United Kingdom: Contract of Employment

Employment lawyers George Cokkinos and Josh Davies address frequently asked questions from employees who have received settlement agreement offers from their employers. The discussion provides practical insights into navigating these important employment law documents and understanding your rights during the settlement process.

The Employment Rights Act 2025 introduces a major shift in UK employment law by reducing the unfair dismissal qualifying period from two years to just six months, effective January 2027. This change will impact both new and existing employees, requiring employers to justify dismissal decisions much earlier in the employment relationship. Understanding how to manage probation periods, maintain proper documentation, and follow fair procedures will be critical for businesses navigating this significant reform.

Following a three-and-a-half-week trial, the High Court has ruled in favour of Mr. Gagliardi in a comprehensive 154-page judgment in Robert Gagliardi v Evolution Capital Management LLC [2025] EWHC 3214 (Comm). Mr. Justice Calver found that Mr. Gagliardi was contractually entitled to a $5.385 million discretionary bonus for his hugely profitable trading in 2021, which Evolution Capital Management LLC (“ECM”) had unlawfully failed to pay. The Court dismissed ECM’s counterclaim in its entirety.

The Employment Rights Act 2025 introduces one of the most significant packages of employment law reform in decades, with measures taking effect at different points over the coming years.

The UK government has published a draft Employer's guide addressing the expanded illegal working regime and updated right to work check procedures. This guidance outlines new compliance requirements and verification processes that employers must follow to avoid penalties. Understanding these changes is crucial for organizations to maintain legal compliance in their hiring and employment practices.

The Court of Appeal has ruled that requiring a trainee employee to repay internal training costs constitutes an unreasonable restraint of trade. This landmark decision examines when repayment provisions cross the line from legitimate business protection to unlawful restriction, with significant implications for employers using clawback arrangements for training, bonuses, and other benefits.

After six weeks of bruising election campaigning – not to mention recent years in which politics has strained the UK's long-founded reputation for consensus and stable policymaking – the nation wakes up on 5 July with a major shift in the landscape.

A Defined Certificate of Sponsorship (DCoS) is required when sponsoring a Skilled Worker applying from outside the UK.

As private credit owners navigate troubled borrower situations, they often face the challenge of replacing underperforming senior management teams. With the UK abolishing the unfair dismissal compensation cap and reducing the qualifying period from two years to six months starting January 2027, the landscape for managing executive exits is set to transform dramatically, making current strategies for performance management and negotiated departures significantly more complex and costly.