Unfair Dismissal Protection Is Changing: What Staff and Managers Need to Know

What is changing, why it matters, and who it affects

From 1 January 2027, the government plans to reduce the qualifying period for unfair dismissal claims from two years to six months. This is one of the most significant changes to employment law in recent years and will affect how organisations recruit, manage, support, and (where necessary) dismiss staff from the very beginning of employment.

In practice, this means:

  • Many employees will gain legal protection much earlier
  • Employers will need to manage probation and early employment far more carefully
  • Good people management, documentation, and fairness will matter more than ever

This change affects:

  • Employees – who will gain earlier access to unfair dismissal protection
  • Managers – who will need to follow fair processes much sooner
  • HR teams and leaders – who must update policies, training, and practices
  • Organisations of all sizes – including SMEs, charities, and voluntary organisations

What is unfair dismissal?

Unfair dismissal is when an employee is dismissed:

  • Without a fair reason, and/or
  • Without a fair process

Currently, most employees must have two years’ continuous service to bring an unfair dismissal claim. Under the proposed change, this will reduce to six months.

Some dismissals are already automatically unfair (for example, related to pregnancy, whistleblowing, or discrimination), regardless of length of service. This new change extends protection much earlier for all other reasons too.

When will the change happen?

The government has indicated that:

  • The new six-month qualifying period will come into force on 1 January 2027
  • Anyone employed from July 2026 will already have six months’ service by that date and will benefit immediately
  • This means that employees hired well before 2027 may still be able to bring claims once the law takes effect

In short: employers need to prepare now, not wait until 2027.

Why this change matters

For employees

  • You will have greater job security earlier
  • You are more likely to receive clear feedback, support, and fair treatment
  • Decisions affecting your role should be better explained and documented

For managers and employers

  • Early dismissals will carry greater legal risk
  • Probation periods will not remove the need for fairness
  • Informal or poorly managed decisions are more likely to be challenged
  • Equality, consistency, and transparency become even more important

This change encourages better people management, not just legal compliance.

A common myth: “Probation periods protect employers”

Many organisations assume that probation periods allow them to dismiss staff easily. This is not true.

Probation:

  • Is not a legal loophole
  • Does not override employment law
  • Does not remove the need for a fair reason or process

If someone has six months’ service, they may be able to challenge a dismissal — even if they are still on probation.

What good practice will look like going forward

Organisations that adapt well will:

  • Set clear expectations from day one
  • Provide regular feedback and support
  • Address issues early, fairly, and consistently
  • Keep clear written records
  • Train managers to have confident, compassionate conversations

This is not about being “soft” it’s about being fair, lawful, and inclusive.

Checklist: Dos and Don’ts for Managers and Employers

DO

✔ Be clear about role expectations from the start
✔ Provide structured inductions and early check-ins
✔ Give timely, honest, and documented feedback
✔ Treat probation as a supportive process, not a test to fail
✔ Apply policies consistently to everyone
✔ Seek HR or legal advice early if concerns arise
✔ Consider equality impacts and reasonable adjustments
✔ Keep accurate notes of meetings and decisions

DON’T

✘ Assume short service means “no rights”
✘ Rely on probation periods as protection
✘ Delay difficult conversations until dismissal feels inevitable
✘ Treat similar situations differently without justification
✘ Make decisions based on personality clashes or assumptions
✘ Ignore health, disability, or wellbeing factors
✘ Rush dismissals without evidence or process

What should organisations do now?

Even though the change is not due until 2027, organisations should begin to:

  • Review probation and performance policies
  • Update manager training
  • Strengthen induction and early support processes
  • Embed fairness, inclusion, and accountability from day one

Getting this right protects people, culture, and the organisation.

Key takeaway

This change is not just a legal update it is a shift towards fairer, more transparent employment practices.

When organisations invest early in people, communicate clearly, and act consistently, they reduce risk and build stronger, more inclusive workplaces.

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