Unfair dismissal after six months, not two years, from 1 January 2027

Last checked 17 Oct 2026. Dates can change. Great Britain only.

When

1 January 2027

Status

Date set in regulations

Who it affects

All employers in Great Britain

The qualifying period for ordinary unfair dismissal claims is due to fall from two years to six months, and the cap on compensatory awards is due to be removed. GOV.UK lists both for January 2027. The commencement regulations (SI 2026/559) bring the remainder of section 25 and Schedule 3 of the Employment Rights Act 2025 into force on 1 January 2027.

Which date counts

The transitional rules in regulation 4 key off the effective date of termination, not the date you decide to dismiss.

If someone is dismissed before 1 January 2027 but the effective date of termination falls on or after that date, the new rules apply.
If the effective date of termination falls before 1 January 2027, the new rules do not apply.

The effective date of termination is usually when notice ends, or when a dismissal without notice takes effect. That means giving notice in December can still land you in the new rules if the notice runs into the new year. For the qualifying period, the law can add the statutory minimum notice to that date, even if you pay in lieu of notice, so a dismissal in late December can still fall under the new rules. Check how it works for each case.

Why it matters

From 1 January 2027, employees with six months of service, not two years, will be able to bring an ordinary unfair dismissal claim. Probation periods, performance management and the way you document decisions all carry more weight in the first year.

A checklist to help you prepare

List every employee and the date they reach six months of service. Diary those dates.
Check that probation periods and review dates fall within the first six months and that reviews actually happen and are recorded.
Write down the dismissal process your managers follow, including the reason, the evidence, a meeting, the right to be accompanied and an appeal. Tribunals take the Acas Code of Practice on disciplinary and grievance procedures into account where it applies. It does not cover redundancy.
Keep dated notes of performance and conduct conversations, not just formal warnings.
Check any dismissal where notice runs across 1 January 2027 and note the effective date of termination.
Remember the tribunal time limit is now six months for most claims. See the tribunal time limit.

This page is general information, not legal advice. Take advice from a qualified adviser before dismissing a particular employee.

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Sources

Last checked 17 Oct 2026. GOV.UK says all future dates remain subject to parliamentary processes and may change. General information only, not legal advice. Check GOV.UK before you act.