Probation Periods and Unfair Dismissal Reform: Why Employers Need to Act Now

Probationary periods have long been a familiar part of the employment process. For many employers, they have acted as the workplace equivalent of a test drive, giving managers time to assess a new employee’s performance, reliability, conduct and overall fit within the team. Probation periods and unfair dismissal reform are coming following the Employment Rights Act and employers need to take action.

Historically, this has sometimes led to a fairly relaxed approach. Managers may have held a few informal check-ins, dealt with minor concerns as they arose, and waited until the end of the probationary period before making any firm decisions.

That approach is becoming increasingly risky.

Under the Employment Rights Act 2025 reforms, the qualifying period for ordinary unfair dismissal protection is reducing from two years to six months. This change is expected to come into force on 1 January 2027. From that date, any employee with six months’ continuous service will have the right not to be unfairly dismissed.

For employers, this significantly shortens the timeframe available to assess whether a new employee is suitable for the role.

What is changing?

Currently, most employees need two years’ continuous service before they can bring an ordinary unfair dismissal claim. This has often given employers a longer period to address performance, reliability or behavioural concerns before the employee gains unfair dismissal protection.

From 1 January 2027, that period will reduce to six months.

Once an employee has six months’ continuous service, an employer will need to show that there was a fair reason for dismissal and that they acted fairly and reasonably in treating that reason as sufficient.

This means probationary periods can no longer be treated as a loose or informal process. Decisions need to be made earlier, concerns need to be documented, and managers need to be confident that they are following a fair and consistent approach.

Who will this affect?

The change will affect employees who are currently on probation, as well as anyone recruited between now and the introduction of the new rules.

In practical terms, any employee appointed now could acquire protection from unfair dismissal after six months’ service once the law changes. This means employers should not wait until 2027 to review their probationary processes.

Businesses with six-month probationary periods, or three-month probationary periods that are regularly extended for a further three months or more, should pay particular attention. A decision to fail an employee’s probation could be made too late if the employee has already reached the new qualifying period.

What does this mean in practice?

The key message is simple: probationary periods need to become more structured, more proactive and better documented.

If there are concerns about an employee’s performance, reliability, attitude or conduct, these should be identified and addressed at the earliest opportunity. Waiting until the final probation review may leave too little time to support improvement, gather evidence or make a fair decision.

Early feedback is also important for the employee. If no one explains that something is wrong, they may reasonably assume their performance or behaviour is acceptable. A structured probationary process gives new employees the opportunity to understand expectations, respond to feedback and improve where needed.

Managers should hold regular probationary check-ins, record key points discussed, set clear expectations, and agree any actions or improvements required. At the end of the probationary period, a formal review meeting should take place to confirm whether the employee has successfully completed probation, whether an extension is required, or whether further action is needed.

What should employers review now?

Employers should consider whether their probationary periods are still appropriate in light of the new six-month qualifying period.

This may include reviewing employment contracts, probationary period length, extension clauses, manager guidance, review templates and internal HR processes.

Managers should also be trained to take a more active approach during probation. This means spotting issues early, giving clear feedback, keeping records, monitoring progress and escalating concerns where appropriate.

Without these changes, businesses may find that concerns are not identified or evidenced early enough. Employees could gain unfair dismissal protection before issues have been properly managed, increasing the risk of claims, cost and disruption.

How Sentient can support your business

The upcoming changes to unfair dismissal protection make it essential for employers to review how they manage probationary periods.

Sentient’s experienced HR consultants can support businesses through this process, helping you assess current arrangements, update contracts and policies, strengthen probationary review procedures and train managers to handle concerns fairly and confidently.

Whether you need ad hoc HR advice on a specific employee issue, or ongoing support as an extension of your internal HR team, Sentient can help you manage your responsibilities and reduce risk across every stage of the employment lifecycle.

If your business has not reviewed its probationary processes recently, now is the time to act. Speak to Sentient today to make sure your HR practices are ready for the changes ahead.

You can read more about the legislation affecting these changes on GOV.UK here.