From 1 January 2027, the qualifying service required to bring an ordinary unfair dismissal claim will be reduced to just six months. This change will increase the importance of having a well-managed probation period.

Published: 27 May 2026
Author: Harry Abrams

Why does the change in qualifying service matter?

The change in qualifying service will apply to any employee who has acquired six months service on or after 1 January 2027, meaning that staff hired from 1 July 2026 onwards will gain protection as soon as the six-month mark is passed. This is a significant reduction from the current two-year qualifying period.

Many employers have historically used the current qualifying period as a buffer to assess suitability and manage underperformance. Dismissals during this period did not require a fair reason or a fair process, provided contractual notice was given and there was no automatically unfair or discriminatory element to the decision to dismiss.

Once the change comes into force, employers will have a much shorter period in which to assess new recruits and potentially dismiss for underperformance before having to go through a full performance management process if a successful unfair dismissal claim is to be avoided. This is particularly significant given the removal of the cap on compensation for unfair dismissals that will also come in from 1 January 2027.

So what tools are available to employers to help them to assess if a recruit is capable, reliable and suitable well before the qualifying period expires? A well-structured probation process is one answer.

What is a probation period?

A probation period occurs at the start of an employment relationship and provides an opportunity for the employer to assess the employee. If performance is deemed acceptable, then the employee’s appointment will be made permanent usually at the end of the probation period.

Employees on probation may not be entitled to all contractual benefits during a probation period. In addition, the employee’s employment can usually be terminated on shorter notice than the notice which would apply once they become a permanent member of staff.

How long should a probation period last?

The length and terms of a probation period are governed by an individual’s contract of employment and will depend largely on the role in question and how much opportunity there is for the employee to carry out core elements of the role in the time to allow a proper assessment of performance to take place.

Typically, probation periods last between three and nine months. It is likely that the change to the unfair dismissal qualifying period will see probation periods being shortened to between three and five months so that key decisions are made well within the six‑month service window.

Whatever the initial length of the probation period, employers should decide whether they want to retain the ability to extend the period to give further opportunity to assess an employee’s performance in the role. If so, any probation period clause should clearly set out the right to extend probation and for how long any extension will last. Once the change to the unfair dismissal qualifying service takes effect, it is important that both the initial probation period and any extension can be completed well within the first six months.

What steps should an employer take during a probation period?

To make the most of a probation period, the employee needs to be aware from the outset of the approach to be taken and any specific goals or outcomes that they are expected to achieve within set timescales. Employees should also be informed of when any progress meetings will take place and whether a decision on their continued employment can be made during the probation period or only once the whole period is completed.

Employers need to actively monitor new employees from day one. Early notes and evidence gathering, objective feedback, and formal check‑ins to explain whether expectations are being met will all help to identify or address issues during the probation period.

A well‑structured probation policy will help to manage expectations and guide both employees and managers through the process.

What happens at the end of probation?

Once the change in qualifying period comes in, an employee who passes a six-month probation should be treated the same as all long service employees.  Currently, employees who pass their probation but who do not yet have two years’ service are in a precarious position because they can still be easily dismissed.

As a result of the change, it is likely we will see a reduction in the length of probation periods coupled with an increase in failed probations and dismissal of employees where expectations are not being met - if there is any risk of dismissal soon after the initial six month period, employers will be unlikely to take that risk and instead dismiss just prior to six months. Employers may also want to rely more heavily on the ability to pay in lieu of notice where a probation is failed close to the employee reaching six months’ service, so that termination can take place immediately on making the payment rather than the employee working their notice and going over six months service.

What steps should employers be taking now?

• review current probation period clauses and consider if the period needs to be shortened to between three and five months
• ensure there is a contractual right to pay in lieu of notice
• review current probation process and develop where needed to include clear review points, expectations and procedures for extension or termination
• train managers on probation processes so they are equipped to identify concerns early, hold constructive conversations, and make timely decisions

consider what support is available to new employees and if additional resources are needed or improvements made to the onboarding process