Instead, the Employment Rights Bill will move to a six‑month qualifying period, still a big shift from today’s two‑year rule. For now, nothing has changed in law, but HR should start planning.

This article looks at what the U-turn means from both an employee and employer perspective, and what HR teams can do now while the Employment Rights Bill continues its passage through Parliament.

Where things stand today – the current two-year rule

The time frame to accrue the right not to be unfairly dismissed has been a bit of a see saw. It has been two years, then one year, back up to two years and now six months.

At the time of writing, the law has not yet changed. In most cases, employees need two years’ continuous service with the same employer before they can bring an ordinary unfair dismissal claim in the employment tribunal. This qualifying period is set out in the Employment Rights Act 1996 and reflected in GOV.UK and Acas guidance.

There are important exceptions. Some dismissals are automatically unfair from day one, for example where the main reason is pregnancy or maternity, whistleblowing, asserting a statutory right such as the National Minimum Wage, or taking action about serious health and safety concerns. Claims of discrimination under the Equality Act 2010 also do not require any minimum length of service.

So even before the new legislation comes in, employers cannot treat people with less than two years’ service as if they have no protection at all, and employees who are dismissed early should still check whether one of these day‑one protections applies.

What has the government changed?

The original Employment Rights Bill promised to make protection against unfair dismissal a genuine day‑one right. After significant push‑back in the Lords and concerns from business about hiring flexibility, the government has now agreed to drop the day‑one element and settle on a six‑month qualifying period instead.

In practice, this means that once the new law is in force, most employees will be able to bring an unfair dismissal claim after six months’ continuous service, rather than waiting two years. The detail of exactly how this will be drafted – and how it will interact with probationary periods, fixed‑term contracts and different sectors – will not be clear until the final Act and supporting guidance are published.

Other reforms in the Bill, such as day‑one rights to sick pay and paternity leave, are expected to go ahead, and the government has signalled that it prefers to compromise on unfair dismissal rather than risk derailing the wider package of employment reforms altogether.

The new six‑month qualifying period will not take effect immediately. The Bill still has to complete its remaining Parliamentary stages, receive Royal Assent and then be brought into force on a future date, which current commentary suggests is unlikely to be before 2026 or 2027. Until then, the two‑year rule remains in place.

Employee perspective – will I still be protected?

This is still good news for employees. They can have greater comfort of protection against any unfair dismissal. It will provide more assurance, where an employee has over two years’ service with a current employer and is thinking about accepting a new role. In theory, it should be easier for employers to recruit good staff.

From an employee viewpoint, the U-turn may be frustrating because it falls short of the day‑one protection that was promised in the manifesto.

If the reforms are implemented as now proposed, employees would gain the right to challenge an unfair dismissal in the tribunal after six months’ service.  The employer would need a fair reason, follow a fair process and act reasonably in all the circumstances, not just once the employee has accrued two years’ service.

At the same time, all of the existing day‑one protections will remain.  An employee can already bring a claim, regardless of service length, if the main reason for dismissal is discriminatory, automatically unfair, or linked to certain protected activities such as trade union membership or raising health and safety concerns.

For now, employees should remember that the two‑year rule still applies to ordinary unfair dismissal. If an employee is dismissed with less than two years’ service, it is essential to look carefully at why they were dismissed and whether any automatically unfair or discriminatory factor might be involved. 

Employer perspective – what does this mean for an employer?

As stated above, it may be easier to recruit employees, where they are leaving a secure role.

For employers and HR teams, the U‑turn will come as a partial relief. Day‑one unfair dismissal rights would have fundamentally changed how organisations approach recruitment, probation and early performance management. A six‑month qualifying period still reduces flexibility, but it is more in line with how many businesses already structure probationary periods.

Once the law changes, dismissals of employees with more than six months’ service are likely to be scrutinised more closely by tribunals. Employers will need to be confident that the reason is fair – such as conduct, capability, redundancy or some other substantial reason – and that a reasonable process has been followed.

Practical Tips for Employees

• Employees should keep records of key conversations, emails and any concerns you have raised about workload, treatment or workplace issues. 
• If an employee is dismissed, ask for the reasons in writing and consider whether discrimination, whistleblowing or health and safety issues may be involved. However, currently, an employer is not obliged to give a written reason for dismissal until the employee has one year’s service. It makes sense that the government changes this rule
•  Seek advice early from a trade union, legal adviser or Acas if you are unsure about your rights or time limits for bringing a claim.

Practical steps that Employers and HR can do now

• Employers should review their employment contracts for the provisions relating to a probationary period.
•  It is important to have regular check-ins with the employer to assess performance. This will help to provide evidence to defend a claim, in the event that an employee believes they have a discrimination claim or claim for automatic unfair dismissal. 
• Employers should provide updated training to managers on the new rules and procedures and management of employees during the probationary period. 
• Employers must also remember that discrimination and automatically unfair dismissal claims already apply from day one. Those risks will not change, so up to date training for managers to spot red flags, avoid poorly‑timed dismissals and seek advice before acting remains essential. 
• Plan for policy updates and internal communications once the final legislation and implementation timetable are confirmed.

Note that employment law in Northern Ireland is separate and this spotlight focuses on Great Britain; NI employers should take local advice.

Open questions and what to watch

The detail of the compromise is still being worked through. Key questions include when exactly the six‑month qualifying period will take effect, how it will apply to existing employees, and whether there will be any sector‑specific carve‑outs or transitional provisions.

We are also waiting to see updated guidance from Acas and GOV.UK on how tribunals are expected to approach unfair dismissal claims in the new regime. HR teams should keep a close eye on official updates and plan to refresh internal policies and scripts once the picture is clearer.

As at November 2025. This article is for general information only and is not legal advice. Organisations and individuals should take specific advice on their circumstances before acting.

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Disclaimer 

The above provides a general overview of areas in employment law and is not intended nor construed as providing specific legal advice.  This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

28.11.25