Changes to unfair dismissal rules to take effect

New changes to when an employee can raise an unfair dismissal claim will take effect for dismissals effective 1st January 2027, with new and recent hires to be the first to be covered by the change.

Under current rules, employees need to have two years of service before qualifying for protection against ‘ordinary’ unfair dismissal; the right to request written reasons for dismissal; and protection against unfair dismissal on grounds of spent convictions. From 1st January 2027, employees will only need 6 months of service to qualify for protections, and to be entitled to raise unfair dismissal claims against an employer.

With changes coming into force in less than six months time, new employees being recruited now, as well as recent hires, will be covered by the legislative changes, in particular workers being employed on fixed-term contracts of less than two years.

Rob Birley, Director of Stockport-based HR consultancy, Cornerstone Resources, summarises how businesses can make sure they are ready for the change:

If you fail to follow a fair dismissal process for someone with more than 6 months service, the employee can raise a claim at the Employment Tribunal claiming unfair dismissal.

Is it all doom and gloom? Not at all! If you follow the below steps, you’re likely to notice little change from before.

• Follow a robust recruitment process, checking for alignment to values as well as technical skills.
• Induct them well, giving them a really good start with your company
• Provide support to help employees overcome obstacles and be set up for success.
• Set realistic targets during probation and give feedback where performance needs to improve AND where it is good.
• Don’t delay managing underperformance.

The vast majority of employees want to do a good job and will add value when you treat them fairly. Don’t let the doom mongers tell you otherwise!

Changes in 2027 to unfair dismissal rules follow a host of changes to employment rights that took effect in April 2026, which included:

• collective redundancy protective award – doubling the maximum period of the protective award 
• ‘Day 1’ Paternity Leave and Unpaid Parental Leave
• whistleblowing – strengthening protections for workers who ‘blow the whistle’ on sexual harassment 
• Bereaved Partners’ Paternity Leave – enabling bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life  
• Statutory Sick Pay (SSP) – removing the Lower Earnings Limit (LEL) and waiting period 
• action plans on gender equality and supporting employees through the menopause (voluntary) 
• menopause guidance 
• simplifying trade union recognition process