Employers hiring in July 2026 face new unfair dismissal risks in 2027
Employers should review recruitment and probation processes ahead of major employment law changes.
From 1st January 2027 employees in the UK will gain protection from ordinary unfair dismissal after just six month’s service, rather than the current two-year qualifying period.
Although the changes do not take effect until January, employers recruiting throughout the second half of 2026 should start reviewing their approach to probation periods, performance management and dismissal procedures. For businesses across Norfolk and beyond, preparing early will help ensure employment processes remain effective and legally compliant.
Why July 2026 is an important date for employers
An employee who starts a new role in July 2026 could reach six months’ service in January 2027, when the new unfair dismissal protections come into force. This means many employees recruited during the second half of 2026 may gain unfair dismissal rights much sooner than employers are used to.
For employers, this reduces the time available to address concerns relating to:
- Performance
- Conduct
- Attendance
- Capability
- Suitability for the role
Concerns that may previously have been managed within the first two years of employment will need to be addressed much earlier, with clear records and fair procedures in place.
What changes are being made to unfair dismissal rights?
Reduced qualifying period
The qualifying period for bringing an ordinary unfair dismissal claim will reduce from two years to six months. The right to request written reasons for dismissal will also become available after six months’ service.
Removal of the compensation cap
The current statutory cap on compensatory awards for unfair dismissal claims will be removed. While tribunals will continue to assess compensation based on actual financial loss, removing the cap could increase potential financial exposure for some employers.
Changes relating to spent convictions
The qualifying service requirement for protection against dismissal due to a spent conviction will also be removed.
Reviewing probation periods
Many employers currently operate six-month probation periods. However, with employees gaining unfair dismissal protection after six months’ service, organisations should consider whether their existing arrangements still provide enough flexibility.
Probation periods should be actively managed rather than treated as a final review point.
Employers should ensure they:
- Hold regular probation meetings
- Record concerns and discussions clearly
- Provide appropriate support and training
- Set clear expectations from the outset
- Make decisions in a timely manner
Waiting until the end of a six month probation period to address issues could leave employers with little opportunity to act before unfair dismissal rights apply.
Many organisations may wish to consider whether a shorter initial probation period, with the option to extend where appropriate, would provide a more practical approach.
What should employers do now?
Although the changes are not introduced until January 2027, employers should begin preparing now. Key actions include:
- Review probation arrangements
- Consider whether current probation periods remain suitable and allow enough time to assess performance and suitability
- Support managers with training
- Strengthen recruitment and onboarding
- Clear communication at the beginning of employment can help prevent misunderstandings later
- Employers should ensure new starters understand expectations, responsibilities and how performance will be reviewed
- Disciplinary, capability and dismissal processes should be reviewed to ensure they remain robust and compliant with the upcoming changes.
Employment law support
For further advice and assistance in Employment Law matters please do not hesitate to contact Natalie Peacock at natalie.peacock@rogers-norton.co.uk