In this episode, we look ahead to the major employment law changes coming in January 2027 — and why they could fundamentally change how small businesses hire.”
Why small firms are worried about January 2027
• Unfair dismissal qualifying period
• Qualifying period cut
• From 2 years → 6 months
• Less time to assess staff
• Faster risk exposure
• More cautious hiring
Removal of compensation cap
• Compensation cap removed
• Awards based on actual loss
• Higher exposure for employers
• Claim window: 3 → 6 months
• Likely increase in claims
Likely impact
• Slower hiring
• More caution
• Higher perceived risk
Prepare now
• Track performance early
• Review probation periods
• Act before 6 months
major employment law changes
January 2027
small businesses hiring
unfair dismissal qualifying period
qualifying period cut
less time to assess staff
faster risk exposure
cautious hiring
removal of compensation cap
awards based on actual loss