Getting Ready for the Change in Unfair Dismissal Rights
Currently in the UK, employees need two years' continuous service before they can bring a claim for unfair dismissal (although some exceptions apply).
It has been widely reported that from 1 January 2027, the Employment Rights Act 2025 will reduce the qualifying period for unfair dismissal claims from two years to six months.
Whilst 2027 may seem some way off, employers should start preparing now. The changes will apply to existing employees as well as those who currently have less than 2 years’ service but will have more than 6 months service as at 1 January 2027. It has been reported that around 6 million employees fall into this category.
This blog answers some of the key questions employers have been asking about the forthcoming changes. If you would like further clarification or advice on how these changes may affect your organisation, please do not hesitate to get in touch.
What will change on 1 January 2027?
The Employment Rights Act 2025 will reduce the qualifying period for protection from unfair dismissal from two years to six months.
The Government had originally proposed introducing day-one unfair dismissal rights. However, following debate in the House of Lords, the proposal was revised so that employees will gain protection after six months' service instead.
Does this apply retrospectively?
Yes.
Any employee who has completed six months' service by 1 January 2027 will be able to bring a claim for unfair dismissal if they believe they have been dismissed unfairly.
This means that employees recruited before 1 July 2026 will have acquired six months' service by the time the new legislation takes effect.
What does this mean for new recruits?
The first six months of employment will become an even more important period for employers to assess whether a new recruit is suitable for the role.
Effective probationary period management will be essential. Employers should ensure that performance concerns, attendance issues or conduct problems are identified and addressed at an early stage rather than waiting until the end of a lengthy probationary period.
Can an employer terminate the employment of an employee with more than six months' service after 1 January 2027?
Yes. However, once an employee has acquired unfair dismissal protection, employers will need to ensure they can demonstrate a fair reason for dismissal and follow an appropriate process before terminating employment. The length of this process will vary according to the specific situation but there will be no safe option for a “short service dismissal” after the employee has reached 6 months service.
What does this mean for employees recruited in 2026?
This is one of the most important practical considerations for employers.
An employee recruited on 1 July 2026 will reach six months' service on 31 December 2026. When the new law comes into effect the following day, they will immediately have the right to bring an unfair dismissal claim if they believe they have been unfairly dismissed.
Employers should therefore carefully review the length of probationary periods offered to anyone recruited from July 2026 onwards.
A six-month probationary period starting after 1 July 2026 is will expire after 1 January 2027. By that point, the employee will already have acquired unfair dismissal protection if they have six months service, significantly reducing an employer's flexibility to terminate employment for failure to pass probation.
For this reason, employers should strongly consider reducing probationary periods for employees recruited after 1 July 2026 to three months, ensuring that suitability for the role is assessed and decisions are made well before the employee reaches six months service.
What action should employers take now?
Employers should begin preparing for these changes now by:
Reviewing and strengthening probationary period procedures.
Ensuring managers understand the forthcoming changes to unfair dismissal rights.
If employers are used to implementing 6-month probationary periods it is advisable to reduce this to 3-months.
Training managers to identify performance, conduct and attendance concerns at an early stage.
Making decisions promptly where it becomes clear that additional support is required or that employment may need to be terminated.
Reviewing recruitment, onboarding and performance management processes to ensure they remain effective under the new legal framework.
The reduction in the qualifying period for unfair dismissal claims represents one of the most significant changes to employment law in recent years. Employers who prepare early and manage probationary periods effectively will be best placed to minimise risk and make informed employment decisions.
We are running a series of free online training session for business owners and managers to help get prepared for this change. Use the links below to sign up for these sessions:
9 July 2026 – Getting Ready for New Unfair Dismissal Rules
https://www.eventbrite.co.uk/e/1991905293353?aff=oddtdtcreator
13 August 2026 – Running Effective Probationary Periods https://www.eventbrite.co.uk/e/1991908606262?aff=oddtdtcreator
3 September 2026 – Focused, Meaningful Performance Conversations
https://www.eventbrite.co.uk/e/1991977646764?aff=oddtdtcreator
1 December 2026 – Unfair Dismissal Changes Happen on 1 January 2027 – Are You Ready?
https://www.eventbrite.co.uk/e/1991978190390?aff=oddtdtcreator
If you have any questions, please feel free to get in touch: alison@bellhr.co.uk