Content reviewed October 2026.

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Unfair dismissal after 6 months: what changes on 1 January 2027, and what employers must do

For employers in England, Scotland and Wales: the qualifying period for ordinary unfair dismissal drops from 2 years to 6 months on 1 January 2027, and the cap on compensation goes. What changes, which dismissals the new rules already catch, and what to put in place, with a free probation and fair dismissal pack.

Last updated 22 October 20267 min read

At a glance What changes Dismissals already caught What makes a dismissal fair What to put in place Free pack FAQs

At a glance, as at 22 October 2026

From 1 January 2027, employees with 6 months’ service can claim ordinary unfair dismissal, down from 2 years, and the compensatory award has no cap. A dismissal where notice ends on or after 1 January is already caught, even if you gave notice before.

What	Where things stand
The change	The qualifying period for ordinary unfair dismissal drops from 2 years to 6 months (Employment Rights Act 2025, section 25).
From	1 January 2027. The government has already made the commencement regulations.
Already caught	Any dismissal whose effective date of termination falls on or after 1 January 2027, even if you gave notice before.
Compensation	The Act removes the cap on the compensatory award.
Also from 1 January 2027	The right to ask for written reasons for dismissal starts at 6 months, and protection against dismissal over a spent conviction needs no qualifying period.
Not changing	Day-one protection against discrimination and against automatically unfair dismissal stays as it is.

The law

What changes on 1 January 2027

Section 25 of the Employment Rights Act 2025 changes the Employment Rights Act 1996 in two ways:

The qualifying period. Section 108 now says 6 months where it said 2 years. “Ordinary” unfair dismissal covers the everyday claim that a dismissal wasn’t fair. The automatically unfair reasons, such as dismissal for whistleblowing or for pregnancy, already apply from day one.
The compensation cap. The Act removes section 124, which limited the compensatory award, so the award has no upper limit.

From the same date, the right to ask for written reasons for dismissal starts at 6 months, and protection against dismissal over a spent conviction needs no qualifying period. For employees with 6 months’ service, letting a fixed-term contract end without renewal must also be a fair dismissal.

The change covers employees in England, Scotland and Wales.

Timing

Which dismissals the new rules already catch

The new rules apply to any dismissal whose effective date of termination falls on or after 1 January 2027, including where you gave notice before that date. Where you give notice, the effective date of termination is usually the day the notice runs out.

So if you give notice in November 2026 to someone with 7 months’ service, and the notice ends in January 2027, they can claim ordinary unfair dismissal. Staff who joined around July 2026 or earlier reach 6 months’ service by 1 January.

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The test

What makes a dismissal fair

A dismissal is fair when the reason is one the law accepts and the employer acted reasonably in dismissing for it. The potentially fair reasons are:

capability or qualifications
conduct
redundancy
a legal restriction that stops someone doing the job, such as a driver losing their licence
some other substantial reason

For conduct and performance cases, the Acas Code of Practice on disciplinary and grievance procedures sets the steps a tribunal expects:

Establish the facts, investigating where needed.
Tell the employee about the problem in writing.
Hold a meeting to discuss it.
Let them bring a companion to the meeting.
Decide what action to take, and tell them in writing.
Give them the chance to appeal.

If an employer unreasonably fails to follow the Code, a tribunal can increase the award by up to 25%.

In practice

What to put in place

Find who reaches 6 months. List staff who joined from around July 2026, and when each reaches 6 months’ service.
Make probation decisions before 6 months. Protection starts at 6 months’ service, whatever a contract says about probation. Hold reviews on time, record them, and decide before then.
Use a fair process for anyone past 6 months. Follow the Acas Code for conduct and performance cases, and keep notes of each step.
Check notice dates on any dismissal under way. If the notice ends on or after 1 January 2027, the new rules apply.
Review fixed-term contracts ending after 1 January. For staff with 6 months’ service, non-renewal must be a fair dismissal.
Keep the record. Probation reviews, performance and conduct records, investigation notes, hearing notes, the reasons for the decision and the appeal.
Brief your managers. The people who run probation, performance and disciplinary cases need the new timeline.

Free pack

Free probation and fair dismissal pack

Templates and a manager briefing to run probation and dismissals fairly under the new rules, sent to your inbox. You fill in your own policies, names and dates.

File	What it covers
Probation review template (Word)	Objectives and standards; notes from each review; support offered; the decision and its reasons; dates against the 6-month mark.
Fair dismissal checklist (Word)	The potentially fair reasons; the steps in the Acas Code; notice dates and the 1 January 2027 rule; fixed-term contracts.
Investigation record (Word)	The concern or allegation; who you spoke to and what they said; the evidence; findings and reasons.
Manager briefing (PowerPoint, with speaker notes)	What changes on 1 January 2027; probation decisions before 6 months; the Acas Code steps; what to record.

Free pack

Request the free pack

Enter your work email and the team will send you the pack: a probation review template, a fair dismissal checklist, an investigation record and a manager briefing.

Or show every dismissal was fair

CalmER runs each disciplinary case from intake to a fair, evidenced outcome. Deadlines, reminders and minutes run themselves, a person decides every step on the record, and every outcome links to the policy behind it, so each case ends with a tribunal-ready record.

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FAQs

Common questions

When does unfair dismissal change to 6 months?

On 1 January 2027. From then, employees with 6 months' service can claim ordinary unfair dismissal. The rule also covers dismissals where you gave notice before 1 January and it ends on or after that date.

Can you claim unfair dismissal under 2 years?

From 1 January 2027, yes, after 6 months' service. Some dismissals are already automatically unfair from day one, such as dismissal for whistleblowing or for pregnancy, and protection from discrimination has no qualifying period.

Is the cap on unfair dismissal compensation being removed?

Yes. From 1 January 2027 the Employment Rights Act 2025 removes the limit on the compensatory award.

What is the qualifying period for unfair dismissal?

2 years for dismissals that take effect up to 31 December 2026, then 6 months for dismissals that take effect on or after 1 January 2027.

Do probation periods still matter?

Yes, to set expectations and review performance. Protection depends on length of service, whatever a contract says about probation, so decide on probation before someone reaches 6 months.

What are the fair reasons for dismissal?

Capability or qualifications, conduct, redundancy, a legal restriction that stops someone doing the job, and some other substantial reason. The employer must also act reasonably and follow a fair process.

Does the change apply to fixed-term contracts?

Yes. For employees with 6 months' service, letting a fixed-term contract end without renewal must be a fair dismissal.

Sources & further reading

References

For general information only. It reflects our understanding of the FCA's rules as of October 2026, so check fca.org.uk for the current rules.