Professional services firms (accountancy, consultancy, law, architecture, engineering) typically have lower overall exposure to the Employment Rights Act 2025 than operational sectors. But the changes to unfair dismissal, fire-and-rehire, and SSP still create specific risks, particularly for firms that have relied on informal management approaches.
| The change | What it means for you |
What you need to do |
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Reduced unfair |
The qualifying period for unfair dismissal is being reduced from two years to six months. Professional services firms often make hiring decisions quickly and have relied on the two-year qualifying period to manage exits during the first year. The shorter qualifying period removes that safety net much earlier. With uncapped compensatory awards and typically higher salaries, the financial exposure per claim is significant. |
Review your approach to probationary periods and early-stage performance management. Implement structured review frameworks with documented assessments within the first six months. Train partners and team leaders on fair dismissal procedures
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| Fire and rehire restrictions |
Firms that restructure teams, merge practice groups, or harmonise terms following mergers have sometimes used dismiss-and-re-engage as a backstop. This is now automatically unfair. Professional services restructuring typically involves higher-paid staff, amplifying the per-head financial exposure |
If you are planning any restructuring, take legal advice on lawful routes before beginning. Audit any existing procedures that reference dismiss-and-re-engage as a fallback. Develop alternative consultation approaches.
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| Statutory sick pay (day-one, no waiting days) |
While absence rates in professional services tend to be lower, the removal of waiting days still requires a policy update. Any sickness absence policy referencing three waiting days is now inaccurate and potentially misleading to staff. |
Update your sickness absence policy. Remove waiting-day references. This is a straightforward compliance task that should be completed promptly regardless of whether your absence rates are high.
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The cost of inactionA consultancy that dismisses a senior hire after six months without a documented fair process now faces an uncapped unfair dismissal claim. At professional services salary levels, compensatory awards can be substantial. The cost of implementing a proper probationary framework is negligible by comparison. We advise professional services firms on ERA compliance. A 20-minute initial call is enough to identify the relevant areas. No charge for that first conversation so get in touch by calling 01233 722942 or by emailing henry@doswell-law.com |