If you were dismissed before 1 January 2027, the current 2-year qualifying period applies. If dismissed on or after 1 January 2027, 6 months service is sufficient. Check now whether you may have automatically unfair or discrimination claims -- those have no qualifying period and apply today.
The Current Position
Under the current law, an employee needs 2 years of continuous employment with the same employer before they can bring an ordinary unfair dismissal claim. This qualifying period has been a significant barrier for many workers, particularly those in short-term contracts, probationary roles, or sectors with high turnover. Employers have historically used the 2-year period as a management tool, ending employment just before the qualifying period is reached.
What Changes on 1 January 2027
ERA 2025 reduces the qualifying period for ordinary unfair dismissal from 2 years to 6 months for dismissals on or after 1 January 2027. The government has confirmed this date with no transitional provisions -- the change applies to all dismissals from that date regardless of when the employment started.
Crucially, the change applies to employees already in employment on 1 January 2027, not only to those hired after that date. This means that any employee who has at least 6 months continuous service on 1 January 2027 will immediately gain unfair dismissal protection on that date. An employee hired in July 2026 who is still employed on 1 January 2027 will be protected from that date.
The Compensation Cap Is Also Being Removed
ERA 2025 also removes the statutory cap on the compensatory award for unfair dismissal from 1 January 2027. Currently, the compensatory award is capped at the lower of one year's gross pay or £115,115. From 1 January 2027, compensation for unfair dismissal will be uncapped -- in the same way that discrimination and whistleblowing claims are currently uncapped.
This is a significant change for higher earners. An employee earning £150,000 per year who is unfairly dismissed and takes 18 months to find equivalent work currently faces a cap that limits their recovery well below their actual loss. From January 2027, they can recover their actual loss without a ceiling. This materially changes the risk profile for employers dismissing higher-paid staff.
What It Means for Employees Dismissed Now
If you have been dismissed today in April 2026 and have less than 2 years service, the current rules apply and you cannot bring an ordinary unfair dismissal claim. However, check carefully whether you have claims that do not require a qualifying period: automatically unfair dismissal (pregnancy, whistleblowing, trade union activity, asserting a statutory right), discrimination (no qualifying period, uncapped), or wrongful dismissal (no qualifying period). These routes are available now.
The timeline of events leading to your dismissal is the critical question. If a protected event -- a pregnancy announcement, a grievance, a whistleblowing disclosure, a flexible working request -- preceded the dismissal, the automatically unfair route may be available regardless of length of service.
What Employers Should Do Now
Employers who have relied on the 2-year qualifying period as a management tool need to update their approach before January 2027. Performance management, probationary processes, and documentation of conduct issues need to be robust from day one of employment. An employer who dismisses a 7-month employee on 1 January 2027 without a fair reason and a fair procedure will face an uncapped unfair dismissal claim.