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New Reforms Allow Unlimited Payouts for Dismissal Claims

12/5/2025

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Summary

Story summary

High earners who win unfair dismissal claims may receive unlimited payouts under the reforms.
Current rules cap payouts at either the annual salary or £118,223.
Claims will be allowed after six months instead of two years.
Angela Rayner helped shape the reforms after Labour dropped plans and has expedited their implementation.
Darren Newman cautioned the change could produce high-value claims that overshadow those in greater need.

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Story summary

High earners who win unfair dismissal claims may receive unlimited payouts under the reforms.
Current rules cap payouts at either the annual salary or £118,223.
Claims will be allowed after six months instead of two years.
Angela Rayner helped shape the reforms after Labour dropped plans and has expedited their implementation.
Darren Newman cautioned the change could produce high-value claims that overshadow those in greater need.