Atlanta Burgon, and Flynn Silby, explore the practical impact of the new six‑month unfair dismissal rule and what it means for probation, investigations and early‑stage employment processes.
The Employment Rights Act 2025 introduces a major shift in early‑stage employment rights. From 1 January 2027, employees will gain protection from unfair dismissal after six months’ service, rather than two years. Employers will therefore have a significantly shorter period before unfair dismissal rights apply and will need to ensure robust early-stage employment processes.
For organisations responsible for delivering essential public services, this change brings both opportunities and pressures. Probation will become more meaningful, early performance management more structured and decisions more scrutinised.
What are the general implications?
In short, employee rights to unfair dismissal claims are stronger and more accessible
The previous two-year qualifying period has acted as a safety net for employers when terminating employee contracts early in the relationship. Under the new rules, that period effectively reduces to six months, meaning employers will need to be much more careful in how they manage performance, conduct and dismissal decisions in the early stages of employment.
There may, however, be a reduction in alternative claims. Claims such as whistleblowing or discrimination have been used as a way around the two-year service threshold. If unfair dismissal is available to employees sooner, we may see fewer of those claims being used for that purpose.
Why the Six‑Month Threshold Matters
The reduced qualifying period significantly changes how early employment must be managed. It compresses the window for assessing suitability, supporting new starters and making decisions that previously carried lower legal and reputational risk.
While the rule itself is straightforward, the duties it creates for employers are more complex. Employers will need to put measures in place to reduce the risk of unfair dismissal claims, placing particular focus on probation periods, documentation of concerns and investigations, and decision-making processes.
Probation Periods: What Now Needs Sharper Focus
1. Clear expectations and early structure
From day one, employees will need to understand their duties, standards, safeguarding obligations and operational expectations. Employers will need to show that concerns were raised early rather than left to the final weeks of probation. Early identification and escalation of concerns will become increasingly important as the window for managing performance before unfair dismissal protection applies is significantly shorter.
2. More frequent and purposeful review points
Rather than a single review near the end of probation, shorter cycles at 4, 8 and 12 weeks can help identify barriers to performance and document support provided. Regular meetings also create opportunities for concerns to be raised and addressed before claims for unfair dismissal become available at six-months’ service.
Where working patterns are varied, such as in rota-based roles, managers will still need to ensure that appropriate review points are maintained for probationary staff.
3. Evidence‑based extensions
Where probation is extended, there should be a clear rationale, focused improvement actions and documented follow‑up.
Investigations: Earlier, Clearer and Better Recorded
1. Early-stage concerns still need proper attention
Concerns that arise in the first few months should be recorded and explored proportionately, even if they appear minor at first. This enables employers to monitor issues effectively, and gives employees the opportunity to make improvements.
2. Delays increase organisational risk
If concerns drift toward the six‑month point, any dismissal or formal action will require stronger justification.
3. Decision‑makers must be properly briefed
When a manager is asked to consider dismissal or capability action, a clear, traceable record of evidence will be expected. Clear decision making processes will help ensure consistency across the organisation.
4. Strengthened recruitment processes
Although it is never possible to know whether someone will be fully suited to a role until they are in it, reviewing and strengthening recruitment processes may help reduce the likelihood of early dismissals.
What Counts as a Fair Reason at Six Months?
While the timeline shortens, the five potentially fair reasons for dismissal remain. Capability, conduct and “some other substantial reason” are like to feature most frequently for early‑service employees.
Employers will need to show they acted reasonably in the circumstances. This means making use of reviews, raising concerns early, documenting conversations and providing opportunities for improvement before making a decision to dismiss.
Where appropriate, employers should also be able to evidence all the ways that they supported the employee during the early stages of employment.
Practical Steps For Your Organisation
1. Refresh probation policies
Policies should reflect early review points, clear expectations and defined escalation steps.
2. Strengthen manager capability
Managers will need confidence in giving early feedback, documentation and handling sensitive conversations under time pressure.
3. Improve onboarding
Strong induction practices reduce early performance issues and create clarity around expectations.
4. Ensure HR advice is accessible quickly
Support may be required earlier in the employment cycle, particularly where issues arise within the first 12 weeks.
Hidden Pressure Points
The change may increase administrative and HR workloads as organisations adapt their processes.
There may also be risks where performance issues or disciplinary actions are handled inconsistently by different managers. Clear policies, training and good record keeping will help reduce this risk.
What This Means for Your Organisation
- The “low‑risk” period of employment becomes significantly shorter.
- Decisions made in months 1–5 will carry greater legal and operational weight.
- Early documentation will become increasingly important.
- Manager confidence will become a key factor in managing risk.
- Organisations that support early action, rather than delayed escalation, are likely to see fewer issues at the six‑month point.
Preparing for 2027
With the implementation of the unfair dismissal amendments scheduled for 2027, employers have time to prepare. Key priorities for 2026 should include:
- formalising probation processes
- clear policy communication
- upskilling managers in readiness for the change
- reviewing dismissal procedures
Better preparation now will almost certainly mean an easier transition when the changes take effect.
Conclusion
The new six‑month unfair dismissal rule will reshape early employment relationships. It requires earlier action, clearer processes and stronger documentation.
Organisations that prepare their managers, invest in early support and build more disciplined probation practices will be better positioned when the changes take effect.
The next article in this series will explore day‑one parental leave rights and what these mean for policy design and operational planning.
Disclaimer: This article, published 17 February 2026, does not constitute legal advice and is provided for general information purposes only. For support in reviewing policies or addressing specific queries, please reach out to our Employment Law team.
