Unfair Dismissal: The two year ‘safety net’ will soon be gone… are you ready?

One of the most significant employment law changes in recent years is fast approaching, and it will fundamentally alter how employers manage new starters.

Under the Employment Rights Act 2025, taking effect from 1 January 2027, the qualifying period to bring an ordinary unfair dismissal claim will be reduced from two years to just six months. In practical terms, this means that anyone recruited from 1 July 2026 (in only several months’ time!) will be able to claim unfair dismissal after only six months’ service.

For employees, this is a major shift in risk, which will soon come much earlier in the employment relationship than is currently the case.

Read on to find out about our upcoming event where we’ll explore these changes further.

Why this is a game-changer

Historically, the two-year qualifying period has given employers a relatively long window to assess suitability, address performance issues, or exit employees without the risk of an unfair dismissal claim when things simply aren’t working out. That safety net is now being dramatically shortened.

With a six-month qualifying period:

• Poor recruitment decisions can turn into legal risk far sooner;
• Effective probationary management and review will become even more important; and
• Processes evidence and decision-making from day one will matter much more.

 

What this means in practice

The reduction in the qualifying period places renewed emphasis on the early stages of employment, including:

Probationary periods

Probation periods will become a critical risk-management tool. Employers will need to actively manage probation, set clear expectations, hold regular reviews and make timely, well-documented decisions.

Recruitment practices

Getting recruitment right will be more important than ever. Clear role profiles, structured interviews and thorough pre-employment checks will help reduce the risk of appointing the wrong person.

Workforce planning

The change will also affect how employers approach restructures and redundancies, particularly where employees will have unfair dismissal protection much sooner.

Policies and training

Managers will need training to understand the new risk landscape and to handle early-stage performance and conduct issues fairly and consistently.

 

Preparing now is essential

Although the change does not take effect until 1 January 2027, it will be relevant to new hires from 1 July this year, so employers should be preparing now. Reviewing probation processes, updating contracts and policies, and training managers well ahead of time will be key to managing the increased risk.

To help employers understand what this change really means in practice, we’re hosting  the following free virtual event at 9:30am on 17 March 2026:

 

Ask the Experts: What the reduced qualifying period to bring an unfair dismissal claim means for employers in practice

We’ll break down:

• What the new six-month qualifying period means in practice;
• Why probationary period management will be increasingly important;
• How to strengthen recruitment to reduce risk;
• The impact on workforce planning, including redundancies; and
• Practical steps employers should be taking now.

The session will include a live, interactive Q&A, with the opportunity to submit questions in advance.

This is an essential session for HR professionals, managers and business leaders who want to stay ahead of the curve and protect their organisation in readiness for this major change.

You can sign up here.