From 1 January 2027, the qualifying period for unfair dismissal claims will drop from two years to just six months.
That long window where employers could “manage someone out” with relatively low legal exposure is disappearing, and fast.
Anyone hired from 1 July 2026 onwards will be able to bring an unfair dismissal claim after only six months of service. The first claims could realistically appear in early 2027.
Alongside this, the Employment Rights Act is expected to extend the tribunal time limit from three months to six months (likely October 2026), giving employees far longer to act.
This isn’t a distant policy change. It affects every hire, every probation period and every performance conversation you have from this summer onwards.
This guide breaks down what employers need to know, and what to do now.
Pillar 1: Onboarding Your First Line of Defence
The first weeks of employment shape everything that follows. If an employee struggles and you have no record of what they were told, trained on or supported with, you have no defensible position later.
Tribunals will expect to see that the employee was given a fair chance to succeed and that starts on day one.
A strong onboarding process doesn’t need to be complicated. It needs to be clear, consistent and documented.
Every new starter should receive:
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Role clarity – written responsibilities and what “good” looks like
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A structured induction – policies, processes, reporting lines
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Early team integration – so they feel supported, not isolated
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A record of what was covered – dates, topics, sign‑off
In small teams, this matters even more. Issues surface faster, and there’s less room for informal learning.
Pillar 2: Probation No Longer a Tick‑Box Exercise
Most probation processes we see are a single clause in a contract. Under the new rules, that won’t be enough.
The statutory “initial period of employment” will still exist, but it does not remove the right to claim unfair dismissal. It simply creates a lighter‑touch process you still need to show fairness and reasonableness.
A compliant probation process should include:
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Clear pass/fail criteria
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Structured review points e.g., week 2, month 1, month 2, month 3
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Documented feedback at each stage
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A formal written outcome
If concerns arise, raise them early. Be specific. Put them in writing. Offer support and time to improve.
What tribunals dislike most?
A silent probation followed by a surprise fail at the end.
Pillar 3: Performance Management Day‑One Fairness
The biggest risk isn’t poor performers. It’s good managers who avoid difficult conversations.
Without a paper trail, concerns raised, feedback given, support offered you have no defence if a claim is brought.
Fair process must start immediately, not when things go wrong.
That means:
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Regular one‑to‑ones with honest performance discussions
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Clear objectives
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Written feedback – positive and developmental
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Consistency across the business
Managers need training. They need confidence. And they need to understand that documentation protects both the employee and the business.
They are your biggest risk, and your strongest defence.
What Employers Need to Do Before 1 July
Here’s where to focus:
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Tighten your hiring decisions – the best risk reduction starts before day one
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Fix your probation process – if it’s only a contract clause, it’s not enough
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Document everything – if it isn’t written down, it didn’t happen
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Train your managers – they make or break your legal defensibility
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Review your contracts – ensure they reflect the new landscape
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Get an HR audit – a single session can identify gaps you can fix quickly
The Real Cost When It Goes Wrong
Current unfair dismissal figures:
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Average award: £13,749
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Median award: £6,746
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Maximum compensatory award: £118,223 or 52 weeks’ gross pay
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No cap for whistleblowing or health & safety dismissals
But these numbers hide the true cost.
Most cases settle before tribunal, often for higher amounts that never appear in published statistics. Add legal fees, management time, lost productivity, reputational damage and recruitment costs, and the real cost of a single claim is far higher.
Tribunal claims are already up 54% year‑on‑year, with the highest open caseload since 2012/13 and that’s before the new rules take effect.
By comparison, an HR Diagnostics Audit costs a fraction of a single claim.
How Starfish People HR Can Help
We can review your hiring, probation and performance processes and identify the gaps that could expose you to claims under the new rules.
The deadline is approaching. If you haven’t reviewed your processes yet, now is the time.
Book an HR Diagnostics Audit and we’ll help you prepare with confidence.
