The qualifying period for unfair dismissal is reduced from two years to six months for dismissals on or after 1 January 2027. Agency workers still need to have employee status to be able to claim unfair dismissal.
Following the Supreme Court decision in Augustine v Data Cars Ltd, this FAQ has been updated to remove a reference to McMenemy v Capita Business Services Ltd. The Court confirmed that McMenemy took the wrong approach to causation and less favourable treatment of part-time workers. The guidance remains the same: employers can avoid less favourable treatment by providing part-time workers with a pro rata entitlement to bank holidays.
The Employment Rights Act 2025 does not abolish zero hours contracts. When the guaranteed hours provisions are brought into force (they are currently scheduled for 2027), there will be circumstances in which an employer will be obliged to offer contracts that guarantee a certain number of hours ...
The qualifying service required to claim unfair dismissal reduces from two years to six months for dismissals on or after 1 January 2027. This makes it more important for employers to identify a fair reason for dismissal on expiry of a fixed-term contract.
From 1 January 2027, employees will have the right to claim unfair dismissal if their contract is terminated after six months, even where they are on a fixed-term contract that comes to an end.