The unfair dismissal qualifying service is changing from 2 years to 6 months from January 27 (so for anyone employed after July 26). In addition, the Employment Rights Act 2025 is also removing the statutory cap on unfair dismissal compensation (currently 52 weeks’ pay or £118,233, whichever is lower). This makes early dismissal decisions riskier, because an unfair dismissal claim could lead to much higher awards if the employer didn’t handle the process fairly.
The government originally proposed a statutory probation period with special dismissal rules but this has not been included in the final legislation.
This means probation periods will continue to be defined by employers’ contracts and policies. We recommend that you align your process with guidance from ACAS, which promotes fair and reasonable HR procedures. While not law, employment tribunals consider whether employers followed reasonable practice.
Just a reminder, that even though employees gain unfair dismissal protection from 6 months service, you must still follow fair procedures and avoid discrimination under the Equality Act 2010 from day one.
Here is our guidance on probations:
1️⃣Have a clear Probation Policy
Your contract and offer letter should clearly state:
- The length of probation (typically 3–6 months)
- The notice period during probation (often 1 week after 1 month’s service)
- That employment may be terminated if standards aren’t met
2️⃣Have a Structured Onboarding plan
Set expectations immediately:
- Have a clear job description and objectives
- Have defined KPIs or success criteria
- Introduce a training plan
- Assigned a line manager and/or a mentor
- Scheduled review dates (put them in the calendar early)
Best practice: Have a documented 30-60-90 day plan.
3️⃣ Regular Check-ins
Don’t wait until the end of probation.
Have:
- Informal weekly or fortnightly catch-ups
- At least one formal mid-point review (e.g., at 3 months if probation is 6 months)
Discuss:
- Performance
- Behaviour
- Attendance
- Training needs
- Any concerns (raise these early)
Document everything (this will be very important).
4️⃣ Formal Review Meeting (Before the Probation Ends)
Hold a structured meeting covering:
- Performance against objectives
- Strengths
- Areas for improvement
- Conduct and attendance
- Employee feedback
Give the employee the opportunity to respond.
After the meeting, confirm the outcome in writing:
- Confirmed in post
- Probation extended (with a clear improvement plan)
- Termination if the probation has not worked out.
5️⃣ If Extending the Probation
If the performance is borderline:
- Confirm extension in writing
- State length of extension (e.g., 1–3 months)
- Provide measurable improvement targets
- Offer support/training
- Set review date
Avoid multiple rolling extensions — this weakens your position legally and culturally.
6️⃣ If Terminating During Probation
You must:
- Follow a fair process
- Provide the employee with reasons
- Give notice (or pay in lieu)
- Consider offering a right of appeal (good practice, not mandatory)
Be careful regarding:
- Discrimination
- Whistleblowing
- Pregnancy/maternity
- Trade union activity
These are protected from day one.