Unfair dismissal law may soon change as part of wider employment reforms expected to take effect in the coming years.
The core framework governing unfair dismissal has remained largely unchanged for some time. One of the most significant recent reforms took place in 2012, when the qualifying period required for most employees to bring an unfair dismissal claim increased from one year to two years of continuous service.
The Government has since proposed further changes aimed at strengthening worker protections while also providing employers with clearer guidance on how dismissals should be handled. These reforms are widely expected to come into force during 2027.
For employers, these developments may affect recruitment practices, probation periods and dismissal procedures.
Understanding the current law and the direction of the proposed reforms can help businesses prepare for potential changes ahead.
This article outlines the current legal framework surrounding unfair dismissal, the reforms that have been proposed and what these developments could mean for employers.
What is unfair dismissal?
Unfair dismissal occurs where an employee is dismissed without a potentially fair reason, or where the employer has failed to follow a fair and reasonable procedure, or both.
Under UK employment law, employers must be able to demonstrate both a valid reason for dismissal and that the decision to dismiss fell within a reasonable range of responses. Even where a legitimate reason exists, failure to follow an appropriate process may still result in a finding of unfair dismissal.
The law recognises five potentially fair reasons for dismissal. These include:
- Conduct
- Capability or performance
- Redundancy
- Statutory illegality
- Some other substantial reason (SOSR)
SOSR can cover situations such as a breakdown in working relationships or certain business reorganisations.
In practice, employment tribunals will consider both the reason for the dismissal and the procedure followed by the employer when determining whether a dismissal was fair.
Current unfair dismissal rules
Under the current legal framework, most employees must have completed two years of continuous service with their employer before they can bring a standard unfair dismissal claim.
However, there are important exceptions to this rule. Certain types of dismissal are considered automatically unfair and do not require a qualifying period of service. Examples include:
- Pregnancy or maternity-related dismissals
- Whistleblowing
- Trade union membership or activities
- Raised health and safety concerns
- Asserting statutory employment rights (such as asking for the National Minimum Wage)
Employees bringing an unfair dismissal claim before an employment tribunal must usually do so within three months less one day of the effective date of termination.
Proposed changes to unfair dismissal rights
As part of broader employment law reform, the Government has proposed significant changes to the qualifying period for unfair dismissal protection.
Under the proposals that have been outlined, employees may gain protection from unfair dismissal from the first day of employment rather than having to complete two years of service.
The reforms are intended to improve job security and ensure that workers are protected from unfair treatment from the start of their employment.
At the same time, the Government has indicated that employers will continue to be able to use probation periods when assessing new employees. There have been discussions around introducing a clearer statutory framework for probationary periods, which may allow employers to follow a simplified dismissal process during the early stages of employment.
However, the precise details of how probation periods will operate under the new system are still being developed and may evolve before the legislation comes fully into force.
Probation periods under the proposed system
If day-one protection against unfair dismissal is introduced, probation periods are likely to become even more important for employers.
Many organisations already use probation periods to assess whether a new employee is suitable for the role. During this time, employers typically review performance, attendance and conduct before confirming the employee in post.
Employers may need to ensure that probation arrangements are clearly documented and consistently applied. Performance reviews, written feedback and records of any concerns may become increasingly important in supporting employment decisions made during this early period.
Employers may therefore wish to review how probation periods are structured, including the length of the probation period and the process used to assess performance.
The full regulations are still developing, so details may evolve before implementation. Please keep up to date with any changes after the information provided in this article.
Current vs proposed unfair dismissal rules
The following table summarises the key differences between the current legal framework and the reforms that have been proposed.
| Rule | Current Law | Proposed Changes (2027) |
| Qualifying period | Two years of service | Potential day-one protection |
| Probation period | Employer-defined | Possible clearer statutory framework |
| Eligibility for claims | Limited to employees with two years’ service (with some exceptions) | Potentially open to all employees |
Employer Responsibilities
Regardless of any upcoming reforms, the fundamental principles of fair dismissal remain unchanged. Employers should ensure that:
- There is a genuine and legally recognised reason for dismissal.
- A fair procedure is followed.
- Records of performance concerns, disciplinary meetings and review discussions are documented to demonstrate that the employer acted reasonably if a decision is later challenged.
- Recruitment processes, probation policies and internal procedures reflect current best practice.
Employers are encouraged to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures, as it remains an important part of this process. Compensation may be adjusted if employers have unreasonably failed to follow it.
How employment law solicitors can support employers
Employment law solicitors can assist organisations in reviewing employment contracts, workplace policies and dismissal procedures to ensure they reflect current legal requirements.
They may also provide guidance on managing disciplinary processes, updating probation policies and understanding new legislation as it develops.
For businesses that wish to prepare in advance of the proposed reforms, professional guidance can help ensure that internal procedures remain clear and compliant.
The proposed changes to unfair dismissal law represent one of the most significant potential reforms to UK employment rights in recent years. If implemented as expected, day-one protection against unfair dismissal would expand eligibility for claims and could have implications for how employers manage recruitment and probation periods.
Although the details of the reforms are still developing, businesses may find it helpful to stay informed and review internal policies as further guidance becomes available. To speak to our employment law solicitors, contact any of our Norfolk firms via our contact form or the information below.
Norwich
Tel: 01603 693500
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Tel: 01263 823398
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Tel: 01692 660230
enquiries@clapham-collinge.co.uk
The information in this article is for general guidance only and should not be treated as legal advice. It is not a substitute for obtaining advice tailored to your circumstances. While we aim to ensure accuracy at the time of publication, laws and guidance may change. Clapham & Collinge LLP accepts no liability for any loss arising from reliance on this content. For personalised advice, please contact our client relations team to book an appointment.