In April 2026, the rules around unfair dismissal changed. Employees used to need two years of service before they could make a claim, meaning dismissing people with under two years service came with less risks. From 2027, employees will have the right to claim unfair dismissal from day one.
If you’ve hired anyone this year, they could have full unfair dismissal protection from 2027 onwards too. That’s not far off. Now is the right time to make sure your probation process is up to scratch and your managers are trained.
Key facts at a glance
The core rules around unfair dismissal haven’t changed. You can still dismiss someone who isn’t working out. You just need to be able to show you had a fair reason and handled it properly. What’s changed is how quickly those protections kick in.
The biggest practical change is to how you run your probation period. If someone joins in October and things aren’t working out by March, you can’t just have an informal chat and let them go. They now have six months’ service. That means you need a fair reason, a fair process and documentation to back it up.
That’s not as daunting as it sounds. But it does mean probation reviews need to be structured, concerns need to be raised in writing and managers need to know how to handle these conversations properly.
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With time to prepare, employers can get ahead of these changes rather than reacting later.
Now is a good opportunity to:
If you’d like support reviewing your processes or preparing for these changes, Limelite would be happy to help.
Your probation period needs to do more work now. At a minimum, every new starter should have regular check-ins throughout their probation with documented feedback. If there are concerns, they need to be raised clearly and early, in writing, with time given to improve. If you decide not to keep someone on, you need a written statement of reasons and a fair process before they go.
None of this needs to be complicated. A short monthly review form, an honest conversation and a brief follow-up email confirming what was discussed is enough to create a paper trail. Most small businesses don’t have this in place yet. It’s one of the quickest things to fix.
Some employers are also thinking about running shorter probation periods, say three months, to keep a clearer window before the six-month threshold kicks in. There are pros and cons to this and it’s worth getting specific advice before changing your standard approach.
The six-month qualifying period is a stepping stone. From 2027, the plan is to remove it entirely. Every employee, from their first day, will have the right to claim unfair dismissal. If you hire someone in 2026, they will have that protection within the next few months.
This means the habits you build now around structured probation, good documentation and proper performance management will matter even more going forward. Getting the process right in 2026 means you’re already prepared for what’s coming in 2027.
Most unfair dismissal claims don’t happen because a business owner made a bad decision. They happen because a manager handled a situation badly, didn’t document it, avoided the difficult conversation until it was too late or followed the wrong process. With the qualifying period now at six months and heading to day one, your managers can’t afford to wing it.
Good manager training doesn’t have to mean a full day out of the office. It means making sure your team knows how to run a structured probation review, how to raise performance concerns early and in writing, how to have a direct and honest conversation when things aren’t working, and what to do if they think a dismissal might be necessary. We cover all of this as part of our manager and leadership training programmes.
From April 2026, any employee with six months’ service can ask you for written reasons why they were dismissed. You must respond within 14 days. If you don’t, or if your reasons are vague, a tribunal can add two weeks’ extra pay on top of any other award. The fix is simple: document your reasons at the time and run a fair process.
Until April 2026, unfair dismissal compensation was capped. Now there’s no limit. Tribunals award based on actual financial loss. For most employees on average salaries, awards are still likely to be modest. But for higher earners, or where someone struggles to find new work quickly, the exposure is much greater. Following a fair process is the single best protection you have.
ACAS guidance on dismissals sets out the standard that tribunals use when assessing whether an employer acted reasonably. It’s worth reading.
We help small businesses across Worcestershire, Birmingham and the wider UK get their probation processes, dismissal procedures and manager capability in good shape. Whether that’s a quick review of your documentation, training for your managers on handling probation and performance properly, or ongoing retained HR support, we make it straightforward.
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About the author
Helen Scullion Assoc. CIPD, HR Client Manager at Limelite HR & Learning. Helen supports organisations with day-to-day HR management, employee relations and practical people support. Connect with Helen on LinkedIn.
It changed on 6 April 2026. Employees used to need two years of service before they could bring an unfair dismissal claim. Since April 2026, that reduced to six months. A further change is expected in 2027, which is set to remove the qualifying period entirely, giving all employees protection from day one. Anyone you recruit in 2026 could have day-one rights within a year or two of joining you.
Yes. The rules around what counts as a fair dismissal haven’t changed. What’s changed is how quickly employees gain the right to challenge a dismissal. If someone has six months’ service, they can now bring a claim. That means you need a fair reason, a fair process and documentation. Regular probation reviews, honest feedback in writing and a clear statement of reasons at dismissal are the basics. If you’re not sure whether your process is strong enough, get advice before you act.
You must be able to show a fair reason for the dismissal and that you followed a fair process. If the employee asks for written reasons, you must provide them within 14 days. Failing to do this, or giving vague reasons, can result in a tribunal awarding an additional two weeks’ pay on top of any other compensation. Keep records of probation reviews, any concerns raised and any warnings given throughout the employment.
Start with regular check-ins throughout probation, documented with brief notes. If there are concerns, raise them clearly and early in writing and give the employee time to improve. If you decide not to keep someone on, have a proper meeting, give written reasons and follow a fair process. It doesn’t need to be complex. A simple monthly review form and a brief follow-up email after each conversation is usually enough to create the paper trail you need.
From 2027, the qualifying period for unfair dismissal is expected to be removed entirely. All employees will have protection from their first day of work. If you hired someone in 2026, they will likely have day-one rights from 2027, depending on exactly when the change comes into force. That makes it even more important to build good habits now around structured probation, documentation and manager training, so you’re already set up for the new rules when they arrive.
Yes, and this is one of the most common gaps we see. Most unfair dismissal claims don’t happen because a business owner made a bad decision. They happen because a manager avoided a difficult conversation, didn’t document things properly or followed the wrong process. Good manager training covers how to run probation reviews, how to raise concerns early and in writing, how to have direct conversations when things aren’t working and what to do if a dismissal might be necessary. Limelite offers manager training that covers all of this practically and without jargon.
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