From the 1st of January 2027, the qualifying period for unfair dismissal claims drops from two years to just six months. It’s one of the most significant changes in the Employment Rights Act – and for many employers, the implications start sooner than they might expect.
Employees who join from the 1st of July 2026 will hit the six-month mark on exactly the day the new rules take effect. That makes July starters the first cohort to fall squarely within the new regime – and if your contracts still run to a standard six-month probation, you’re already in a risk window.
What needs reviewing now
If this hasn’t landed on your to-do list yet, now is the time. A thorough review should cover:
- Probation periods in contracts and offer letters
- Probationary policies, including any extension clauses
- Notice periods during probation
- Fixed-term contract lengths
- Manager guidance and how probation reviews are actually being run
- Diary triggers for review meetings and decision points
Once you’ve got a clear picture of where things stand, the next question is whether your current probation structure still makes sense.
Shorter probation structures
If you currently have six month probation periods, your options are:
- a five-month probation period with no extension option, or
- a shorter initial period with limited scope to extend, as long as the total doesn’t exceed five months
Keeping flexibility without creating risk
If you want to keep some flexibility around probation periods, the key is to not let it get too close to the six-month service point.
Extensions that push close to the six-month service point leave very little room to make and act on a decision before an employee gains unfair dismissal rights. The cleanest approach is either to remove extensions entirely, or allow only a brief one – enough to retain some flexibility, but with enough runway left to reach a conclusion before it matters legally.
And it’s not just probation periods that need attention here.
Don’t overlook fixed-term contracts
This isn’t only a probation question. Employers using six-month fixed-term contracts for anyone starting from July onwards face the same timing problem. Where it’s operationally viable, moving to a shorter fixed term – five months or less – is worth considering. Before any of that, though, it’s worth checking what’s already gone out.
Contracts already issued?
If you’ve already sent contracts to candidates starting from July onwards that include a six-month probation period, you could address this with a variation letter to reflect the updated approach.
Process matters as much as paperwork
Updating the wording in contracts and policies is only part of the job. The other part is making sure probation is being managed properly in practice, because even well-drafted documentation won’t protect an employer who isn’t running the process effectively. That means:
- Setting clear expectations from day one
- Holding meaningful check-ins early, not just at the end
- Documenting concerns as they arise, not retrospectively
- Escalating to HR promptly when things aren’t going well
- Making decisions in good time – month five or six is going to feel very late under the new rules
- Factoring in reasonable adjustments where health or disability is a consideration
How we can help
Whether you need a full review of your probation framework or targeted support on specific contracts, we can help you get ahead of the January 2027 changes. That includes reviewing and updating policies, amending contract and offer letter templates, drafting variation letters for existing offers, reviewing fixed-term arrangements, and creating manager guidance tailored to your business.
Get in touch if you’d like to discuss your options.
