⏱️ 5 minute read
October has brought longer tribunal time limits and preparations for the strengthened sexual harassment duty. But the January unfair dismissal changes are now just over two months away.
From 1 January 2027, the qualifying period for ordinary unfair dismissal reduces to six months and the compensatory award cap is removed, subject to the rules on the effective date of termination. Preparation should already be reaching your contracts, review diaries and manager conversations.
Check current hires as well as new offers
Identify employees approaching six months’ service around January, including those who joined in July. Check contractual notice, probation extensions and the timing of reviews. Don’t assume ending employment before a six-month anniversary settles the legal position: statutory notice rules can affect qualifying service.
Our timing guide explains why the impact begins before January. Get advice on individual dates rather than relying on a generic last safe day.
Put the review dates in the diary
A shorter probation clause only helps if managers use the time properly. Set early review points, identify who can approve an extension and make sure concerns reach HR promptly.
Check contracts, offer letters and policies together. Give managers time to explain concerns, provide support, consider reasonable adjustments and assess progress before deciding the outcome. Our probation article covers the arrangements worth reviewing.
Check what managers record
Managers should be able to explain the expectations set, support provided, employee response and reasons for the decision. Address performance early and keep relevant notes somewhere the organisation can retrieve them.
Discrimination and many automatically unfair dismissal protections do not require six months’ service. Probation remains a period in which employers need to make fair, informed decisions.
Revisit financial risk
Removal of the compensatory cap can change the exposure in higher-value cases. Awards will still depend on the recoverable loss and applicable legal principles; an uncapped award does not mean an automatic windfall. The basic award remains subject to its statutory limits.
Review how you assess senior exits, settlement authority and litigation budgets. Our compensation article explains the practical considerations.
How can we help?
If you need a sense-check of contracts, probation reviews or manager capability before January, get in touch. We can help with the documents and the decisions they need to support.
This update is accurate on the date it was published but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
