The January change in employment law that affect your recruits now: Nick Wilson
For employers, a major employment law change is now close enough to affect decisions being made today. From January 1 2027, the qualifying period for ordinary unfair dismissal protection is due to reduce from two years to six months.
That may sound like a change for next year’s diary, but commercially it is already here. Employees recruited before late June 2026 will reach the new year with rights many employers have not yet built into their processes.
Six months’ probation has become the default for many roles, especially where the appointment is senior, technical, or hard to assess quickly. At present, employers often treat probation as a flexible assessment period. Under the new regime, that six-month review could take place just as unfair dismissal rights have crystallised.
Furthermore, statutory notice counts towards continuous service. So, an employee who appears just short of six months’ service will, once statutory notice is added, be over the line. A business that leaves dismissal until the final week will almost certainly be too late to avoid the employee being protected from unfair dismissal.
Employers need to review contracts, offer letters, onboarding, probation policies, and manager training now, not in December. The businesses that deal with this early will find it much easier to make calm, fair and timely decisions when a new appointment is not working.
In many businesses, three-month probation periods will make more sense, with an option to extend only where there is a genuine need. Whatever period is chosen, the process needs a rhythm: expectations set at the start, early check-ins, honest feedback, and written records. Hoping problems will improve on their own is not a strategy.
Line managers will be central to this. In tribunal claims, it is rarely the policy folder that causes the damage; it is the gap between the policy and what actually happened. If a manager has not explained the concern, given the employee a chance to respond, recorded the discussion or followed up, the employer is exposed.
Tribunals are already under strain. Employees are more aware of their rights and more prepared to challenge poor process. The removal of the unfair dismissal compensation cap from January 2027 adds another risk, even if awards will still be based on actual losses.
At Robinson Ralph, we are encouraging employers identify the problem early, deal with it fairly and take advice before dismissal if timing is tight. A brief discussion at month two is far better than a panicked decision at month six.
There is also a positive side. Better probation processes usually mean better recruitment decisions, quicker support for new starters and less frustration for teams carrying underperformance. Most employers know within the first few weeks whether someone is settling, learning, and contributing.
The challenge now is to act on that knowledge promptly and fairly, rather than waiting for an arbitrary review date.
Employers that prepare now will not avoid every dispute, but they will be better placed if challenged. Those that continue as before may find a routine probation decision becoming a costly tribunal problem. Decisions about new recruits are often uncomfortable but delay rarely makes them easier.
A fair process does not need to be over-engineered; it needs to happen at the right time, with a clear record of why the decision was made.
Nick Wilson is a partner at Robinson Ralph