How to Dismiss an Employee in the UK: A Fair Process for Small Employers
Today, an employee with under two years' service cannot normally bring an ordinary unfair dismissal claim, but they can still claim for discrimination, whistleblowing and other automatically unfair reasons, and for unpaid notice. From 1 January 2027 the qualifying period falls to six months, so short-service dismissals need a fair process.
This post explains where the law stands now, what changes in January, and how small employers should handle a short-service dismissal.
Where the law stands now
The qualifying period for ordinary unfair dismissal is two years. An employee who has not reached it cannot normally argue that the dismissal was unfair, and an employer does not have to show a fair reason or follow a full procedure to defend that kind of claim.
That is why many small employers think they can dismiss short-serving staff freely. They cannot. Some claims need no qualifying service at all:
Discrimination on grounds such as sex, race, disability, age, religion, sexual orientation, gender reassignment, pregnancy and maternity
Automatically unfair dismissals, such as dismissal for whistleblowing, for asserting a statutory right, for health and safety activity, or because of pregnancy or family leave
Breach of contract, where the employee is not given the notice they are entitled to
So even now, dismissing someone with six months' service for an unclear or poorly handled reason can lead to a claim, and the tribunal time limit for acts on or after 1 October 2026 is six months rather than three.
What changes on 1 January 2027
The Employment Rights Act 2025 reduces the qualifying period for ordinary unfair dismissal from two years to six months, for dismissals taking effect on or after 1 January 2027. It also removes the cap on the compensatory award.
Parliament dropped the original day-one proposal. In practice, an employee who reaches six months' service will be able to claim, and the full process the Acas Code expects applies from that point. There is no lighter-touch route for short-serving staff in the draft revised Code.
Employees who already have six months' service on 1 January 2027 will be protected straight away, and others will gain the right as they reach six months.
What this means for probation
Many probation periods are three or six months, so the point at which an employee gains protection will often sit at or just after the end of probation. An employer that leaves its concerns until the last week is dismissing at exactly the point the employee can claim.
The practical response is to treat probation as a genuine management process: set clear objectives, hold regular review meetings, give honest feedback early and keep records. Our post on probation review meetings explains how.
How to dismiss a short-service employee properly
Even when the employee cannot yet claim unfair dismissal, following a fair process costs little and protects you.
Be clear about the reason, and make sure it is not connected to a protected characteristic, pregnancy, sickness, a recent complaint or a protected disclosure.
Raise concerns early, in writing, with examples and what needs to change.
Hold a meeting to explain the concern and listen to the response, and allow the employee to be accompanied if your policy provides for it or the process could lead to dismissal.
Decide, and confirm in writing, with the reason, the end date and notice or pay in lieu.
Give the right notice. After one month's service, the statutory minimum is one week, so check the contract.
Offer a chance to appeal.
Be aware that if you dismiss without proper notice, the statutory notice period can count towards the employee's length of service when working out whether they have reached the qualifying period. Timing a dismissal to fall just short of a threshold is risky and often does not work.
Should I dismiss before 1 January to avoid the new rules?
It is tempting, but it is not a good reason to act. Rushing a dismissal to beat a deadline is likely to produce a poor process, and the claims that need no service, such as discrimination, are unaffected. If there is a genuine problem, deal with it fairly and promptly. If there is not, do not create one.
What employers should do now
List employees who will reach six months by or soon after 1 January 2027
Review probation lengths, extension clauses and review schedules
Brief managers on giving early, honest and recorded feedback
Update your disciplinary and capability procedures so they apply from day one in practice
Take advice before dismissing anyone with a protected characteristic or a recent complaint