Big changes to the UK’s unfair dismissal rules arrive in January
Key Points
- Unfair dismissal qualifying period falls from two years to six months
- Change takes effect on 1 January 2027
- Written reasons for dismissal also move to six months in most cases
- Statutory redundancy pay still requires two years of service
Employees will be able to claim unfair dismissal after six months in a job from 1 January 2027, down from two years.
The Department for Business, Innovation, Science and Trade confirmed the date in its employment status consultation, published on Wednesday (14 October).
The change comes from the Employment Rights Act 2025, part of the government’s Plan to Make Work Pay.
Ordinary unfair dismissal claims currently require two years of continuous service with the same employer.
The right to written reasons for dismissal will also move to six months in most cases from the same date.
Employers must already give written reasons to a woman they dismiss during pregnancy or maternity leave, regardless of how long she has worked there.
Some dismissals already count as automatically unfair from day one, regardless of length of service.
Statutory redundancy pay will still require two years of continuous service.
Other qualifying periods stay the same, including one month for statutory minimum notice and 26 weeks for shared parental leave.
Unfair dismissal protection applies only to employees, not to limb (b) workers or the self-employed.
Separate proposals in the same consultation could extend worker rights to people whom businesses wrongly label as self-employed.