Six Months. That's All You've Got.
Unfair Dismissal Qualifying Period Is Changing in 2027
Big shift coming for UK employers: from 1 January 2027, employees only need six months' service (not two years) to bring an unfair dismissal claim.
Here's the quick version of what's changing, and what to start doing now.
Unfair dismissal, in a nutshell
To dismiss someone fairly, an employer needs two things to be right: a fair reason and a fair process.
A fair reason usually falls into one of a few categories - poor performance, misconduct, redundancy, illness, or a legal restriction preventing the person from doing the job. "We just don't think it's working" isn't enough on its own; it needs to fit one of these grounds.
A fair process means handling the situation properly before any decision is made - raising concerns with the employee, giving them a genuine chance to improve or respond, and following any relevant company procedure (such as issuing warnings or holding a formal meeting) rather than dismissing on the spot.
If either the reason or the process falls short, the dismissal can be found unfair - even if the underlying decision was reasonable - and a tribunal can order the employer to pay compensation.
What’s changing?
The qualifying time is shrinking. Right now, employees need two years' service before they can claim unfair dismissal. From January 2027, that drops to just six months.
There's no quick easy exit now. Before, employers could use a simpler process to dismiss someone if they had under two years' service. That idea's been scrapped - the full, proper process applies regardless of how long someone's been in the job.
Compensation could cost a lot more. Right now, unfair dismissal payouts are capped at around £118,000. That cap is being removed, so a mishandled dismissal - especially of a senior or highly paid employee - could get much more expensive.
This isn't just for January hires. The six-month rule applies to your existing team too. Anyone who already has six months' service when the change lands in January 2027 is covered from that day, with no delay. Worth planning for now, not later.
Bottom Line: the window to assess a new hire and act if it's not working out just got a lot shorter.
What Employers should be doing now…
Tighten probation periods. Six months isn't long. Shorter probation (3-4 months) with clear checkpoints gives you room to actually catch and address problems in time.
Sharpen recruitment. A bad hire is more expensive than ever. Structured interviews, real reference checks, and clarity on the role upfront all pay off.
Train managers to manage early. Most managers have never had to make a call this fast. They need to know how to set expectations, document issues as they happen, and flag concerns early — not at the six-month review.
Get 1:1s and coaching going from day one. Regular early check-ins do two things at once: they help new hires succeed, and they create a clear record if things don't work out.
The Takeaway
Less time, more process, higher stakes. Employers who tighten up hiring, probation and early management now will be in much better shape than those who wait for January to catch them out.
We’re ready to audit your risk, update your processes, develop your managers and set you up for safer employment – get in touch to find out how we can help your business.