Starting January 1, small businesses face a major shift: the unfair dismissal window drops from two years to just six months. With rising costs—including higher National Insurance, a new youth wage floor, and no relief on VAT or business rates—hiring is getting more expensive. Plus, compensation caps are being removed, and employers must now provide written reasons for dismissal upon request. Experts warn this could strain the job market, urging businesses to tighten hiring, train managers on performance reviews, and address issues early to avoid costly legal battles.
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