Introduction
Almost every UK employment contract includes a probationary period. The rules around probation itself have not changed. There is no new law about how long it must last or what it must contain. What has changed is the legal framework around dismissal, and that changes everything about why probation matters.
Yet most small business owners treat probation as a formality. In practice, that means a brief opening period that passes without structure or documentation. That approach has always carried some risk. From January 2027, however, it will carry considerably more.
The Employment Rights Act 2025 reduces the qualifying period for unfair dismissal claims from two years to six months. This change applies to every employer in the UK, regardless of size or sector. You need to reach a clear decision on any new starter's suitability before they hit six months of service. A probationary period that exists only on paper will not protect you. The deadline, however, is closer than it appears. Under current law, the qualifying period for unfair dismissal is two years. On 1 January 2027, it drops to six months. From that point, any employee needs a properly managed, documented probation that reaches a clear decision before they hit six months of service. For anyone hired from July 2026, the six-month mark falls on or after the day the new rules take effect. There is no buffer. The employers who will be ready are those who have already changed how they run probation. If you are still treating it as a formality, the time to stop is now.
This guide explains what a probationary period is, how long it should be, how to run one well, and what the new legislation means for your business.
What Is a Probationary Period?
A probationary period is a trial period at the start of employment. It gives the employer a structured window to assess whether the new starter is right for the role. It also gives the employee time to settle in and demonstrate what they can do.
Probationary periods are not a legal requirement. However, they are standard practice, and for good reason. A clearly defined probationary period, with documented objectives and regular reviews, gives employers a fair and defensible basis for decisions about new hires.
It is important to understand what a probationary period does not do. It does not suspend an employee's statutory rights. From day one, all employees are entitled to the national minimum wage, paid holiday, statutory sick pay, and protection from discrimination and whistleblowing. These rights apply in full, regardless of whether someone is in a probationary period. Since April 2026, the Employment Rights Act 2025 has extended this further. Paternity leave and unpaid parental leave are now day one rights. The government also removed the three-day waiting period for statutory sick pay. New starters arrive with a wider set of entitlements from their first day than at any previous point.
What should your contract include?
Your employment contract must set out the probationary period clearly. The contract should state the length of the period, the notice period that applies during it, and whether it can be extended. Without these provisions, you have few options if the picture is not clear-cut by the time the trial period ends.
How Long Should a Probationary Period Be?
For many years, most employers have used a three to six month probationary period. Three months has been common for straightforward roles. Six months has often been preferred for more senior or complex positions.
Under the Employment Rights Act 2025, however, the practical guidance is changing. From January 2027, any employee with six months of service can bring an unfair dismissal claim. This applies whether or not they are still technically in their probationary period. A six-month probationary period therefore leaves you very little usable margin at all.
The recommended approach
Employment law practitioners are broadly recommending a move to a three-month probationary period, with an option to extend by one month if needed. This gives a structured trial period, some additional flexibility, and keeps the decision well inside the six-month window.
If you currently use a six-month probation, you need to act now rather than wait. For employees hired from July 2026, the six-month period ends at exactly the moment the new rules take effect. There is no preparatory window for those hires. GOV.UK has published guidance on the unfair dismissal changes as part of its Employment Rights Act employer information.
The Employment Rights Act 2025: What Has Changed?
The Employment Rights Act 2025 received Royal Assent in July 2025. Its most immediate effect on day-to-day people management is the reduction in the qualifying period for ordinary unfair dismissal. From 1 January 2027, employees gain unfair dismissal protection after just six months of service. This is down from the current two years.
The government originally proposed a statutory probationary period of nine months, during which a lighter-touch dismissal process would apply. That concept was removed before the Act passed. What remains is a straightforward six-month qualifying period. There are no special procedural rules for the early months of employment beyond those that already existed.
