From 1 January 2027, the qualifying period for ordinary unfair dismissal will reduce from two years to six months. Employees with at least six months’ continuous service on that date will gain protection immediately. Employees with shorter service will gain protection as soon as they reach the six-month point.

The current cap on compensatory awards for unfair dismissal will also be removed. Although compensation will continue to reflect actual and projected loss, the potential exposure attached to a badly handled dismissal will increase.

The key message for employers is simple: the countdown has already started.

Why this matters now

Employees engaged during 2026 may acquire ordinary unfair dismissal protection from January 2027 or shortly afterwards. Employers therefore need to review their probation arrangements now, not when the new qualifying period takes effect.

Probation is often treated as a contractual label rather than a management process. A contract may state that employment is subject to a six-month probationary period, but that wording alone does not assess suitability, address concerns or create the evidence needed to support a decision.

What effective probation management should achieve

A well-managed probation period should help the employer and employee understand whether the employment relationship is working. It should provide clear expectations, regular feedback, appropriate support and a fair opportunity to improve where concerns arise.

Employers should use the period to assess:

 Common probation failures

The most common problems are not complicated. Review dates are not diarised. Managers assume somebody else is monitoring the period. Concerns are discussed informally (or not at all) but never recorded. Employees are not told clearly what needs to improve. Assessments or reviews are left until the last minute. An extension is imposed without a proper reason or written confirmation. The final decision is left until the probation period has already expired!

These weaknesses create avoidable risk. They also make it harder to manage the employee fairly and harder to demonstrate why a decision was reached. With the changes in the law this will now create greater risk and liability if not addressed.

What employers should do now

  1. Review the contractual probation period and notice provisions. Consider whether they remain appropriate in light of the six-month qualifying period. We would recommend changing probationary periods to 5 months.
  2. Set review dates at the start of employment. Reviews should not depend on the manager remembering them. Decide how many reviews are appropriate during the probationary period (we recommend at least 3).
  3. Define what success looks like. New employees should understand the standards, objectives and behaviors expected. Ideally there should be a clear job description and performance indicators.
  4. Train managers to conduct reviews and address concerns early. Avoiding a difficult conversation rarely makes the issue disappear, and will take up more management time in the future!
  5. Keep proportionate records. Notes should show what was discussed, what support was offered, what improvement was required and when the position would be reviewed. You can do this using a probationary period review form.
  6. Make decisions in good time. The employer should allow time to consider the evidence, hold the appropriate meeting and communicate the outcome before the critical date.
  7. Continue to act fairly. The six-month change does not remove existing day-one protections, including discrimination and automatically unfair dismissal protections. Employers should still identify the reason for dismissal, consider the circumstances and seek advice where the position is complex.

 

YourHR.guide can provide practical guidance, template review forms and letters, as well as management guidance and wider HR documentation – including job description templates.

Employers using YourHR.space can manage probationary periods using the online forms and process, and reminder calendar. Plus all the HR policies required are available and maintained.

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