From January 2027, the qualifying period for unfair dismissal protection is expected to reduce to just 6 months. That means employees hired in July 2026 could gain protection by January 2027.
Let’s also not forget the growing number of Day 1 rights already in force or coming into force. Employers can no longer think “we’ve got plenty of time”. Good people management now starts from day one.
So what does this mean in practice?
It means recruitment, induction and probation processes suddenly become critically important.
• Recruit properly so you have confidence in your selection decisions
• Set clear expectations from the beginning
• Have a structured induction process
• Treat probation as a genuine assessment period, not an administrative exercise
• Build in formal review gateways at 3 months, then again at months 4 and 5 if concerns remain
• Don’t wait until month 6 to address problems
Managing absence also becomes increasingly important. A poorly managed sickness absence process can very quickly see probation periods drift beyond protection thresholds.
Employers will also need:
• Robust contracts and policies
• Clear probation clauses
• A well drafted PILON clause
• Fair, documented dismissal processes
• Written reasons for dismissal
• Managers capable of handling difficult conversations properly
And one important point… an appeal should not be viewed as a burden.
A well handled appeal is an opportunity to assess risk, correct procedural weaknesses and demonstrate fairness. Importantly, the appeal itself does not need to conclude within the 6-month period provided the dismissal decision was made before protection applied.
I’m also hearing some employers consider fixed-term contracts as a workaround to “extend” assessment periods.
Personally, I would advise caution.
The expiry of a fixed-term contract is still a dismissal. Why weaken your ability to attract quality candidates by reducing job security when the real solution is having the confidence and capability to manage probation properly?
The reality is employers do not need to tolerate poor performance, misconduct or unreliability. But they do need fair processes, capable managers and the confidence to act early.
This is a significant shift in the employment landscape and businesses that fail to adapt their people management processes now may find themselves exposed very quickly.
The good news? With the right HR support, structure and manager capability, this is absolutely manageable.
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