Aim Higher Training

Vocational Qualifications, Online Courses, Coaching, Personal and Professional Development

Unfair Dismissal in the Employment Rights Bill: What the New Six-Month Threshold Really Means for Employers

When the Employment Rights Bill was first announced, many employers braced themselves for a dramatic shift: a world where every employee—on their first day—would have full unfair dismissal protection.

Now, after months of political negotiation, compromise, and intense public debate, the government has confirmed a different path. Day one protection from ordinary unfair dismissal will not be introduced.

Instead, the biggest change in over a decade is this:
The qualifying period for ordinary unfair dismissal will drop from two years to six months.

For some employers, this may feel like a relief. For others, a new layer of responsibility. But for all workplaces, the message is clear:

How you treat people in their first six months matters more than ever.

 

A Real-World Example: Meet “Emma”

(A fictional but realistic scenario to demonstrate the change)

Imagine Emma, a new starter in a busy Early Years setting. She’s hardworking, enthusiastic, and trying her best. But she isn’t getting regular feedback, her induction feels rushed, and she’s unsure what’s expected of her.

Under the old system, Emma might have worked there for nearly two years before gaining full unfair dismissal protection.

Under the new six-month rule?

She can challenge a dismissal after only half a year.

For Emma, that means greater fairness.
For employers, it means stronger processes from day one.

This shift reflects a bigger cultural trend: valuing people earlier, supporting them better, and recognising employers’ role in building healthy, inclusive workplaces.

 

Why the Government Stepped Away from Day One Unfair Dismissal Rights

The original Bill proposed a dramatic change: removing the qualifying period entirely and giving employees full unfair dismissal protection from day one.

A simplified “initial period of employment” (a type of statutory probation) was also proposed, with its own separate rules.

But during Parliamentary “ping pong,” the House of Lords challenged the proposal. After extensive negotiations with trade unions, ministers and major employer groups, a compromise was reached:

  • Six months would replace two years
  • Day one protections would remain untouched
  • The extreme shift to full-day-one unfair dismissal rights would be shelved

The result is a rebalanced, more practical framework that increases fairness while recognising the operational realities of running a business.

What the Bill Will Now Change

  1. The qualifying period for ordinary unfair dismissal drops from two years to six months.

This affects thousands of employees—and employers—across the UK. Those entering employment in 2026 will gain protection far earlier than before.

  1. All existing day one protections remain firmly in place.

That includes protection against dismissal relating to:

  • Discrimination
  • Whistleblowing
  • Pregnancy & maternity
  • Health and safety
  • Trade union involvement
  • Other “automatically unfair” reasons

These are non-negotiable and apply immediately.

  1. Future changes must be made through primary legislation.

This gives employers more stability and prevents sudden adjustments through secondary regulations.

  1. The cap on unfair dismissal compensation will be “lifted.”

Full details are still emerging, but employers should prepare for the possibility of higher compensation awards, another reason to strengthen internal practices.

Is This the Same as Day One Rights? Not Quite.

While the universal day-one right has been removed from the Bill, many powerful protections already apply from day one and some even apply during recruitment, such as discrimination protections.

But the real, practical shift for 2026 is this:

Employees dismissed for reasons that are not discriminatory or automatically unfair now only need six months’ service to claim unfair dismissal.

This widens access to justice, strengthens employee rights, and elevates expectations of employer behaviour.

What Employers Need to Do Now: Practical Steps That Make a Human Difference

This isn’t just about compliance, it’s about culture.

Below are the steps every organisation should take, not just to avoid risk, but to build better, more supportive workplaces.

  1. Take probation seriously

Those first few months are where trust, confidence and performance foundations are built.
Invest the time to:

  • Set clear expectations
  • Hold structured check-ins
  • Document progress and concerns
  • Offer meaningful support

A fair probation is both a safeguard and an act of respect.

  1. Train managers to make fair, consistent decisions

Managers are the frontline decision-makers, and small choices can lead to big consequences.
Equip them to:

  • Handle performance concerns calmly
  • Follow fair processes
  • Know when to escalate
  • Document decisions effectively

Confidence in managers reduces conflict, misunderstandings and claims.

  1. Improve recruitment and onboarding

Better hiring decisions mean fewer early issues.
Strong onboarding improves engagement, psychological safety and retention.

  1. Understand day one protections deeply

Many disputes arise not from the dismissal itself, but from why an employee believes they were dismissed.
Training managers on discrimination, maternity rights, whistleblowing and safety is essential.

  1. Invest in inclusion and workplace adjustments

Inclusive workplaces don’t just follow the law—they set people up to succeed from day one.
Our DIA (Disability Impact Assessment) Training helps employers:

  • Understand legal obligations
  • Identify and implement reasonable adjustments
  • Support employees with confidence
  • Reduce risk of discriminatory or unfair practices

This is not just compliance. It’s compassion plus compliance working together.

 

What This Means for Your Organisation

The shift from two years to six months is more than a legal update, it’s an invitation to rethink how we support people.

Workplaces that thrive under this new Bill will be those that:

  • Build trust early
  • Strengthen management practice
  • Keep processes transparent and fair
  • Foster inclusive, respectful cultures
  • Invest in training, clarity and communication

Ultimately, fairness isn’t just a legal requirement, it’s a business advantage. The earlier we value and support our people, the stronger and more resilient our organisations will become.

Find out more about the implications of the new Employment Rights Bill by reading more in articles in our recent series on the subject. 

If you need support to train and raise awareness your staff about many of these changes please get in touch.  

Unfair Dismissal in the Employment Rights Bill: What the New Six-Month Threshold Really Means for Employers

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top