The Government has done a dramatic U-turn on what would have been a landmark change in employment law by scaling back its pledge under the Employment Rights Bill 2025 (ERB) to give workers a day-one right to claim unfair dismissal. Instead, the plan is to introduce a six-month qualifying period, down from the current two years which will no doubt come as a relief to you as an employer.
Alongside the intention to abolish the qualifying period, there was discussion about introducing a new legal probation period, likely to have been nine months. This too has been ditched.
Ministers say the compromise was needed to secure the Bill’s passage and preserve other reforms, including day-one sick pay and paternity leave, due to take effect April 2026.
What this means for you
• Hiring flexibility: The 6-month qualifying period means the retention of a probationary window before full unfair dismissal rights apply, reducing immediate litigation risk.
• Policy updates: You should review contracts and staff handbooks as well as onboarding processes to reflect the 6-month threshold and new day-one entitlements (sick pay, paternity leave).
• Training and compliance: Ensure your managers understand that they will have to show a fair reason for dismissal and follow a fair process when considering dismissing an employee with at least six-months continuous service. In addition remind them discrimination and automatically unfair dismissal protections still apply from day-one.
• Strategic planning: You should factor in the shorter qualifying period when managing performance and probation reviews.
How we can help
NFU Employment Service Consultancy can review and update your existing contracts and policies to ensure they reflect current laws and best practice guidance.
Please contact the Helpline on 0370 840 0234 for further information including costs.
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For more information, call us on 0370 840 0234 or email us at [email protected]