The End of the Unfair Dismissal Cap: What 1 January 2027 Means for Senior Employee Exits in the UK
For years, UK employers contemplating the exit of a well-paid employee, typically a senior executive, have had a degree of certainty. Even where an employer knows that dismissing without a proper process is likely to be unfair, the potential compensatory award for ordinary unfair dismissal has a ceiling. On 1 January 2027, that ceiling disappears as the statutory cap on the unfair dismissal compensatory award will be removed. For highly…

