07/10/2026
Wednesday HUGE update for UK employers: unfair dismissal qualifying period drops from 2 years to 6 months!
Although the change takes effect on 1 January 2027, it already affects anyone you hire from 1 July 2026, because they’ll reach 6 months’ service by 1 January and gain the right immediately.
What this means in practice:
- Probation: if you run 6 month probation, it now ends exactly when unfair dismissal rights switch on. Business owners may want to consider shorter probation (i.e. 3 months) with earlier review checkpoints and clear pass/fail criteria.
- Notice periods: statutory notice counts towards continuous service when assessing the qualifying period, even if you don’t work it. Check contractual notice and termination dates carefully.
- Fixed term contracts: non‑renewal is a dismissal! From Jan 2027, expiry of a fixed term at 6+ months’ service needs a fair reason and fair process (often redundancy or completion of task).
- Short service redundancies: redundancy remains a potentially fair reason, but process matters more, sooner. Expect less tolerance for “quick” exits once your staff hit 6 months.
Action now by:
- Auditing your contracts/handbook for probation length and review dates.
- Mapping current start dates to identify who will hit 6 months by 1 Jan 2027.
- Offering manager guidance on fair reasons, evidence and procedure.
- Reviewing fixed term and cover contracts for end date risk.
Need a quick gap analysis or updated probation/redundancy templates? Get in touch [email protected].