From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years to six months. While the legislation takes effect on that date, its practical impact begins much earlier. Employees who start work in June 2026 will gain unfair dismissal protection by the time the reform comes into force. That means probationary clauses and processes must be fit for purpose before those hires even join.
This marks a fundamental shift in how probation operates.
Historically, probation periods sat comfortably within the two-year qualifying window, giving employers a relatively low-risk period to assess suitability. From 2027, that buffer disappears. For many new hires, unfair dismissal rights will arise during or immediately after probation, or even before a formal decision has been made to confirm their role. As a result, probation will become the primary decision-making window before legal protection crystallises. If performance, conduct, or capability issues are not identified and addressed early, employees may pass the six-month threshold by default, bringing any dismissal within the scope of unfair dismissal law.
Employers should be reviewing both their probationary clauses and the processes that support them, particularly in the lead-up to recruitment ahead of the new regime. From 1 January 2027 onwards, dismissals of relatively new hires will carry significantly greater risk, including employees engaged on or before 30 June 2026 who will already have six months’ service.
Once the six-month threshold is reached, even short-service dismissals will require a fair reason and a fair process. Probation will no longer be a tick-box exercise, it will be a critical risk management tool that requires active oversight.
Now is the time to act.
Review your probationary periods, strengthen your processes, and ensure managers are equipped to assess, document, and act within the required timeframes. For advice ahead of your June 2026 hiring plans, please get in touch.
