Six-month unfair dismissal rights are coming: Is your probation process ready?

From 1 January 2027, employees will be able to bring an ordinary unfair dismissal claim after six months' service, not two years. For many businesses, that means the traditional six-month probation period no longer offers the employer protection it once did.

Colleagues at a work desk reading paperwork

Published: 02 November 2026•14 minutes read

A new starter joins a business in September. Three months in, the manager has some doubts about their performance, but nothing has been written down. The six-month probation review is pencilled in for March, and the plan is to "see how it goes".

Under the rules that apply today, that approach carries relatively little legal risk. Under the rules coming into force on 1 January 2027, it could mean the employee gains the right to claim unfair dismissal just as the review meeting takes place. If the business then dismisses them with no evidence trail, it could face a tribunal claim where the compensation is no longer capped.

Summary

From 1 January 2027, the qualifying period for ordinary unfair dismissal falls from two years to six months [1].
The change applies where the effective date of termination is on or after 1 January 2027, so employees who already have six months' service on that date gain protection straight away [2].
Probationary processes, timescales manager training should all be reviewed before the change takes effect.
The cap on the compensatory award is removed at the same time. It was set at a maximum of one year’s pay or £123,543 from April 2026 [1][3].
The time limit for most tribunal claims, including unfair dismissal, doubled from three to six months on 1 October 2026 [4][5].
The government has dropped its earlier idea of a statutory probationary period (an "initial period of employment"), so there is no legal safe harbour for new starters [6].
A longer contractual probation period does not delay the right to claim. Unfair dismissal protection arrives at six months whatever the contract says [7].
Some claims never needed any qualifying service, including discrimination and whistleblowing, so other risks still exist from day one [6].

What is changing?

Under the Employment Rights Act 1996, an employee generally needs two years' continuous service to bring an ordinary unfair dismissal claim. Section 25 of the Employment Rights Act 2025 reduces that to six months, and it also removes the power to change the period again by regulations, so any future change would need primary legislation [2].

The government originally planned to make unfair dismissal a "day one" right ,but after negotiations with unions and business groups, it settled on six months as a compromise [6]. The Employment Rights Act 2025 (Commencement No 4 and Transitional and Saving Provisions) Regulations 2026 confirm the 1 January 2027 start date [2].

There are three related changes employers should be aware of:

Compensation is uncapped. Currently, the compensatory award is limited to the lower of 52 weeks' gross pay or a fixed amount (£123,543 from April 2026) [1][3]. From 1 January 2027, the cap will be removed entirely. Tribunals will assess actual and future financial loss, which could be significant for higher earners or employees who struggle to find new work.
Claims can be brought later. Since 1 October 2026, most tribunal claims must be brought within six months of the event complained of, not three. The new limit applies where the dismissal or other act happens on or after that date [4][5].
Written reasons. Employees will also be able to request a written statement of the reasons for their dismissal after six months’ service, rather than two years [8].

Who gains protection, and when?

The new rule is not limited to people hired after 1 January 2027. Anyone with at least six months' continuous service on that date will qualify immediately, which in practice means anyone who started on or before 1 July 2026. Everyone else qualifies once they reach six months.

Group	Who is in it	What it means	Priority action
1. Already past six months	Started on or before 1 July 2026	Protected from 1 January 2027	Deal with any live performance or conduct concerns now, while the old rules still apply, and in a fair way
2. Approaching six months	Started between 2 July and 31 December 2026	Protected on reaching six months, so between January and June 2027	Set a clear review timetable and a firm decision date for each person
3. Future joiners	Start from 1 January 2027	Protected after six months	Use a redesigned probation process from day one

Group 2 is the one most employers are likely to underestimate. These employees are often still on their probationary period, and the date their rights start will vary person by person. Putting together a simple spreadsheet showing each person's start date, probation end date and the date they reach six months will show where the pressure points are.

Why probation periods are affected

Many employers use a six-month probation period, sometimes with little formal review during it. Until now, that sat comfortably inside the two-year qualifying period. Employers could assess a new starter and, if things were not working out, end the employment without much risk of an unfair dismissal claim.

From 1 January 2027, the end of a six-month probation will line up almost exactly with the point at which the employee gains the right to claim [9]. Several practical consequences follow:

• Probation is no longer a legal shield. Having a probation clause does not remove the right for an employee to claim unfair dismissal once six months' service is reached. • The decision window is shorter than it looks. If the business needs to be certain it can end employment without a full process, the decision must be made before the six-month point, not at the review meeting held at the end of it. • Extending probation does not help. A probation period longer than six months in the contract does not defer unfair dismissal rights [7]. • A fair process will be needed more often. After six months, a dismissal for capability or conduct will need a fair reason and a fair procedure. The Acas Code of Practice on disciplinary and grievance procedures sets the minimum standard for misconduct and poor performance [10]. • Evidence matters more. One of the strongest defences to a claim is a clear record of the concerns raised, the support offered and the employee's response [9].

