Managing Probation Under the New Unfair Dismissal Rules
For many employers, probation has traditionally provided a relatively long window in which to decide whether a new employee is right for the role.
From 1 January 2027, that landscape changes significantly.
Under the Employment Rights Act 2025, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months.
That doesn't mean probation periods are disappearing. Nor does it mean an employee automatically becomes permanent after six months.
But it does mean employers should start treating probation as a meaningful management process rather than a date in the calendar.
What's Changing?
Currently, employees generally need two years' qualifying service before they can bring an ordinary unfair dismissal claim.
From 1 January 2027, that qualifying period will reduce to six months.
Importantly, this isn't limited to employees recruited after January.
Employees who already have at least six months' service on 1 January 2027 will gain the new protection from that date.
Existing day-one protections also remain. An employee does not need two years — or six months — of service to pursue certain claims, including claims involving discrimination or automatically unfair reasons for dismissal.
For employers, the practical message is simple:
Short service should never be treated as a substitute for good management.
What Does This Mean for Probation Periods?
Probation itself isn't being abolished or given a new statutory maximum.
Employers can continue to use contractual probation periods, and Acas confirms that there remains no legal requirement to have one.
However, a six-month probation period will now sit directly alongside the point at which ordinary unfair dismissal protection is acquired.
That makes the quality and timing of probation management much more important.
If your current approach is:
Hire → wait six months → hold a probation review
it's worth reconsidering.
By the time problems are formally addressed, the employee may already have reached — or be extremely close to — the new qualifying threshold.
Start Managing Probation From Day One
A good probation process begins when employment starts, not when the final review meeting appears in someone's calendar.
The employee should understand:
what their role requires;
what good performance looks like;
any standards or objectives they are expected to meet;
how their progress will be assessed;
when reviews will take place; and
what support is available.
This creates clarity for the employee and gives managers something meaningful against which to assess progress.
Don't Wait Until the Final Review
One of the biggest mistakes employers can make is noticing problems during probation but failing to address them.
A manager may think:
"They're on probation. We'll see how they get on."
Three months later, the same problems remain.
Effective probation management means raising concerns when they arise.
If performance isn't meeting the required standard, tell the employee what the concern is, explain what needs to improve and provide a reasonable opportunity and appropriate support to achieve it.
Then record what has been discussed.
The purpose isn't to build a case against the employee.
It's to give them a genuine opportunity to succeed.
Introduce Meaningful Review Points
Rather than relying on one end-of-probation meeting, employers should consider structured review points throughout the probation period.
For example, a six-month probation might include reviews during the first few months and a substantive review well before the contractual end date.
The appropriate structure will depend on the role and business.
What's important is that problems don't remain invisible until the final week.
Reviews should consider areas such as:
performance;
conduct;
attendance where appropriate;
training and support;
progress against objectives;
concerns raised by the employee or manager; and
what needs to happen next.
What If Someone Isn't Meeting the Required Standard?
Probation doesn't mean an employee has to be perfect immediately.
New employees need time to understand the business, learn systems and settle into their role.
The first question should therefore not automatically be:
"Can we dismiss them?"
A better question is:
"What's preventing this person from meeting the required standard, and is there a reasonable opportunity for that to improve?"
Sometimes the answer will be training.
Sometimes expectations haven't been communicated clearly.
Sometimes more time or support is appropriate.
And sometimes, despite reasonable support, it becomes clear that the employment relationship is unlikely to work.
Good probation management helps an employer distinguish between those situations.
Can You Extend Probation?
Potentially, if the employment contract allows it or an extension is otherwise properly agreed.
But extensions should have a purpose.
Extending probation simply because a manager hasn't made a decision doesn't solve the underlying problem.
If an extension is appropriate, the employee should understand:
why probation is being extended;
how long the extension will last;
what needs to improve;
what support will be provided; and
when progress will be reviewed.
Employers should also remember that extending a contractual probation period does not postpone statutory employment rights.
An employee's continuous service continues regardless of what the employer calls the probation period.
What About Dismissal During Probation?
Being on probation does not remove an employee's employment rights.
Acas recommends that dismissal during probation should be a last resort and that employers follow a fair procedure.
Before deciding to dismiss, employers should understand the reason for the problem, consider the information available and ensure the employee has had an appropriate opportunity to respond.
Particular care is required where the circumstances could involve discrimination, whistleblowing or another right that does not depend upon the ordinary unfair-dismissal qualifying period.
Notice and contractual obligations must also be considered.
The Six-Month Point Matters More From 2027
From January 2027, employers will have considerably less time before ordinary unfair dismissal protection is acquired.
That shouldn't encourage rushed dismissals.
It should encourage better management earlier in the employment relationship.
A well-managed probation period gives both sides clarity.
The employee knows what's expected.
The manager identifies problems sooner.
Support can be provided when it might actually make a difference.
And if employment ultimately needs to end, the employer is making that decision based on a clear understanding of what has happened rather than a hurried conversation at the end of six months.
What Should Employers Do Now?
Businesses don't need to wait until January 2027.
Now is a sensible time to review:
employment contracts;
probation clauses;
probation lengths;
review schedules;
manager responsibilities;
performance documentation;
probation extension arrangements; and
how probation outcomes are recorded.
Managers should also understand that probation is something they manage, not something an employee simply completes.
How Leo HR Can Help
LEO HR is designed to help employers manage the employee lifecycle while keeping important employment information and workplace matters together.
Probation can be tracked as part of the employment relationship, while Leo can support managers when concerns arise and help them think through the appropriate next steps.
The aim isn't to turn every probation concern into a formal HR process.
It's to help employers identify issues earlier, respond proportionately and make better-informed decisions.
With unfair dismissal protection moving to six months from January 2027, that's going to matter more than ever.
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