A major and last-minute shift is the removal of the unfair dismissal compensation cap. Previously, compensation was capped, which meant many high earners prioritised more lucrative routes (e.g., discrimination) instead. With the cap gone, unfair dismissal becomes a viable standalone claim for senior and highly paid employees. Expect:

• more high‑value unfair dismissal claims (both procedural and substantive);

• greater settlement leverage for claimants; and

• heightened scrutiny of process, evidence and documentation at every stage.

Additionally, the qualifying period to bring an unfair dismissal claim will reduce from two years to six months for dismissals occurring on and after 1 January 2027.