Employment Law Update: Six-Month Unfair Dismissal Rights from 2027
We want to make you aware of an important upcoming change to UK employment law that will significantly affect how employers manage new starters.
Under the UK’s Employment Rights Act, a new six-month qualifying period for protection against unfair dismissal is set to take effect on 1 January 2027. This replaces the current two-year qualifying period, significantly reducing the time employees must work to gain full employment rights. The change will apply to staff employed on or after this date.
Key Details of the Change
Reduced Probation
The standard two-year wait for unfair dismissal protection is reduced to six months, meaning employers must manage performance more quickly and more robustly during the reduced probation period.
Effective Date
1 January 2027.
Application
It applies to employees starting on or before 1 June 2026, provided they are still employed when the law changes.
Recommendations for Employers
Review Induction & Onboarding
Strengthen induction processes to ensure new hires are fully integrated and supported from day one. This helps identify performance issues before the six-month threshold.
Strengthen Performance Management
Move away from waiting until the end of a probation period to address concerns. Managers should provide regular feedback and record performance issues consistently throughout the first 6 months, to build a clear evidence base, all documented. .
Train Line Managers
Ensure line managers understand the new rules and have the skills to make fair, evidence-based decisions early in the employment relationship and document all examples of performance during the probation.
Update Contracts & Handbooks
Review contractual probationary periods (reduce to 3 or 4 months) and HR policies to align with the new statutory six-month threshold and ensure they reflect updated dismissal legislation.
Refine Recruitment Practices
Focus on better candidate fit and structured selection to reduce the risk of needing to terminate employment shortly after hiring.
Prepare for Increased Claims
Be aware that the removal of the compensation cap and shorter qualifying period are expected to significantly increase the number and cost of tribunal claims.
Important Timing Note
The six-month protection applies to anyone who has reached that length of service by 1 January 2027. This means any employee hired on or before 1 July 2026 will gain full unfair dismissal rights when the law changes.
Manager Training Checklist
- Update the “Cliff Edge” Awareness
Ensure managers know that employees gain full protection precisely at six months. To account for statutory notice periods, the decision to terminate must often be made and communicated by the 4 or 5 month mark. - Accelerate Performance Check-ins
Transition from a single end-of-probation review to a structured procedure (e.g. month 1, 2, and 4 review meetings) to identify and address concerns early. Document all meetings. - Master Feedback Delivery
Train managers to give specific, timely, evidence based and actionable feedback, (all documented) rather than vague “it’s not working out” statements, which will be harder to defend in a tribunal. - Establish Robust Documentation
Implement a “day one” record-keeping habit. Managers must document every performance discussion, including the support offered and the employee’s response, to build a defensible evidence trail. - Review Induction Roles
Shift the manager’s role from “overseer” to “active mentor” during induction. Managers must clearly define standards and set SMART objectives immediately upon hire. Review at regular intervals e.g. (month 1, 3 and 4) - Understand the “Day One” Exceptions
Ensure managers understand that some rights (e.g. protection from discrimination or whistleblowing) remain “day one” rights and are not subject to the six-month qualifying period. - Prepare for Increased Scrutiny
Brief managers on the removal of the compensation cap, emphasising that procedural errors now carry much higher financial risks for the business.
To ensure you and your managers are prepared for this change, and your contracts, probation clauses, and policies have been updated please get in touch.
