Many SME owners are currently focused on rising employment costs, evolving workplace rights and ongoing economic pressures. However, the employment law team at Allin1 Advisory wishes to remind SMEs that major employment law reforms on the horizon could catch many employers off guard if they have not already prepared.
From 1 January 2027, the qualifying period for bringing an ordinary unfair dismissal claim has reduced from two years’ service to just six months, significantly shortening the timeframe employers have to assess new recruits and make decisions regarding their ongoing employment.
Employment lawyers are warning that many SMEs remain unaware of the practical implications of the change, particularly where they rely on informal probation processes, limited HR support, or inconsistent performance management procedures.
For many years, employers have generally had a two-year qualifying period before an employee could bring an ordinary unfair dismissal claim. While employees have always benefited from day-one rights in areas such as discrimination and whistleblowing, the two-year threshold has provided businesses with a relatively lengthy period to assess whether a new hire is the right fit. They can place them on performance reviews, extend probation periods and limit salary increases...
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