The Employment Rights Actl is expected to transform how employers manage probation periods from 2027. One of the most significant changes is the planned introduction of day-one protection against unfair dismissal, replacing the current requirement for two years’ service.
Many employers still rely on probation periods as a relatively low-risk way to assess new hires. Once the new rules take effect, that approach will become far more difficult to justify.
Why Employers Are Talking About the “Safe Probationary Period”
Under current UK employment law, employees generally need two years’ continuous service before they can bring an ordinary unfair dismissal claim.
This has created what many employers call a “safe probationary period”.
In practice, employers often:
- End employment during probation with a limited process
- Conduct minimal performance reviews
- Keep little documentation
- Make quick capability decisions
While discrimination and automatically unfair dismissal risks already exist, the two-year qualifying period has historically reduced the likelihood of ordinary unfair dismissal claims.
What Changes in 2027?
The Government’s Employment Rights Act proposes day-one unfair dismissal rights, which are currently expected to take effect in 2027.
Alongside this change, the Government has proposed a statutory probation period of up to six months.
The detail is still being developed, but the direction is clear:
- Probation periods will remain
- Employers will still be able to dismiss during probation
- A fair process will become more important
- Documentation will become critical
- Managers will need evidence to support decisions
For many employers, the biggest change is not the probation period itself. It is the loss of the two-year protection buffer.
How Will Day-One Unfair Dismissal Rights Work?
The Employment Rights Bill proposes to remove the current two-year qualifying period for ordinary unfair dismissal claims. Once the reforms take effect, employees will gain protection against unfair dismissal from the first day of employment.
To balance this change, the Government has proposed a statutory probation period of up to six months. During this period, employers are expected to retain the ability to dismiss employees who are unsuitable for the role. However, employers will still need to follow a fair process and demonstrate a valid reason for ending employment.
While the final legislation and accompanying regulations are still being developed, employers can expect greater scrutiny of probationary dismissals than under the current system. Decisions based solely on instinct, personality fit, or undocumented concerns are likely to carry greater risk.
What Will This Mean for Employers?
Many employers currently view probation as a relatively straightforward process. Under the proposed framework, probation periods are expected to become more structured and evidence-based.
Employers are likely to need:
- Clear performance expectations from the start of employment
- Regular probation review meetings
- Documented feedback and performance discussions
- Records of training and support provided
- Evidence supporting any decision to dismiss
This means managers will need to identify concerns earlier, address issues consistently, and keep accurate records throughout the probation period.
What Will This Mean for Employees?
Employees are expected to receive greater protection during the early stages of employment. They will have clearer rights to understand performance concerns and respond to issues before a dismissal decision is made.
The proposed reforms are designed to encourage fairer workplace practices while still allowing employers to address genuine capability, conduct, or suitability concerns during probation.
For employees, the change is likely to provide greater confidence that decisions affecting their employment are based on a fair and transparent process rather than informal judgment alone.
Why Performance Management Will Matter More Than Ever
Under the proposed framework, employers will need to demonstrate why a probationary employee was unsuccessful.
Investigators and tribunals are likely to look for evidence that:
- Expectations were clear
- Performance concerns were raised promptly
- Feedback was provided
- Review meetings took place
- Employees had an opportunity to improve
A manager stating that someone was “not a good fit” is unlikely to be enough on its own.
The Biggest Risk for Employers
Many organisations operate informal probation processes that rely on managers’ judgement rather than on documented evidence.
Common weaknesses include:
- No probation review schedule
- Missing meeting notes
- Inconsistent performance standards
- Delayed feedback
- Last-minute dismissal decisions
These issues often remain hidden until an employee challenges the decision.
What Employers Should Do Before 2027
Waiting until 2027, creates unnecessary risk.
Employers should start preparing now by:
- Reviewing probation policies
- Updating employment contracts
- Creating structured review processes
- Training line managers
- Improving performance documentation
- Auditing current probation practices
Businesses that prepare early will face fewer challenges when the reforms take effect.
Prepare Your Managers Before the Law Changes
The proposed 2027 reforms represent one of the biggest changes to dismissal rights in decades. Employers that rely on informal probation processes may be exposed to greater legal and operational risks.
HR Team helps employers review probation policies, strengthen performance management procedures, and prepare for upcoming changes in employment law.
Contact HR Team today to ensure your managers, policies, and probation processes are ready before the new rules take effect.
Frequently Asked Questions About the End of the Safe Probationary Period
When will the new unfair dismissal rules come into effect?
The new unfair dismissal rules are due to take effect on 1 January 2027. From that date, employees will gain ordinary unfair dismissal protection after six months’ continuous employment, instead of the current two-year qualifying period.
Are day-one unfair dismissal rights still happening?
No. The earlier proposal for day-one ordinary unfair dismissal rights has been changed. The current position is a six-month qualifying period, not day-one protection.
What does the six-month rule mean for probation periods?
The six-month rule means probation periods will carry more legal risk. Many employers already use three or six-month probation periods. From 1 January 2027, an employee with six months’ service will have ordinary unfair dismissal protection, so end-of-probation decisions need a fair process and clear evidence.
Can employers still dismiss employees during probation?
Yes. Employers can still dismiss employees during probation. However, once the employee reaches six months’ service from 1 January 2027, they can claim ordinary unfair dismissal if the process or reason is unfair.
Do short-service employees have any rights for the first six months?
Yes. Employees already have protection from discrimination and automatically unfair dismissal from day one. The 2027 reform changes ordinary unfair dismissal protection, not every employment right.
What should employers do before 1 January 2027?
Employers should review probation policies, contracts, manager training, review forms, performance records, and dismissal procedures. The safest approach is to treat probation as a documented performance process from day one.
