Employment Rights Act | HR urged to act now as six-month unfair dismissal rights move closer

This week, the countdown begins on one of the biggest changes to UK unfair dismissal law in decades.

From July 1st, employees whose continuous service begins on or after that date will be on course to qualify for unfair dismissal protection after just six months' service, once the relevant provisions of the Employment Rights Act come into force on January 1st 2027. Existing employees with at least six months' continuous service by that date will also gain protection.

The reforms represent a significant shift away from the current two-year qualifying period and are accompanied by another major change: the removal of the statutory cap on unfair dismissal compensation.

Together, employment lawyers and HR advisers say the measures will fundamentally change how employers manage recruitment, probation and performance, with many warning organisations cannot afford to wait until the legislation formally takes effect.