Unfair Dismissal
New 6 Month Qualification Period for Unfair Dismissal
How to Approach the New 6 Month Qualification Period for Unfair Dismissal
Just before Christmas 2025, the Government’s Employment Rights Bill 2025 received Royal Assent. One of the most significant changes introduced by the Government’s employment reforms relates to the qualifying period an Employee must complete before gaining the right to make a claim for unfair dismissal.
We have previously published an article exploring the implications of this change for businesses and Employees, and this can be found here: https://www.kerseys.co.uk/unfair-dismissal/
This article focuses on the practical implications that businesses will need to consider as they prepare for these proposed changes, which are due to come into force on 01 January 2027.
This change represents one of the most significant shifts in unfair dismissal protection in recent employment law history. Unfair dismissal protection was first introduced in the UK in 1971 with a two-year qualifying period. This was reduced to one year in the mid-1970s and remained in place for several decades. The qualifying period was increased back to two years in 2012 as part of wider employment law reforms aimed at giving employers greater flexibility when managing new hires. Under the Employment Rights Bill 2025, the qualifying period will now be reduced to six months, marking a significant shift in favour of earlier Employee protection and the most substantial change to unfair dismissal rights in over a decade.
Given this legislative introduction, Employers must have appropriate processes and steps to manage Employee performance, as well as making essential contractual and procedural changes to ensure they remain compliant. The statutory cap on compensation has now been removed, which means the cost of a bad hire or a poorly managed dismissal process has become a significant financial risk for businesses. The statutory cap was set at the lower of 52 weeks’ pay or a statutory amount (£118,223 from April 2025). In turn, once the unfair dismissal protection has reduced from 01 January 2027, unfair dismissal claims will become much more attractive to higher earners.
Employers will need to be prepared not just for more unfair dismissal claims, but for greater financial exposure when those claims do, in fact, succeed.
How should businesses begin reviewing and adapting their processes now, before it becomes too late?
Rigorous Formal Review Testing
What was previously a review process spanning two years no longer applies. Employers are no longer afforded the same level of flexibility and comfort in managing Employees and must now identify potential mis-hires far earlier in the employment relationship.
Managers will need to identify underperformance at an early stage, ideally within the first three to four months of employment. Regular check-ins at 30, 60 and 90 days following commencement of employment would assist the Employer in ensuring the Employee is the right fit. Any delay in addressing underperformance or raising general concerns about an Employee’s capability or conduct, brings the Employee closer to the six-month unfair dismissal protection threshold.
Creating your Paper Trail
This has always been an essential part of effective Employee management; however, the impending changes significantly increase the importance of maintaining clear and accurate records. Under new legislation, businesses must be able to demonstrate that any dismissal was fair, reasonable, and supported by evidence, following a structured and consistent process far earlier than usual.
Managers should ensure they are documenting all one-to-one meetings, keeping records of discussions with Employees, recording any concerns raised, outlining training or support offered, and setting clear key performance indicators (KPIs) to support improvement. Fairness is now more important than ever. Without a robust paper trail, businesses may find themselves defending Employment Tribunal claims, which can be both costly and time-consuming given the removal of the compensation cap for unfair dismissal.
Contractual vs Statutory
Businesses will need to review their contracts of employment to ensure they align with the proposed legislative changes. Where a business operates a three-month probationary period, we would encourage including a clear contractual right to extend probation where there are concerns about suitability.
However, it is crucial to understand that statutory rights will always override contractual provisions. If a role includes a nine-month probationary period, the Employee will still acquire unfair dismissal protection after six months’ service. In other words, probation does not prevent an Employee from bringing an unfair dismissal claim once the statutory qualifying period has been met.
Final Message
There is no better time than 2026 for businesses to ensure managers are properly trained to manage Employee performance effectively and consistently. Organisations should ensure that all stakeholders are aligned with updated processes and expectations well in advance of the changes coming into effect in 2027.
Business should act now will be far better placed to manage dismissals with confidence once the new unfair dismissal protections apply from 01 January 2027.
Are you confident in your current probationary processes, or are you unsure where to start when adapting to these changes? We have a wealth of experience in managing complex Employee relations issues and can provide practical, commercially focused solutions that minimise risk and management time.
For further information, please contact:
Kerseys Solicitors in Ipswich at [email protected] or telephone 01473 213311 or
Kerseys Solicitors in Felixstowe at [email protected] on 01394 834557 or
Kerseys Solicitors in Woodbridge at [email protected] on 01394 813732 or
Kerseys Solicitors in Colchester at [email protected] on 01206 584584 or
Kerseys Solicitors in Stowmarket at [email protected] on 01449 613631 or
visit our website and click “Call Me Back” where one of our employment team will be happy to contact you at a time that is convenient to you.
