Changes In Employment Law Fast Approaching

Fashion businesses depend on flexibility, whether recruiting for peak trading periods, reorganising stores or using casual staff to respond to demand. The Employment Rights Act 2025 introduces some of the most significant employment reforms in a generation and will require businesses to plan earlier and pay greater attention to process.

Recruitment and probation will become more important

From 1 January 2027, the qualifying period for ordinary unfair dismissal will fall from two years to six months. The statutory cap on compensation will also be removed.

Employers can still dismiss for potentially fair reasons such as misconduct, capability or redundancy, but must also act reasonably and follow a fair process. That can take time.