First published on Wednesday, May 13, 2026
Last updated on Wednesday, May 13, 2026
While changes to unfair dismissal protections aren’t coming into place until 1st January 2027, employers need to take actionable steps now to avoid risk.
Why act now?
“Surely I have plenty of time?” That’s what you might think. And yes, while the implementation of the law is planned for the start of 2027, employers that are hiring now may face complications when that time comes.
By acting now, you can:
Reduce the risks before it’s too late
Use this time to prepare managers with updated training
Implement robust policies and procedures ahead of time
Steps to prepare for the changes to unfair dismissal laws
Here are a few easy steps you can take to reduce the risks and protect your business before January 2027.
1. Review and adjust probation periods
Why: If probation periods are set at six months, employees may gain unfair dismissal rights before you can fully assess that they’re suitable for the role. Any delays in reviewing or extending probation periods could result in employees reaching the six-month threshold, exposing employers to unfair dismissal claims.
Action: You should consider shortening probation periods to three months, allowing time for extensions or decisions before employees gain unfair dismissal rights.
2. Strengthen probation management
Why: Probation periods will become a critical tool for assessing new hires. Thorough proper management will help you identify and address performance or conduct concerns early.
Even the slightest delay in reviewing probation periods could put you at risk.
Action: Ensure probation policies are robust, including:
Regular review meetings
Make earlier capability assessments
Clear documentation of performance expectations and outcomes
Prompt action to address concerns
3. Review disciplinary and dismissal procedures
Why: The reduced qualifying period means you must follow fair and reasonable dismissal procedures earlier in employment. Failure to do so could result in successful claims. If an employee is not suitable for the role, the best processes to follow can be found in our dismissals guide.
Action: Train managers in updated procedures and ensure they understand the importance of acting fairly.
Note: Anyone you have hired with at least six months' service as of 1 January 2027 will be eligible to claim unfair dismissal. This is because the change will apply retrospectively. So, now is the time to review anyone you’re hired since February 2025 and make a final, fair decision.
4. Update recruitment practices
Why: Hiring now puts your business at risk of unfair dismissal claims after January 2027. Reducing the risk of hiring unsuitable candidates is crucial, as dismissals carry greater risk under the new laws.
Action: Focus hiring processes on attracting high-quality candidates through thorough recruitment processes. Robust interviews, reference checks, and assessments can minimise the risk of failed probations.
Proactively addressing these areas will help you adapt to the new legal landscape, reduce risks, and manage employee relations effectively.
What happens if you don’t comply?
As the compensation cap will also be removed, unfair dismissal claims post-January 2027 could result in unlimited amounts of compensation for the claimant. An expensive position to find yourself in if a dismissal is not handled correctly.
How BrightHR can help you
While you can take many precautionary steps yourself, there’s an easier, simpler way to get your HR processes prepared for changes to unfair dismissals.
With BrightHR not only can you access the advice of professionals anytime, any day, but the suite of HR tools has you covered:
BrightBase for HR policies and more
Streamline your hiring processes, update HR policies, store essential probation documentation, and conduct regular performance review meetings with one system. Everything you need to prepare for these changes and to promote fair practices in your business.
Book your free demo today to discover how BrightHR can help you.
