Six-month qualifying period for unfair dismissal
The UK Government has confirmed a major change to the Employment Rights Bill: they will not progress with the proposed day one rights to claim unfair dismissal but will instead reduce the current two-year qualifying period to six months. This follows a period of ‘ping pong’ between the House of Commons and House of Lords on the point.
The UK government has pitched the change to its manifesto pledge as addressing stakeholder concerns about the workability of the previous proposal to remove the qualifying service requirement altogether but instead allow for a “light-touch” dismissal process during the first 9 months of employment.
It's certainly more straightforward and harks back to the early days of unfair dismissal rights – and it gives employers more certainty and clarity over the risks of short service or probationary dismissals.
The change is still proposed to come into force in 2027 and gives employers and HR teams an opportunity to start planning now, including tightening their probation process and diarisation of key dates as more prompt action will be needed where early underperformance is apparent.
The qualifying period has gone up and down over the years – from 6 months to 2 years – but this change will be more durable as it is to be set out in primary legislation, rather than easier to change secondary legislation.
It's important to be aware that the qualifying period applies only to ‘ordinary’ unfair dismissal – so where there are unusual circumstances, such as a dismissal for raising a whistleblowing concern, there will be no qualifying period, and the existing day one rights approach remains for other claims such as discrimination.
There is a sting in the tail, however.
The government has indicated that it will lift the unfair dismissal compensation cap (currently the lower of one year’s salary or £118,223). It’s not clear whether this means compensation will be uncapped, increased, or whether only one of the caps will be removed.
The Lindsays Employment team will keep a close eye on the situation and share updates as soon as the government reveals the full details.
Published 28 November 2025
