UK employers lag in preparing for 2027 unfair dismissal reforms

Research by law firm Birketts shows that 81% of UK HR professionals say their organisations are only “somewhat prepared” for the Employment Rights Act 2025, with just 9% feeling fully ready. The biggest worry is the new unfair dismissal protection after six months of service and uncapped compensation, cited by 70% of respondents.

A separate survey from WorkNest finds that 54% of employers consider frontline managers their primary concern in meeting the reforms, outweighing fears of tribunal claims or handling sickness‑related dismissals. Many firms are already revising probation policies, boosting manager training (38%) and strengthening recruitment processes (30%) ahead of the January 2027 implementation.

The phased rollout of the Act will also introduce changes to zero‑hours contracts, statutory sick pay, trade‑union rights and family‑leave entitlements, prompting employers to update contracts and HR procedures throughout 2026‑2027.