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Changes to day one unfair dismissal rights | New six-month protection explained
Written by Patrick Carroll-Fogg on 1 December 2025
Of the almost 75 individual tweaks and changes set to be introduced under the Employment Rights Bill, the proposal to make unfair dismissal a day one right was undoubtedly the most significant. While many speculated that such a drastic shift might not survive scrutiny, others assumed it would pass easily given Labour’s majority.
Either way, the situation has now changed – and employers need to understand what this means for them.
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What changes to unfair dismissal were Labour proposing?
Currently, employees need two years’ continuous service before they can bring an unfair dismissal claim. Once they pass that threshold, employers must be able to show:
- A fair reason for dismissal, which must be in relation to conduct, capability, redundancy, a statutory ban, or “some other substantial reason”; and
- That they acted reasonably and followed a fair process.
Labour’s original plan was to remove that two-year qualifying period entirely and introduce unfair dismissal protection from day one, supported by a new ‘Initial Period of Employment’ (expected to last nine months) during which employers would be able to follow a ‘lighter-touch’ procedure. This would provide some flexibility around dismissals in the early stages of employment.
Even with this, day one unfair dismissal protection would still have significantly increased legal risk and limited employers’ ability to exit unsuitable hires quickly.
Is day one unfair dismissal still going ahead?
No. In a significant U-turn, the government has confirmed that unfair dismissal protection will instead begin after six months’ service, not from day one.
Ministers say the change is necessary to:
- Address concerns from business groups that day one protection would deter hiring; and
- Avoid delays in the House of Lords, where resistance to the original proposal had grown.
This shift surprised many who assumed the policy would proceed unchanged given Labour’s majority.
Are other day one changes still happening?
Yes. Several reforms will still apply from day one, including:
- Parental and paternity leave (day one entitlement)
- Statutory sick pay (payable from day one of absence)
These are expected to take effect from April 2026.
So, does this mean employers can relax?
Not quite. While employers and HR professionals may be breathing a sigh of relief, reducing the unfair dismissal qualifying period from two years to six months is still a major change, and employers should expect a meaningful impact.
The six-month threshold will coincide with other changes that make claims easier and more attractive for employees:
- The extension of Employment Tribunal time limits from three to six months will give employees a longer window to bring claims.
- The creation of the Fair Work Agency will raise awareness of employee rights and actively support employees in pursuing disputes.
- Additional reforms around sexual harassment, fire and rehire, and predictable working patterns will raise compliance risks.
All of this points to a likely rise in claims.
Plus, don’t forget: day one risk already exists. Even now, employees can bring various claims from their first day of employment, including but not limited to:
- Discrimination
- Whistleblowing
- Health and safety detriment
- Trade Union activity
The new six-month threshold adds another area of risk early in the employment relationship.
Moreover, the unfair dismissal U-turn demonstrates the current lack of certainty around the proposed changes and highlights the need for employers to stay continuously informed until the legislation is finalised and receives Royal Assent.
For employers and HR teams, keeping pace with this volume of change can feel overwhelming. Partnering with WorkNest keeps you one step ahead, helps you understand each change means for your organisation, and provides the advice and support you need to act with confidence.
But won't probation periods protect us?
Not in the way many employers think.
Probation periods are contractual, not legal, concepts. They don’t override employment law and don’t create a risk-free window. Key issues include:
- Employees can still bring discrimination or whistleblowing claims during probation.
- Many contracts state that probation only ends when a written confirmation letter is issued – a step employers frequently overlook.
- If probation quietly lapses, employees may automatically move onto longer notice periods or additional benefits.
And crucially, under the new rules: once an employee reaches six months’ service, unfair dismissal rights kick in. This means employers will no longer be able to dismiss informally at the six-month mark. If concerns haven’t been addressed early, brought to the employee’s attention, and well documented, the window to dismiss easily may have already closed.
Dismissals that currently happen at or just after six months will, in future, require:
- a fair reason; and
- a fair, documented process (invite letter, warnings, meetings, right of appeal).
…even if the employee is technically still ‘in probation’.
When does unfair dismissal law change?
According to the government’s current roadmap, the new six-month qualifying period for unfair dismissal is expected to take effect in 2027.
This gives employers time to review their processes and prepare for the new landscape.
7 ways to prepare for 6-month unfair dismissal protection
Taking the following steps will put your business in a stronger position when the law surrounding unfair dismissal changes:
Review your current processes
Audit your existing probation, performance management, and dismissal procedures. Make sure they align with the upcoming six-month unfair dismissal threshold and can be applied consistently. Identify any gaps or areas that could cause delays once rights kick in.
Track the six-month milestone
Keep a clear record of each employee’s start date and set reminders or alerts for the six-month point. This helps ensure timely reviews, meetings, or interventions before unfair dismissal rights kick in.
Document everything
Maintain thorough records of performance discussions, warnings, or misconduct investigations. Once the six-month mark passes, a fair process will be legally required – so it’s important you can evidence this.
Train managers
Ensure managers understand the proposed six-month unfair dismissal rules. Train them to spot issues early and act promptly on performance or conduct concerns, so problems are addressed before they escalate and before UD rights apply.
Don’t over-rely on probation periods
Probation periods don’t provide legal protection against unfair dismissal. Once an employee reaches six months, they automatically gain UD rights, regardless of whether probation has “ended” in writing.
Get recruitment right
Focus on thorough hiring processes to reduce the risk of performance or conduct issues later. Clear job descriptions, structured interviews, and proper reference checks help ensure you bring in the right people, minimising the likelihood of having to manage dismissals within the first six months.
Have the right support in place
Specialist advice and support greatly reduces your risk of claims arising in the first place and helps to protect your business if they do.
Don’t let unfair dismissal changes put your business at risk
Unfair dismissal claims can be devastating for small businesses. Did you know Tribunals can hand out a basic award of one week’s pay per year of service, plus a compensatory award for loss of earnings of up to a year’s pay or £118,223? What’s more, defending a claim through solicitors costs an average of £15,000 – even where the employee’s claim has no prospects of success.
Could your business afford it?
With the risk of claims set to increase, WorkNest’s proactive support protects employers from this expense, shields them from reputational damage, and provides peace of mind. Our personalised service gives you access to:
- Dedicated advisers – resolve employee issues before they escalate with help from your own small team of experts acting as an extension of your team.
- Unlimited employment law advice – manage probations, performance concerns, and dismissals confidently and correctly.
- Compliant contracts and policies – ensure these important documents are fit for purpose, reflect the latest laws, and provide maximum protection.
- Document drafting – save valuable time with expertly crafted letters, warnings, and written outcomes tailored to your business and situation.
- HR training – equip managers to handle issues confidently, consistently and compliantly, reducing the risk of disputes and claims.
- Optional Legal Expenses Insurance and specialist litigation support – mitigate the cost and stress of a claim and ensure the best possible outcome.
The best part? Our fixed-fee service means you don’t have to worry about racking up unexpected bills – get the support you need, when you need it, without watching the clock.
For more information, get in touch on 0345 226 8393 or request your free consultation using the button below.
