Mishcon de Reya page structure
Site header
Menu
Main content section

Employment Matters

Issue 27: December 2025

Employment Matters

Editor's note

Daniel Naftalin
Daniel Naftalin

Welcome to the December 2025 edition of Employment Matters, bringing you the latest updates on employment law and key issues for employers and HR professionals. 

As 2025 draws to an end, employment law remains as turbulent as ever. At the top of the agenda is the Employment Rights Bill. We discuss the latest twist in this ongoing saga: the Government's compromise to accept a 6-month qualifying period in exchange for lifting the cap on compensation. At the time of writing, it is unclear whether the compensation cap will be removed entirely and, if so, when. But we will keep you updated, shortly unveiling our new-look Employment Rights Bill Hub where you can track the latest news. At this stage, we invite you to register your interest to receive all the latest updates via email.  

Yet there's more! The Government is again considering reforming "non-compete" clauses; bonus litigation is seemingly on the rise after bankers' bonus caps were scrapped by the FCA and PRA in 2023; and recent trends in domestic and international competition law suggest that non-poach agreements, wage-fixing and information sharing are among the top priorities of regulators. We have articles explaining all three developments. 

Our complementary teams are finishing the year strongly, too. Our Incentives Team not only welcomed Liron Cohen as its new head; it also won Rewards and Incentives Team of the Year at the International Employment Lawyer Awards 2025. We look forward to the team continuing to build on the successes of an already exceptionally successful practice area. 

Our Immigration Team remains busy. Following the recent shake-up of UK Immigration Rules, they have produced a guide setting out what has (or will be) changed and when. In conjunction with our Incentives Team, they also explore the immigration, tax, and reward essentials that go into building a world-class workforce.  

MDR One recently published their Global Employment Handbooks, which provide in-house counsel and HR teams with a practical resource for navigating employment law and HR issues across Europe, APAC and the UAE.  Our international employment capabilities are expanding, with Natalie Jones joining us in UAE, and Winnie Weng's ever-developing employment practice in Hong Kong which covers drafting work and advisory services pertaining employment contract, restrictive covenant and employee handbook and policies.

Beyond our written updates, our Corporate Team has produced a short video explaining the key requirements relating to compulsory ID verification for directors and persons with significant control, in effect since 18 November 2025. We are also delighted to share Employment Partner Emily Knight's podcast, Financial Futures: Empowering women to take charge of their wealth, offering practical advice, real-life stories and strategies to help break down barriers to financial confidence. 

Finally, it just remains for me to thank you for your support throughout 2025. I wish you all a relaxing festive period and look forward to working with you in 2026.  

News
Ground view of large buildings in London

Day-one unfair dismissal rights scrapped: Six-month qualifying period confirmed

After weeks of Parliamentary ping-pong between the House of Commons and the House of Lords, the Government has rowed back from one of its flagship manifesto pledges. Rather than introducing unfair dismissal protection from the first day of employment, they will reduce the current two-year qualifying period to six months. The announcement follows discussions chaired by the Government between business representatives and trade unions. This stakeholder engagement reflects recognition that the original day-one proposal generated significant concerns about workability and its potential impact on recruitment.

News
a pile of coins sitting on top on the table

The rise of bonus litigation

Prior to 2008, bonus disputes were staple pieces of litigation for UK employment lawyers. Post-financial crisis, however, major bonus claims started to dry up: banks were paying out more conservatively, taxes were high (reducing the net value of the bonus), appetite for risk was low and, for the most part, the law appeared settled and certain in favour of the employer.

News
Liron Cohen

Mishcon de Reya boosts Incentives team with new partner hire

Mishcon de Reya has announced that Liron Cohen has joined the firm as a partner in its Employment department, specialising in employee incentives and remuneration. Liron joins from Deloitte where she worked with a wide client base including corporates, listed entities, PE-backed companies and founder-led businesses.

Subscribe

Never miss a publication by signing up to our mailing list

Employment Matters Issues

How can we help you?
Help

How can we help you?

Subscribe: I'd like to keep in touch

If your enquiry is urgent please call +44 20 3321 7000

Crisis Hotline

I'm a client

I'm looking for advice

Something else