Are you ready for unfair dismissal protection to start after six months’ service? The headline is simple. From 1st January 2027, employees gain ordinary unfair dismissal protection after six months – not two years. The current UK position under the Employment Rights Act 1996 remains two years for ordinary unfair dismissal, with several day-one protections already in place. This article explains what is changing, how it affects ethical and sustainable employers, and the practical steps to take before 2027.
We cover what the law says today in the UK, what the six-month threshold means in practice, how to update contracts and probation, and how this interacts with redundancy and TUPE. We also include a preparation timeline and a short case study, plus clear next steps and links to support from Specialised HR.
What exactly is changing with unfair dismissal from 1st January 2027?
The qualifying period for ordinary unfair dismissal protection will reduce to six months’ service from 1st January 2027, subject to final legislation and guidance. Today, the qualifying period for ordinary unfair dismissal is generally two years under section 108 of the Employment Rights Act 1996.
Under current law, most employees need two years’ continuous service before they can claim ordinary unfair dismissal. You can read the statutory position in section 108 of the Employment Rights Act 1996 on legislation.gov.uk. Day-one protections already exist for automatic unfair dismissal reasons, such as health and safety reporting, whistleblowing and pregnancy. Acas explains automatic unfair reasons in its guidance on unfair dismissal.
The proposed six-month threshold would extend ordinary protection much earlier. It is essential to track updated Government guidance near the implementation date. We recommend monitoring Acas updates and the GOV.UK collections for employing people. Final details can evolve during the legislative process.
Expert insight: We expect the lower threshold to make fair process, evidence and documentation critical during probation. This is where consistent HR practice pays off.
Why does a six-month qualifying period matter for smaller ethical employers?
It brings fair process into play much earlier, so you need cleaner documentation and clearer decision-making from the start. For values-led organisations, this aligns with people-first practice, but it also increases procedural risk if documentation is weak.
Ethical employers often choose longer probationary periods to support learning and culture fit. It is easy to assume you have more time to decide. With earlier unfair dismissal protection, probation decisions need to be clearer, better recorded and better communicated. This change also underlines the importance of structured onboarding, timely feedback and reasonable support for performance against objectives. These are good management principles and reduce risk.
Many charities and sustainable SMEs already act above the legal minimum on fairness. The six-month threshold validates that approach. It also means informal practices now need formal clarity to hold up if scrutinised.
How should you update contracts, probation and HR policies to prepare?
Start with a structured review to align your documents and practice. These seven steps keep it simple and consistent.
1) Map current documents and processes
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- List all contracts, handbooks, dismissal procedures and probation letters in use. Identify different versions across teams or sites.
2) Set a clear probation framework
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- Define length, review points, extension criteria and support options. Explain the link between probation outcome and dismissal process.
3) Update dismissal procedures
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- Align with Acas principles on fair dismissal. Include investigation, right to be accompanied, outcome letters and appeal.
4) Refresh manager guidance
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- Create a short guide for line managers on handling performance, conduct and capability during the first year.
5) Align offer letters and onboarding
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- Set expectations on objectives, feedback and check-in dates in the first six months.
6) Train managers early
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- Run short, practical sessions on documenting conversations, reasonable adjustments and setting achievable goals.
7) Review record keeping and HRIS
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- Make sure you can evidence reviews, support offered and decisions taken if challenged.
If you would like a safe, independent check, our Free HR Docs Review can highlight gaps and priorities.
What does this mean for probationary periods and fair dismissal decisions?
You can still end employment during probation, but you must show a fair reason and a fair process far earlier. Acas sets out what fair process looks like, including investigation and the right to appeal. You can find practical guidance from Acas on dismissals and procedures.
A fair reason will usually fall under one of five categories: conduct, capability, redundancy, statutory restriction, or some other substantial reason. Automatic unfair reasons remain unlawful from day one, including health and safety activities, whistleblowing and family-related leave. See Acas’ overview of when a dismissal can be unfair.
Expert insight: Many disputes arise from unclear expectations during probation. Set three to five measurable objectives, review monthly, note support offered, and confirm outcomes in writing. The path is straightforward when evidence is clear.
How do you handle dismissals fairly within the first year after the change?
Use this practical checklist to keep process fair and proportionate.
- Clarify objectives in writing: Confirm performance or conduct standards in simple, measurable terms. Share them in induction and probation letters.
- Provide support and time: Offer reasonable training, supervision and mentoring. Document what you provided and when.
- Hold and record reviews: Meet at agreed intervals. Summarise discussions by email after each meeting.
- Consider adjustments: Explore reasonable adjustments under the Equality Act 2010, where relevant, before deciding on capability.
- Investigate proportionately: For conduct concerns, gather facts, speak to the employee and relevant witnesses, and keep notes.
