Unfair dismissal protection delayed to six months

In a major shift of policy, the government has abandoned its promise to grant all workers protection from unfair dismissal from their first day of employment. Instead, under the revised Employment Rights Bill, a six-month qualifying period will now apply before an employee can bring an unfair dismissal claim.

The change was confirmed by the Department for Business and Trade, following negotiations with business groups and trade unions, which concluded that six months gives businesses “workable” breathing room while still significantly shortening the current two-year period.

Although this represents a step forward for workers relative to the old two-year threshold, it falls short of the government’s earlier “day one rights” pledge.

What this means for employers — performance management becomes critical

The six-month qualifying period significantly shifts the balance of risk and responsibility for employers. Several practical implications are emerging for how businesses should manage new hires:

Shorter “grace period” for assessing suitability

Employers will no longer have two years to decide whether a new hire is right for the role — the window will be just six months.

That means organisations will need to accelerate their onboarding, induction, and performance-review processes to ensure they can fairly and legally dismiss unsuitable hires if needed.

Need for structured performance reviews and documentation

With a shorter qualifying period, employers will need to adopt more systematic processes for evaluating performance from day one. As highlighted by CIPD, this includes training managers to make fair, evidence-based assessments, setting clear goals early, giving regular feedback, and carefully documenting outcomes and any concerns.

Reviewing and updating probation and dismissal policies

Existing probation-period practices are often informal or loosely defined and therefore may no longer be fit for purpose. Employers will likely need to revise employment contracts, staff handbooks and internal policies to reflect the implications of the new qualifying period.

Where previously probation may have been a soft “trial” with minimal documentation, firms may need to adopt something closer to a formal performance-management framework within those first six months.

In short – better performance management is now non-negotiable

Although the implementation of this measure is not due to take effect until 2027 in line with the Employment Rights Bill’s current timeline, the shift from a two-year qualifying period to six months will fundamentally change the landscape for employers. It will compress the timeframe in which employers must decide whether a new hire is a good fit, meaning HR and line managers will need to treat the first six months as a critical probationary window, with thorough onboarding, clear objectives, regular reviews, and good documentation.

Without this, businesses face greater risk of unfair dismissal claims and may struggle to justify dismissals if challenged. On the other hand, employers who adapt, by adopting robust and early performance-management and thorough onboarding practices, will be better positioned to manage talent effectively while reducing the risk of claims.

If you require any assistance with implementing the Employment Rights Bill or any clarification with how it affects your business, get in touch with the Geldards Employment Team who will be happy to assist.