Probationary periods have always been a valuable management tool — but with significant legislative changes coming into force on 1 January 2027, employers need to review how they structure and manage them.
Below are the key updates and practical steps you should take now.
Why probationary periods matter
Probation gives both parties time to assess suitability. The main purpose of a probationary period is to allow the employer time to assess the capabilities and conduct of the employee and for the employee to decide whether or not the job and the employer match up to expectations.
Traditionally, probationary periods last three or six months — but this is about to become far more important.
Legal change from 1 January 2027
Under the Employment Rights Act 2025, the qualifying period for ordinary unfair dismissal will reduce from two years to six months. Crucially, this change is retrospective.
This means:
- Any employee with six months’ service by 1 January 2027 will be able to claim unfair dismissal.
- Employers operating six‑month probationary periods risk claims if they dismiss without a fair and reasonable process.
- A three‑month probationary period, with the option to extend by one month, is now the recommended structure.
Employers who operate a six‑month probationary period or longer could be exposing themselves to the risk of an unfair dismissal claim if they fail to follow a fair and reasonable process.
Recommended approach for 2027
Use a three‑month probationary period
This allows time for a short extension and ensures decisions are made before the six‑month unfair dismissal threshold.
Ensure contracts clearly set out probation terms
This includes:
- Duration
- Notice periods
- Sick pay arrangements
- Access to disciplinary procedures
- Holiday entitlements
- The possibility of extension
It is important to make it clear that the probationary period is not a guarantee of employment for the whole of the period and that employment may be terminated earlier.
Manage probation actively
Line managers should:
- Provide structured induction
- Hold weekly check‑ins
- Give clear feedback
- Document concerns
- Set targets and review dates
Silence equals acceptance – If you are not happy with performance, you should say so and offer support.
Make timely decisions
At the end of probation, employers must:
- Confirm the appointment
- Extend probation (once, in most cases)
- Dismiss if standards are not met
Failing to act can unintentionally confirm employment.
When dismissal is appropriate
If performance remains unsatisfactory despite support, dismissal may be necessary. Managers should hold at least one meeting warning an employee that they were not meeting the required standards and that their job was therefore at risk.
Dismissal must not be linked to discriminatory or prohibited reasons, as these allow claims regardless of service length.
How we can support you
- Provide induction templates
- Ensure probation terms are correctly drafted
- Support managers with training plans
- Flag upcoming probation end dates
- Assist with dismissal processes where needed
What employers should do now
- Review all probation clauses in contracts
- Move to three‑month probation periods with one‑month extensions
- Train managers on the new legal risks
- Strengthen documentation and review processes
- Ensure all probation decisions are made before six months’ service
If you need to discuss this change please get in touch
