Employment Rights Act: Probation Management
The Employment Rights Act 2025 is bringing significant changes to unfair dismissal rights from 1 January 2027. For employers, one of the key implications will be the way probation periods are managed.
From 1 January 2027, the qualifying period for most employees to bring an ordinary unfair dismissal claim will reduce from two years to six months.
For businesses, this means that probation management is likely to become even more important. Employers will need to make sure that performance, conduct, attendance and suitability are being assessed consistently, concerns are addressed promptly, and probation review meetings are properly documented.
What is changing under the Employment Rights Act 2025?
Under the current rules, employees will generally need two years' continuous service to bring an ordinary unfair dismissal claim.
From 1 January 2027, this qualifying period will reduce to six months for most employees.
The UK Government's guidance confirms that employees who have completed six months' service by 1 January 2027 will gain unfair dismissal protection from that date. Employees starting after July 2026 will generally reach the six-month point after six months of employment.
The change applies across England, Scotland and Wales. Employment law relating to unfair dismissal is devolved in Northern Ireland, so the change does not apply there.
It is also important to remember that some employment rights, including protection against discrimination and automatically unfair dismissal, already apply from day one. The new six-month qualifying period does not change those existing protections.
For employers, this makes effective probation management an increasingly important part of the recruitment and employee lifecycle.
Why does the six-month qualifying period matter for probation?
Many businesses use a probation period to assess whether a new employee is suitable for the role.
A well-managed probation period can give employers an opportunity to assess:
Performance against agreed objectives
Attendance and timekeeping
Conduct and behaviour
Ability to work effectively within the team
Skills and capability
Understanding of the role and responsibilities
Overall suitability for the position
Traditionally, employers may have viewed the first two years of employment as the period before ordinary unfair dismissal protection becomes relevant.
That will change significantly from January 2027.
With the qualifying period reducing to six months, employers will have a much shorter period in which to identify and address concerns about a new employee's performance or suitability.
This does not mean that an employee cannot be dismissed after six months, or that an employer cannot dismiss someone during probation. Employers can still dismiss employees for legitimate reasons, but they should ensure that decisions are supported by an appropriate and fair process. The Government specifically advises employers to consider how their contractual probation periods will operate alongside the new six-month qualifying period.
Will probation periods still be relevant?
Yes.
The Employment Rights Act 2025 does not remove the concept of probation periods.
However, employers may want to review whether their current probation period is still appropriate for their organisation and how it interacts with the new six-month unfair dismissal qualifying period.
For example, an employer with a three-month probation period may need to consider what happens between the end of probation and the employee reaching six months' service.
Similarly, an employer with a six-month probation period will need to ensure that the probation process is not simply left until the final few weeks.
A probation period should be an active management process rather than simply a date in an employment contract.
Probation management will become more important
The introduction of a six-month qualifying period makes it particularly important for managers to deal with concerns early.
If an employee is struggling with performance, attendance or conduct, leaving the issue until the final week of probation could create unnecessary pressure and reduce the employer's options.
Instead, employers should consider having a structured probation process that includes:
1. Clear expectations from the start
Employees should understand what is expected of them from the beginning of their employment.
This could include clear objectives, role responsibilities, performance standards and behavioural expectations.
2. Regular probation review meetings
Probation should not rely on one meeting at the end of the probation period.
Regular reviews give managers an opportunity to discuss progress, provide feedback and identify concerns at an early stage.
3. Early intervention where concerns arise
If an employee is not meeting expectations, managers should address this rather than waiting for the formal probation review.
Employees should understand what the concern is, what improvement is expected and what support is available.
4. Appropriate documentation
Records of probation review meetings, performance concerns, feedback and agreed actions can help demonstrate that the employer has actively managed the probation process.
Good documentation can also help managers make informed decisions about whether an employee has successfully completed probation.
5. Consistent decision-making
Employers should aim to apply their probation process consistently across employees.
A clear and structured process can help managers make objective decisions and reduce the risk of inconsistent treatment.
Which employees should employers review now?
With the changes coming into effect on 1 January 2027, businesses should consider reviewing employees who are currently within their probation period, as well as upcoming new starters.
For example:
Employees who started on or around 1 July 2026
An employee who started on 1 July 2026 will have completed six months' service by 1 January 2027. This means the timing of their probation and any outstanding performance concerns should be considered carefully.
Employees who started from October 2026 onwards
An employee starting on 1 October 2026 would have around three months' service by 1 January 2027. Although they would not yet have reached six months' service, their probation should still be actively managed rather than left until the end of the probation period.
The Government's August 2026 Employer Bulletin specifically highlights that employers should be preparing for the changes now and notes that employees recruited after July 2026 will generally gain protection six months after their start date.
Should you change your probation period?
There is no single probation period that will be right for every business.
Some employers may decide that a six-month probation period is appropriate. Others may prefer a shorter initial probation period with additional review points during the employee's first six months.
The important consideration is whether your probation process gives managers enough opportunity to:
Set clear expectations
Monitor performance
Identify concerns
Provide appropriate support
Give employees an opportunity to improve
Document discussions and outcomes
Make timely and informed decisions
Employers should also consider whether their employment contracts, policies and management processes all work together effectively.
Questions for employers to consider
As you prepare for the Employment Rights Act 2025 changes, it may be useful to ask:
Is our current probation period still appropriate?
Do our employment contracts clearly explain how probation operates?
Do managers conduct regular probation review meetings?
Are probation reviews documented consistently?
Do managers know how to address performance concerns during probation?
Are concerns being raised early enough?
Do we have a clear process for extending probation where appropriate?
Do managers understand the difference between performance management, misconduct and other potential reasons for dismissal?
Are there any current probationary employees whose progress should be reviewed now?
What happens when an employee reaches the end of probation but has not yet completed six months' service?
These questions can help identify areas where your current probation process may need updating before the new rules take effect.
Preparing your business for January 2027
The reduction in the unfair dismissal qualifying period is likely to make effective people management during the first six months of employment more important than ever.
Rather than viewing probation as a single review meeting at the end of a fixed period, employers should consider it as a structured process running throughout the employee's early employment.
Getting this process right can help managers identify concerns sooner, communicate expectations clearly and make better-informed decisions about new starters.
The Government has encouraged employers to prepare for the changes and specifically recommends considering how contractual probation periods will operate alongside the new six-month qualifying period.
How Hello People Solutions can help
At Hello People Solutions, we understand that managing probation effectively can be challenging for managers, particularly when they are balancing day-to-day responsibilities with the need to provide regular feedback and documentation.
We are developing a comprehensive Probation Process Guide to help businesses put a clear and consistent probation process in place.
The guide will provide managers with a practical framework for:
Managing probation periods effectively
Setting clear expectations
Conducting meaningful probation review meetings
Identifying and addressing performance concerns
Recording discussions and outcomes
Supporting employees during their probation
Making informed decisions about whether probation has been successfully completed
If you would like to discuss how the Employment Rights Act 2025 could affect your probation process, recruitment practices or dismissal procedures, get in touch with Hello People Solutions.
Further information
For the latest Government guidance on the changes to unfair dismissal rights, visit the UK Government's guidance on unfair dismissal eligibility and its guidance for businesses on unfair dismissal rights.
