Employment Snapshot July 2026
Tuesday 21st July 2026
Welcome to Gordons Employment Team’s latest update
This month we cover:
- why probationary periods matter more than ever;
- an interesting outcome on a recent matter at the Court of Appeal on training cost clawbacks; and
- the latest Employment Rights Act briefing for July.
Probationary periods: review now as unfair dismissal protection moves closer
From 1 January 2027, one of the most significant changes introduced by the Employment Rights Act 2025 will take effect: the qualifying period for ordinary unfair dismissal claims will reduce from two years’ continuous service to six months.
This means new starters will gain unfair dismissal protection much sooner than before; and probationary periods are set to become even more important as a way to assess suitability, address concerns early and make informed decisions about continued employment.
Training Cost Clawbacks: Recent Court of Appeal Decision
Employers that invest in training sometimes wish to protect that through training repayment or “clawback” provisions. A recent Court of Appeal (CA) decision acts as a reminder that these must be carefully drafted to be enforceable.
In Geeks Ltd v Watts [2026] EWCA Civ 889, the CA held that a training cost repayment provision was an unenforceable restraint of trade.
Employment Rights Act Briefing – July 2026
Since our last update on the Employment Rights Act, there have been further developments in the government’s implementation timetable and guidance for employers.
If you require any further information on the above topics, please do not hesitate to get in contact with a member of the Employment Team.
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