Employment Rights Bill Update: Six Month Unfair Dismissal Qualifying Period
The UK Government has now confirmed a significant change to the proposed Employment Rights Bill. The original plan to give employees the right to claim ordinary unfair dismissal from day one of employment has been dropped. Instead, the Government intends to reduce the current qualifying period from two years to six months. Mishcon de Reya LLP+1
Current proposals indicate that employees starting new roles from mid 2026 are expected to gain protection against ordinary unfair dismissal once they have six months continuous service, with rights taking effect from early 2027. The Guardian+1 The detail and timing are still moving as the Bill passes through Parliament, but the direction of travel is now clear.
At present, the general rule remains that employees usually need two years continuous service to claim ordinary unfair dismissal, subject to a wide range of exceptions and automatically unfair reasons where no minimum service is required. Citizens Advice+1
Against that backdrop, the Employment Rights Bill is expected to become law before the end of 2025, with many changes implemented in stages through 2026 and 2027. Acas+2GOV.UK+2
What is changing on unfair dismissal?
In summary, on the current draft and public statements:
The general qualifying period for ordinary unfair dismissal is due to fall from two years to six months. farrer.co.uk+1
Automatically unfair dismissal claims, such as those relating to whistleblowing, trade union activities or health and safety, will continue to be day one rights. UK People Reward and Mobility Hub
The Government also plans to remove the current statutory cap on compensation for ordinary unfair dismissal, creating scope for higher awards in some cases, particularly for senior or hard to replace employees. Financial Times
For employers, this combination of an earlier qualifying point and potential for higher awards will increase litigation and financial risk if dismissals are not handled in a careful and well documented way.
What this means for your business
If you employ staff in the UK, you should be planning now for the new regime. Key action points include the following.
Review probation and performance management
With unfair dismissal protection expected to start at six months, probation periods and early performance management will become even more important.
Ensure your contracts clearly set out the length of probation and any extension provisions.
Build in structured review points during probation, for example at one month, three months and five months, so that concerns are picked up and addressed in good time.
Make sure that probation reviews are actually happening in practice, not just on paper.
Strengthen documentation and record keeping
Tribunal claims turn on evidence. Under a six month qualifying period, more employees will be able to bring claims, so documentation in the first few months of employment will be critical.
You should ensure that managers are:
Keeping short written notes of one to one meetings, check ins and performance discussions
Following through on agreed action points and recording what support or training has been offered
Confirming any formal warnings or extensions to probation in writing
The aim is to create a clear, contemporaneous record showing that the employee has been treated fairly, given appropriate support and informed where standards are not being met.
Brief managers on fairness and consistency
As rights expand, tribunals will expect employers to be able to demonstrate fair, consistent treatment of staff.
Managers should be reminded to:
Apply policies consistently across teams
Avoid knee jerk decisions when issues arise in the first few months
Take HR advice early where there are concerns about conduct, capability or cultural fit
You may wish to run short update sessions for line managers explaining the Employment Rights Bill and what it means for hiring and probation decisions. ACAS has already published an overview of the Bill and will be updating its guidance as changes take effect, which is a useful reference point for HR and managers. Acas+1
4. Update contracts, policies and handbooks
Once the Bill is finalised and implementation dates are confirmed, you will need to revisit:
Employment contracts, particularly clauses on probation, notice during probation and dismissal
Disciplinary and capability procedures
Onboarding checklists and HR workflows for new starters
The Government has published official factsheets and an implementation roadmap for the Employment Rights Bill, which give helpful high level detail about how and when the various reforms are intended to take effect. GOV.UK+2GOV.UK+2
We will be tracking the secondary legislation and guidance that will follow, and we will provide practical recommendations as further detail emerges.
Other reforms on the horizon
The unfair dismissal changes sit alongside a wider package of reforms under the Employment Rights Bill, including:
New rights around parental and bereavement leave
Enhanced protection from dismissal for pregnant employees and new mothers
Measures affecting zero hours and variable hours contracts
Greater trade union access to workplaces and information duties on employers GOV.UK+2www.hoganlovells.com+2
For HR teams, it will be important to look at the Bill in the round and map out how it interacts with your existing policies and workforce planning.
How Holly Blue Employment Law can help
At Holly Blue Employment Law, we are closely monitoring the passage of the Employment Rights Bill through Parliament and the associated consultations. Our team will continue to publish regular updates on our news page as the Bill progresses and as further guidance is released.
We can support you to:
Audit your current contracts, handbooks and HR processes against the forthcoming changes
Design or refresh probation and performance review frameworks that are fit for the new six month qualifying period
Train managers on fair process, documentation and how to handle dismissals lawfully under the new regime
Advise on complex or high risk dismissals where the financial exposure may increase under the removal of the unfair dismissal compensation cap Financial Times+1
E learning for managers and staff
We are also pleased to remind you about our new e learning school, created to provide accessible, practical training for both managers and staff. Our courses cover core HR and employment law topics, including:
Handling probation and performance issues
Managing disciplinaries and grievances
Equality, diversity and inclusion
Investigations and evidence for employment tribunals
The aim is to grow knowledge and confidence across your organisation, reduce day to day risk and ensure your managers are ready for the new Employment Rights Bill landscape.
If you would like to discuss how these changes may affect your business, or if you would like more information about our e learning courses, please get in touch with the team.