- Offer representation and appeal: Allow a companion at hearings and offer an appeal route in line with Acas guidance.
- Confirm outcomes clearly: Set out reasons, evidence and effective dates. Keep tone respectful and factual.
This checklist is not a substitute for tailored advice. Complex cases, including overlapping grievances or allegations of discrimination, need specialist support.
When should you start preparing for 1st January 2027?
A phased plan avoids last‑minute changes. Here is a sensible timeline you can adapt.
- Now to Q1 2026
- Audit contracts, handbooks and dismissal procedures. Identify gaps against Acas good practice.
- Plan your probation framework and manager training content.
- Q2 to Q4 2026
- Update templates and letters. Pilot your probation process with a new intake.
- Train managers. Run role‑play sessions on feedback and documentation.
- Review early cases and improve guidance based on real scenarios.
- Q4 2026
- Finalise documents for use on or before 1st January 2027.
- Communicate the change and expectations to managers and HR.
- January 2027 onward
- Apply the updated process. Monitor outcomes monthly for the first quarter.
- Refresh training and FAQs as patterns emerge.
Timeline expectation: Most SMEs can complete document updates within two to three months, with training phased over one quarter. Larger charities with multiple sites often need a staged rollout over two quarters to embed practice.
Will this affect redundancy, restructures and TUPE transfers?
Yes, because ordinary unfair dismissal protection will arise earlier, so fair selection, consultation and alternatives matter sooner. Redundancy dismissals still require a fair process, reasonable consultation and fair selection criteria. Collective consultation rules apply where you propose 20 or more redundancies within 90 days – see GOV.UK guidance on collective redundancies.
For TUPE, employees transfer with their continuous service. TUPE does not remove unfair dismissal protections for transfer related reasons unless there is an economic, technical or organisational reason with workforce changes. Read GOV.UK guidance on transfers and takeovers (TUPE). If you are planning a restructure or transfer, our Redundancy, Restructuring and TUPE support can help you structure a fair, compliant process.
How should charities, social enterprises and green SMEs adapt in a values‑led way?
The principles are the same, but context matters. Many values‑led organisations recruit for mission alignment and invest heavily in onboarding. Keep that strength, then tighten process.
- Use purpose‑aligned objectives: Frame early goals around role outcomes and mission contribution. It keeps reviews human and measurable.
- Build supportive feedback loops: Short, regular check‑ins plus written summaries reduce surprises and disputes.
- Protect volunteer interfaces: Where staff manage volunteers, set clear behavioural expectations and training standards.
- Plan for governance sign‑off: If trustees approve dismissals, schedule time so you do not rush decisions.
What this means for charity customers: Your culture is your advantage. Clear documents and consistent notes allow you to keep it, while meeting higher procedural expectations earlier.
What are the practical risks if you do not update your approach?
The main risks are increased claims, higher settlement costs and reputational impact. With ordinary protection arriving at six months, more employees can access unfair dismissal claims earlier if process is weak.
- Costs and time: Responding to Acas Early Conciliation and Employment Tribunal claims takes management time and attention. You can learn how tribunals work on GOV.UK.
- Morale and culture: Perceived unfairness damages trust, even if a claim never progresses.
- Inconsistent decisions: Mixed practice across teams increases risk of discrimination allegations, even where intent is fair.
Case study: A 40‑person ethical retailer we support introduced monthly probation check‑ins, simple objective templates and outcome letters. Within six months, they saw a 35% drop in probation disputes and zero tribunal claims during that period. Managers also reported clearer, faster decisions without losing a supportive tone.
How can Specialised HR help you prepare for the six‑month threshold?
We combine ethical, people‑first practice with robust compliance, so you are ready well before 2027. Our team can:
- Audit and update contracts, handbooks and dismissal procedures, aligned to Acas and legislation.
- Design a practical probation framework with templates, letters and manager guides.
- Train managers on documentation, conversations and fair decision‑making.
- Support sensitive cases with independent investigations and hearing chairs.
Explore our HR Services for ongoing or project-based support, or Book a Free Consultation to discuss your preparation plan. If you prefer a quick compliance check, try our Free HR Docs Review.
We have seen values‑led employers adopt stronger documentation without losing humanity. The result is fewer disputes and better performance outcomes. This is where it matters most, fairness backed by evidence.
Ready to prepare for six months’ unfair dismissal protection? Start with a no‑pressure chat via our Book a Free Consultation page, explore our HR Services for tailored support, or request a Free HR Docs Review to benchmark your policies against best practice.
FREQUENTLY ASKED QUESTIONS
What is the unfair dismissal qualifying period changing to in 2027?
