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Manager capability is employers' biggest concern ahead of unfair dismissal reforms

More than half of employers are concerned that managers will fail to address workplace issues early enough when unfair dismissal protection is reduced to six months, new WorkNest research reveals.

The qualifying period for ordinary unfair dismissal claims is expected to reduce from two years to six months in January 2027. While much of the discussion has focused on the legal implications, employers appear more concerned about whether their managers are ready to respond.

A survey of more than 890 HR professionals and business owners found that 54% see managers failing to address issues promptly as their biggest concern about hiring under the new rules.

This was significantly higher than concerns about:

• Employment tribunal claims - 16%

• Managing poor performance during probation - 16%

• Dismissals involving sickness or disability - 12%

Why manager capability matters

Managers are often the first to identify concerns about an employee’s performance, conduct or attendance. If they avoid difficult conversations, fail to keep appropriate records or allow problems to continue, the organisation may have fewer options once the employee qualifies for unfair dismissal protection.

Emma Jackson, HR Consultant at WorkNest, said:

“Many employers understand that employees will qualify for unfair dismissal protection much earlier under the new rules. However, their biggest concern is not simply the law itself. It is whether managers have the confidence and capability to deal with problems effectively.

“Managers are usually the first to identify concerns around performance, conduct or attendance. If those issues are not addressed promptly, employers may find themselves with fewer options once an employee gains unfair dismissal protection.”

The shorter qualifying period means employers will need to make better use of recruitment, onboarding and probation. Managers will need to set clear expectations, monitor progress and address concerns as soon as they arise.

Reforms could make employers more cautious about hiring

The findings suggest the reforms are already influencing recruitment decisions.

Almost two-thirds of organisations (64%) expect to become more cautious about hiring, with:

• 42% expecting to be slightly more cautious

• 22% expecting to be significantly more cautious

• 30% expecting no change to their hiring decisions

Although increased caution may feel understandable, employers should avoid allowing uncertainty to prevent them from recruiting the people their organisation needs. Stronger recruitment and management processes can help reduce risk without creating unnecessary barriers to growth.

How employers are preparing

Some employers have already started to strengthen their approach. More than a third (38%) are increasing manager training, while 30% are improving their recruitment processes.

However, 16% have no changes planned and 13% remain unsure about how they will respond.

Emma added:

“The reforms place greater emphasis on getting employment decisions right from the outset. Employers need managers who can recruit effectively, hold difficult conversations, conduct meaningful probation reviews and document concerns appropriately.

“Organisations that invest in manager training and robust processes now will be in a much stronger position than those that wait until the reforms come into force.”

The preparation window may be shorter than it appears

Although the reforms are expected to take effect in January 2027, employers should not assume they can wait until then to prepare.

Employees recruited before the implementation date may already have built up the service needed to qualify for protection when the new rules take effect. This makes the decisions employers take now, from recruitment and onboarding to early performance management, particularly important.

What should employers do now?

To prepare, employers should consider:

• Reviewing recruitment and selection processes

• Setting clear expectations from the beginning of employment

• Making probation periods structured and meaningful

• Training managers to address concerns early

• Keeping accurate records of performance, conduct and attendance issues

• Reviewing contracts, policies and supporting documentation

• Seeking advice before making complex or higher-risk dismissal decisions

Are your managers ready for the new unfair dismissal rules?

The move to six-month unfair dismissal protection will leave employers with less time to identify concerns and make confident employment decisions.

WorkNest’s Employment Law and HR specialists can help you review your processes, strengthen manager capability and prepare your organisation for the reforms.

Speak to our team about preparing for unfair dismissal reform

Research based on responses from more than 890 HR professionals and business owners surveyed by WorkNest.