The Unfair Dismissal Qualifying Period Is Changing.

21st September 2026

By Laura Weston MCIPD  |  6 minute read

You’ve probably heard that the two year qualifying period for bringing a claim in the Employment Tribunal for ordinary unfair dismissal is being scrapped completely, and that new employees will get protection from their very first day of employment.

That’s not what’s happening. The government pulled back from that plan, but what’s coming instead still matters, just not in the way most people think.

Key facts at a glance

  • The qualifying period for ordinary unfair dismissal drops from two years to six months from 1 January 2027
  • Day one protection has been dropped in favour of the six month qualifying period
  • The cap on unfair dismissal compensation is also removed from 1 January 2027
  • Tribunal claim time limits double from three months to six months from 1 October 2026
  • Fire and rehire becomes automatically unfair in most cases from 1 January 2027

What’s actually changing on unfair dismissal

From 1 January 2027, the qualifying period to bring a claim for ordinary unfair dismissal drops from two years to six months, meaning employees will be able to bring a claim once they’ve been employed for six months, rather than waiting two years as the law currently stands.

Day one protection was the original proposal under the Employment Rights Act but the government changed course after serious objection in the House of Lords and settled on a six month qualifying period instead. It’s a big cut from two years, but it’s not the blank slate some coverage has implied.

The cap on the compensatory award for unfair dismissal will also be removed from 1 January 2027.

Combined with the shorter qualifying period, that’s the bit worth paying closer attention to.

Article

  • Ready For the Six Month Qualifying Period?

    From 1 January 2027, employees can bring an unfair dismissal claim after just six months. That’s not a lot of runway to get things right.

    Our HR Support team helps you:

    ✔ Tighten up probation and early service processes
    ✔ Build documentation that actually holds up
    ✔ Get ahead of fire and rehire risk
    ✔ Get practical, straight talking legal guidance when you need it

    If you’re not sure your current process would stand up, let’s talk it through.

    Or book a 30 minute discovery call here:

    Book a free 30-minute discovery call

Fire and rehire becomes automatically unfair

Separately, dismissal and rehire (better known as fire and rehire, where an employer dismisses someone and offers to rehire them on new, altered terms) will become automatically unfair in most cases.

An updated Code of Practice to support this is due, so the detail of what counts as a ‘restricted variation’ isn’t fully settled yet. What is settled is the direction of travel: using fire and rehire as a way to force through a contract change is going to be much harder to defend.

For most SMEs this isn’t about restructuring on a whim. It’s about making sure that if you ever do need to change terms and conditions, you’ve genuinely consulted first, and you’re not relying on dismissal and rehire as your fallback plan.

Tribunal time limits double, and this one’s coming sooner

From 1 October 2026, the time limit for bringing most employment tribunal claims increases from three months to six months (plus any extension by reason of ACAS Early Conciliation).

In practical terms, that gives an employee twice as long to weigh up whether to bring a claim, take advice, or wait and see. For employers, it means a decision you made in January could still be challenged as late as July, not April.

Day one protection isn’t coming. A six month qualifying period, no compensation cap, and tighter fire and rehire rules are, and that’s plenty to plan for.

What to do now

A few practical steps are worth starting before any of this lands.

  • Review your probation and early-service processes so performance and conduct issues inside the first six months are documented properly, not handled informally
  • Check any planned contract variations for whether they could look like fire and rehire, and build in genuine consultation time
  • Brief your managers on the new six month window, and make sure they’re trained on how to manage probation and performance in general
  • Tighten your record keeping, given tribunal claims can now surface much later than they used to

How Limelite Can Help

None of this needs a panic response, but it does need a plan. We help organisations across Worcestershire, Birmingham and the wider West Midlands review probation and early-service processes, tighten up documentation, and get ahead of the six month qualifying period before it lands.

If you’re not sure how your current process would stand up once that window shrinks, that’s exactly the kind of thing worth talking through now.

Book a free 30-minute discovery call

We’ll help you work out what needs doing first.

About the author

Laura Weston MCIPD, Senior HR Consultant at Limelite HR & Learning. Specialises in employment law, HR compliance, change management and policy support, helping organisations across Worcestershire and the UK navigate complex people challenges with confidence. Connect on LinkedIn.

FAQS

  • Is unfair dismissal protection really becoming a day one right?

    No. That was the original proposal, but the government changed it to a six month qualifying period, starting 1 January 2027, instead of the current two years.

  • When do the tribunal time limit changes take effect?

    From 1 October 2026 for most claims, moving from three months to six months. Breach of contract claims in Scotland change slightly later, on 9 November 2026.

  • What counts as fire and rehire under the new rules?

    Dismissing an employee and rehiring them, or someone else, on new and/or altered terms to force through a contract change. From 1 January 2027 this will be automatically unfair in most cases, though the full Code of Practice isn’t due until later in 2027.

  • Is the compensation cap for unfair dismissal changing too?

    Yes. The cap on unfair dismissal compensation is being removed from 1 January 2027, the same date the qualifying period changes.

  • Where can I check if anything's changed since this was written?

    ACAS keeps its Employment Rights Act 2025 guidance page updated as changes are confirmed. It’s worth checking there directly rather than relying on any single article, including this one.