From 1 January 2027, the qualifying period for unfair dismissal is expected to reduce to just six months. This gives employers less time to assess whether a new person is right for the role.
Probationary periods will become increasingly important. Employers should ensure they have clear probationary procedures in place, with structured monthly reviews that allow performance and conduct issues to be identified and addressed at an early stage.
Employment contracts will also play a pivotal role. Employers should consider shortening probationary periods so they conclude before the six-month qualifying period is reached.
Key tips for employers:
Pay attention to notice periods. Statutorily, an employee who has worked for at least one month is entitled to a minimum of one week’s notice. In practice, this means unfair dismissal protection could arise at six months less one week from the employee’s start date. Longer contractual notice periods may bring this date forward even further. Employers should therefore consider including a Payment in Lieu of Notice (PILON) clause in all employment contracts, enabling the earliest effective date of termination where appropriate to be used.
Educate your managers. Managers need to understand the significance of the new timescales. If a manager is reluctant to have difficult conversations, or lacks the confidence to address performance concerns promptly, the six-month window may slip away before issues are identified. Training managers to recognise and deal with concerns early will be essential.
Set clear expectations. Ensure both managers and employees understand the requirements of the role from the outset. Clear objectives and responsibilities make it easier for new workers to understand what they need to achieve in their position and for managers to accurately gauge performance.
Adopt consistent processes. Having clear and consistent probationary procedures and policies in place helps ensure that cases do not slip through the net. Employers should consider standardising probationary periods across the business and scheduling regular performance review meetings to assess progress and review competency. Where concerns arise, they should be addressed promptly before it becomes too late to take action.
If you need assistance with reviewing your employment contracts, probationary procedures or workplace policies in light of the Employment Rights Act 2025, Please contact our Employment Team on York 01904 716000, Wetherby 01937 583210 or Malton 01653 692247 or email law@warekay.co.uk.
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