Changes already in force from April 2026
Several ERA 2025 provisions have already taken effect and apply to all new starters from April 2026 onwards. Paternity leave became a day one right on 6 April 2026, replacing the previous 26-week qualifying period. Unpaid parental leave also became a day one right on the same date, replacing the previous one-year qualifying period. In addition, the government removed the three-day waiting period for statutory sick pay. Employers must now pay SSP from the first qualifying day of sickness. GOV.UK sets out the full ERA 2025 timetable on its Employment Rights Act implementation timeline.
For employers managing probation, the SSP change is the most immediately practical. Waiting days can no longer act as even a minor check on short-term absence during probation. Therefore, a clear and consistently applied absence management approach matters from day one.
The transition point: why acting now matters
The Government has confirmed the transition rules. Until 31 December 2026, the two-year qualifying period remains in force. On 1 January 2027, anyone with six or more months of service gains unfair dismissal protection immediately. Those who have not yet reached six months at that date will gain it when they do.
That means the current legal position is clear: an employee dismissed in December 2026 with eighteen months of service has no unfair dismissal claim under current law. After 1 January 2027, the same situation looks very different. The period between now and January 2027 is therefore the time to get your probation processes right: not because your current employees already have new rights, but because the habit of running probation properly needs to be established before the rules change.
For employees hired from July 2026, the six-month mark falls on or after the day the new rules take effect. There is no gap between the end of probation and the start of unfair dismissal exposure. The employers who navigate January 2027 well will be those who are already managing probation properly. Those who wait will find the window has closed before they were ready.
The compensatory award cap is also being removed
There is a second change that employers should note. From January 2027, the Employment Rights Act removes the cap on the compensatory award for unfair dismissal. Currently, a statutory ceiling limits the amount a tribunal can award. After that date, there is no upper limit. As a result, the financial exposure from a poorly handled dismissal will increase considerably.
Together, these two changes mean that decisions made in the first six months of employment carry real weight. Getting that period right matters more than it ever has.
How to Run a Probationary Period Properly
A probationary period that protects your business is one that is actively managed. That means setting clear objectives before the new starter's first day. It also means holding structured review meetings during the period and documenting what happens at each stage.
In practice, many employers hold a single review at the end of probation, pass the employee, and move on. This approach, however, leaves you poorly placed if performance or conduct issues emerge later. Early, honest feedback gives the employee a fair chance to improve. It also creates a written record that supports any decision you eventually make.
Reviews and documentation
Schedule at least two review meetings during a three-month probation. Aim for one at around four weeks and one at around eight weeks. At each meeting, assess performance against the objectives you set at the start. Note what was discussed, what was agreed, and any areas for development. Keep a written note on file after each one.
If concerns arise during the probationary period, address them at the time. Do not wait until the final review. Raising performance issues late, with no prior documentation, is hard to justify if an employee later challenges the decision.
ACAS provides practical guidance on managing staff performance, which is worth reading alongside your internal processes.
Can You Extend a Probationary Period?
Yes, in most cases. The employment contract must allow for an extension, and you should agree it before the original period ends. Confirm the extension in writing, with a brief reason and a new end date.
From January 2027, however, be careful about extending probation beyond six months. Extend beyond six months and the employee may acquire unfair dismissal rights before the probation concludes. In that situation, the probationary period offers no meaningful additional protection.
If you need more time to reach a conclusion, think carefully about the right response. It may be that a structured performance or conduct process is more appropriate than a probation extension.
Dismissing an Employee During or at the End of Probation
Dismissing someone in the first six months carries lower risk than dismissal after they acquire unfair dismissal rights. However, it is not risk-free. Day-one protections apply throughout. Employees are protected against dismissal connected to a protected characteristic under the Equality Act 2010. They are also protected against dismissal for whistleblowing and a range of other automatically unfair reasons.
Before dismissing someone on probation, make sure the reason is clear: performance, conduct, or unsuitability for the role. If there is any possibility of overlap with a protected characteristic or another sensitive factor, take advice before acting.
In terms of process, give the notice period set out in the contract. If the statutory minimum of one week after one month's service is greater, apply that instead. Hold a brief meeting to explain the decision and the reasons. Follow up in writing promptly afterwards.
