Probation, and unfair dismissal after six months.

The qualifying period for an ordinary unfair dismissal claim falls from two years to six months. Section 25 of the Employment Rights Act 2025 makes the change to section 108 of the Employment Rights Act 1996, and it comes into force on 1 January 2027.

From the same date the Act also removes the cap on the compensatory award, which had been the lower of a year’s pay or a fixed sum.

It applies in England, Wales and Scotland. In Northern Ireland the qualifying period is still usually one year.

Some claims never needed a qualifying period, and still don’t: dismissal for an automatically unfair reason, such as whistleblowing, pregnancy or asserting a statutory right, and discrimination claims under the Equality Act 2010.

The new rule applies wherever the effective date of termination is on or after 1 January 2027, even if the dismissal was decided or notice given before then. Where that date is before 1 January 2027, the two-year rule still applies.

So anyone who started on or before 1 July 2026 already has six months’ service on 1 January 2027, and is covered from that day. Everyone else is covered once they reach six months.

When you dismiss someone, the date their employment ends for this purpose is pushed back by the statutory minimum notice you would have had to give, even if you pay in lieu or give none (section 97(2) of the 1996 Act). After a month’s service that minimum is one week (section 86).

Our free notice period calculator works out the statutory minimum from their start date.

There is still no legal requirement to have a probation period, and the 2025 Act doesn’t change that: it can be any length (Acas).

Many employers will want probation to end before six months. Acas’s view is that this does not avoid legal risks, and that six months or less won’t suit every role: technical or specialist jobs may need longer for training and assessment.

What helps is a fair, recorded process from the first week:

• tell them at the start what good looks like, and when they’ll be reviewed;
• hold the reviews on time, write down what was said, and share it with them;
• raise problems early, with support and time to improve;
• if the contract allows, extend probation in writing before it ends, with the reason;
• treat everyone the same way: day-one rights, such as protection from discrimination, apply throughout.

Protection from unfair dismissal doesn’t stop you dismissing someone. It means you need a fair reason, such as capability or conduct (section 98 of the 1996 Act), and a fair process: an investigation, a chance to respond, a meeting with the right to be accompanied where it applies, and a right of appeal.

For conduct, follow the Acas Code of Practice on disciplinary and grievance procedures. A tribunal takes it into account.

• List everyone who started on or after 2 July 2026, and the date each reaches six months.
• Book each one’s probation reviews well before that date, with the statutory notice to spare.
• Check your contracts and offer letters: the probation length, whether it can be extended, and the notice during it.
• Update your probation policy, and tell managers what the change means for them.
• For anyone with six months already, follow your full disciplinary or capability process.