How to Prepare Your Probation Process for the 2027 Unfair Dismissal Changes

From 1 January 2027, employees will gain the right to claim ordinary unfair dismissal after six months’ continuous service, rather than having to complete two years’ service first. Under the Employment Rights Act 2025, the qualifying period for ordinary unfair dismissal is being reduced from two years to six months. Alongside this change, the statutory cap on compensation that an Employment Tribunal can award for unfair dismissal claims will also be removed.

For employers, this places far greater importance on how probation periods are managed. Currently, a typical probation period lasts between three and six months, giving employers time to assess a new employee before they gain unfair dismissal rights. Even where performance concerns arise towards the end of probation, employers often have additional time within the current two-year qualifying period to address those concerns before unfair dismissal protection applies.

From January 2027, that changes.

If your business operates a six-month probation period, you’ll have much less time to assess performance, address any concerns and make decisions before an employee gains the right to bring an ordinary unfair dismissal claim. This means employers will need to ensure probation processes are more structured, well documented and managed proactively than ever before.

What is unfair dismissal? 

Let’s start with the basics. Unfair dismissal is when an employee believes they have been dismissed without a fair reason or without a fair process being followed.

If they qualify to bring a claim, they can ask an Employment Tribunal to decide whether their dismissal was fair. At the moment, most employees cannot bring an ordinary unfair dismissal claim until they have worked continuously for two years.

From 1 January 2027, that qualifying period will reduce to six months. This means employees will gain legal protection much sooner than they do today.

Why does this affect probation periods?

Most employers use probation periods to assess whether a new employee is the right fit for the role.

A typical probation period lasts three or six months.

During this time, managers usually:

• review performance
• provide training and support
• give feedback
• decide whether employment should continue.

Until now, there has been plenty of time after probation to deal with any performance concerns before an employee gained unfair dismissal rights.

From January 2027, that changes.

If your probation period lasts six months, it will end at almost exactly the same time the employee becomes eligible to claim ordinary unfair dismissal.

That leaves much less room for delays.

Why timing is so important:

Imagine you recruit a new employee who starts work on 1 January 2027 and their probation is due to end on 30 June 2027. Throughout probation you’ve noticed their performance isn’t meeting expectations, but you decide to give them a little more time.

You wait until the final week of June before making a decision. The problem? If they are entitled to one week’s notice, their employment won’t actually end until early July.By then, they have passed six months’ service and may have the right to claim unfair dismissal.This is why employers can no longer leave probation decisions until the last minute.

Does this mean you can’t dismiss someone after six months?

No.

This is one of the biggest misconceptions. The law doesn’t stop employers dismissing employees after six months. It simply means that employers need to be able to show:

• there was a fair reason for the dismissal, and
• a fair process was followed.

For example, if an employee is consistently underperforming despite receiving feedback, support and opportunities to improve, dismissal may still be fair. The difference is that you’ll need evidence to demonstrate why that decision was made.

What should employers be doing differently? 

The biggest change isn’t necessarily your probation period itself.

It’s how you manage it. Instead of waiting until the end of probation, employers should:

• set clear expectations from day one
• hold regular probation review meetings
• keep written records of discussions
• address concerns as soon as they arise
• make decisions before the employee reaches six months’ service, allowing enough time for notice if needed.

Good documentation and regular communication will become more important than ever.

What should you do now?

Although the changes don’t take effect until 1 January 2027, now is the time to prepare. Reviewing your probation process before the new rules come into force can help reduce legal risk and ensure managers are confident in handling performance concerns fairly and consistently.

Start by asking yourself:

• Are managers meeting with new starters regularly throughout probation?
• Are performance concerns being documented clearly?
• Is there enough time to make decisions before an employee reaches six months’ service?
• Do managers understand the new legal requirements and the importance of following a fair process?

Taking action now can help minimise the risk of costly employment disputes and ensure your business is ready well before the changes take effect.