The Employment Rights Act 2025 will affect probation periods for all new hires who began their employment from 1st July 2026.
From 1st January 2027, employees will be able to claim unfair dismissal after six months’ service, rather than the current two-year qualifying period.
What to do to keep your business protected:
- Review Contracts: A 3-month probation period is recommended, as this allows employers the flexibility to extend probation without breaching the qualifying period for unfair dismissal.
- Performance Management: Ensure line management identify, report and address performance and/or conduct issues before the 6 months has been reached.
- Documentation and Evidence: Employees will gain the right to written reasons for their dismissal so each review, meeting and outcome must be clearly documented.