Disputes Bold or disastrous? UK to scrap cap on unfair dismissal compensation Labour’s shock move triggers alarm among employer-side lawyers as Britain prepares for a major shift in dismissal risk iStock.com/boti1985 Image John van der Luit-Drummond Editor-in-Chief Friday 05 December 2025 The British government is poised to abolish the statutory cap for unfair dismissal compensation – a move described as “radical”, “astonishing”, “extraordinary”, “bold”, and even “disastr Get AccessContinue reading International Employment LawyerAlready have access? Login now Email Enter your email address. Password Enter the password that accompanies your email address. Reset your passwordLog in Need access? Find out how to enjoy unlimited accessGet access You might also like... Labour Reforms Labour backs down on day-one unfair dismissal right Labour Reforms Managers need urgent training ahead of UK dismissal rule change, lawyers say Disputes UK employment tribunal backlog continues to spiral Non-Competes UK government revives proposal for non-compete reform