Probation in the six month era: how to redesign your process before 1 January 2027

For years, many employers have treated the first two years of employment as a period of lower legal risk. From 1 January 2027, that window shrinks to six months. The qualifying period for ordinary unfair dismissal claims falls from two years to six months, and the cap on the compensatory award is removed. Probation is where the change will be felt first.

Why probation matters more now

A probation period has no special status in law. Once an employee has six months’ service, any dismissal will need a potentially fair reason and a fair procedure, whatever the contract calls the period. A six month probation that ends with a dismissal at six months risks falling on the wrong side of the line.

Employees already in post

The change applies where the effective date of termination is on or after 1 January 2027. An employee who joined in early July 2026 will reach six months’ service as the new rules start. Decisions about that group are being made now, and notice periods can carry an effective date of termination into January.

Two workable approaches

• Shorter probation. Set a probation period of three or four months so that reviews, any extension and any decision to dismiss are concluded well before six months.
• Six months with fair process. Keep a longer probation but manage it as you would for any protected employee: clear standards, documented reviews, warnings where appropriate and the right to be accompanied.

What a robust probation process includes

• Objectives and standards set out in writing at the start
• Scheduled review meetings with written outcomes
• Early, specific feedback where performance or conduct falls short
• A clear decision point before the end of the period
• Managers who know the process and follow it consistently
• Contract wording that matches the process you actually use

Do not forget discrimination risk

Discrimination and whistleblowing claims have never required a qualifying period. Probation decisions affecting employees who are pregnant, disabled or who have raised concerns need particular care.

Where to start this month

• Identify employees who will pass six months’ service between now and March 2027
• Review probation clauses in contracts and the staff handbook
• Train line managers on review meetings and record keeping
• Decide which probation model fits each role

Davenport Solicitors reviews contracts, probation policies and handbooks for employers. Call us on 020 7903 6888 or email contact@davenportsolicitors.com