New Unfair Dismissal Rights from January 2027

Employee RightsBy Monaco Solicitors / June 28, 2026

Starting a new job is like stepping into the unknown. You may leave a secure position, turn down other opportunities or invest considerable time and effort in making a fresh start.

Yet under current employment law (2026), you don’t have much protection against unfair dismissal during your first two years with a new employer.

It’s now confirmed that the qualifying period drops from two years’ service to six months on 1st January 2027. (Less than the originally-planned ‘day-one’ protection, but still significant.)

In this article, we outline what’s changing, how the new rules may affect you as an employee, and what you should do if you are dismissed shortly after starting a new role. See also our guide on Unfair Dismissal for further detail.

Why employees are vulnerable when changing jobs

Under current law, most employees can’t bring an ordinary unfair dismissal claim until they have completed two years’ continuous service with their employer.

This means that if you are dismissed after a few weeks or months in a new role, your employer won’t usually have to justify their decision to sack you in the same way as they would for longer-serving employees.

There are important exceptions: Protection from dismissal connected with discrimination, whistleblowing, health and safety concerns, pregnancy, maternity and certain statutory rights already exists from day one.

However, with those exceptions, you’re likely to discover that your legal options are limited if you lose your job during your first two years of employment.

This makes many individuals reluctant to challenge unfair treatment, raise concerns or question poor workplace practices during that time.

What’s changing in January 2027?

The Employment Rights Act 2025 reduces the qualifying period for ordinary unfair dismissal claims from two years to six months from 1st January 2027.

In practical terms, this means that if you have worked continuously for an employer for six months you will gain protection against unfair dismissal much sooner than under the current system.

Although the widely discussed idea of ‘day-one’ unfair dismissal rights is not being implemented, the reduction from two years to six months remains a substantial shift in favour of employees.

Who does the six-month rule cover?

It depends on the date your employment ends, not the date you were told. If your employment ends on or after 1st January 2027, the six-month rule applies, even if you were given notice in 2026. If your employment ends before 1st January 2027, you still need two years.

No more cap on unfair dismissal compensation

Also from 1st January 2027, the cap on the compensatory award (now one year’s gross pay or £123,543, whichever is lower) is abolished. If your employment ends on or after that date, a tribunal can award what you’ve actually lost. The right to ask for written reasons for your dismissal also starts after six months’ service instead of two years.

Why the new ‘six-month rule’ matters

The biggest impact of the reform is likely to be increased confidence among employees who have recently joined an organisation.

Knowing that unfair dismissal protection arrives after six months rather than two years may encourage you much sooner to:

Raise legitimate workplace concerns.
Challenge unfair treatment.
Report wrongdoing.
Question discriminatory behaviour.
Speak up about health and safety issues.

If you’re considering changing jobs, the shorter qualifying period is also more likely to give you greater confidence that you’ll only have to wait for a few months – rather than two years – without meaningful protection.

Will probation periods still exist?

Probation periods for you as a new employee will continue to exist.

Some media coverage has created the impression that employers will struggle to dismiss you during probation periods. In reality, probation periods are likely to remain a common feature of employment relationships.

Within that time, employers will still be able to dismiss you if you are genuinely unsuitable for a role and still be able to continue managing such issues as your performance, conduct and capability.

Likely reaction of employers to the reform

Employers will increasingly need to demonstrate that they have acted fairly, particularly if you have acquired the new 6-month qualifying service.

So, the reform may also encourage employers to adopt more robust and transparent decision-making processes when managing new employees with the result that they are more likely to:

Conduct more structured probation reviews.
Keep even clearer performance records.
Improve recruitment processes.
Follow more consistent procedures when concerns arise.

In essence, the reform changes the balance of power, but it doesn’t remove an employer’s ability to manage its workforce.

Will it become easier to bring Employment Tribunal claims?

No, it won’t necessarily become easier to bring an employment tribunal claim.

Although more employees will qualify to bring unfair dismissal claims, the practical challenges involved in litigation will remain. For example:

You’ll still need evidence to support your case (eg documents, emails, messages and witness evidence).
Employment tribunal time limits will remain strict and early action be essential.
Tribunal delays, of months if not years, will continue to affect many claims.

The new law may increase the number of claims being brought, but it will not remove the need for careful preparation and taking prompt legal advice before you decide to make a claim.

What should you do if you are dismissed shortly after starting a new job?

If you’re dismissed shortly after joining a new employer, don’t automatically assume that you have no legal rights.

Depending on the circumstances, you may have what are called ‘automatically unfair dismissal’ claims relating to:

Unfair dismissal.
Discrimination.
Whistleblowing.
Health and safety concerns.
Other statutory employment rights.

If you get dismissed during your first 6 months, you should:

Keep copies of relevant documents and communications.
Record key events while they are fresh in your memory.
Be aware that employment tribunal deadlines are often very short.
So seek legal advice as soon as possible.

The sooner you understand your legal position, the more options you are likely to have available.

FAQs about the new qualifying period before claiming unfair dismissal

When do the new unfair dismissal rules start?

On 1st January 2027. The six-month rule applies wherever your employment ends on or after that date.

Will I still need a minimum period of service?

Yes. Most employees will need six months’ continuous service rather than two years.

Can I still be dismissed during probation?

Yes. Employers can still dismiss employees during probation, although they must continue to comply with employment law.

Can I bring a claim before six months?

Possibly. Claims involving discrimination, whistleblowing and certain other protected rights can already be brought from day one.

How to get legal help with unfair dismissal

If you have been dismissed, are facing dismissal, or are concerned about how these changes could affect you, Monaco Solicitors may be able to help.

We specialise exclusively in employment law for employees and workers across England and Wales. If you’re being threatened with dismissal that seems unfair, get in touch:

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