From 1^st January 2027, significant changes to unfair dismissal rights will come into effect under the Employment Rights Act 2025. Employees will only need six months’ continuous service to gain the right to bring a claim for unfair dismissal. This is a reduction from two years to six months.

This means that employees who reach six months’ continuous service on or after 1 January 2027 may be able to bring an unfair dismissal claim if their employment is terminated. This includes employees who were recruited before the new rules come into force and who remain employed beyond that date.

In light of these changes, employers should review their recruitment and probation processes now. We recommend introducing a five month probationary period to allow sufficient time to assess an employee’s performance, conduct and suitability for the role before they acquire unfair dismissal protection at six months.

It is also important to schedule and hold probation review meetings in good time. These meetings should take place early enough to allow managers to make an informed decision on whether to confirm employment, extend probation (where permitted by the contract), or end employment before the employee reaches six months’ continuous service.

Employers should ensure they addressed any concerns during the probation period and carefully considered whether the employee is suitable for the role before confirming their appointment.

If there are concerns about an employee, please get in touch with ITC early because holiday and notice periods are counted when considering continuous service and need to be accounted for within the six months.