Unfair Dismissal: The Six-Month Rule is Coming
Qualifying Period for Unfair Dismissal Slashed
In one of the most significant reforms of the Employment Rights Act 2025, the qualifying period for an employee to be protected from unfair dismissal will be dramatically reduced from two years to just six months. This change will take effect from 1 January 2027 and will apply retrospectively.
Is Your Business Ready for the Biggest Shift in Employment Law?
What's New?
Six-Month Qualifying Period: Employees will gain the right to bring an unfair dismissal claim after only six months of service.
Retrospective Application: On 1 January 2027, any existing employee with six months' service will automatically gain unfair dismissal rights overnight.
Removal of Compensation Caps: The Act will also remove the cap on the basic award for unfair dismissal claims, increasing the financial risk for employers.
This hugely increases the risk for employers. The flexibility to dismiss underperforming staff within the first two years of employment will be gone. Instead, you will have just six months to assess a new employee's suitability.
How to Prepare
Review Your Probationary Period Procedures: Your six-month probation review will become your last chance to dismiss for poor performance without facing a potential unfair dismissal claim. Your processes must be robust and decisive.
Train Your Line Managers: Managers must be equipped to performance manage new starters effectively from day one and make tough decisions within the six-month window.
Update Disciplinary and Dismissal Policies: Ensure your procedures are fair, consistent, and can withstand the scrutiny of an employment tribunal.
Protect Your Business from Unfair Dismissal Claims
The new six-month rule for unfair dismissal requires a fundamental shift in how you manage new employees. CIPD HR-inform Pro provides the compliant contracts, robust performance management workflows, and expert advice you need to navigate this new landscape and minimise your legal risk.
Employment Rights Act 2025 Download a summary
After more than a year of debate, the Employment Rights Bill became law on 18 December 2025 as the Employment Rights Act 2025. This is the biggest shake-up of employment law in a generation, with over 28 changes rolling out between December 2025 and into 2027. While this phased approach to the reforms gives employers time to prepare, now is the moment to get ahead. Explore what’s changing and what it means for your organisation, including key updates on sickness absence, paternity leave, parental leave, trade union access, and more.
Prepare for the Employment Rights Act 2025
The Employment Rights Act 2025 ushers in the most significant changes to UK employment law in a generation. Our CIPD HR-inform Pro product service is designed to be your essential guide, providing comprehensive resources, expert advice, and practical tools to ensure your business remains compliant and agile.
WARNING: New Fair Work Agency Powers!
The new Fair Work Agency is set to dramatically change the landscape of employment law enforcement. With unprecedented powers to recover underpayments and initiate tribunal claims on behalf of employees, your business could face significant financial penalties and legal battles if you're not fully compliant.
Are You a Small Business Owner?
You didn't start a business to become an employment lawyer. The Employment Rights Act 2025 adds layers of complexity to hiring and managing staff. CIPD HR-inform Pro acts as your virtual HR department, giving you the contracts, policies, and answers you need, so you can focus on growth
HR Managers are Busy Enough
The Employment Rights Act 2025 is the biggest legislative shift in years. You need more than just news; you need actionable tools. CIPD HR-inform Pro provides the technical breakdowns, the model policies, and the strategic roadmaps to help you guide your leadership team through these changes with confidence.