Branch² Intelligence

The UK government has removed the cap on unfair dismissal compensation, potentially making it more expensive for businesses to dismiss executives compared to their European counterparts.

UK · 2026-09-17

AI-generated analysis. How we make it.

Key takeaway

UK removes the cap on unfair dismissal compensation, raising executive exit costs.

  1. Step 1 · The triggerthe UK government removes the cap on unfair dismissal compensation, exposing employers to unlimited tribunal awards
  2. Step 2 · Knock-onUK employers face higher and less predictable costs when dismissing executives, increasing demand for legal advice and contract review
  3. Step 3 · Reaches youemployment law firms like Cloisters and CM Murray see increased instructions for advisory and tribunal representation, raising their revenue

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: City A.M.

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