1 July 2026: Why HR teams should be reviewing probation periods now
The Employment Rights Act 2025 will introduce one of the biggest changes to unfair dismissal rights in recent years.
At present, most employees must have two years' continuous service before they can bring an ordinary unfair dismissal claim against their employer. From 1 January 2027, that qualifying period will reduce significantly to just six months, meaning employees will gain protection much earlier in their employment.
While the legal change doesn't take effect until January 2027, employers shouldn't wait until then to prepare.
In practice, 1 July 2026 is the date hat matters.
Employees recruited on or before this date could benefit from the new qualifying period if they remain employed when there forms come into force.
For HR teams, now is the time to review recruitment, onboarding and probationary processes to ensure they're fit for the new landscape.
Don't get caught out by the six-month rule
Although the reforms are commonly referred to as introducing a six-month qualifying period, the reality is slightly different. Due to the statutory week's extension under employment legislation, employees may qualify for unfair dismissal protection after around five months and three weeks.
That leaves employers with less time than many expect to assess performance and make informed decisions.
What should employers be doing now?
1) Review probationary periods
Many employers are already moving away from six-month probationary periods. A shorter probation period, such as three orfive months, provides more time to assess performance, address concerns and make decisions before unfair dismissal rights arise.
It's also worth reviewing whether probation extension clauses remain appropriate and are clearly drafted.
2) Make probation management more structured
A probation period should be more than a date in the diary. Managers should know when reviews need to take place, what standards employees are being assessed against and how concerns should be documented.
Introducing formal probation review meetings and clear timelines can help ensure issues are identified early rather than at the end of the process.
3) Equip managers to manage performance
Managers will have less time to identify underperformance and support employees to improve. Regular check-ins, constructive feedback and accurate record keeping will become increasingly important.
Providing managers with training on probation management and early performance conversations can reduce the risk of problems escalating later.
4) Take a fresh look at recruitment
As the window for assessing new employees becomes shorter, making the right hiring decisions from the outset becomes even more important.
Reviewing recruitment processes, interview questions, referencing and pre-employment checks can help improve hiring decisions and reduce the likelihood of issues arising during probation.
5) Review your policies
Now is a good opportunity to check whether your probationary period policy reflects current best practice. If your staff handbook doesn't include one, or if it hasn't been updated for several years, it's worth reviewing it ahead of the reforms.
Preparing now will reduce risk later
The reduction in the unfair dismissal qualifying period means employers will have less time to assess new employees and make important employment decisions.
Organisations that review their recruitment processes, strengthen probation management and equip managers now will be better placed to adapt to the new rules when they take effect in January 2027.
Seeking professional advice and support with these changes will ensure your organisations stay protected through the Employment Rights Act 2025 (ERA 2025) reforms. For bespoke support on any ERA2025 reforms mentioned above, get in touch with Darwin Gray’s employment law experts today.
