Reduction in unfair dismissal qualifying period from two years to six months

Implementation date: 1 January 2027

The Employment Rights Act 2025 reduces the qualifying period for claiming unfair dismissal from two years to six months. 

The Government has stated in its factsheet on the implementation of unfair dismissal measures in the Employment Rights Act 2025 that it intends changes to the unfair dismissal qualifying period to take effect on 1 January 2027, with protection against unfair dismissal applying retrospectively from that date (meaning that employees hired from 1 July 2026 would gain protection from unfair dismissal after six months). 

The Government had originally planned to remove the unfair dismissal qualifying period altogether (making unfair dismissal a day-one right), but the provisions were amended before the Employment Rights Act 2025 was finalised. Plans to introduce a statutory probation period, with a "lighter-touch process for employers to follow to dismiss an employee who is not right for the job", have been dropped.

The change is introduced alongside the removal of the limit on the compensatory award in unfair dismissal claims.