UK Banks Face Tribunal Claim Surge as Unfair Dismissal Limit Falls to 6 Months
Updated
Updated · The Banker · Aug 10
UK Banks Face Tribunal Claim Surge as Unfair Dismissal Limit Falls to 6 Months
2 articles · Updated · The Banker · Aug 10
Summary
UK investment banks are being warned to prepare for a sharp rise in employment tribunal claims as sweeping labour-law changes begin rolling out over the coming months.
From Jan. 1, 2027, workers will be able to bring unfair-dismissal claims after 6 months on the job, down from the current 2-year qualifying period.
The reforms will also remove the compensation cap for unfair dismissal, increasing potential payouts and raising the legal and financial risk for employers.
Lawyers describe the package as the biggest overhaul of UK employment law in a generation, with banks expected to face the impact acutely because of frequent hiring and firing disputes.