Employment

The Employment Rights Bill

The UK is set to reduce the qualifying period for unfair dismissal protection from two years down to six months, with changes expected in January 2027. While the original proposal was for immediate "day one" protection, this was scaled back following pushback, meaning employers will have a shorter window to assess performance and must ensure fair processes are in place much earlier in the employment relationship.

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The Current Landscape

 

Currently, an employee generally requires two years of continuous service to qualify for ordinary unfairdismissal protection.

 

However, several "day-one" rights already exist, most notably for discrimination and automaticunfair dismissal claims (such as those involving whistleblowing, health andsafety, or the assertion of statutory rights).

 

What is Changing?

 

Under the new regime, protection from unfair dismissal will apply after just six months of employment. Current guidance indicates these changes will take effect in January 2027.

 

From Proposal to Compromise

 

The Government’s original manifesto pledged to remove the qualifying period entirely, creating an immediate "day-one" right supported by a statutory probationary approach. Following peer pushback, this has been scaled back to the current six-month compromise.

 

Why This Matters to Your Business

 

This represents a significant shift in UK employment law.

 

By reducing the qualifying period from two years to six months, the pool of eligible claimants will expand materially. Employers must now be prepared to evidence fair reasons and followfair processes much earlier in the employment relationship.

 

While the change stops short of a full "day one" model, the window to assess performance and cultural "fit" is significantly shorter. The Government’s aim is a "workable package" that balances worker benefits with employer clarity.

 

Strategic Actions for Employers
 
To prepare for these changes, Dransfield Partners recommends the following immediate steps:
 
Audit Probation and Onboarding: Ensure roles, objectives, and performance standards are clearly definedand communicated from the outset.
 
Proactive Performance Management: Managers must be trained to identify, document, and address performanceconcerns promptly and accurately.
 
Refine Early-Exit Processes: Because discrimination and automatic unfair dismissal remain "dayone" risks, all termination decisions must be consistent, evidenced, andlegally robust.

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