Employment Law7 min read

Day-One Unfair Dismissal Rights: A Practical Guide for Employers

The removal of the two-year qualifying period for unfair dismissal is the biggest change to UK employment law in a generation. Here's what it means in practice and how to protect your business.

For the past four decades, UK employers have operated with a degree of comfort during an employee's first two years of service. If a hire didn't work out, the employer could part ways without the risk of an unfair dismissal claim - provided they avoided automatically unfair reasons such as whistleblowing or pregnancy. That comfort blanket is being removed.

From October 2026, employees will be able to bring an unfair dismissal claim from their very first day of employment. This doesn't mean employers can never dismiss someone in their first year - it means that when they do, they must be able to demonstrate a fair reason and a fair process. The Employment Tribunal will scrutinise both.

The fair reasons for dismissal remain the same: capability, conduct, redundancy, statutory restriction, or some other substantial reason. What changes is that employers can no longer rely on the absence of qualifying service as a defence. Every dismissal, from day one, must be justifiable on its merits.

This makes your probationary period process more important than ever. A well-structured probation - with clear objectives set at the outset, regular check-ins, documented feedback, and a formal review - gives you the evidence base to act if someone isn't meeting the standard. Without this structure, dismissing a new employee becomes significantly riskier.

Employers should also review their recruitment processes. The more rigorous your selection process, the less likely you are to make a hire that doesn't work out. Structured interviews, skills assessments, and thorough reference checks all reduce the risk of a poor appointment - and reduce the likelihood of ever needing to have a difficult conversation about performance in the first few months.

If you're concerned about how this change affects your business, the time to act is now - not in October. Review your probationary period policy, ensure your managers understand their responsibilities, and make sure your documentation practices are up to scratch. An HR consultant can help you identify the gaps and put the right processes in place before the changes take effect.

SHR

Salus HR Consultancy

Expert HR advice for UK businesses

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