Unfair dismissal after 6 months from Jan 2027

The qualifying period for ordinary unfair dismissal falls from two years to six months where the effective date of termination is on or after 1 January 2027 — even if notice was given before then. The cap on the compensatory award is removed, and the right to written reasons for dismissal also starts at six months. Anyone with at least six months’ service on 1 January 2027 is protected from that day.

Service counts from the first day of employment; month-end start dates are counted to the last day of the shorter month.

Who it affects

Every employer. In practice, everyone who started on or before 2 July 2026 is protected from 1 January 2027.

What changes

• Qualifying period 2 years → 6 months (ERA 1996 s.108), for effective dates of termination on or after 1 January 2027.
• Compensatory award cap (lower of 52 weeks’ pay or the statutory figure) removed.
• Written statement of reasons for dismissal: 2 years → 6 months.
• The 6-month period can now only be changed by primary legislation.
• Automatically unfair reasons (whistleblowing, pregnancy, asserting a statutory right…) still need no service at all.

What to do

1. List every employee’s protection date — the tool does it from start dates.
2. Set probation reviews so a decision is made well before six months, and record the reasons.
3. Make sure your disciplinary and capability procedures are followed for everyone past six months.
4. Update contracts and the handbook where they mention two years.

Documents to review by 4 December 2026

• Employment contracts / written statements : Sick pay clause reflects day-one SSP; Probation clause: length, review, extension; References to “two years” for dismissal rights; Variation and flexibility clauses (fire and rehire); Confidentiality wording on harassment.
• Staff handbook : Family leave, sickness and harassment sections match the policies; Holiday rules and how records are kept.
• Probation process and review form : Review meeting booked before the deadline; Reasons recorded for pass, extend or fail; Decision made before unfair dismissal protection starts.
• Disciplinary and capability procedure : Acas Code steps followed for everyone past six months; Written reasons for dismissal available on request at six months.

Tick these off and export the dates to your calendar in the business plan tab.

Work out each qualifying date

Sources

1. S.I. 2026/559 — Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026
2. Employment Rights Act 2025, section 25 — Right not to be unfairly dismissed: qualifying period and compensation
3. Employment Rights Act 2025, Schedule 3
4. Acas — Probation periods

A summary for employers, not legal advice. Where a change depends on regulations not yet made, details may differ from this page.