Unfair dismissal rights

From 1 January 2027 the qualifying periods for protection against ‘ordinary’ unfair dismissal, employees’ right to request written reasons for dismissal and protection against unfair dismissal for reason of spent convictions will change.

Key changes

From 1 January 2027:

• The qualifying period for protection against ‘ordinary’ unfair dismissal will be reduced from two years to six months.
• The qualifying period for employees’ right to request written reasons for dismissal will be reduced from two years to six months.
• The qualifying period for protection against unfair dismissal for reason of spent convictions will be removed.
• The cap on compensatory awards will also be removed.

If your effective date of termination is on or after the 1January 2027 and you have 6 months service, you will have the right to claim unfair dismissal at an employment tribunal.

For a successful claim, employment tribunals will carefully consider compensation to be awarded. Whilst awards will be uncapped, a tribunal will still consider the losses a claimant has suffered from their dismissal.

In practice, when claims for unfair dismissal succeed at employment tribunal and the tribunal awards compensation to the dismissed employee, few compensatory awards reach the current cap. In 2023/24, there were 646 awards for unfair dismissal in employment tribunals reported, and the median award was £6,746.

The Employment Rights Act 2025 does not change the current existing day one protections against discrimination and automatically unfair grounds for dismissal.

What this means for you

Extending employee protections against unfair dismissal will strengthen employment rights and reduce one-sided flexibility in the workplace, increasing job security for employees in England, Scotland, and Wales.

Around 6.3 million employees (22% of all employed 16+) have been working with their current employer for between six months and two years2, so have only very limited protection against unfair dismissal.

How to prepare

For dismissals with an effective date of termination before 1 January 2027, the current system of a two year qualifying period for unfair dismissal protections will still be in force.

If you are planning to make a claim for unfair dismissal:

• You must tell Acas (Advisory, Conciliation and Arbitration Service) that  you’re planning to make a claim. There are time limits for employment tribunal claims. You must notify  Acas within the time limit – this is usually 3 months minus 1 day.
• You’ll be offered the chance to try and settle the dispute without going to tribunal by using Acas’ free ‘early conciliation’ service. If early conciliation does not work or you choose not to take part, Acas will send you an early conciliation certificate.
• Once you receive your certificate, you’ll have at least one month left to make your claim to an employment tribunal.

Where to get help

Unfair dismissal - Dismissals - Acasopens www.acas.org.uk in a new tab

Dismissal: your rights: Unfair and constructive dismissal - GOV.UKopens www.gov.uk in a new tab