This means that all employers need to think about their probation periods and how to effectively manage performance and capability safely during the new reduced timeframe.
Although these changes do not take effect till January 2027, the updated provision states that any employee who holds 6-months service on 1st January 2027 will also receive unfair dismissal rights. Therefore, anyone employed from 1st July 2026 will fall under these new rules come January 2027, even if their probation period has not yet come to an end.
To ensure compliance and make sure you have a robust way to manage this, employers should review their probationary periods now. One option is to shorten your probationary period timeframe; this allows you to manage under-performance safely and provide your business with better protection.
The management of employees within probationary periods should be punctual, supportive, set clear expectations and most importantly be applied and completed in full. Preparing yourself and your managers is a key step, making sure you are comfortable with the changes and how the probation process should be carried out effectively to mitigate risk.
Failure to manage concerns during the reduced probation window will result in employees gaining unfair dismissal protection by default; from that point the employer will need to carry out a full and thorough performance management process to try and resolve issues, and any dismissals beyond the 6-month timeframe will carry a greater risk of a potential unfair dismissal claim.
If you’re unsure on what these changes mean for you or your business, or you require support in getting these changes in place and implemented, our HR consultancy service is here to help. Whether that’s through a new policy or contract template, reviewing your current processes, supporting a difficult case or if you are just after some advice on what you need to do next, our HR consultants are on hand to guide you through these changes.