From day one to six months: The quarter turn in UK unfair dismissal law

A quarter turn, not a U-turn

This change does not represent a U‑turn but instead a quarter turn that is welcomingly received by employers.

The Employment Rights Bill encompasses the biggest changes to employment rights and obligations that this generation will see.

Current position: Two years of continuous employment

Currently, an employee needs 2 years continuous employment before they can bring a claim for unfair dismissal or constructive dismissal in an Employment Tribunal. In practice, this means that it is relatively low risk for an employer to dismiss an employee within the first 2 years of their employment.

Why employers have felt secure under the old rules

The risk is low because the employee cannot pursue a claim in the Employment Tribunal about the reason for dismissal or the process followed unless there is some prohibited conduct. Prohibited conduct would be, for example, discrimination or dismissal due to an employee making a protected disclosure or asserting a legal right.

Employer considerations beyond legal risk

It is a lot easier and lower risk for an employer to dismiss an employee within the first 2 years of employment. This can be of comfort when an employer is taking on a new role or new hire, however unsettling for an employee or worker. Other factors for employers include recruitment costs, damage to reputation, and staff turnover. Some employers choose to follow a full or shortened dismissal process regardless of length of service.

Expectations of day one rights

We were expecting day one unfair dismissal to be in force at some point in 2027, however have been awaiting further detail in respect of what the “initial period of employment” would be, and what shortened process could be followed within that period.

There has been widespread concern by employers about how day one unfair dismissal rights would work in practice. Questions included whether this would lead to a huge rise in tribunal claims, and whether recruitment would be stifled, leading to employers engaging individuals on a self‑employed basis instead.

The new six‑month rule

It has now been announced that there will be a six‑month qualifying period for unfair dismissal. This comes as a relief to employers. Currently 2 years’ service is required, it was stated to be day one, and now confirmed at 6 months continuous service.

How Ellis Jones can help employers prepare

While the full detail of these changes is still not clear, the qualifying period for unfair dismissal will be reduced to 6 months. Employers can start constructively preparing for these changes by carrying out the following:

• Review recruitment processes to give new hires the best chance of success
• Update induction programmes
• Review, update and train on performance processes including new starter reviews and appraisals
• Educate and train managers on performance, sickness and conduct procedures

Our Employment experts can help by reviewing, updating and carrying out training on these core HR processes. We run a free, monthly HR Forum in partnership with Rubicon Recruitment. If you are a business owner or have responsibility for HR, please do get in touch to join our forum. You can call us on 01202 525333 or email at employment@ellisjones.co.uk.