Contracts6 min read

Probation Period Rules UK: What Employers Get Wrong and What Changes in 2027

Probation periods are not defined in UK law and do not give employers the right to dismiss without process. From January 2027, the unfair dismissal qualifying period drops to six months. Here is what that means for how you structure and use probation.

LM

Leon Mclean

Co-founder, Birchlow · Last reviewed June 2026

Probation periods are not a legal shield

Many employers treat the probation period as a window in which they can dismiss freely without consequences. That is not how UK law works. The probation period is a contractual arrangement with no special legal status. What currently makes dismissals in the first two years relatively low risk is not the probation period itself, but the two-year qualifying period for unfair dismissal. From January 2027, that qualifying period drops to six months. The probation period label will not protect an employer who has not followed a proper process.

Probation periods are standard in UK employment contracts. Most employers include one as a matter of course and assume it provides protection during the early months of employment. The protection it actually provides is less than most employers think, and from January 2027 it will be considerably less than it is today. Understanding what probation periods can and cannot do is essential before the qualifying period for unfair dismissal changes.

What a probation period cannot do

It cannot remove the right to not be discriminated against. From the first day of employment, workers are protected from dismissal for reasons linked to age, sex, race, disability, sexual orientation, religion and other protected characteristics. A dismissal within a probation period that is connected to a protected characteristic is automatically unfair and can be claimed regardless of length of service.

It cannot remove whistleblowing protection. Workers who make a protected disclosure, commonly known as whistleblowing, cannot be dismissed for making that disclosure at any point, including during a probation period. A dismissal within probation that follows a protected disclosure creates significant tribunal exposure.

It cannot suspend the right to written terms. All workers, including those in a probation period, have been entitled to a written statement of their terms from day one since April 2020. Issuing written terms only once probation is confirmed is a breach of that right.

It cannot remove the right to SSP, holiday pay or minimum wage. Statutory rights apply from day one regardless of whether the employee is in a probation period. An employer who does not pay SSP, or who does not accrue holiday, for a worker on probation is breaking the law.

What a probation period can do

A well-structured probation period can help an employer document and manage performance from an early stage. A probation period that includes:

  • clear performance standards set out from day one
  • regular one-to-one review meetings with notes
  • written feedback on areas for improvement
  • a documented extension process if standards are not met

gives the employer a paper trail that supports a fair dismissal if the employee is ultimately not suitable for the role. That paper trail is what wins or loses a tribunal claim, not the fact that a probation period existed.

What changes in January 2027

From 1 January 2027, the qualifying period for unfair dismissal drops from two years to six months under the Employment Rights Act 2025. An employee who has been with you for more than six months after that date can bring a standard unfair dismissal claim if dismissed without a fair reason and a fair procedure.

For employers who currently use a three-month probation period, this is the critical implication: an employee who clears their probation successfully at three months, and is then dismissed at seven or eight months, already has tribunal rights from January 2027. The probation period ending is not the end of the exposure window.

The statutory initial period. The Employment Rights Act 2025 introduces a statutory initial period of up to nine months for new hires. During this period, employers can follow a lighter-touch dismissal process compared to the full ACAS Code. A fair reason and a basic opportunity for the employee to respond are still required. The precise details of what the lighter-touch process must include were to be set out in secondary legislation that had not been published at the time of writing.

The practical effect is that a probation period of six to nine months, actively managed, aligns with the statutory initial period and gives employers the clearest position if dismissal is needed before the full qualifying period is reached.

The two-year window is already closing

Employers who are currently managing out a new hire who has been with them for fourteen or sixteen months may be thinking they have time before tribunal rights kick in. They do. But for staff hired from approximately July 2026, the six-month qualifying period arrives at the same time as the law changes in January 2027. That hire's exposure to tribunal claims begins earlier than you may have planned for.

How to structure probation after January 2027

Set a probation period of six to nine months. A three-month probation period no longer provides meaningful cover when tribunal rights arrive at six months. Align your probation period with the statutory initial period.

Put performance standards in the contract. Do not just say "probation applies for X months." Specify what satisfactory performance looks like and reference the review process the employer and employee will follow.

Hold regular documented reviews. A probation review meeting with notes, held at one month, three months and before the end of the probation period, creates the evidence base that supports a fair dismissal if needed. Notes should record what was discussed, what improvement was required and what was agreed.

Issue a probation extension properly. If you are extending probation, use the clause in the contract, put the extension in writing, give specific feedback, set a clear end date and explain what happens if performance does not improve by then. An extension with no paperwork is not an extension with any legal effect.

Follow a process before dismissing. Even within the statutory initial period, dismissal without a reason and without giving the employee an opportunity to respond creates risk. A short process, giving the reason for dismissal and holding a brief meeting at which the employee can respond, is all that is needed during the initial period and costs very little time.

Brief your managers. Line managers who conduct probation reviews need to understand that the notes they take matter. An informal chat with nothing written down provides no protection. A signed review form with clear feedback does.

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