From 1 January 2027, employees in Great Britain can claim ordinary unfair dismissal after six months’ service instead of two years, and the cap on compensation is removed. Your probation period does not change the law, but it is now the main window to decide whether a new starter is right for the role. Anyone who joined on or before 1 July 2026 and is still employed will be protected on 1 January 2027. Review your probation length, schedule structured reviews before the five-month mark and make sure managers follow a fair process.
What is changing on 1 January 2027?
The Employment Rights Act 2025 makes two linked changes to unfair dismissal that take effect on 1 January 2027, according to the government’s unfair dismissal factsheet:
| Rule | Until 31 December 2026 | From 1 January 2027 |
|---|---|---|
| Qualifying period for ordinary unfair dismissal | 2 years’ continuous employment | 6 months’ continuous employment |
| Right to request written reasons for dismissal | 2 years | 6 months |
| Cap on the compensatory award | Lower of £123,543 or 52 weeks’ gross pay (from 6 April 2026) | No cap (awards must still be “just and equitable”) |
| Day-one protections (discrimination, whistleblowing, automatically unfair reasons) | Apply from day one | Unchanged — still day one |
The government estimates that about 6.3 million employees — 22% of employees aged 16 and over — currently have between six months’ and two years’ service and will gain protection. It also notes that around 40% of businesses use probation periods, and most of those are six months or less.
Who is protected on day one of the new rules?
The change is not limited to people hired after 1 January 2027. Anyone with at least six months’ service on that date is protected straight away. In practice:
| Start date | When ordinary unfair dismissal protection begins |
|---|---|
| 1 March 2026 | 1 January 2027 (already has 10 months’ service) |
| 1 July 2026 | 1 January 2027 (reaches six months on that date) |
| 26 October 2026 | Around late April 2027, once six months’ service is reached |
| 1 February 2027 | Around 1 August 2027 |
Two technical points catch employers out. First, if you dismiss without giving the statutory minimum notice, that notice period can be added to the termination date when calculating service, which may push someone over the threshold. Second, service is counted inclusively, so cutting it fine by a day or two is risky. If you are close to the line, take advice.
Does a probation period protect you from unfair dismissal claims?
No. A probation period is a contractual tool; it has never been a legal shield. Acas (guidance updated 7 October 2026) is clear that:
- there is no legal requirement to have a probation period, and it can be any length;
- the Act does not change the rules on probation periods themselves;
- day-one rights still apply during probation — the minimum wage, paid holiday, protection from discrimination, whistleblowing protection and the right to join a trade union;
- ending probation before six months may reduce some risk, but it does not remove legal risk from discrimination, whistleblowing or breach of contract claims.
Extending someone’s probation does not pause the six-month statutory clock either. Continuous employment keeps running whatever your contract says about probation.
How long should a probation period be from 2027?
There is no single right answer. Acas notes that six months or less may not suit every role, and specialist roles may need longer for training and assessment. What changes is the risk profile: if probation runs to six months, the decision point lands exactly when unfair dismissal rights begin.
| Role type (examples) | Typical probation to consider | Why |
|---|---|---|
| Entry-level frontline: cleaning operatives, warehouse operatives, kitchen porters, general assistants | 8–12 weeks | Core competence and reliability are visible quickly |
| Skilled or regulated: healthcare assistants, SIA-licensed officers, chefs, team leaders | 3–4 months | Allows for induction, mandatory training and supervised shifts |
| Supervisory or specialist: site managers, nurses, technical roles | Up to 6 months, with a firm review at month 4 | Longer learning curve, but decide before the threshold |
Whatever length you choose, build in a formal outcome meeting well before the five-month mark. That gives time to extend, support or end the employment fairly and with proper notice.
A practical probation timeline for frontline employers
For high-volume, shift-based teams, a simple, documented rhythm works best:
- Week 1 – Induction and expectations. Give the job description, key standards (attendance, safety, quality) and the review dates in writing. Record that training has been completed.
- Weeks 4–6 – First check-in. A short conversation, written up. Praise what is going well, name any concerns and agree support.
- Weeks 10–12 – Formal review. For 12-week probations, this is the outcome meeting: confirm, extend with clear targets or begin the process to end employment.
- Month 4 – Final review for longer probations. Decide by now for any probation that would otherwise run to six months.
- Before month 5 – Act on the decision. Leave time for a fair meeting, a right of appeal and notice.
