A significant shift in employment law is approaching. From 1st January 2027, the right to a fair dismissal will apply much earlier in the employment lifecycle. 

This isn’t just relevant for employees hired in 2027. In practice, anyone hired from 1st July 2026 will reach six months’ service by 1st January 2027, meaning they will already fall within the scope of these new protections. 

So, what does this mean for our clients?  

  • Employees hired from July 2026 onwards will be covered. 
  • By January 2027, they will have built up six months’ service. 
  • Employers will have less flexibility to end employment without following a robust and fair process. 

After the six-month service point, dismissals will require: 

  • Formal meetings 
  • Documented warnings 
  • Clear evidence of a fair procedure 

This makes processes more complex, time-consuming, and higher risk if not managed correctly. 

What’s changing from 1st July 2026? 

From 1st July 2026, probation periods themselves will also need to change. They will need to be shorter, more structured, and typically set between three and six months. 

This means: 

  • Less time to assess performance and suitability 
  • Greater expectation of active management during probation 
  • Increased risk where probation is informal or poorly documented 

Probation can no longer be treated as a “wait and see” period, it must be actively managed from day one. 

Why this matters 

Historically, employers have had up to two years to assess suitability. That window is now effectively shrinking to six months. 

Key risks include: 

  • Missing the opportunity to act within probation 
  • Increased exposure to claims if fair processes aren’t followed 
  • Managers avoiding difficult conversations until it’s too late 
  • Greater administrative and legal burden after six months 

Probation reviews now matter more than ever 

With shorter probation periods, relying on a single end-point decision is no longer enough.

A structured approach is essential:

Regular check-ins 

Schedule formal reviews at key stages (e.g. four, eight, and 12 weeks) to: 

  • Assess performance against clear objectives 
  • Identify training or support needs 
  • Document progress or concerns 

Clear expectations from day one 

Employees should understand: 

  • What good performance looks like 
  • How success will be measured 
  • When and how reviews will take place 

Early intervention 

 If concerns arise: 

  • Provide clear, constructive feedback 
  • Offer support and development 
  • Set measurable improvement goals 

Delaying these conversations significantly increases the risk of poor outcomes for both the employee and the business. 

Don’t wait to act 

The earlier concerns are addressed, the more options remain available. 

By engaging early, you can: 

  • Set clear expectations 
  • Introduce structured support and improvement plans 
  • Manage conversations to give employees the best opportunity to succeed 

Where improvement isn’t achieved, action can be taken fairly and compliantly within the probation period, before reaching the six-month threshold. 

Steps to take now 

To stay ahead of these changes: 

    • Review your probation policies (this will be done for you if you have an HR Vitals Employee Handbook) 
    • Ensure probation periods are clearly defined (no more than six months) 
    • Build in structured review checkpoints
    • Train your managers 
      • Equip them to handle early performance conversations 
      • Ensure they understand when to escalate concerns 
    • Strengthen documentation. Keep clear records of: 
      • Review meetings
      • Performance concerns 
      • Support and actions taken 
    • Make timely decisions, and avoid probation periods drifting. Extend probation where justified, or make clear decisions before it ends

    The changes from July 2026, combined with the January 2027 legal milestone, mark a clear shift towards earlier employee protections and higher expectations on employers. 

    Probation is your key decision-making window and it’s getting shorter. 

    Act early, manage actively, and seek support quickly from HR Vitals when concerns arise. Doing so will not only protect your business but also ensure fair, consistent outcomes for your team.