The new unfair dismissal era What employers must know

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For decades, the “two-year rule” has acted as a safety net for UK employers, providing a window to assess staff without the risk of an ordinary unfair dismissal claim. From 1 January 2027, that safety net will be removed.

Combined with the abolition of compensation limits and a doubling of the timeframe for employees to bring a claim, the potential cost of a “bad hire” or a procedural error has never been higher.