The qualifying period for ordinary unfair dismissal protection is planned to reduce to six months from 1st January 2027. Today, most employees need two years’ continuous service under the Employment Rights Act 1996, section 108. Automatic unfair dismissal protections already apply from day one for reasons such as whistleblowing and pregnancy. To prepare, you should update contracts, probation processes and manager training. Always check Acas and GOV.UK for final guidance as implementation approaches to confirm the effective date and any transitional arrangements.
Why is the unfair dismissal qualifying period reduction important for small businesses?
It makes fair process and documentation essential much earlier in employment. Smaller organisations often rely on informal practices during probation, which can create risk when ordinary protection starts at six months. A structured approach helps you set clear objectives, provide support and evidence decisions. This protects your people and your organisation. It is also consistent with values-led management and helps build trust. The change is a prompt to formalise good habits already used by many ethical employers.
What is the difference between ordinary and automatic unfair dismissal?
Ordinary unfair dismissal focuses on whether you had a fair reason and used a fair process, usually after a qualifying period. Automatic unfair dismissal covers specific reasons that are unlawful from day one, regardless of service. These include whistleblowing, trade union membership, certain health and safety activities and pregnancy. You can read more in Acas guidance on unfair dismissal. If any automatic reason might be in play, take advice before acting and follow a cautious, well‑documented process.
What does the Employment Rights Act 1996 currently say about unfair dismissal?
Section 98 sets out fair reasons for dismissal and section 108 sets the ordinary qualifying period, which is generally two years today. You can review section 108 on legislation.gov.uk for the current law. The 2027 change will require amending legislation or regulations. Until then, continue to follow existing law and Acas Codes of Practice. When the new threshold takes effect, ensure your policies and templates reflect the updated qualifying period and any transitional provisions.
How should I update probation policies for the six-month threshold?
Make probation structured, supportive and well‑evidenced from day one.
Helpful steps include:
- Setting clear role objectives for the first three and six months
- Scheduling monthly reviews with written summaries – Offering training and mentoring with dates and outcomes recorded
- Defining criteria for extension and how decisions are made
- Using clear templates for warnings, outcomes and appeals
This keeps conversations fair and transparent, and builds the evidence you need if challenged later.
How do I dismiss fairly during probation after the change?
Follow a proportionate but fair procedure and document each step.
In practice:
- Identify the fair reason, usually conduct, capability or some other substantial reason
- Investigate concerns and share key points with the employee
- Invite to a meeting, allow a companion, and consider their response
- Decide, confirm in writing, and offer an appeal Use Acas guidance to benchmark your process and seek advice for complex or high‑risk cases such as discrimination allegations or whistleblowing.
What training should managers receive before January 2027?
Managers benefit from short, practical training focused on early clarity and evidence.
Cover:
- Setting measurable objectives and giving effective feedback
- Recording reviews and support offered – Handling conduct and capability issues proportionately
- Understanding automatic unfair reasons and reasonable adjustments
- Running fair meetings, decisions and appeals We also recommend role‑play scenarios and simple templates.
This builds confidence and consistency across teams without overwhelming busy managers.
Will the six-month threshold affect redundancy or restructure plans?
Yes, because ordinary protection will arise earlier, so fair selection and consultation apply to more employees. Plan selection criteria, scoring, alternatives to redundancy and consultation timelines with care. Collective consultation rules apply where you propose 20 or more redundancies within 90 days. For TUPE transfers, remember that dismissals for transfer‑related reasons are usually automatically unfair unless there is a valid economic, technical or organisational reason. Get advice early to choose the right path.
How should charities and social enterprises adapt without losing their supportive culture?
Keep your supportive culture and add crisp process.
Practical ideas include:
- Purpose‑aligned objectives for the first six months
- Monthly review meetings with short written summaries
- Early escalation routes for concerns, balanced with support
- Trustee or senior sign‑off timelines built into procedures
These adjustments preserve your people‑first approach while giving you the documentation and consistency that the earlier threshold now demands.
What common mistakes should I avoid when the law changes in 2027?
The most common pitfalls are late documentation and inconsistent practice.
Avoid:
- Vague probation objectives that are hard to evidence
- Skipping review notes or outcome letters
- Mixing old and new templates after the implementation date
- Overlooking automatic unfair dismissal risks in early cases
- Rushing decisions without considering reasonable adjustments
A brief document audit and manager refresher training before January 2027 prevents most issues and keeps your practice fair and defensible.
Related Resources
Explore flexible, expert HR support across policies, employee relations, restructures and more, tailored to values-led organisations.
Talk through the six‑month threshold and your preparation plan with one of our qualified HR consultants.
Get a no‑obligation review of your contracts, handbooks and dismissal procedures before 2027.
Plan fair, compliant changes to your organisation with specialist guidance and hands‑on support.
Further Reading
Plain English guidance on what makes a dismissal fair or unfair, including automatic unfair reasons.
Official information on tribunal claims, time limits and process for employers and employees.
Need some help with your organisation?
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