Probation playbook |
The complete probation success system

From 1 January 2027, the law removes the cap on compensation for unfair dismissal, meaning tribunals can now order payouts based on an individual’s total actual losses, including lost salary, bonuses, share schemes, and pension contributions, with no upper limit.

For high earners, this is a massive change as they are no longer restricted by a fixed worst-case scenario figure, which used to make calculating potential payouts fairly straightforward. Because of this, employers lose the ability to easily price in the risk of a dismissal and moving forward, high-stakes exits will be much more costly and complex to negotiate, making it essential to have a more robust, documented evidence for every dismissal to avoid the threat of a massive, uncapped tribunal award.

To keep the probation process fair and legally sound, employers must equip managers to understand their responsibilities within a shorter probation period window, encouraging them support employees through regular check-ins. Regular, informal dialogue helps managers spot performance gaps earlier. Without these touchpoints, it’s easy opportunities to make practical adjustments that help any new hire succeed.

This is especially relevant when managers are less experienced in supporting different ways of working, such as when someone has a specific disability or a neurodivergent profile. Every team member deserves equal support, but managers often lack the confidence to ask about individual needs. Reasonable adjustments can resolve a gap before it becomes a formal issue, which improves the overall employee experience. Coaching managers to have the right conversations and the right time reduces risk.