But from 1 January 2027, the way you do it has to be different. And, if you get the process wrong, it could cost you.
The Employment Rights Act is reducing the unfair dismissal qualifying period from 2 years to 6 months. Anyone you hire from 1 July 2026 will be covered by the new rules.
That doesn’t mean you’ve lost the ability to let someone go during their early months. It means you can’t afford to do it casually.
What the new rules actually say
From January 2027, employees will qualify for unfair dismissal protection after 6 months of service. There will be a statutory initial period of employment, which is essentially a formal probation window.
But here’s the part that catches people out: employees can still bring a claim during that period. The protection kicks in earlier than most business owners expect.
What you can still do
You can still dismiss someone during probation. That hasn’t changed.
You can dismiss for performance, conduct or capability. You can end employment if the role genuinely is not working out. None of that has been taken away from you.
What has changed is the standard you’ll be held to if that decision is ever challenged.
What you need to do differently
The days of managing someone out with a quiet conversation and a handshake are over.
If you’re going to dismiss someone within their first 6 months, you need to show that you:
- raised concerns early, specifically and in writing
- gave clear feedback on what needed to change
- provided a reasonable opportunity to improve
- followed a fair and consistent process
If you can’t evidence those things, you’re exposed. It’s that straightforward.
The probation length question
Actually, nobody has a definitive answer to this yet.
There is no legally mandated probation length under the new rules. The industry hasn’t agreed on a standard and different HR professionals and employment lawyers are landing in very different places.
Some are saying 3 months. Some are saying 5 or 6. The honest truth is that no one has settled on a single number.
Our advice is: don’t get fixated on the length. What matters far more than whether your probation is 3 months or 6 is what happens during it.
A 6-month probation with no structure and no documentation is riskier than a 3-month probation with clear expectations, regular check-ins and written feedback.
Focus on the quality of the process, not the number on the contract.
How things used to work vs how they work now
Previously, you had a 2-year qualifying period. That gave you a long runway to figure out whether someone was right for the role. If it wasn’t working, you could manage them out informally with relatively low legal risk.
That safety net is gone.
With 6-month unfair dismissal rights, the pressure shifts entirely on to the early months. Your onboarding needs to set clear expectations from day 1. Probation reviews need to be structured and documented. Performance concerns need to be addressed quickly, not left to drift.
You need to make an earlier call on whether someone is the right fit and you need to be able to show how you reached that decision.
This makes manager capability critical. Many issues we see start with a manager who avoided a difficult conversation or assumed that the problem would sort itself out. Under the new rules, that approach creates real risk.
What puts you at risk
These are the things we see most often when a dismissal is challenged:
- no written record of concerns being raised
- no evidence that the employee was given support or feedback
- dismissing without following the company’s own procedure
- treating different employees differently in similar situations
- managers who hope the problem will go away rather than dealing with it
Every one of these is avoidable. None of them require complex systems. They just require a consistent, documented approach.
Where an HR consultant can support you
An experienced HR consultant can review your probation and dismissal processes, train your managers on what fair process looks like under the new rules and support you through individual cases so that every decision you make is legally sound.
If you’re unsure on whether your current approach to probation and dismissal will hold up after 1 July, it’s worth getting that checked now rather than finding out the hard way.
If you want to talk it through, get in touch. We’re always more than happy to help.