Workplaces should prepare now for planned changes to unfair dismissal rights, say experts at a regional law firm.

Under reforms due to take effect from 1 January 2027, employees will be able to bring an unfair dismissal claim after six months' service rather than the current longer qualifying period. Working back from that date, it means the first employees to reach the new qualifying threshold will be those who begin a new role from 1 July this year.

Solicitor Kate Brooks, Partner and Head of Employment and HR Services at Ellis Jones Solicitors, says employers should therefore review their processes now and not wait until the January change comes into force.

“For many organisations, probationary periods have traditionally been the main window for assessing whether a new recruit is the right fit,” said Bournemouth-based Kate. “A shorter qualifying period for unfair dismissal means employers need to be much more disciplined in how they manage performance, document concerns and make decisions from day one."

“The biggest risk is assuming there is plenty of time to deal with underperformance later. Managers should be having regular review meetings, keeping clear records and addressing issues promptly rather than allowing problems to drift."

“Businesses should also ensure contracts, probation policies and internal procedures are up to date and that line managers understand the importance of consistent and well-evidenced decision-making. Good documentation has always been important, but it is likely to become even more so now.”

The forthcoming changes come amid a broader package of employment reforms that are increasing employers’ compliance obligations.

Recent increases to the National Minimum Wage (NMW) and National Living Wage (NLW) have raised payroll costs particularly in sectors such as retail, hospitality and social care. Other changes announced by the government include immediate eligibility for paternity leave and unpaid parental leave. And statutory sick pay from the first day of absence will remove waiting periods that have previously applied for many employees.

The launch of the Fair Work Agency (FWA) is expected to strengthen the application of the new workplace rights by bringing together employment-related enforcement functions under a more coordinated framework.

Kate said:

“On the NMW and NLW rises, it's not just about updating the hourly rate. Employers should be reviewing payroll systems, salary bands and budgeting to ensure they remain compliant while maintaining fair pay structures across the workforce."

“On sickness absence, businesses should revisit their policies now and model the potential financial impact of the changes. Good absence management procedures and early intervention will become even more important."

“Across the raft of changes and taking into account the launch of the FWA, employers should expect greater scrutiny of compliance with employment law. Those companies and organisations with robust HR processes and accurate record-keeping will be in a much stronger position.”

In another recent move affecting workplaces, the government has signalled the end of working-from-home tax relief which has been available to cover additional home working costs.

Kate said:

“While this is primarily a tax issue for employees, employers should communicate clearly about hybrid working arrangements and avoid assumptions that home-working expenses will automatically attract tax relief.”

Kate and her employment law colleagues at Ellis Jones list five priorities employers should focus on now:

Review recruitment and probationary procedures before new hires join.

Train managers to identify and address performance issues early, with clear written records.

Audit employment contracts, staff handbooks and workplace policies to ensure they reflect changing legal requirements.

Check payroll systems and budgets to accommodate wage increases and other statutory cost changes.

Adopt a proactive compliance culture, recognising that enforcement activity is expected to become more coordinated and visible.

“The direction of travel is clear: employers need to be more proactive rather than reactive,” said Kate.

“Taken together, the changes signal a continued shift towards stronger worker protections and greater regulatory oversight. Organisations that invest now in sound HR practices, manager training and policy reviews are likely to be far better placed to manage legal risk and maintain positive employee relations as the various reforms take effect.”

Law firm Ellis Jones has 182 employees including 23 partners operating from offices in Bournemouth, Dorchester, Poole, Ringwood, Swanage, Wimborne and London.

For more information, visit here.