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 the dismissed employee’s effective date of termination is on or after the 1January 2027 and they have 6 months service, they 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.
Actions to take:
- 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.
- In preparation for these changes to unfair dismissal your organisation may want to seek independent advice when considering updating your employment policies.
- In particular, if you use a contractual probation period how it will operate with a 6 month qualifying period in force.
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
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