Important update: Unfair Dismissal Rights and Probation Periods For New Hires From 1 July 2026

As promised, we’re continuing to keep you updated on the employment law changes coming into force this year and next, and the implications for employers.  Whilst changes are planned for October 2026 (which we’ll cover in a separate article), we’re fast forwarding to take a look at the changes due in January 2027, around unfair dismissal rights.

Why this matters now

The reason for looking ahead is because anyone who joins your company on or after 1 July 2026, will have accrued 6 months’ service on 1 January 2027 and so will automatically be protected against unfair dismissal. Anyone joining after 1 July 2026, will gain protection once they reach six months’ service.

How the qualifying period works

• Trigger point: Continuous service is counted from the employee’s first day of employment.
• Cut-off point: The key date is the employee’s effective date of termination.
• Hidden risk: If you dismiss an employee close to the six-month point and do not give the required statutory minimum notice of one week, that notice period will be added to their service. This means that they are treated as having reached the six-month qualifying threshold, which would allow them to bring an unfair dismissal claim.
• Practical implication: If dismissal is being considered during probation, employment should usually end before week 25 to allow for statutory notice.
• Panic zone: If you miss the week 25 deadline, it becomes much harder to end employment without triggering unfair dismissal protection.

What employers should do now

• Probation periods: Consider reducing probation periods to three, four or five months for any new hire who joins after 1 July 2026. This gives managers enough time to assess performance and make decisions before unfair dismissal protection is likely to apply.

Managing poor performance or a lack of cultural fit during the early stages of employment will now require earlier review points, clearer decision-making and stronger documentation.

Businesses across the UK should take the following proactive steps:

1. Review probation periods: Check whether your current probation arrangements still work under the new timetable. Make sure managers are actively reviewing new starters and taking action promptly where concerns arise.
2. Strengthen documentation: Record performance concerns, capability issues and conduct warnings clearly from day one. Good records will be essential if decisions are later challenged.
3. Train managers: Ensure line managers understand how to handle probation fairly, hold transparent conversations and follow a consistent process when performance or conduct issues emerge.

We will continue to keep you updated as and when further changes become effective. If you have any questions, around managing probation periods, or are concerned about how to approach a particular situation within your business or are interested in our training courses, then please do not hesitate to contact us.