Practical Steps
- Review your employment contracts and confirm that the probationary period, notice provisions, and any extension clause are clearly drafted.
- If you currently use a six-month probation, move to three months with a one-month extension option.
- Create a simple objectives document for each new starter before they join.
- Schedule review meetings at four weeks and eight weeks during a three-month probation.
- Write a brief note after each meeting and keep it on file.
- Make the pass or fail decision, and confirm it in writing, before the employee reaches six months of service.
- Record the six-month service date in your diary or HR system the day the employee joins.
If the date passes without a formal decision on record, the probationary window has closed. Under the new rules, the employee may already have acquired unfair dismissal protection before anyone realises the period has passed.
How We Can Help
Bespoke HR can review your employment contracts and probationary documentation to make sure they are ready for the 2027 changes. If you need support managing a probationary review, addressing performance concerns early in employment, or handling a dismissal during probation, our HR consultants can guide you through the process. We also help businesses put the right review structures and documentation in place so that every new starter's probationary period is managed consistently and with confidence.
Final Thoughts
Probationary periods have always been a sensible tool for managing new starters. For too long, though, many employers have treated them as a formality rather than a genuine management process. The Employment Rights Act 2025 changes the stakes. From January 2027, the window for deciding on new starters shrinks from two years to just six months. That is when full unfair dismissal rights kick in. For employers hiring today, that window is already open. Anyone hired from July 2026 onwards will reach the six-month mark at the moment the new regime begins. The employers who navigate this well will have their probation process working properly now. Those who wait until December will find the window has already closed.
Get in Touch
If you would like to talk through how your business manages probationary periods, or if you need support preparing for the changes coming in 2027, the Bespoke HR team is here to help.
FAQ
Does an employee have rights during a probationary period?
Yes. Employees on probation have full statutory rights from day one. These include the national minimum wage, paid holiday, statutory sick pay, and protection from discrimination and whistleblowing. Since April 2026, the Employment Rights Act 2025 has added to these. Paternity leave and unpaid parental leave are now day one rights. The government also removed the three-day SSP waiting period. A probationary period does not reduce or suspend any of these rights.
Can I dismiss an employee without giving a reason during probation?
Not safely. Dismissal during the first six months carries lower unfair dismissal risk. However, you remain exposed if the reason touches on a protected characteristic, whistleblowing, or another automatically unfair ground. In practice, it is always advisable to have a clear, documented reason for any dismissal.
What does the Employment Rights Act 2025 change about probationary periods?
The Act reduces the qualifying period for ordinary unfair dismissal from two years to six months. This takes effect on 1 January 2027. Parliament removed the proposed statutory probationary period before the Act passed. As a result, any probationary period longer than six months will provide limited practical protection under the new regime. The same applies to one that is not actively managed and documented.
What notice do I need to give when dismissing someone on probation?
Give the notice period set out in the employment contract, or the statutory minimum if that is greater. The statutory minimum is one week after one month's service. Many employment contracts include a shorter notice period during probation, which is permitted as long as it meets the statutory minimum.
Can I extend a probationary period, and by how much?
Yes, provided the contract allows for it and both parties agree before the original period ends. Confirm any extension in writing. From January 2027, however, extending probation beyond six months is risky. The employee may acquire unfair dismissal protection before the extended period concludes.
What should a probationary review meeting cover?
A review meeting should assess the employee's performance against the objectives set at the start. Discuss any areas of concern honestly and directly, agree any actions required, and confirm the outcome in writing. Keep a brief written note of the meeting on file, even when everything is going well.
What happens if my contracts do not include a probationary period clause?
Without a contractual probationary period, you lose the formal structure that probation provides. You can still dismiss on notice in the first six months. However, you have fewer documented foundations to rely on. From January 2027, a well-drafted probationary clause becomes increasingly important as the qualifying period for unfair dismissal shortens.
Do part-time employees go through a probationary period?
Yes. Part-time employees have the same rights as full-time employees and can be subject to the same probationary arrangements. The six-month qualifying period is based on length of service, not hours worked. The same timeline applies regardless of how many hours a week someone works.