Day one unfair dismissal rights: what employers need to do now

Of all the changes introduced by the Employment Rights Act 2025, the removal of the two-year qualifying period for unfair dismissal is the one that will have the most immediate and widespread impact on employers. If you currently rely on that two-year window to manage out poor hires without a formal process, that approach is coming to an end.

Here's what the change means — and what you need to do about it.

What's changing?

Currently, an employee needs two years of continuous service before they can bring an unfair dismissal claim in an employment tribunal. From the commencement date — expected in 2026 — that qualifying period will be removed. Employees will have protection from unfair dismissal from day one of employment.

The government has confirmed there will be a statutory initial period — expected to last nine months — during which a modified, lighter-touch dismissal process will apply. This is intended to preserve some flexibility for employers managing new hires who aren't working out, without reverting to the current position. The precise procedural requirements for this initial period are still being confirmed through secondary legislation.

What it doesn't mean

It's worth being clear about what this change doesn't mean. It doesn't mean you can't dismiss someone in their first year. It doesn't mean probationary periods become pointless. And it doesn't mean every exit during the initial period will end in a tribunal claim.

What it does mean is that dismissals — at any stage — need to be handled with appropriate care, clear communication, and documented process. The test of fairness doesn't disappear; it applies from the start.

What you need to do

Review your probationary period clauses. Standard three or six month probationary periods written into contracts will need revisiting in light of the nine-month statutory initial period. Consider whether your contract terms reflect the process you actually intend to follow, and whether your probationary review process is robust enough to stand up to scrutiny.

Document performance concerns early. One of the most common mistakes employers make is allowing performance or conduct concerns to drift without documentation, then trying to address them formally when the relationship has already deteriorated. Under the new regime, early documented conversations — even informal ones — become even more important.

Train your managers. Most unfair dismissal claims don't arise because an employer made the wrong decision. They arise because the process was poor. Managers who understand how to raise concerns early, set clear expectations, and document conversations are your best protection.

Don't wait for the commencement date. The businesses that will feel this change least are the ones that already manage people well. If your onboarding, probation management, and early-stage performance processes are strong, the legislative change changes very little for you in practice. If they're not, now is the time to fix them.

The bottom line

Day one unfair dismissal rights will require a shift in how many employers approach the early stages of employment — but for businesses already committed to managing people fairly and consistently, the transition needn't be disruptive. The key is preparation, not panic.