HR Update - The Clock is Ticking: Unfair Dismissal Rights change on 1st January 2027

Six months may well feel a long time away, Christmas certainly does. But for employers the next six months are very important, especially if you have staff you are not sure about, and who have joined you in the last 18 months.

Because from 1^st January next year, employees will only need six months' continuous service to bring an unfair dismissal claim. This replaces the current two-year qualifying period, and will affect the vast majority of employers in Great Britain.

The change will be immediate; there is no phasing in. From that date, any employee with six months or more service acquires full unfair dismissal protection - which means everyone you hired before or after 1 July 2026 will be protected from day one of the new regime.

 This is not a can you can just kick down the road. Anyone you have hired since January 2025 will either already be protected when the law changes, or will reach the six-month threshold within a few months of it. For employers who have recently been actively recruiting and appointing, this will already apply to their new starters.

What does this mean in practice?

Having unfair dismissal rights does not mean you cannot dismiss someone - it means that if you do, the dismissal must be for a valid reason, and handled through a fair process.

You need to have documented your concerns, properly followed your full disciplinary procedure, given the employee an opportunity to respond, and considered alternatives where appropriate.

Tribunals ask whether a reasonable employer, acting reasonably, would have dismissed in the same circumstances. The bar is not impossibly high, but it does require proper process from early in the employment relationship, careful documentation and reasonable behaviour.

What should you do now?

Start by identifying everyone on your payroll hired since January 2025 - these are the employees who will be affected, either immediately or soon after the change. If you have any planned dismissals, or end-of-probation decisions coming up, check whether the employee will have six months' service by 1^st January 2027 before you act.

Review your probation process. A well-run probation period - with clear expectations set from day one, regular documented reviews, and a formal end-of-probation assessment - gives you the evidence base to act fairly if needed. Under the old two-year rule, there was time to let things drift; under the new six-month rule there is not.

Make sure your Line Managers know how to handle early performance or conduct concerns properly. Most Tribunal claims arise not from bad intentions, but from poor process - undocumented conversations, skipped performance review meetings, or no opportunity given to improve. The earlier in the employment relationship Managers deal with issues, and the better they document them, the stronger your position will be.

Finally, check that your contracts, policies, and procedures are up to date, and reflect what you actually do in practice. If your disciplinary procedure has not been reviewed recently, now is a good time.

Coming next

We are launching a new series of practical guides covering exactly what you should be doing at each stage of the early employment relationship - from offer letter to end of probation. The first instalment will be with you shortly.

In the meantime, if you have any concerns about how the change affects your business or want to review your current procedures, please get in touch.

The guidance provided in this article is just that - guidance. Before taking any action, make sure that you know what you are doing, or call an expert for specific advice.