The Law of Unfair Dismissal and the Employment Rights Act 2025: An Opportunity Missed?

The right not to be unfairly dismissed has been a remarkably constant force in employment law since its introduction over 50 years ago. Unfair dismissal law was therefore overdue some attention when the incoming Government was planning its major overhaul of employment rights, described as the ‘biggest single upgrade of employment rights in a generation’ and now implemented in the Employment Rights Act 2025. After strong opposition from the House of Lords, the Government moved to provide a fresh package, retaining a six-month qualifying period of employment and removing the upper limit on the compensatory award. In this contribution, I discuss the likely effects of these changes to the law, analysing the human rights implications of the Act and placing the amendments in a wider comparative context. I conclude that, although the Act holds great significance particularly for those that would previously have been excluded from making any claim before the Employment Tribunal, they do not amount to a generational upgrade that may be seen in other areas of labour law. There remain severe deficiencies in the standard to which working people are protected from unjust dismissal decisions that remain untouched by the new legislation. Perhaps the Act is a once-in-a-generation opportunity missed.