The six-month clock: redesigning probation before January
Probation is changing, and employers need to be aware says Dan Barfoot of CMD Recruitment
For years, employers have had two years before new starters gained protection against ordinary unfair dismissal. From 1 January 2027, that window shrinks to six months.
It’s one of the biggest changes in the Employment Rights Act 2025, and it changes how probation periods need to work.
What is changing on 1 January 2027?
At the moment, an employee generally needs two years’ service before they can bring an ordinary unfair dismissal claim. From 1 January 2027, they will need six months.
There’s no phasing in either. The new rule applies to anyone whose employment ends on or after that date, so someone who joined you in the summer of 2026 will already be protected when the change arrives.
The limit on compensation is changing too. Today, the compensatory award is capped at a year’s pay or £123,543, whichever is lower. That cap is due to be removed on 1 January 2027, potentially increasing the cost of an unfair dismissal claim if things are handled badly.
What should a probation period look like now?
A common approach is a three-month probation with the option to extend, so that every decision is made with time to spare. However long yours is, the structure matters more than the length. Here’s one way to set it out.
Week 1
Set expectations
Agree written objectives and explain what a good first three months looks like.
Week 4
First review
Talk through what’s going well and what isn’t. Put any concerns in writing.
Week 8
Second review
Check progress against the concerns raised and offer support or training where it’s needed.
Week 12
Decision point
Confirm the appointment, extend the probation for a set period, or bring it to an end.
By week 20
Final decision
If you extended, make a final decision here to allow time for any required notice.
Don’t wait until the final review
If a new starter is struggling, it’s better to raise concerns as they come up rather than waiting until their probation ends. Explain what needs to improve, give them a chance to put things right and keep a record of any discussions. That way, everyone knows where they stand.
Why hiring right first time matters more than ever
A shorter window puts more weight on the hiring decision itself. Finding someone with the right skills and experience from the start can help avoid problems later and means less time spent trying to put things right.
That starts with a clear brief, a consistent interview process and candidates who have been properly screened before they reach you. For some roles, taking someone on as a temp first can also be a sensible way to see how they fit before you make a permanent offer.
Dan Barfoot is operations manager at CMD Recruitment
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