Advice from an HR consultant in Bury St Edmunds on why probation periods matter more under the new 6-month unfair dismissal rules and how to get your process right.
I’ve been having the same conversation with a lot of business owners lately.
They’ve heard about the new unfair dismissal rules coming in January 2027, and their first reaction is that probation periods are now a waste of time.
I get why it feels that way. But they’ve actually got it backwards.
Probation periods are about to become one of the most important tools you have as an employer.
Let me walk you through what’s changing and what you need to do about it.
The current rules give you breathing room
Right now, an employee needs two years of continuous service before they can bring an unfair dismissal claim against you. That’s a generous window. It means that even if your processes are a bit loose, or you don’t have formal reviews in place, you’ve got time on your side.
Many small businesses have relied on that two-year buffer without even realising it. If a new hire wasn’t working out at month eight or month twelve, you could part ways without too much legal risk.
That’s about to change.
What’s happening from January 2027
From 1 January 2027, the qualifying period for unfair dismissal claims drops to just six months. That two-year runway you’ve been used to? Gone.
On top of that, the statutory cap on unfair dismissal compensation is being removed entirely. So the financial exposure if you get a dismissal wrong goes up considerably.
It’s also worth remembering that certain claims, including discrimination and whistleblowing, are already day-one rights. Those don’t require any qualifying service at all.
So why does probation become more important?
Under the old rules, a sloppy probation process didn’t really hurt you. You had two years before an employee could challenge a dismissal, so even if your probation review was little more than a quick chat at the three-month mark, the risk was low.
With the new six-month threshold, that cushion disappears. Probation becomes your structured opportunity to evaluate a new starter, raise concerns, and make a decision about their future in the role, all before full employment protections apply.
If you don’t use that window properly, you could find yourself at month six with an underperforming employee who now has the right to challenge any dismissal. At that point, you’ll need a fair reason, a documented process, and a much heavier burden of proof to justify letting them go.
A solid probation process stops you from ever reaching that point.
What a proper probation process actually looks like
Having a probation clause sitting in your employment contract is a start, but on its own it doesn’t do much. The clause only has teeth if there’s a real process behind it.
Here’s what needs to be in place:
- Clear expectations from the outset. On their first day, the new employee should know exactly what’s expected of them. That means a proper job description, short-term goals, and a plan for any training they’ll need.
- Regular review meetings. Don’t wait until the end of probation to have a single conversation. Schedule check-ins at set intervals so you can track progress and flag concerns early.
- Written feedback when issues come up. If something isn’t right, say so clearly and put it in writing. Vague verbal comments won’t protect you later.
- A fair chance to improve. Before making any decision, the employee should have had a genuine opportunity to address whatever concerns you’ve raised.
- A formal outcome in writing. Whether they pass probation, have it extended, or don’t continue, confirm the decision in writing with clear reasoning.
Each of these steps builds a paper trail. That documentation is your protection if a decision is ever questioned.
Think about making probation shorter, not longer
Most businesses default to a six-month probation period. But with the new qualifying period also set at six months, there’s a strong argument for cutting probation down to three months instead.
A shorter probation period forces you and your managers to act sooner. Problems get identified quickly. Conversations happen when they should, not weeks or months after an issue first appeared.
With a three-month probation, you still have time to extend it by a month if someone is borderline. And crucially, you’ve made your decision well before that six-month mark arrives.
The danger with a six-month probation is that decisions get delayed until the very end, by which point the employee already has full unfair dismissal protection. That’s a position you really don’t want to be in.
Your managers need to be ready for this
A lot of probation failures don’t actually start with the employee. They start with a manager who put off a difficult conversation, assumed the problem would resolve itself, or simply didn’t know the rules had changed.
Your managers are the ones conducting reviews and deciding whether someone stays or goes. If they’re not properly trained on how to run a probation process, even the best policy won’t save you.
Investing time in manager training now, before the January 2027 deadline, is one of the most practical things you can do. Make sure the people making these calls understand what’s at stake and know how to follow the process correctly.
Questions worth asking yourself
Before the new rules take effect, it’s worth taking an honest look at where you stand:
- Do your managers know how to document performance concerns during probation, or do they rely on informal conversations?
- Is your current probation period the right length given the new six-month qualifying threshold?
- When was the last time you reviewed your probation process end to end?
- Are your employment contracts and probation clauses backed up by a real, structured review process?
If any of those gave you pause, now is the time to address them. Our HR consultancy services in Bury St Edmunds are designed to help businesses like yours get ahead of exactly these kinds of changes.
We can help you get this right
We know there’s a lot to think about here, and it can feel overwhelming when the rules are shifting underneath you.
That’s exactly why we’re here.
We can look at your current probation process, tighten up your documentation, and work with your managers so they feel confident handling new starters from day one.
As an outsourced HR consultant in Bury St Edmunds, we work with small businesses every day to put practical, straightforward processes in place that actually protect the business.
If you’d like to have a conversation about getting your probation process ready before the new rules come in, get in touch. We’d love to help.
Call us on 01473 653000 or email hello@pshumanresources.co.uk to book a free consultation.
