The way employers recruit, onboard and manage new employees is about to become even more important.
From 1 January 2027, one of the most significant employment law changes in recent years, under the Employment Rights Act 2025 reforms, will reduce the qualifying period for ordinary unfair dismissal protection from two years to six months. While the legislation focuses on employee rights, the practical impact will be felt much earlier in the recruitment process. Employers will need greater confidence that they are hiring the right people, setting clear expectations and managing probation periods effectively from day one.
Employees who joined on or before 1 July 2026 will already have completed at least six months’ continuous service by the 1 January 2027 and will therefore qualify for ordinary unfair dismissal protection from that date. Employees who start after 1 July 2026 will gain protection once they complete six months’ continuous service.
What Unfair Dismissal Protection Actually Gives Employees
If an employee believes they have been unfairly dismissed, they may be able to bring a claim before an Employment Tribunal. The core protection becomes available once the reduced qualifying period of six months has been met.
Protection against dismissal without a fair reason
To fairly dismiss an employee, an employer will generally need to demonstrate one of the recognised potentially fair reasons, including:
Conduct
Capability or performance
Redundancy
Statutory restriction
Some Other Substantial Reason (SOSR)
If an employer cannot demonstrate a potentially fair reason, the dismissal is likely to be found unfair by an Employment Tribunal.
Protection through a fair and reasonable process
Even where there is a potentially fair reason for dismissal, employers will usually need to follow a fair and reasonable process. Depending on the circumstances, this may include:
Setting clear expectations
Providing appropriate feedback or warnings
Holding documented review meetings
Giving the employee an opportunity to respond
Allowing a reasonable opportunity to improve where appropriate
Tribunals assess both the reason for dismissal and the fairness of the process followed, making documentation and consistency increasingly important.
Potential compensation
Where a dismissal is found to be unfair, an Employment Tribunal may award:
A Basic Award, calculated using a statutory formula
A Compensatory Award, reflecting financial losses where appropriate
This is why the new six-month qualifying period matters. Employers may reach this point of potential legal risk much sooner than under the current two-year qualifying period.
Recruitment Implications
From a recruitment perspective, these reforms make robust hiring decisions, effective onboarding and well-managed probation periods more important than ever.
It is also worth remembering that a probation period does not remove an employee’s statutory employment rights. Employers should ensure probation periods are actively managed with meaningful reviews, appropriate support and clear documentation.
At Glen Callum Associates, we’re hearing a consistent theme from hiring managers as they prepare for the changes. Glen Shepherd, Director, explains:
“I’ve spoken with a number of hiring managers recently, and many are surprised to learn that the unfair dismissal qualifying period is reducing to six months. It’s a ‘I didn’t realise that’ moment.
It means employers can’t rely on long probation periods or assume they have years before protection kicks in. The basics matter requiring clearer expectations, better onboarding and solid recruitment decisions that are genuinely well thought‑out. A few improvements now could save time, cost and disruption once the new rules take effect”
Hiring teams should consider:
Clear role expectations from day one
Measurable performance objectives
Structured, documented probation reviews
Early identification and management of performance or conduct concerns
Recruiting for long-term fit rather than simply filling vacancies
This isn’t about slowing recruitment. It’s about improving hiring quality and ensuring new employees receive the support, feedback and assessment needed to succeed.
Businesses that invest in stronger recruitment, onboarding and probation processes today will be far better prepared for the employment law changes ahead.
A more careful and practical approach to recruitment will make a meaningful difference. This includes taking references, checking employment history, speaking with candidates in depth about their motivations, and matching skills and personal attributes to what the role genuinely requires. It also means making sure the job is right for the individual, not just that the individual is right for the job.
Practical steps that experienced recruiters carry out every day: asking the right questions, spotting gaps, sense‑checking fit and providing an objective view. A little more care at the start of the process helps employers feel confident in their hiring decisions and better prepared for the changes ahead.
With over 26 years’ experience in recruitment across the automotive aftermarket and allied sectors, Kerrie stays closely connected to HR developments, employment law changes and emerging hiring trends.
Through daily conversations with employers and candidates, she helps businesses understand how shifts in employment legislation and recruitment practice influence real‑world hiring decisions. Kerrie regularly shares practical insight drawn from these conversations, offering grounded, up‑to‑date perspective for organisations wanting to strengthen their recruitment approach and navigate HR and employment law changes with confidence.
FAQ
What does the six‑month unfair dismissal change mean for employers? The new Employment Rights Act reforms mean employees will gain unfair dismissal protection after six months’ continuous service, rather than two years. Employers will benefit from clearer expectations, stronger onboarding and well-managed probation processes.
Why are many employers unaware of the 2027 changes? Many hiring managers still associate ordinary unfair dismissal protection with the existing two-year qualifying period. As a result, the upcoming changes are catching many employers off guard.
How should probation periods be adapted? Probation periods should be more intentional, documented reviews, measurable objectives and early conversations about performance or conduct.
Does a probation period prevent an employee bringing an unfair dismissal claim? No. A probation period does not override statutory employment rights. Once an employee has the required qualifying service, they may be able to bring an ordinary unfair dismissal claim even if they remain within their probation period. Employers should therefore ensure probation periods are properly managed and documented.
What should employers do now to prepare? Focus on making high-quality hiring decisions, setting clear expectations from the outset, documenting probation reviews, providing regular feedback and supporting new employees effectively. Small improvements now can reduce both recruitment risk and employee relations issues once the legislation takes effect.
Disclaimer
This article provides a recruitment and employment law overview for general information purposes only. It does not constitute legal or HR advice. Employment law continues to evolve, and employers should seek advice from a qualified employment solicitor or HR professional before making decisions based on their individual circumstances.
