going through Parliament, and the final shape - including whether awards truly become unlimited - isn’t confirmed.
What it could mean:
• Higher dismissal-related risk for employers
• Greater emphasis on fair, well-documented processes • More strategic ER and settlement planning
Watch this space.
📌Pennine HR will keep you updated as the Bill progresses.