What the Employment Rights Act Means for HR

Six-month probation periods no longer add up. See what the new unfair dismissal rules mean for HR and how to rethink your process.

Andy Przystanski
Andy Przystanski
Director, Content Marketing
@
Lattice
November 10, 2026
3 Min Read
AI Summary

Starting in 2027, the qualifying period for unfair dismissal claims will be cut from two years to six months. Six months is currently the most common UK probation length, so many employers are cutting it to three or four months. A shorter probation only works if managers set clear goals in week one, hold regular documented one-to-ones and reviews at 30, 60 and 90 days, and raise concerns early.

Since 2012, UK employers have had two years to decide whether a new hire was the right fit before the threat of an unfair dismissal claim came into play. That window is about to shrink.

Under the Employment Rights Act 2025, the qualifying period for unfair dismissal protection will fall from two years to six months. The government has said it intends the change to take effect on 1 January 2027. At the same time, the cap on compensatory awards at the employment tribunal is being removed altogether, so awards will be based on an employee's actual and projected losses, however high those run.

For HR teams, the headline is clear: The first six months of employment carry real legal weight. The less obvious consequence is what it means for one of the most familiar tools in the people toolkit, the probation period.

Moving Away from the Six-Month Standard for Probation

Six months is the most common probation length in the UK. In one recent poll of HR professionals by Brightmine, almost 60% said their organisation uses it, and around 30% use three months.

That worked when unfair dismissal rights didn't start until two years in. From 2027, the end of a six-month probation period will align almost exactly with the point at which a new hire becomes protected. And the maths is tighter than it looks:

  • Notice counts. If you dismiss someone without notice, their one-week statutory minimum notice is added to their service when it's counted. A dismissal at five months and three weeks can tip them over six months.
  • Extensions stop working. Many organisations extend probation when they need more evidence. Brightmine found that three in five can extend beyond six months. Under the new rules, an extension past six months means making the decision once the employee is already protected.
  • Process takes time. Arranging a review meeting, giving the employee a chance to respond and issuing the decision all take weeks, not days.

That's why many employers are moving from six months to three or four. Some are adding a short optional extension, all timed to finish, notice included, before the six-month mark. Others are going further: BrightHR advises employers with six-month probation to consider reducing it to three.

Curious what this all means for your specific situation? Try modeling your own scenarios below.

Probation deadline calculator
Probation length
Extension
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It's worth being clear about what this does and doesn't mean. The law doesn't set a length for probation. Employees with fewer than six months' service also still have protections that apply from day one, such as against discrimination or whistleblowing detriment. Probation length is a choice, and right now, many organisations are choosing shorter.

The Problem: Probation as a Formality

Shortening probation on paper is the easy part. The harder truth is that at many organisations, probation already runs on autopilot. A new hire starts, gets busy, and the first real conversation about how it's going happens in a review meeting near the end, if it happens at all.

With six months, that's a missed opportunity. With three or four, it's a real risk. There isn't time for a manager to notice a problem in month five, raise it, give the person a fair chance to improve and still reach a decision before the deadline.

So if the only change is a new number in the employment contract, you've simply given managers less time to do the same thing. The process has to change too.

Better probation starts with better performance management.

See how Lattice helps managers set expectations, track progress and keep a clear record from an employee’s first day.

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What a Good, Shorter Probation Looks Like

A shorter probation works when managers assess earlier, check in more often, and write things down. Here's what that might look like for a four-month probation:

  1. Week one: Set clear expectations. Agree what success looks like in the role, ideally as a handful of specific goals for the first 90 days. If a new hire doesn't know what they're being measured against, neither of you can judge fairly whether they've met it.
  2. Weekly or fortnightly one-to-ones. Keep one-to-ones short and regular, and keep notes. These are where small problems get spotted and fixed before they become big ones.
  3. A 30-Day Check-in. Is the new hire settling in? Do they have what they need? Are there early concerns on either side?
  4. A 60-Day Review. This is the most important conversation. If something isn't working, say so plainly, explain what needs to change and agree how you'll support them. Many legal advisers now recommend a formal check-in at around two or three months for exactly this reason.
  5. A 90-Day Review. Check progress against the concerns raised at 60 days. At this point the outcome shouldn't come as a surprise to anyone.
  6. Decision-making with Time to Spare. Confirm the outcome before the end of month four. That leaves room for a short extension if needed, plus notice, before the six-month mark.

The common thread is documentation. Regular, recorded conversations give managers the evidence to make a confident decision. They also give employees a fair, transparent picture of where they stand. Tools like Lattice's goals, one-to-one agendas, and check-in templates make that rhythm easier to keep without adding admin.

What It Means for New Hires

It's easy to read all this as "how to let people go faster". That would be a mistake, and not only for your employer brand.

Most new hires want to succeed. A shorter, more structured probation gives them clearer goals from day one, faster feedback and more of their manager's attention when they need it most. A good probation is a good onboarding experience.

Workbook: 7 Steps to Transform Your Employee Onboarding Program

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It also cuts the other way. Early, honest check-ins give new joiners a chance to raise problems of their own, such as unclear expectations, missing tools or a role that isn't what was advertised. Those are worth hearing at 30 days, not 150.

Beyond Probation

The probation period gets most of the attention, but the bigger change may be what comes after it. From 2027, most employees will be protected from unfair dismissal after six months, and there will be no ceiling on what a tribunal can award them.

That raises the stakes for performance management across the whole workforce. Fair, consistent processes and a clear record of conversations, goals and feedback protect organisations. More importantly, they help people know where they stand and how to improve.

The practical to-do list for HR teams before 1 January 2027:

  • Review probation lengths, extension clauses and notice periods in your contracts.
  • Map out a probation timeline with fixed review points that finishes, notice included, before six months.
  • Train managers to hold early, honest performance conversations, and to document them.
  • Look beyond probation at how performance concerns are raised and recorded for every employee.

The Employment Rights Act raises the stakes on getting performance management right, for new joiners and everyone else. Lattice helps you build the habits that make it fair, consistent and well documented. See how Lattice works.

This article is for general information and isn't legal advice. Speak to an employment lawyer about your organisation's specific circumstances.

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