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National Law Review
National Law Review
7/6/2026
The original headline is about UK employment law changes affecting financial services firms. Let me extract the key facts:

The original headline is about UK employment law changes affecting financial services firms. Let me extract the key facts:

Original: Employment Law and Regulatory Reform- How Financial Services Firms Can Prepare for Change

Short summary

UK employment law tightens significantly in 2026-27: unfair dismissal protection drops to 6 months (from 2 years), compensation caps are removed, and the FCA's non-financial misconduct guidance takes effect Sept 1, 2026. Financial services firms must immediately update HR policies, harassment prevention frameworks, whistleblowing procedures, and NDAs. Extended harassment liability and elevated compensation exposure require urgent compliance action.

  • Unfair dismissal qualifying period reduced to 6 months effective Jan 1, 2027, with compensation caps removed for financial exposure
  • FCA non-financial misconduct guidance enforced Sept 1, 2026; firms must address workplace conduct under employment law, COCON, and FIT simultaneously
  • Sexual harassment liability extends to third-party conduct; employers must take all reasonable steps to prevent harassment at client events and work settings

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