1 July Is Here: The New Dismissal Rules Are Live. Now What?

Unfair dismissal qualifying period: what 1 July means for SMEs

Right. It's 1 July. The countdown is over and the unfair dismissal qualifying period has changed. Protection kicks in much earlier, paired with a statutory probation process for genuine new starters who aren't working out. Kettle on. Let's get you straight.

What changed to the unfair dismissal qualifying period

Before today, most employees needed two years' service to bring an ordinary unfair dismissal claim. From today, the unfair dismissal qualifying period moves close to day one. To balance that, there's a statutory probation period with a lighter, but still fair, process.

Here's the headline I've shouted all month. "Dismiss freely in year one" is over. Even with someone who started this morning, you will need a reason and a fair, evidenced process. Lighter in probation. Never nothing.

Plain English note: the exact probation length and steps live in the regulations and ACAS guidance. More of the Act lands in 2027. Before you decide on any dismissal, check the current detail for that individual case.

Suggested stat to monitor: Ministry of Justice Tribunal Statistics Quarterly shows trends in unfair dismissal claims each year. Use it to track risk and legal exposure for SMEs.

Expert view: "Probation periods should be managed fairly and consistently, with clear expectations and regular feedback." Source: ACAS guidance on probation.

Day one scenarios you asked me about

Let's make it concrete.

• They started today. They have meaningful protection far sooner than yesterday's hire. That's your cue to make probation real. Set expectations on day one. Give honest feedback. Write it down.
• Month nine and not working out. Old instinct: "Under two years, let them go." That's now out of date. Stop. Get advice on the actual facts. Follow a fair process.
• You're about to send an offer. Update the offer letter and contract first. If your probation wording still reflects the old two-year logic, fix it before you send it.
• Long servers. No change. People already past two years had this protection anyway. Today affects the front end of employment.

Your post 1 July checklist

If June ran away from you, do this in order.

Today

• Fix the probation clause in your contract and offer letter so it reflects the statutory probation process. One job, biggest payoff.
• List everyone in their first months. For each person: are expectations clear, has feedback been given, and is there a short written note?

This week

• Make probation reviews real. Short, structured reviews at weeks 4, 8 and 12. Talk expectations, progress, and changes needed. Both sign and date. Fifteen minutes each.
• Get feedback in writing. After any feedback chat, add a two-line note to the file. No record, no defence.
• Brief your managers. "They're new" is no longer a free pass. Early, honest, documented feedback is part of the job now.

Before any dismissal decision

• Get advice on the specific case. The fair process inside probation has defined steps. One rushed exit is where the cost lands.

Use mid year reviews as your legal safety net

1 July is mid year. The same week the unfair dismissal qualifying period shifts is the week to run mid year reviews. That's not an accident. A proper review creates the paper trail you need under the new rules.

• Clear expectations
• Honest two-way feedback
• Dated notes
• Simple next steps

That record protects you and supports your people. Feedback stops being an annual ordeal and becomes a routine, light-touch habit. Good performance management is now a legal asset as well as good leadership.

If your reviews live in your head or in a form nobody reads, fix that this month. A simple, consistent process turns "I think I mentioned it" into "here's the dated record".

Helpful tools and support:

• Your appraisal workflow can be handled by a simple tool such as YourAppraisal for quick, fair, on-the-record reviews.
• For a wider people audit, try our free check-up: Free HR Health Check.

Mythbuster corner

• "I missed the deadline, I'm in trouble." There's no penalty for not being "ready" today. The risk comes from handling an actual dismissal badly. Tidy up now and you're fine.
• "I can never let a new person go." You can, with a reason and a fair process. Genuine, well-managed exits are possible.
• "A clause in my contract protects me." A clause can't override a statutory right. It supports a clear process; it can't replace one.
• "I'll wait and see how it's enforced." The wait-and-see crowd are the ones with no paper trail when a claim lands. Build the habit now. It takes minutes.

Seven minute action list for today

1. Open your contract and offer letter. Check the probation clause matches today's rules for the unfair dismissal qualifying period and probation.

2. List everyone in their first few months. That's your priority group.

3. Confirm expectations and written feedback for each person. Fix gaps.

4. Diarise probation reviews at weeks 4, 8 and 12 for all new starters.

5. Tell managers in plain English: honest, recorded feedback is part of the job.

6. Book your mid year reviews this month. Make them real, written and two-way.

7. Bookmark our guide and get your quick audit: Employment Rights Act Advice and Free HR Health Check.

The rules changed. Your good habits don't have to.

Here's the calm bit. The unfair dismissal qualifying period update rewards what good managers do anyway. Clear expectations. Honest feedback. Fair process. Tidy records. Owners who hire on a hunch, dodge hard chats, and go for a sudden exit will struggle. That was never smart. Now it's a liability too.

Treat 1 July as the nudge to do what you've meant to do for ages. Tidy your contracts. Make probation real. Run proper reviews. Then crack on with your summer.

Kettle on. Standards up.

Get squared away

Need a sanity check on your setup or a thorny case? That's what I'm here for.

• Employment Rights Act Advice what changed and what to do now
• Book a free HR Health Check quick read on your risk points
• Listen to Buzzing About HR new episodes every Tuesday

Until next time, keep buzzing and take care of your people!