London, December 06, 2025
The UK government will reduce the qualifying period for employees to bring unfair dismissal claims from two years to six months, effective January 2027, as part of broader employment reforms to enhance worker protections and balance employer concerns.
Key Reform: Six-Month Qualifying Period for Unfair Dismissal
The most significant change introduced by the Employment Rights Bill is the reduction of the unfair dismissal qualifying period. Currently, employees must have two years of continuous service before they can claim unfair dismissal. The new law will allow the majority of employees to bring claims after just six months of employment, considerably expanding employee rights.
Implementation Timeline and Legislative Process
This reform is expected to come into force in January 2027, following the final approval of the Employment Rights Bill in Parliament. While other provisions in the bill, such as updates to statutory sick pay and paternity leave, will begin in April 2026, the unfair dismissal reform represents a critical milestone due to its wide-ranging impact on employer-employee relations.
Rationale and Negotiations
Initially, the government proposed a “day one” right for unfair dismissal claims and complex probation rules. After extensive negotiations with trade unions and employer groups, including the Chartered Institute of Personnel and Development (CIPD), a compromise was reached. This compromise introduced the six-month qualifying period instead of immediate eligibility and avoided the introduction of potentially burdensome probation requirements. The aim was to provide greater protection for employees while maintaining manageable obligations for employers.
Implications for Employers
Employers will face a substantially shortened period before unfair dismissal claims can be lodged, increasing the need for transparent and fair dismissal processes from the outset. Performance management and disciplinary procedures will require careful documentation and adherence to legal standards to withstand possible claims. Organisations must also revise probation policies, which traditionally align with the two-year qualifying period, to comply with the new six-month rule. Human resources and management teams are urged to start updating contracts, policies, and onboarding practices to prepare for these changes.
Broader Employment Law Reforms
The six-month unfair dismissal threshold is one element within a wider legislative package aimed at improving employment rights. The Employment Rights Bill includes expanded flexible working entitlements, strengthened sick pay and parental leave protections, increased transparency for zero-hours and casual contracts, and measures against fire-and-rehire tactics. These reforms collectively represent a strategic shift towards enhanced job security and fairness in the UK labour market.
The introduction of a six-month qualifying period fundamentally alters the landscape for UK employers and employees alike. Business leaders and HR professionals must prioritize early preparation to adapt policies and practices ahead of the January 2027 enforcement date, ensuring compliance and minimizing legal exposure in an evolving employment environment.