At the time of writing (July 2025) an employee can be dismissed by their employer, without a fair reason,  if they have less than two-years’ service with the company, and they are not entitled to bring a claim for ordinary unfair dismissal. 

That will change, once the Employment Rights Bill is implemented (we now expect this to be early 2027); employees will no longer need  two-years qualifying service before being able to bring a claim for ordinary unfair dismissal. The right not to be unfairly dismissed will be a ‘day one’ right. 

With current delays in the Employment Tribunal meaning that many cases are not being heard for at least 12-months, this new entitlement, is likely to result in an increase in claims, more delays and further pressure on a system already struggling. 

It is anticipated that the Bill will include provision for an initial probationary period, in which the procedure for dismissal will be “light touch”. .   After this initial probationary period, dismissals will require a full process. We are awaiting regulations to set out the length of the initial probationary period, but this is expected to be a period of nine-months.

What you should be doing now

With the new legislation expected to take effect in early 2027, we recommend that employers take the following steps now, to protect their business and prepare:

1. Review Employment Contracts, Policies and Staff Handbooks

When the regulations have clarified what the initial probationary period will be, employers should review and amend their template employment contracts to reflect this.  Any policies and procedures, or Staff Handbooks, should also be reviewed to ensure that the legislation is accurately reflected.

Employers should have robust policies and procedures in place, to deal with probationary periods and dismissal, and make sure that these are followed. Being able to demonstrate implementation of, and adherence to, their own policies and procedures will become even more important, should employers need to defend a claim for unfair dismissal.

2. Training

Once the Handbook, policies and procedures have been reviewed and updated, it is essential to communicate the changes to all staff. Those responsible for implementing the policies and procedures, should also receive appropriate training to ensure they understand the updates and how to implement these effectively.

Implementing the changes to your processes as soon as possible, will mean that your team can prepare and ensure a smooth transition, when the process is no longer optional.

3. Performance Management

Performance Management will play an increasingly important role.   The effective use of performance management processes during the initial probationary period, and through the course of employment, will ensure that employees have clear and measurable targets. This also ensures   that any decisions made regarding performance can be justified and supported with evidence.

Whether you agree with unfair dismissal protection being granted from day one or not, the government looks set to implement it and so now is the time to prepare and ensure that your business is ready.

Update

At the time of publishing this blog, the House of Lords has voted to amend the Bill, to remove this day one right, replacing the current 2-year qualifying period with six months.  Following this most recent update, developments around the Bill are progressing rapidly. We will continue to monitor the situation closely and provide further updates as the next amendment emerges.

Contact us

If you have any questions or would like help with a  review and update of your existing Contracts, Policies and Staff Handbook, have a chat with our Employment Team.