Finance and technology companies across the UK are facing growing pressure to rethink their workforce strategies as sweeping employment law reforms move closer to implementation. While job cuts across both sectors have been driven by slower economic growth, rising operating costs and increased investment in artificial intelligence (AI), employment lawyers say the forthcoming Employment Rights Act is adding fresh urgency to restructuring decisions.
The legislation is expected to strengthen workers' rights by reducing the qualifying period for unfair dismissal claims from two years to six months and removing the statutory cap on unfair dismissal compensation. For businesses already planning restructures, making those changes before the reforms take effect could reduce future legal and financial risks.