What good probation records look like
- Dated notes of each review, signed or acknowledged by the employee
- Specific examples (for example, “late for 4 of 12 shifts in September”) rather than general impressions
- Evidence of support offered: retraining, buddying, changes to shift patterns
- Copies of any warnings and the employee’s response
Dismissing during probation: do it fairly
Once someone has six months’ service, you will need a potentially fair reason (such as capability or conduct) and a fair procedure. Even before then, good process reduces discrimination and other claim risks. Specialist employment advisers point to the Acas Code of Practice on disciplinary and grievance procedures as the benchmark; tribunals can increase awards by up to 25% where it is unreasonably ignored.
A fair approach usually includes:
- telling the employee about the concern in writing before any meeting;
- holding a meeting and letting them be accompanied;
- considering their explanation and any support needs (including reasonable adjustments for disability);
- confirming the outcome and reasons in writing;
- offering a right of appeal.
Acas also recommends treating dismissal as a last resort, with extending probation or performance management as alternatives.
Where agency workers and temp-to-perm fit
Many MEL clients use temporary staff before making permanent offers, especially in cleaning, logistics, hospitality and care. Temp-to-perm can be a sensible way to assess fit in real working conditions:
- Agency workers are usually engaged through the agency, not employed by you. Their time on assignment generally does not count as employment with you, so the six-month unfair dismissal clock typically starts when they join your payroll. Check the facts of each arrangement, as employment status can be complex.
- Agency workers still have rights. They have certain day-one rights and, after 12 weeks in the same role, equal treatment on basic pay and conditions under the Agency Workers Regulations.
- Read your agency terms. Agencies may charge a transfer fee when you take a worker on directly, and the terms must offer alternatives, such as an extended hire period.
- Don’t skip probation after conversion. A strong temp record is useful evidence, but a short, documented probation still matters once the person becomes your employee.
Employer checklist: get ready before 1 January 2027
- List every employee who will have six months’ service on 1 January 2027 (start dates on or before 1 July 2026)
- Review contract templates and offer letters for probation length and extension wording
- Set probation lengths by role, with outcome meetings before month five
- Update your disciplinary and capability policies to remove short-service shortcuts
- Train line managers and shift supervisors to hold and record review meetings
- Create simple templates: review form, extension letter, outcome letter
- Diarise reviews in your HR system or rota tool so none are missed
- Check agency terms for temp-to-perm transfer fees and extended hire options
- Brief senior managers on the removal of the compensation cap
Common mistakes to avoid
| Mistake | Better approach |
|---|---|
| Treating probation as a “free pass” to dismiss | Day-one rights always applied; from 2027 the window is shorter |
| Letting probation run to six months by default | Decide earlier and record the outcome |
| Extending probation with no targets | Set measurable goals and a new review date |
| No paperwork until there is a problem | Record every review, including positive ones |
| Managers handling dismissals informally | Use a short, fair process aligned with the Acas Code |
How MEL can help
MEL supplies temporary and permanent staff across facilities management and commercial cleaning, healthcare and nursing support, logistics and warehouse, hospitality and catering, and SIA security. If you want to trial candidates on assignment before offering permanent roles, or need help planning seasonal and permanent headcount ahead of 2027, talk to our team or explore our services.
For a wider view of the reforms, read our guide to the Employment Rights Act changes in October 2026.
FAQs
Can I still have a six-month probation period? Yes. There is no legal limit on probation length. However, from 1 January 2027 a six-month probation means your final decision coincides with the point at which unfair dismissal rights begin, so many employers will set an earlier review.
Can you extend a probation period? Yes, if the contract allows it or the employee agrees. Explain why, set clear targets and confirm the new review date in writing. Extending probation does not stop the statutory six-month clock.
Can I dismiss an employee during probation? Yes, but day-one protections still apply, including discrimination and whistleblowing. Use a fair process, give contractual or statutory notice and record your reasons. Once the employee has six months’ service, you also need a fair reason and procedure for ordinary unfair dismissal.
Who is protected from unfair dismissal on 1 January 2027? Any employee with at least six months’ continuous service on that date — broadly, anyone who started on or before 1 July 2026 and is still employed.
Is the unfair dismissal compensation cap being removed? Yes. From 1 January 2027 the cap on the compensatory award is removed. Until then it is the lower of £123,543 or 52 weeks’ gross pay.
Does the six-month rule apply to agency workers? Ordinary unfair dismissal applies to employees. Agency workers supplied through an agency are usually not your employees, though they have their own rights. If you hire a temp directly, their service with you generally starts from their employment start date.
Do employees have rights during probation? Yes: the minimum wage, paid holiday, protection from discrimination, whistleblowing protection, the right to join a trade union, sick leave under your usual process and statutory sick pay where eligible.
