Probation periods in 2026. What needs to change before January 2027

From 1 January 2027, the qualifying period for unfair dismissal claims in the UK will reduce from two years to six months. This means that employees hired from July 2026 onwards will acquire unfair dismissal protection after only six months’ service.

This represents one of the most significant reforms to UK employment law in recent decades and fundamentally alters the importance of managing probation periods effectively. Employers will have a much shorter window in which to assess suitability, address performance concerns, and make decisions about continued employment before statutory unfair dismissal rights arise.

Why probation periods matter more from July 2026

Under current rules, dismissing someone in their first two years is legally straightforward, provided the employer follows a basic fair process. There is no qualifying period  employees can bring a claim from day one for certain automatically unfair dismissals  but ordinary unfair dismissal claims require two years’ service. From January 2027, that safety net largely disappears.

An employee who starts work in August 2026 will have full unfair dismissal rights in February 2027. If that employee is not performing adequately and you want to dismiss them, you will need to demonstrate a fair reason and a fair process  just as you would with any other employee.

What a legally sound probation process looks like in 2026

Many probation period provisions are no longer fit for purpose. While they specify a probationary timeframe, they often lack the structure needed to manage performance effectively. They fail to establish clear performance expectations, regular review points, or a documented record of concerns and feedback. Just as importantly, they provide managers with little practical guidance on the steps to take when an employee is not meeting the required standard.

A probation period fit for the post-January 2027 employment law landscape should do far more than set a deadline. It should include:

• Clear written objectives from day one, defining what successful completion of probation looks like.
• Regular documented review meetings throughout the probationary period, ideally every month.
• A formal mid-point review, with any performance concerns raised clearly and recorded in writing.
• A final probation review, with a written decision confirming whether probation has been passed, extended or failed.
• A robust process for extending probation where concerns emerge late in the assessment period.

What your employment contracts need to state

Employment contracts issued from July 2026 onwards should include probation provisions that reflect the new legal landscape. In particular:

• The length of the probationary period should be clearly stated. Employers should consider carefully whether a three-month or six-month probation period is most appropriate for the role, taking into account how long it will realistically take to assess performance, capability and cultural fit before unfair dismissal rights arise.
• The contract should set out the probation review process, including how performance will be assessed and the circumstances in which probation may be extended.
• Notice provisions during probation should be clearly specified, typically ranging from one week to one month depending on the employee’s role and seniority.
• The contract should make clear that successful completion of probation does not guarantee ongoing employment or alter the employer’s right to terminate employment in accordance with the contract.

What your managers need to understand

The most important change is not in the contract, it is in how managers actually handle probation periods. Many managers treat probation as a formality. They do not document performance concerns. They do not hold structured reviews and when they want to dismiss someone near the end of probation, they often have no paper trail to rely on.

Employment law training for managers should now include specific guidance on probation management and early performance intervention. This needs to happen before July 2026, not after the first six-month dismissal becomes a tribunal claim.

How Davenport Solicitors can help

At Davenport Solicitors, we help employers review and update their employment contracts, probation procedures, and provide management or training in preparation for January 2027. If you have not already started this process, now is the right time. Call us on 020 7903 6888 or email contact@davenportsolicitors.com