Unfair dismissal is changing to a six-month qualifying period, not day one
From 1 January 2027, the qualifying period for ordinary unfair dismissal drops from two years to six months. This is the correction most planning gets wrong: unfair dismissal is not becoming a day-one right. The original Bill proposed a day-one right with a statutory initial period of employment, but that proposal was defeated in the House of Lords and abandoned. On the same date, the cap on the compensatory award for ordinary unfair dismissal is removed. Anyone hired on or before roughly 1 July 2026 will already have six months' service on 1 January 2027.
What actually changed, and why the confusion
For years, most employees needed two years' continuous service before they could bring an ordinary unfair dismissal claim. The government's Plan to Make Work Pay set out to remove that qualifying period entirely, making unfair dismissal a day-one right subject to a lighter-touch statutory probation. As the Employment Rights Bill went through Parliament, that day-one model was defeated in the House of Lords, and the government did not restore it. The Act that passed instead cuts the qualifying period from two years to six months. The distinction matters because a six-month period still gives you a defined window in which the ordinary unfair dismissal right does not apply, whereas a day-one right would not have.
Two changes on one date
1 January 2027 brings two linked changes:
- The qualifying period falls to six months. An employee with six months' service can bring an ordinary unfair dismissal claim. The right to written reasons for dismissal and spent-conviction protection align to the same six-month point.
- The cap on the compensatory award is removed. Ordinary unfair dismissal awards become uncapped, which raises the financial stakes of getting a dismissal wrong.
Who is covered on the day it lands
Because the change commences on 1 January 2027, service accrued before that date still counts. Work backwards six months and you reach roughly 1 July 2026: anyone hired on or before that point will already have six months' continuous service on the day the change takes effect. In practice, that means the pool of covered staff is not limited to people hired in 2027; a large part of your existing workforce moves into scope immediately.
General information, not legal advice. This guide explains the change to the unfair dismissal qualifying period. It is not legal advice, and you should take advice on any specific dismissal.
Probation periods do not delay statutory rights
A contractual probation period is a term of the employment contract. It is legally separate from statutory employment rights, and it does not push back the six-month qualifying period. If you dismiss someone with six months' service, the fact they were still labelled as on probation does not remove their right to claim ordinary unfair dismissal. Treat probation as a management tool for structuring reviews, not as a shield against statutory claims.
What to do before 1 January 2027
- Tighten your documented process. Make sure performance concerns, warnings and dismissal decisions for shorter-serving staff are recorded contemporaneously, so a fair reason and a fair procedure are evidenced before the change, not reconstructed after.
- Review your probation and sign-off timing. If you rely on probation reviews, schedule them well inside six months, and make the pass-or-fail decision on evidence you can show.
- Brief your managers. The people making day-to-day decisions about newer staff need to know the window is six months, not two years, from 1 January 2027, and that awards are now uncapped.
- Map your workforce. Identify who will already have six months' service on 1 January 2027 so there are no surprises about who is in scope.
Frequently asked questions
Is unfair dismissal becoming a day-one right?
No. The day-one proposal was defeated in the House of Lords and abandoned. From 1 January 2027 the qualifying period drops from two years to six months.
Who is covered on 1 January 2027?
Anyone with six months' service. Because the change lands on that date, staff hired on or before roughly 1 July 2026 will already qualify.
Does a probation period delay the qualifying period?
No. Probation is a contractual term and does not delay statutory rights. You still need a fair, documented reason to dismiss.
Sources
- Employment Rights Act 2025. legislation.gov.uk/ukpga/2025/36
- GOV.UK timeline update, six-month qualifying period and January 2027 date. gov.uk timeline update
- Acas, Employment Rights Act 2025. acas.org.uk/employment-rights-act-2025
Content accurate as at 12 July 2026. Re-check the primary source before acting on a time-sensitive date.
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