Employment Rights Act 2025: Is Your Probation Process Ready for January 2027?

UK employers are being advised to review their probation, onboarding and early employment processes ahead of significant legal changes coming into force in January 2027 under the Employment Rights Act 2025.

The changes will impact how employers manage new starters, particularly in relation to dismissal risk, documentation and performance management.

What changes are being introduced in January 2027?

From January 2027, employees will only need six months’ continuous service to bring an unfair dismissal claim. In addition, the compensation cap for unfair dismissal claims will be removed.

This represents a significant shift in employment law, meaning that decisions made during probation periods may carry greater legal and financial risk for employers. As a result, businesses may need to ensure that probation processes, onboarding procedures and performance documentation are consistent, structured and clearly evidenced.

Why does this matter for employers now?

Although the legislation does not take effect until January 2027, employers hiring from July 2026 onwards may already be impacted. New starters during this period could reach the six-month threshold just as the new rules come into force.

This means that decisions made during probation in 2026 may later be assessed under the new legal framework, increasing the importance of clear documentation and fair process.

How should probation processes change?

With increased exposure to unfair dismissal claims, employers may need to ensure probation processes are more structured and consistently applied.

Key areas to review include:

• Whether probation timelines are clearly defined in contracts and policies

• How probation reviews, extensions and outcomes are documented

• Whether managers are holding regular performance conversations, not just end-of-probation reviews

• How expectations are communicated during recruitment and onboarding

• Whether there is sufficient evidence to support a fair dismissal decision if challenged

What should employers check in their current process?

Employers may wish to assess whether:

• Probation processes are consistently applied across all new starters

• Documentation is clear, complete and stored appropriately

• Managers are trained and confident in handling probation conversations

• Performance concerns are addressed early and recorded

• Onboarding clearly sets expectations from day one

Free checklist for employers

To support employers in preparing for these changes, HR and employment law specialists Citation have created a free checklist: “Is your probation process ready for January 2027?”

The checklist helps employers review:

• Probation timelines and contractual wording

• Review and extension processes

• Recruitment and onboarding practices

• Manager communication and documentation

• Evidence required to support probation decisions

Download the free checklist here:
https://tinyurl.com/yjwjt5zr

Final thoughts

The Employment Rights Act 2025 marks a significant change in how early employment decisions may be reviewed under UK law. Employers who review and strengthen their probation and onboarding processes now may be better prepared for the increased scrutiny expected from 2027 onwards.

For additional support, Citation provides HR and employment law guidance to businesses across the UK.

Employers can call 0345 844 1111 and quote “Consulting Room” for partner support.