Preparing for the 6 Month Unfair Dismissal Right: Why Businesses Need to Act Now
15 June 2026 · By Oliver Tasker
Preparing for the 6-Month Unfair Dismissal Rule: Why Businesses need to Act now
The reduction in the qualifying period for unfair dismissal claims from two years to six months represents a significant shift in UK employment law. January 2027 may seem a long way off for businesses but any employee starting on 1 July 2026 will benefit from this increased protection.
If your organisation is not already preparing, now is the time to act. Below, we set out practical steps to help you stay compliant and reduce legal risk—focusing on contracts, probationary periods and line manager training.
Why This Change Matters
Currently, employees need two years’ service to bring an ordinary unfair dismissal claim. Reducing this to six months will:
Increase the number of employees eligible to claim
Reduce the window for “low-risk” terminations if things aren’t working
Place greater emphasis on early performance management
Key point:
Employees starting on 1 July 2026 will reach six months’ service on 1 January 2027, meaning they will be protected from unfair dismissal at that point. Employers should update contracts and processes now to ensure you can act if things are not working out well before 1 January 2027.
1. Review and Update Employment Contracts
Your contracts are your first line of defence.
What to check:
Notice periods: Are they appropriate during early employment?
Probation clauses: Do they allow flexibility to extend probation?
Dismissal procedures: Are they clearly defined but not overly restrictive?
Performance expectations: Are they explicit from the outset?
Practical tips:
Include clear probation extension clauses
Ensure contractual wording reflects shorter timelines
Avoid outdated policies or procedures
Updating contracts now ensures that new hires starting from July are aligned with the incoming six-month threshold.
2. Rethink Probationary Periods
With less time to assess suitability and fit, probation periods are more critical than ever.
Best practice approach:
Set probation periods of less than 6 months, with flexibility to extend
Schedule formal review points (e.g. month 1, 3, and 5)
Make expectations clear from day one
Document all concerns and feedback
Common risks to avoid:
Letting probation drift without review
Failing to extend probation where needed
Treating probation dismissals as “informal”
Remember: Once an employee hits six months, a dismissal could trigger an unfair dismissal clai, whether in their probation period or not.
3. Train Managers to Act Early
Managers will be on the front line of this change. Poor management practices are one of the biggest drivers of employment claims.
Training should cover:
Early performance management
How to conduct probation reviews
Identifying and documenting concerns
Handling dismissals fairly, even within a probation period
Avoiding discriminatory or inconsistent decisions
Key message for managers:
“If there’s an issue, address it early, waiting is no longer an option.”
4. Strengthen Documentation and Processes
Tribunals focus heavily on evidence. With a shorter qualifying period, documentation becomes even more important.
Ensure you have:
Written records of meetings and feedback
Clear performance improvement plans (PIPs)
Consistent HR support and advice
Updated policies and procedures
A well-documented process can be the difference between successfully defending a claim and facing liability.
5. Audit Your Current Workforce Strategy
This change isn’t just about legal compliance, it’s an opportunity to improve your people strategy.
Consider:
Are recruitment processes identifying the right candidates?
Are onboarding programmes setting employees up for success?
Are managers equipped to handle early-stage issues?
Take Action Now
The reduction to a six-month qualifying period is not just a legal technicality, it’s a fundamental shift in risk exposure for employers.
Immediate steps:
Update employment contracts before 1 July hires begin
Review and strengthen probation frameworks
Deliver targeted manager training
Audit your HR policies and processes
How Impact Employment Law Limited Can Help
At Impact Employment Law Limited, we support businesses in preparing for employment law changes with practical, commercially focused advice.
We can help you:
Review and update contracts
Design effective probation processes
Deliver tailored manager training
Audit your dismissal procedures
Need support preparing for the six-month unfair dismissal change?
Get in touch with Impact Employment Law Limited to ensure your business is ready, before the risk increases.