Probation under the six month unfair dismissal rule: The 6-month window changes everything

From 1 January 2027, new hires will qualify for unfair dismissal protection after six months’ service, rather than two years. While the date may feel distant, the impact is immediate. Decisions made now, from contracts to probation structures, will shape legal risk well before that point.

Although this change doesn’t take effect until January 2027, it already affects the people organisations are recruiting today. Anyone who tips over six months’ service after that date will be protected, which means the decisions you make now really matter – Rena Christou, CEO of Empowering People Group

Polling from the recent webinar, ‘From pre hire to probation: why the six month window changes everything’, shows awareness is growing, but action is lagging:

• 52% have started planning but not yet acted
• 33% are already implementing changes
• 12% haven’t started planning
• 3% are unsure

This means 2 in 3 HR professionals recognise the risk, but more than half remain exposed. As the employees this will impact in Jan 2027 are already being hired today, delaying updates to probation and performance processes now carries legal and operational risk, so building manager capability needs to be prioritised now.

The manager capability gap challenge

Manager capability gaps are a primary source of risk under the Employment Rights Act (EPG research). The reduction of the unfair dismissal qualifying period from two years to six months alone fundamentally alters how probation and performance risk shows up. Yet, many organisations still rely on informal or lightly documented management in early service.

This means performance issues can drift, probations are extended repeatedly, and difficult conversations are delayed. Under the current regime, that approach can go unchallenged, but it will no longer hold.

As Rena Christou puts it: “Probation isn’t a legal concept in itself, but how managers manage those early months absolutely matters. Once someone reaches six months’ service, you need to be able to show a fair reason and a fair process if a dismissal is required, and also evidence that the employee has been properly supported.”

From now on, dismissals will require clear evidence of feedback, support and defensible decision-making because weak or inconsistent probation practices will quickly translate into frontline legal risk.

Costly unfair dismissal cap exposure

Changes to unfair dismissal compensation deepen that risk. From January 2027, the cap will no longer be limited to one year’s pay, significantly increasing potential exposure, particularly for higher earners.

As Rena Christou explains: “Lifting the compensation cap changes the commercial reality of exits, especially for senior or higher paid roles. It shifts negotiating positions and increases financial risk where processes aren’t robust.”

The impact is cumulative:

• More employees protected earlier
• Less tolerance for managerial inconsistency
• Higher settlement and tribunal risk
• Increased pressure on already stretched HR teams

Probation management needs to evolve as it is increasingly recognised as an essential component of risk control for managers.

What the HR data says about readiness

The webinar polling highlights a clear gap between awareness and execution. While awareness is high, 1 in 7 organisations have not yet started planning, and a further 2 in 3 have yet to implement changes, meaning many organisations remain reliant on existing probation practices that weren’t designed for six‑month protection. That gap matters because:

• Contracts issued now will still govern employees protected in 2027
• Many six month probations already run beyond the new legal threshold
• Poorly managed early performance will become defensible claims

As Rena Christou warns: “This isn’t something organisations can afford to leave until late 2026. By then, the risk is already embedded in existing hires and everyday management habits.”

What effective probation looks like

Organisations making the fastest progress are focusing on four practical shifts.

1. Clear probation frameworks

Although probation is not a statutory concept, the processes around it carry legal weight. Employers preparing proactively are reviewing:

• Probation length and extension criteria
• Early service performance standards
• How feedback is recorded
• When and how concerns are escalated

Many are moving towards three-month probation periods with structured reviews and the option to extend, rather than waiting until month six to intervene.

If your probation period runs to six months, you may already be outside the protection buffer the law used to give you. That means being much sharper earlier on – Rena Christou, CEO of Empowering People Group

2. Stronger manager capability

A recurring risk flagged in the webinar was the rise of accidental managers – people promoted for technical performance with a lack of people management experience or training. Under the two year qualifying period, capability gaps were often masked, but with six month protection, those gaps will surface quickly.

This is now a frontline risk that needs to be addressed urgently to ensure managers can set expectations early, give timely feedback and take confident action.

This is compounded by existing HR pressure. Many HR teams are already balancing high ER case volumes, organisational change, absence management and manager support, leaving limited capacity for proactive intervention.

What’s needed now is a proactive structure and support system for managers, not operating models that involve later intervention. This is why investing in a fit-for-purpose HR operating model, including tech‑enabled outsourcing, is becoming critical to give managers earlier, structured support.

Probation periods can feel like birthdays or anniversaries. If nobody’s watching the date, you only realise too late that it’s arrived – and by then you’re reacting rather than being proactive – Rena Christou, CEO of Empowering People Group

By the time support is requested, options are often already constrained. Common issues include:

• Unclear expectations early on
• Feedback delivered too late, or not at all
• Inconsistent treatment across teams
• Avoidance of early challenge because conversations feel uncomfortable

Rena adds, “Managers often ask for help at the point they’ve had enough. By then, very little has been documented and expectations weren’t set clearly.”

3. Better evidence – not more admin

Earlier protection means evidence matters sooner. But this is not about adding bureaucracy. Effective organisations are:

• Capturing performance conversations as they happen
• Having regular performance conversations, not just an annual review
• Maintaining clear audit trails of the conversations
• Using systems to record decisions and actions consistently

With a strong operating model in place, organisations can build manager confidence and consistency and reduce risks escalating to HR.

4. Getting hiring decisions right first time

Probation risk begins well before day one. Poor role definition, rushed recruitment and misaligned expectations significantly increase early exits and legal exposure.

With far less time to correct mistakes once someone has started, organisations need hiring processes that prioritise clarity, consistency and informed decision‑making from the outset.

Clear role scoping, realistic job design and structured hiring decisions reduce the likelihood that probation escalates into an ER issue at all, shifting risk management upstream rather than relying on corrective action later.

Why delaying action is the riskiest option

The six month rule does not require panic driven exits. But it does demand earlier, clearer and more consistent action. Organisations that wait until late 2026 risk:

• Inheriting exposure from existing hires
• Managers unprepared for earlier escalation
• Probation frameworks misaligned with the law

Those acting now are using the change to strengthen onboarding, equip managers properly and reduce avoidable ER cases.

Six month unfair dismissal: Next steps

For organisations still in the planning phase, the priority is momentum. That means:

• Reviewing probation lengths and policies
• Stress testing early performance processes
• Assessing manager capability and confidence
• Understanding workload impacts for HR and ER teams

Organisations that act now won’t just be legally safer. They’ll have better run probation processes and stronger management foundations as a result – Rena Christou, CEO of Empowering People Group

Our Group employment law experts have developed a live Employment Rights Act summary and tracker, updated as regulation and guidance changes.

Download the ERA summary and tracker and assess your readiness now, before today’s hires become tomorrow’s risk.