One of the biggest changes under the Employment Rights Act 2025 is the reduction in the qualifying period for protection against ordinary unfair dismissal.
With effect from 1st January 2027, the qualifying period for protection against ordinary unfair dismissal will reduce from two years to six months, along with the qualifying period for employees’ right to request a written reason for dismissal.
In addition, the current financial cap on compensatory awards for unfair dismissal will be removed.
These changes will have an impact on existing employees, as anyone with at least six months’ service as of 1st January 2027 will automatically gain protections against unfair dismissal.
As a result of these changes, employers must sufficiently assess an employee’s performance within the common six-month probation period and, if necessary, enact a termination before that crucial 6 month stage if things aren’t working out.
It is recommended that employers utilise a three-month probation, with probation extensions not exceeding two months.
For practical guidance on qualifying periods and what these changes mean for your business, contact Solutions for HR today.
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