Unfair Dismissal after 6 Months: Everything You Need to Know Before 2027

The Employment Rights Act 2025 will introduce one of the most significant changes to UK employment law in recent years. For dismissals with an effective date of termination on or after 1 January 2027, employees with at least six months’ qualifying service will be able to bring an ordinary unfair dismissal claim. This represents a substantial reduction from the current two-year qualifying period.

For employers, the practical effect is a much shorter timeframe in which to assess performance, address conduct concerns and determine whether a new hire is suitable for the role. Organisations may need to review their recruitment, onboarding, probation and performance management processes to ensure decisions are made fairly, consistently and with appropriate supporting evidence.

The Government estimates that the change could result in around 9,000 additional Acas Early Conciliation referrals, 3,000 additional employment tribunal claims and approximately 570 additional cases requiring judicial time each year. These figures highlight the importance of preparing for the new framework well before implementation.

What is Changing Under the Employment Rights Act 2025? 

Currently, employees generally need two years’ continuous service before they can bring an ordinary unfair dismissal claim through an employment tribunal.

From 1 January 2027, that qualifying period will be reduced to just six months.

In simple terms this means: 

• Employees will gain unfair dismissal protection much earlier in their employment.
• Employers will have less time to assess performance, capability and suitability for the role.
• Probation periods will need to be managed more proactively and consistently.
• Onboarding processes will play a greater role in setting clear expectations from day one.
• The importance of regular feedback, performance conversations and documented reviews will increase.
• Poorly managed probation processes could expose employers to greater employment tribunal risk.

For employers, the practical priority will be the need for earlier intervention, clearer records and better manager confidence when handling performance, conduct and suitability concerns.

It is important to remember that some employment claims already exist as day-one rights. Claims involving discrimination, whistleblowing and certain automatically unfair dismissal grounds do not require any minimum length of service. The six-month qualifying period applies specifically to ordinary unfair dismissal claims.

Can Employees Claim Unfair Dismissal After 6 Months? 

For dismissals taking effect on or after 1 January 2027, employees who have completed at least six months’ continuous service will generally be able to bring an ordinary unfair dismissal claim before an employment tribunal.

This is expected to affect:

• Existing employees whose service exceeds six months when the new rules take effect
• Employees recruited before implementation who reach six months’ service after 1 January 2027
• New starters who complete six months’ continuous service following implementation

As a result, employers should ensure they have clear processes for monitoring service milestones, conducting probation reviews and making well-supported employment decisions. 

Why This Change Increases Risk for Employers

The reduction in the unfair dismissal qualifying period effectively shortens the period during which employers can address concerns without exposure to an ordinary unfair dismissal claim.

Issues relating to:

• Performance
• Capability
• Attendance
• Conduct
• Suitability for the role

Can no longer be left until the final stages of employment without careful consideration.

Managers will need the confidence and capability to address concerns promptly, provide appropriate support and document actions taken. Organisations that fail to embed these practices may find it more difficult to justify employment decisions if challenged.

Forward planning will allow employers to review existing procedures, strengthen management capability and introduce any necessary improvements before the legislation takes effect.

The Removal of the Unfair Dismissal Compensation Cap

Alongside the reduction in the qualifying period, employers should also be aware of another significant reform.

From 1 January 2027, the statutory cap on the compensatory award for ordinary unfair dismissal claims is expected to be removed.

Although compensation will continue to be assessed according to established legal principles and actual losses suffered, the removal of the cap could substantially increase potential financial exposure in some cases.

Taken together, the shorter qualifying period and the removal of the compensation cap mean employers may face both a higher volume of claims and greater financial risk where procedures are not followed appropriately.

Do Probation Periods Still Matter? 

Yes, but their purpose should be clearly understood.

A contractual probation period does not remove statutory employment rights. Its value lies in creating a structured period for setting expectations, reviewing performance, providing support and making evidence-based decisions.

Under the new six-month qualifying period, probation processes will need to be more active, better documented and more consistently managed.

Employers should ensure managers:

• Set clear objectives from the outset

• Hold regular review meetings

• Provide constructive feedback

• Address concerns promptly

• Record discussions and outcomes accurately

A well-managed probation process helps employers make informed decisions while giving employees a fair opportunity to succeed.

Should Employers Review Their Probation Arrangements? 

Many organisations currently operate probation periods of between three and six months.

Where probation periods align exactly with the new unfair dismissal qualifying period, employers may wish to consider whether there is sufficient time available to identify concerns, implement support measures and make informed decisions.

The right approach will vary depending on the nature of the business and the role involved. However, employers should ensure their probation framework provides enough flexibility to assess performance properly and respond appropriately where concerns arise.

Managing Performance During Probation 

One of the most common management mistakes is waiting until the end of a probation period before raising concerns.

Under the new framework, employers should adopt a more proactive approach.

Documentation Is Crucial 

As unfair dismissal protection becomes available much earlier, robust documentation will become increasingly important.

Employers should maintain clear records of:

• Probation reviews
• Performance discussions
• Training provided
• Support offered
• Attendance concerns
• Conduct issues
• Decisions relating to probation extensions or termination

Good documentation helps demonstrate that decisions were based on evidence, that employees were treated fairly and that reasonable opportunities for improvement were provided.

It also highlights the importance of ensuring managers understand how to conduct effective reviews and maintain accurate records throughout the employee lifecycle.

Employment Rights Act 2025: Employer Action Checklist 

With January 2027 approaching, employers should begin preparing now.

Key actions include:

Employers that take a proactive approach now will be better prepared to manage both legal risk and employee performance under the new framework. 

How We Can Help 

With unfair dismissal protection reducing from two years to just six months from January 2027, employers are facing a significantly shorter timeframe to assess performance, manage probation periods and make employment decisions with confidence.

Many organisations are now reviewing whether their onboarding processes, probation arrangements, management capability and documentation practices are robust enough to withstand challenge under the Employment Rights Act 2025.

MAD-HR’s Governance and Employment Risk Review helps businesses assess whether their recruitment, onboarding, probation and performance management processes are aligned with the expectations of the new legislation.

We look beyond policies on paper to review how people management practices are applied in reality, helping employers identify potential compliance gaps, reduce employment tribunal risk and ensure managers have the tools and confidence to address concerns early and consistently.

Whether you’re reviewing probation periods, strengthening onboarding programmes, updating employment contracts or preparing managers for the changes ahead, taking action now can help protect your organisation and create a stronger employee experience from day one.

To find out more about our Employment Rights Act 2025 Readiness Audit or to book a discovery call, contact the MAD-HR team today.

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