News · 9 July 2026
UK employers review bonus schemes before 2027 cap removal.
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UK employers are checking their bonus and incentive structures because the legal limit on unfair dismissal payouts ends from 1 January 2027. The removal of the cap means high-earning staff could claim much more money if unfairly dismissed, making bonus disputes potentially very costly. Firms want to ensure their bonus schemes and decision processes are robust enough to avoid challenges if payouts are lower than expected.
Reported by Pinsent Masons · How we write briefs