Unfair Dismissal Changes: Why 1 July 2026 Matters

Probation periods need attention

1 July 2026 marks a key milestone under the Employment Rights Act 2025.

From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will be reduced from two years to six months.

This means employees who are employed on or before 1 July 2026 may have six months’ service when the new rules take effect.

What employers must do to avoid falling foul of the new rules:

Review contracts: Ensure probationary periods are set to no longer than five months.

Tighten up performance management: Ensure line managers identify, report and address performance and/or conduct issues before six months.

Documentation and evidence: Employees will gain the right to written reasons for their dismissal, so each review, meeting and outcome must be clearly documented.

Our thanks to Croner for the reminder.

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