United Kingdom: Contract of Employment

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.

When your employer offers voluntary redundancy through a settlement agreement, understanding the key differences from statutory redundancy becomes crucial. This comprehensive analysis examines the legal frameworks, financial implications, and strategic considerations that determine whether accepting a negotiated settlement or proceeding through formal redundancy procedures better serves your interests.

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.

The Employment Rights Act 2025 introduces significant new rights for trade unions to access UK workplaces, affecting all employers with 21 or more workers. With implementation set for October 2026, the Government has published updated statutory codes of practice following consultation feedback, clarifying how access requests should be made, negotiated, and implemented. Employers should prepare for these changes as the Government aims to facilitate increased union membership and activity across UK workplaces

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.

Starting January 1, 2027, UK employment law will undergo a significant shift as the qualifying period for unfair dismissal claims drops from two years to just six months of service.