Pub and bar operators face new unfair dismissal rules from 2027
Updated
Updated · TLT LLP · May 1
Pub and bar operators face new unfair dismissal rules from 2027
11 articles · Updated · TLT LLP · May 1
From 1 January 2027, staff will qualify after six months, not two years, and tribunals can award actual financial losses instead of the current £118,223 or one-year-pay cap.
The changes, enabled by the Employment Rights Act 2025, could extend claim rights to an estimated 6.3 million more workers and raise risks for hospitality businesses with high staff turnover.
Operators are urged to tighten recruitment, probation, record-keeping and manager training as tribunal pressures, longer time limits and extended Acas conciliation may push more disputes toward early settlement or mediation.
Could removing the compensation cap for unfair dismissal actually backfire by making employers more hesitant to hire new staff in the UK hospitality sector?
With tribunals already overwhelmed, will the new laws truly increase access to justice for workers, or just create longer delays and higher costs for everyone?