Employment Rights Act 2025: probation period changes explained
Once the Employment Rights Act 2025 comes into force on 1 January 2027, an employee will be able to bring an unfair dismissal claim after just six months of employment, rather than the two years required now. Worth noting – any employees employed from 1 July 2026 and who remain employed at 1 January 2027 will have the required service to bring an unfair dismissal claim.
The Act itself doesn’t mention probation periods, but it doesn’t need to. Right now, most new employees only build up protection against unfair dismissal after two years in the job, so the early stages of employment carry relatively little risk for employers. Once that drops to six months, there’s far less time to spot problems and act on them before an employee gains that protection. If your probation process isn’t managed properly, that’s when it will cost you, and often you won’t realise until it’s too late.
So, here’s what needs sorting before January 2027.
Train your managers, not just your new starters
A probation period is only as good as the manager running it. Telling them to “keep an eye on the new starter” isn’t training, it’s hope.
Managers need to set expectations from day one, hold proper review meetings rather than a quick chat when they remember, and work from a job description that actually says what good performance looks like. And when something’s not right, they need to say so and write it down at the time, not three months later when they’re trying to remember why it didn’t work out.
That last point is the one employers regret skipping. A paper trail showing you raised concerns promptly and gave someone a fair chance is worth more than any amount of “we did mention it a few times.”
We also offer practical management training to help employers prepare for these changes and strengthen their probation and performance management processes. For more information about our training programmes, please contact [email protected].
Stop defaulting to six months
Plenty of employers run six-month-plus probation periods simply because that’s what the last contract template said.
Some roles do need longer, however most don’t. Three or four months, with the option to extend once by no more than a month, is usually enough to work out whether someone’s right for the job, and it gets you there before the six-month threshold applies.
Read your probation clause properly
While you’re looking at your contract, have a good read your standard probation clause. Don’t assume it is fine. A clause worth having sets out how long the period lasts, what performance and behaviour is expected, your right to extend it, and how it’s confirmed as passed.
If it’s vague on any of that, you could find yourself in trouble later down the line.
What changes after six months
Despite this change, do remember that you can still dismiss someone after six months. What you lose is the shortcut. Employers dismissing staff with under two years’ service can currently often use a lighter-touch process. Once someone qualifies for unfair dismissal protection at six months, that shortcut is gone.
However, good management of people in the probation period will pay dividends later. That hard work will be vital to show that any dismissal is fair – and you will get the best out of your employee too – win/win.
Review your contracts, not just your probation clause
Employment law keeps moving and your contracts should move with it. Reviewing your terms regularly, probation clauses included, is no longer just box-ticking, it’s basic protection.
If you’d like assistance reviewing your contracts ahead of January 2027, or sorting your probation process, get in touch.
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Disclaimer
This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.