Timing a dismissal around the deadline

It can be tempting to dismiss someone shortly before they qualify. That is risky for two reasons. First, the statutory minimum notice rules can extend an employee's termination date by up to a week for the purposes of calculating qualifying service [11][12]. A dismissal without notice just before 1 January could therefore fall on the wrong side of the line. Second, rushed decisions that skip a fair process can be difficult to defend at tribunal. Employers should also remember that employees do not need any minimum length of service to bring discrimination or whistleblowing claims, as well as some other claims [6].

How to adapt your probation process

From January, the traditional model of a six-month probation with a single review at the end will leave employers with little room. Most will want to restructure it.

Be clear about the purpose of a probation period

Probation is best seen as a structured period of assessment and support, not a legal safe harbour. A probation clause does not stop an employee qualifying at six months, and a longer probation period does not delay it [7]. Say so in your policies, so managers do not assume otherwise.

Build the timeline backwards from month six

Working backwards from the date an employee qualifies to claim unfair dismissal helps employers set a realistic probation timetable. For a six-month probation period, one approach is:

Point in probation	Purpose
Day one	Set written objectives, explain how performance will be assessed and when reviews happen
Weeks 4 and 8	Informal check-ins, with a short written note of what was discussed
Week 12	Formal review against objectives, with clear feedback and support if needed
Month 4 to 5	Decision point: confirm, offer a defined period of extra support, or begin a process to end employment
Before month 6	Outcome confirmed in writing, with enough time for any notice to run if dismissing

This timetable is a suggested approach, not a legal requirement. The key is to make the probation decision early enough to address any concerns before the employee qualifies to claim unfair dismissal, while allowing time for any statutory notice period if deciding to dismiss [11][12].

Review the length of probation

Some employers will move probationary periods to three or four months for lower-risk roles, keeping six months only where the job takes longer to learn. Others will keep six months but treat the first four as the real assessment window. Either can work, as long as the process is consistent and managers know the dates. Another option is to stop having probationary periods altogether.

Use extensions with care

Extending a probation period can be useful if an employee needs more time or support to meet the required standards. However, an extension does not delay their qualifying right to claim unfair dismissal. Once an employee has six months’ service, employers should manage any ongoing performance concerns through a fair and documented process, rather than relying on the extended probation period [7]. Record the reasons for the extension, the improvements required and the support that will be provided.

Keep a decision-ready paper trail

One of the strongest defences against an unfair dismissal claim is having a clear, written record of the reasons for the decision and the process followed [9]. For each probationer, keep:

written objectives and any changes to them
notes of each check-in and review
examples of work that met or fell short of expectations
details of training and support offered
the employee's own comments, and the manager's response.

Hold regular, documented reviews

The traditional approach of a single end-of-probation meeting is unlikely to be enough. Instead, set out clear objectives at the start, and schedule check-ins, for example at four, eight and twelve weeks. Keep simple written notes of what was discussed, what was agreed and what support was offered.

Tackle performance concerns straight away

Waiting until the end of probation can mean unfair dismissal rights have arrived by the time concerns are formally raised [9]. If a manager has doubts, they should be recorded and discussed with the employee early, with a reasonable opportunity for the employee to improve where appropriate.

Take advice before dismissing near the six-month point

If you are considering dismissing someone who has, or is about to have, six months' service, take legal advice before acting.

Update documents and train managers

Documents to review

Contracts and offer letters that refer to a two-year qualifying period.
Probation clauses: length, review arrangements, notice during probation, and what happens at the end.
Staff handbooks and disciplinary, capability and dismissal policies, so that they apply from six months and match the Acas Code of Practice [10].
Templates for probation reviews, extension letters and outcome letters.

What managers need to know

Line managers carry most of the risk, because they are the ones who spot problems and have the conversations. Short, practical training should cover:

the new dates and how to find a team member's six-month point
how to give honest, specific feedback early
what to write down, and where to store it
when to involve HR before acting
why they must not promise permanent employment or suggest probation is a formality.

Common mistakes to avoid

Waiting for the end of the probationary period to raise concerns for the first time.
Treating probation extensions as a fix for a problem that has not been tackled.
Inconsistent standards between managers or teams, which can look unfair and can expose the business to discrimination claims.
Relying on informal conversations with nothing in writing.
Forgetting existing staff, especially those hired in the first half of 2026 who will qualify on 1 January.
Ignoring the cost side. Uncapped compensation changes the calculation for settlement discussions and senior hires [1].

Probation checklist for employers

Identify everyone employed before January 2027 and establish when each person will qualify to claim ordinary unfair dismissal.
Decide whether your standard probation length still works.
Set objectives and review dates for every new starter on day one.
Record each review, including concerns raised and support offered.
Agree an internal deadline for probation decisions that falls well before month six.
Review contracts, probation letters and disciplinary and capability policies.
Brief managers on the new rules and your process.
Build the removal of the compensation cap into your risk assessment, including for senior hires and settlement discussions.

Final thoughts

The six-month rule does not prevent employers from ending employment when things are not working out. However, it means that decisions will need to be made earlier, on better evidence and ideally through a fair process. Employers who use the weeks before 1 January to check their records, address ongoing performance issues and build clear review points into their probation processes will be better prepared than those who make no changes and leave concerns unresolved until the end-of-probation meeting, when dismissal may be the only realistic outcome.