How to Prepare for Day-One Unfair Dismissal Rights (January 2027)
In less than nine months, every employee in the UK will have unfair dismissal protection from their first day of employment. No qualifying period. No compensation cap. This is not a future possibility. It is confirmed legislation taking effect in January 2027.
If you are an employer, an HR professional, or a recruitment agency placing candidates, here is what you need to do now.
What is changing
Currently, employees need two years of continuous service before they can bring an unfair dismissal claim. This gives employers a lengthy window during which they can terminate employment with relatively low risk.
From January 2027, that window shrinks to six months. The statutory compensation cap is also being removed. This means an employee dismissed after just six months could bring a claim with no upper limit on compensation.
The practical effect is that the probation period as most employers understand it, a low-risk window to assess a new hire, no longer exists in the same way. You can still have a probation period, but dismissing someone during it requires the same level of documentation and fairness as dismissing a long-serving employee.
Five things to do before January 2027
1. Document your hiring criteria before you start recruiting
Before you advertise a role, write down exactly what you are looking for. Not vague qualities like good communicator or team player, but specific, measurable criteria tied to the job description. What tasks will this person perform? What skills are essential? What does success look like at 30, 60, and 90 days? This document becomes your evidence that the hiring decision was based on job-relevant criteria.
2. Use objective assessment methods
Move beyond CV screening and unstructured interviews. Use assessment methods that produce documented, evidence-based results. Scenario-based assessment, where candidates complete realistic work tasks, produces scores backed by specific evidence from the candidate responses. This creates an audit trail that demonstrates the hiring decision was objective and fair.
3. Generate a compliance certificate for every hire
Every hiring decision should be documented with: the assessment methodology used, the criteria against which candidates were evaluated, the evidence that led to the decision, and a statement confirming the process was fair and non-discriminatory. This document goes in the employee file and is your first line of defence if a tribunal claim is brought.
4. Structure your probation with documented milestones
Every new hire should have a structured probation plan with clear objectives at month one, three, and five. Regular documented check-ins should record what was expected, what was achieved, and what support was provided. If the employee is not meeting the required standard, the documentation should show that they were told, given specific guidance, and given a reasonable opportunity to improve.
5. Connect your assessment to your onboarding
The best approach is to use pre-hire assessment findings to shape the onboarding plan. If the assessment identified prioritisation as a development area, the onboarding plan should include specific support for prioritisation. If pressure handling was a concern, the plan should include structured check-ins during high-pressure periods. This creates a joined-up evidence trail from hire to probation completion.
What if you need to dismiss someone?
Under the new rules, dismissing an employee during their first six months requires evidence of a fair process. You need to show: clear expectations were set from the start, regular feedback was provided, specific concerns were raised and documented, reasonable support was offered, and the employee was given a fair opportunity to improve.
If your hiring process produced documented assessment results, and your probation process included documented check-ins and support, you have a defensible position. If your hiring process consisted of good CV, nice in the interview and your probation process consisted of it just was not working out, you are exposed.
The cost of waiting
Every hire you make between now and January 2027 will be tested under the new rules. A candidate hired in June 2026 reaches their six-month mark in December 2026. If something goes wrong, you are already operating under the new legislation.
The companies that prepare now will be protected. The companies that wait will be scrambling. Preparation is not expensive. An uncapped tribunal claim is.
PRODICTA generates ERA 2025 Compliance Certificates for every assessment. Start preparing at prodicta.co.uk.