Unfair Dismissal Changes: What Businesses Need to Do Now

The UK employment law landscape is changing, and one of the most significant reforms for employers is the reduction in the qualifying period for unfair dismissal claims from two years to six months for new employees.

While many businesses have heard about the proposed changes, few have considered what this means in practice.

Under the previous rules, an employee joining your business on 1 July 2026 would typically have needed to reach 1 July 2028 before gaining ordinary unfair dismissal protection.

Under the new framework, that same employee could potentially have unfair dismissal rights from 1 January 2027.

That's 18 months earlier than many employers are used to managing.

For business owners and managers, this fundamentally changes the risk profile of every new hire.

Why This Matters

For years, many organisations relied on the first two years of employment as a relatively low-risk period. If a new hire wasn't the right fit, employers often had greater flexibility to bring employment to an end.

That approach is no longer viable.

The first six months of employment will become critical. Employers will need to demonstrate that performance expectations were clear, concerns were discussed appropriately, support was provided where required, and decisions were made fairly and consistently.

The businesses most exposed are not necessarily those with poor employees. They're often the businesses with poor processes.

Informal conversations, undocumented concerns, inconsistent management styles, and rushed dismissal decisions can all create unnecessary risk.

Simply put, good intentions will no longer be enough. Employers will need evidence.

What Needs Updating Now?

Employment Contracts
Ensure contracts clearly reflect probation arrangements, performance expectations, and current employment law requirements.

Probation Processes
Introduce structured reviews, documented feedback, and clear decision-making throughout probation periods.

Disciplinary Procedures
Review policies and processes to ensure investigations, hearings, appeals, and record keeping are robust and consistent.

Performance Management
Move from informal conversations to structured, documented performance management from day one.

Staff Handbooks
Remove outdated references and ensure employment policies reflect the changing legal landscape.

Manager Training
Equip managers with the confidence and capability to manage performance, conduct issues, and difficult conversations effectively.

This Is More Than a Compliance Issue

Many businesses will see these reforms as another employment law hurdle.

The reality is that they create an opportunity to build stronger, more consistent people practices.

Businesses with clear processes, effective managers, and accurate records will not only reduce legal risk but also improve employee experience, retention, and performance.

Those who wait until problems arise may find themselves reacting under pressure.

How MiM People Can Help

Preparing for these changes doesn't have to mean more spreadsheets, more administration, or more complexity.

At MiM People, we help businesses create structured, compliant people processes that protect the organisation while supporting employee success.

Our platform simplifies the entire employee lifecycle by bringing together:

• Employment contracts and documentation

• Policy management

• Employee onboarding

• Probation reviews

• Performance management

• Training and development

• Absence management

• Compliance records

• Employee engagement tools

Everything is held in one place, creating consistency, accountability, and the documentation employers increasingly need.

As unfair dismissal rights move much closer to the start of employment, having robust processes is no longer simply best practice. It's essential business protection.

Ready for the Changes?

If your contracts, handbook, probation process, disciplinary procedures, or performance management framework haven't been reviewed recently, now is the time.

Book a free HR & Employment Law Health Check with MiM People.

We'll help you identify potential risks, highlight opportunities for improvement, and show how MiM People can help you standardise critical people processes, reduce administration, and prepare confidently for the upcoming changes.

Because when employees may gain unfair dismissal protection after six months rather than two years, every conversation, every review, and every process matters.