The unfair dismissal qualifying period change: what employers need to know

The Employment Rights Act 2025 changes the qualifying period for ordinary unfair dismissal. Right now an employee generally needs two years of continuous service before they can bring an unfair dismissal claim, and that two-year period still applies today. ERA 2025 reduces it to six months for dismissals on or after 1 January 2027 — the commencement order is still pending, so this is planned rather than yet in force. There is no day-one unfair dismissal right; that proposal was dropped before the Act passed. For UK employers, the shorter qualifying period is one of the most consequential changes in ERA 2025.

Probationary periods have functioned as a relatively low-risk window, because an employer could dismiss a new hire without the same procedural rigour required for a longer-serving employee. That window narrows once the qualifying period drops to six months in 2027. The five fair reasons for dismissal — capability, conduct, redundancy, statutory bar, or some other substantial reason — still apply. What changes is how soon an employee can invoke the right to challenge a dismissal as unfair.

Following a fair process is good practice regardless of when the qualifying period bites. In practice, that means documenting concerns as they arise, holding a formal meeting before reaching a dismissal decision, and giving the employee a genuine opportunity to respond. If the dismissal is for conduct, there should be a disciplinary process following the ACAS Code. If it is for capability, there should be evidence of support offered and targets set. The informal "this is not working out" conversation, followed by a departing handshake, becomes substantially riskier as the qualifying period shortens.

Probationary policies are worth updating now. A well-drafted probationary clause should specify the length of the probationary period, require scheduled review meetings, document concerns in writing, and confirm that any dismissal before the end of probation will follow a fair procedure. Probation remains a contractual concept — ERA 2025 does not create a statutory probationary or "initial period of employment"; that idea was abandoned before the Act passed. The probationary period is simply a defined period during which performance is being assessed.

The ACAS Code of Practice on Disciplinary and Grievance Procedures applies regardless of service length. A tribunal can increase a compensatory award by up to 25% if an employer is found to have unreasonably failed to follow the Code. Combined with the shorter qualifying period arriving in 2027, the cost of a procedural shortcut is higher than ever.

What this means practically: maintain a written record of probationary reviews. Note the date, who attended, what was discussed, what concerns were raised, and what support was offered. If a dismissal does occur, that paper trail is your primary evidence of a fair process. Without it, the tribunal starts from a worse position for you.

The change also affects TUPE transfers, where employees transfer mid-probation. Their continuous service from the transferor does not reset — so service accrued before the transfer counts toward the qualifying period.

One important point: the change does not affect the rules on automatically unfair dismissal. Those have always applied from day one — dismissals connected to pregnancy, trade union activity, whistleblowing, or assertion of a statutory right have never required a qualifying period. ERA 2025 shortens the ordinary unfair dismissal qualifying period; it does not change the automatic categories.

Read our ERA 2025 compliance checklist for HR teams to see which of your current policies need updating in light of these changes. Our guide on probation periods after ERA 2025 covers the practical updates to probationary clauses in detail.

Mellow's onboarding module logs every probationary review with a timestamp, records the outcome, and stores any associated correspondence. If a claim is ever brought, the audit trail is already in place. [See how Mellow works →](https://mellowhr.com/features)