Frequently asked questions: unfair dismissal reform and probationary periods

Changes to unfair dismissal rights

Q1: What is the core change to unfair dismissal rights?

From 1 January 2027, the qualifying period for ordinary unfair dismissal will be reduced from two years to six months. Once an employee reaches six months’ service, they’ll have the right to bring an unfair dismissal claim. 

Q2: Are day one unfair dismissal rights being introduced?

Although the government originally planned for day-one unfair dismissal rights, with a statutory induction period, the final position is simpler: a six‑month qualifying period, with no statutory probationary period.

Q3: Will the new rules apply to people already employed before January 2027?

Yes. Anyone who has already reached six months’ service by 1 January 2027 will gain unfair dismissal rights on that day. That means anyone hired on or before 1 July 2026 will automatically have protection from 1 January 2027. Anyone hired after 1 July 2026 will gain protection once they personally reach six months’ service.

Impact on probationary periods

Q4: How does this change affect probationary periods?

At the moment, most employees within their probationary period will not have two years’ service, so ordinary unfair dismissal rights don’t normally come into play. But from 1 January 2027, employees will gain unfair dismissal rights much earlier — potentially while they are still in their probation period. So employers should make decisions earlier and ensure good documentation from the start.

Q5: Should employers adjust the length of their probation periods?

They should at least review them. If employers want to be able to make decisions prior to the six-month mark, one approach is to have a three‑month probation period with an optional one month extension. And remember: even if you pay someone in lieu of notice, tribunals still add the statutory minimum notice when calculating the employee’s length of service.

If the length of the probationary period will impact any other contractual provisions, such as notice or benefits then this will need to be considered carefully.

Q6: Can probation periods still be extended? 

Yes, provided the employment contract allows for it and the extension is agreed before the original period ends. But remember: once the employee reaches six months service, they have unfair dismissal protection whether they’re still in probation or not.

Best practice and management

Q7: What should employers do to manage employees effectively during probation?

Employers should focus on these areas:

• Communication: set clear expectations early – make sure roles, responsibilities, and goals are clearly communicated. Maintain regular one-to-one meetings, provide feedback and engage in early discussions about any performance concerns.
• Documentation: make notes of meetings, keep evidence of feedback and any issues raised.
• Training: ensure managers are trained on how to manage probationary periods effectively and are aware of changes to legislation and any internal policies and procedures
• Act reasonably throughout – even if an employee doesn’t yet have unfair dismissal rights, showing that you’ve acted fairly is always good practice.

Q8: What role does recruitment play?

It is vital to have robust recruitment and onboarding processes. Improving these initial stages can reduce the need to rely on dismissal later in the relationship. 

Legal risks

Q9: Are there any particular legal risks employers should watch out for?

Yes – employees do not need a qualifying period of service to submit claims of automatic unfair dismissal or discrimination. Dismissals of employees with protected characteristics or in circumstances of pregnancy or family related absence, or where a protected disclosure has been made (whistleblowing) may carry greater risk. 

Q10: So what’s the overall message for employers?

From 1 January 2027, unfair dismissal rights will apply to employees with six months service, so employers should consider making decisions earlier and with good documentation. Probationary processes should be clear, structured, and well‑managed. 

How Stone King can help

If employers need help reviewing contracts, training managers, or updating procedures, our team can support with that. We have prepared a package of documents for use in probationary periods, such as a policy, forms and letters – do let us know if this is of interest to you.