One of the most talked-about proposals in the Employment Rights Bill was to give employees the right to claim unfair dismissal from day one. While many expected this change to pass easily, last week, the proposal was withdrawn.

However, employers still face significant changes that require attention and should be aware of what’s coming.

Day one entitlements that remain

Some rights will still apply from the first day of employment:

• Parental and paternity leave
• Statutory sick pay from day one

These are expected to take effect from April 2026.

Unfair dismissal qualifying period reduced to six months

Although day one unfair dismissal will not be introduced, the qualifying period will fall from two years to six months. This is a major shift and could significantly impact how employers manage performance and dismissals.

Other changes likely to increase claims include:

• Extended Employment Tribunal time limits (three to six months)
• Introduction of the Fair Work Agency to raise awareness of employee rights
• Reforms on sexual harassment, fire-and-rehire, and predictable working patterns

Existing early employment risks

Employees already have day one rights for:

• Discrimination
• Whistleblowing
• Health and safety concerns
• Trade union activity

The new six-month threshold adds another early employment risk.

Probation periods are not a shield

Probation is contractual, not legal. Once an employee reaches six months’ service, unfair dismissal rights apply, meaning:

• Dismissals require a fair reason and a fair, documented process
• Proper procedures, including meetings, warnings, and the right of appeal, must be followed

Implementation timeline

The six-month qualifying period is expected to take effect in 2027, giving employers time to prepare policies, processes, and training. However, employers should remain proactive – careful planning, early interventions, and robust record-keeping are essential to minimise the risk of claims – so start thinking about these things now.

Seven steps to prepare

1. Review processes – Audit probation, performance management, and dismissal procedures to ensure compliance with the six-month threshold.
2. Track milestones – Record employee start dates and plan reviews or interventions around the six-month mark.
3. Document everything – Keep detailed records of meetings, warnings, and investigations.
4. Train managers – Ensure managers deal with issues promptly, consistently, and in line with legal requirements.
5. Don’t rely on probation – Legal rights apply after six months, regardless of probation terms.
6. Recruit carefully – Structured hiring and clear job descriptions reduce early performance or conduct issues.
7. Get specialist support – Expert guidance ensures processes are legally compliant and reduces exposure to claims.

Managing risk and costs

Unfair dismissal claims can be expensive. Tribunals can award a basic award of one week’s pay per year of service plus a compensatory award for loss of earnings, capped at £118,223. Legal defence costs can average £15,000, even where a claim is unlikely to succeed.

Navigate changes to unfair dismissal eligibility with our support

In an ever-changing legal landscape, HR professionals and employers need to do what they can to ensure that their current approach to dismissal doesn’t result in costly employment tribunals.

At Vista, we provide expert Employment Law advice, working together with your organisation to offer pragmatic employment law advice on anything from disciplinary hearings and grievances, to redundancy, TUPE, negotiation with trade unions and representation in the employment tribunal.

If you want guidance on how you can adjust your company policy in a compliant way, contact Vista Employer Services or call us on 0330 053 9345.