Unfair Dismissal Changes in January 2027: An Employer Preparation Checklist

The January 2027 unfair dismissal changes give employers a reason to review termination procedures now. If your process depends on the assumption that an employee needs two years’ service before ordinary unfair dismissal protection applies, it is time to prepare for a shorter qualifying period.

This is especially relevant when probation reviews, reorganisations and potential redundancies overlap. A clear process, a sensible timetable and an itemised payment calculation are more useful than trying to deal with everything at the final meeting.

Legal position checked on 6 October 2026. This guide covers Great Britain; Northern Ireland has separate employment legislation. It provides general information, not advice on a particular dismissal.

What changes on 1 January 2027?

The government confirms that the qualifying period for ordinary unfair dismissal protection will fall from two years to six months for dismissals from 1 January 2027. The compensatory award cap will also be removed. Existing protections against discrimination and automatically unfair dismissal are unaffected; short service does not make a dismissal risk-free.

For dismissals taking effect before that date, the existing two-year ordinary unfair dismissal qualifying period continues to apply. Check the effective termination date and service carefully rather than relying on the date a manager first discusses dismissal.

Source: government guidance on the unfair dismissal changes.

Does six months’ service also mean statutory redundancy pay?

No. Do not confuse protection against unfair dismissal with eligibility for statutory redundancy pay. GOV.UK states that statutory redundancy pay normally requires at least two years’ employment. These are separate questions, even when the dismissal is a redundancy.

Source: GOV.UK statutory redundancy pay guidance.

For planning, start with our Redundancy Calculator UK. Check the relevant dates, eligibility, contractual terms and applicable statutory limits before relying on any calculation.

1. Bring probation reviews forward

A useful preparation exercise is to map when reviews actually happen. Does the manager meet the employee early enough to explain concerns and discuss support, or does the first proper conversation arrive when the probation period is almost over?

My practical recommendation is to make the review timetable visible from the start. Record objectives, feedback, support offered and the next review date. This creates a clearer working relationship and reduces the temptation to reconstruct a history after a decision has been made.

A longer contractual probation period should not be treated as a way to postpone statutory protection. Review the arrangement against the January rules and take advice on difficult cases.

2. Keep the reason for dismissal clear

A reorganisation, an individual performance problem and a disciplinary allegation require different analysis. Before drafting letters, write down the actual problem the business is trying to solve.

If the issue is fewer roles, explain the proposed business change. If the issue concerns an individual’s performance, avoid presenting it as a redundancy simply because that label seems easier. The paperwork should accurately reflect the facts and the process being followed.

This is an internal preparation checklist, not a finding that any particular dismissal would be fair.

3. Treat consultation as a conversation

Acas says employees should be consulted before redundancy decisions are made. Consultation should give people a meaningful opportunity to raise concerns and suggest ways to avoid or reduce redundancies.

Also remember an important change already in force: from 6 April 2026, the maximum protective award for failing to collectively consult is 180 days’ pay per affected employee. It was previously 90 days. That maximum is not an automatic award in every case.

Source: Acas guidance on redundancy consultation.

Our Redundancy Consultation Meeting Script provides a starting structure for preparation. Adapt it to the proposal, leave room for questions and record how suggestions are considered. A script cannot replace genuine consultation or determine your legal obligations.

4. Make selection evidence easier to explain

When selection is needed, managers should be able to explain what a score means and which evidence supports it. A spreadsheet full of totals is much less useful if nobody can explain how those totals were reached.

The Redundancy Score Matrix offers customisable criteria, weightings and automated totals. It can help organise the assessment, but it is not an Acas-approved product or a guarantee of a fair outcome.

My practical approach would be to test the proposed scoring framework before using it: do different managers understand the scale consistently, and can they distinguish a documented fact from an impression? Obtain advice on selection pools, discrimination risks and any protected circumstances.

5. Separate the process from the payment calculation

Knowing the likely payment is useful for budgeting. It does not answer whether the reason and process are sound.

For employers, our Excel-Based Severance Package Calculator presents statutory redundancy, unused holiday and payment in lieu of notice as separate components. Review the product’s current specification and confirm the assumptions and rates used for your situation.

For an individual checking a proposed amount, Calculate My Redundancy is another option to explore. Compare the breakdown against the contract and the employer’s explanation rather than focusing only on one headline total.

A practical preparation checklist

• Identify managers whose review and dismissal procedures need updating.
• Map the timetable from the first concern or restructuring proposal to any potential decision.
• Keep a clear record of the reason, evidence, questions and responses.
• Check the relevant employment rights and obligations before action.
• Prepare an itemised estimate of payments without treating it as approval of the dismissal.
• Review templates and obtain advice where the facts or legal position are uncertain.

Further reading for HR managers

Elizabeth Aylott’s Employment Law: A Practical Introduction, third edition, is a UK employment-law reference published by Kogan Page in May 2022. It may be useful for background principles, but it predates the Employment Rights Act 2025 and must not be used as the source for the 2026–27 changes. Check current government and Acas guidance alongside it.

Check Employment Law: A Practical Introduction on Amazon — confirm the edition before buying.

Amazon affiliate disclosure: as an Amazon Associate, we earn from qualifying purchases. Product recommendations elsewhere in this article link to our own tools.

Questions employers are asking

Is ordinary unfair dismissal becoming a day-one right?

No. The confirmed January change is a six-month qualifying period. Existing protections that do not require that qualifying period remain important.

Does paying redundancy money make the dismissal fair?

The payment and the fairness of the dismissal are separate issues. Consider both before reaching a decision.

Should I wait until January to review the process?

I would begin the preparation now. Updating a timetable and briefing managers is easier before an urgent case lands.

Featured image: illustrative office meeting by Edmond Dantès on Pexels; it does not depict a redundancy consultation.