Q: Unfair dismissal will become a six-month right from the start of next year, but we have a six-month probation period for all new employees. What impact will this have?
A: The government has confirmed that the changes to unfair dismissal protection will take effect from January 1, 2027. That might sound like a long way away, but it’s important that businesses start to prepare now.
One important point to note is that this right will be applied retroactively, meaning anyone you hire between now and then will automatically gain the right to claim unfair dismissal once the six-month qualifying period takes effect.
It’s estimated that about six million people will benefit from the new right; the only people who won’t automatically gain the right on January 1 are those hired on or after July 2, 2026. They will gain it once they reach six months’ service.
Reducing the qualifying period for unfair dismissal from two years to six months is a significant change, so it’s more important than ever to ensure your recruitment and induction processes and procedures to avoid coming unstuck.
Firstly, focus on attracting the right candidates to minimise the risk of making unsuitable hires. Then once you’ve hired someone, effective management of those first few months of employment will be even more crucial.
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