May Update: Key Employment Law Changes for Managers

We are pleased to share the latest employment law updates and upcoming changes that may impact your organisation. Please see below for a summary of key developments and what they mean for you as managers.

King’s Speech – Key Employment Focus

The Government has outlined its intention to:

  • Improve living standards by addressing the cost of living and investing in markets
  • Work with employers to drive growth and ensure fair outcomes for workers (linked to existing Employment Rights Act measures)
  • Strengthen trade ties with the EU and address late payments to small businesses
  • Continue investing in apprenticeship pathways to tackle youth unemployment

Unfair Dismissal Changes (July 2026 – January 2027)

What is changing?

  • From 1 January 2027, the qualifying service period for unfair dismissal will reduce from two years to six months
  • The compensation cap for unfair dismissal awards will be removed
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