Unfair dismissal changes are coming: New starters from July 2026 will soon gain unfair dismissal protection

July 2, 2026

Legal Connect

The countdown to one of the most significant changes to unfair dismissal law in a generation has begun.

From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years to six months under the Employment Rights Act 2025. The Government has confirmed that the protection will apply immediately to employees who have already accrued six months' service by that date.

For schools and academy trusts, the practical significance of this change cannot be overstated.

Why does this matter now?

Although the changes do not take effect until January 2027, schools recruiting today are already being impacted.

Any employee appointed on or after 1 July 2026 will have accrued six months' continuous service by 1 January 2027 and will therefore gain protection against ordinary unfair dismissal from that date. This means many staff recruited during the current academic year will acquire unfair dismissal rights far sooner than schools may be accustomed to.

Schools can no longer rely on what many employers historically viewed as the "two-year safety net" when dealing with concerns about suitability, capability or conduct in new recruits. Once an employee reaches six months' service, a dismissal will generally need to be for a potentially fair reason and supported by a fair process.

Probationary periods have never been more important

The legislation does not create mandatory probationary periods. However, the reduction in the unfair dismissal qualifying period means that probationary arrangements will become one of the most important risk management tools available to employers.

For schools, this means ensuring probation is not treated as a simple administrative exercise. Instead, managers should be:

Setting clear expectations from day one.
Holding regular review meetings.
Providing timely feedback and support.
Identifying concerns early.
Making decisions before the employee reaches the six-month unfair dismissal threshold.
Properly documenting discussions, objectives and outcomes.

Where schools wait until the end of a probationary period to consider performance concerns, they may find that the employee has already acquired unfair dismissal protection. As a result, any dismissal could require a far more formal process than would previously have been the case.

Particular challenges for schools

Education settings face unique challenges when assessing new starters.

Support staff recruited shortly before the summer break may spend a significant proportion of their probationary period away from the workplace.

Schools should therefore ensure that review points are scheduled early and that managers do not wait until the end of the probationary period before considering whether expectations are being met.

Compensation risk is also increasing

The Employment Rights Act 2025 does more than simply reduce the qualifying service requirement.

The current statutory cap on compensatory awards for ordinary unfair dismissal will also be removed from 1 January 2027. This means tribunals will no longer be restricted to the existing maximum award and will instead be able to compensate proven losses in full.

Consequently, the financial consequences of failing to address concerns during probation may become significantly greater.

What should schools be doing now?

Schools and trusts should be reviewing their recruitment and probation processes. In particular they should consider:

✔ Whether managers understand the upcoming unfair dismissal changes.

✔ Whether probation review meetings are taking place frequently enough.

✔ Whether concerns are being documented clearly and consistently.

✔ Whether probation periods remain appropriate in light of the new six-month qualifying period.

✔ Whether managers have sufficient training to address performance concerns at an early stage.

What about support staff probation periods?

Many maintained schools currently operate a six-month probationary period for support staff. However, a six-month probationary period aligns directly with the new unfair dismissal qualifying period, potentially leaving little or no margin for delays, sickness absence, school holidays or management oversight.

We understand that discussions are taking place regarding possible changes to the BlueBook and support staff probationary arrangements and are currently awaiting confirmation from KCC as to whether the standard probationary period for support staff will be reduced from six months to three months. We will provide a further update as soon as formal guidance is issued.

Key message

The unfair dismissal reforms may not take effect until January 2027, but schools should not wait until then to act.

Recruitment decisions being made now will determine whether new employees have unfair dismissal protection from day one of implementation. The schools that are best prepared will be those that use the remainder of 2026 to strengthen probationary arrangements, train managers and ensure concerns are identified and addressed at the earliest opportunity.

In short: probationary periods are about to become one of the most important employment law compliance issues for schools

Employment Rights Act 20025 Implementation and Training Service

Episode 2: Practical considerations of changes to the law of unfair dismissal, performance reviews and managing probationary periods, is now live ready to watch and full of practical guidance to stay compliant, in the episode we take a practical look at: