Unfair Dismissal Rights Are Changing in 2027: What Employers Need to Know

The UK employment law landscape is changing. From 1 January 2027, employees will gain the right to bring an ordinary unfair dismissal claim after just six months of continuous service, rather than the current two-year qualifying period. This change will make the first six months of employment more important than ever for employers.

What does this mean for your business?

With a shorter qualifying period, employers will have less time to assess whether a new employee is suitable for the role before unfair dismissal protections apply. As a result, probationary periods will become a key part of managing performance, conduct and capability concerns.

Many businesses have traditionally treated probation as an informal process. However, employers will increasingly need to show that any decisions made during probation are supported by evidence, clear communication and a fair process.

What does a fair probation process look like?

A well-managed probation period should include:

• Clear expectations from day one
• Appropriate induction and training
• Regular review meetings
• Constructive feedback and support
• Opportunities for improvement where concerns arise
• Written records of discussions and actions
• A final review before any dismissal decision is made

Most importantly, a probationary dismissal should never come as a surprise. Employees should understand what is expected of them and be aware of any performance concerns throughout the process.

Don't forget about day-one rights

Being on probation does not remove an employee's statutory rights. Employees remain protected from discrimination, harassment, whistleblowing-related detriment and other forms of automatically unfair treatment from the first day of employment.

This means employers should ensure any dismissal decision is based on genuine business reasons and supported by appropriate documentation.

Why documentation matters

Good record keeping can make all the difference. Employers should be able to demonstrate:

• What concerns were identified
• When feedback was provided
• What support was offered
• Whether improvements were made
• Why a decision was ultimately reached

Clear documentation helps protect businesses and demonstrates that a fair process has been followed.

What should employers do now?

Although these changes do not take effect until 2027, now is the ideal time to review:

• Recruitment and onboarding procedures
• Probationary policies
• Performance management processes
• Manager training
• Documentation and record-keeping practices

By strengthening these areas now, businesses can reduce risk, improve employee performance and prepare confidently for the upcoming changes.

How can Stallard Kane help?

Our HR specialists can help you review your recruitment processes, probation procedures and performance management framework to ensure your business is ready for the future.

To discuss your requirements, contact our Health & Safety team:
Email HR@skaltd.co.uk or call 01427 420 403 to get started.

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