Employers and employees should take note that the change to the qualifying period for ordinary unfair dismissal, under the Employment Rights Act 2025, is due to become law on 1 January 2027. This change will reduce the eligibility requirement to claim ordinary unfair dismissal, from two years’ continuous employment to six months.

In addition, the current cap on the amount of the compensatory award for unfair dismissals, will be removed.

Under the current eligibility requirement, some employers will have postponed making a decision about whether to keep an employee in post. Leading up to a change in the law, we are likely to see an increase in dismissals as employers decide to terminate the employment of certain employees, before they gain ordinary unfair dismissal rights, on 1 January 2027.

However, employers and employees should be mindful that the change in the eligibility requirement does not change the protections against discrimination (on a protected characteristic) and automatic unfair dismissal: for discrimination and most automatic unfair dismissal claims, there is no need to have any period of continuous service, to be eligible to make these claims.

In a possible rush to terminate the employment of shorter serving employees, to avoid them gaining ordinary unfair dismissal eligibility, employers may find that their actions give rise to other claims. We recommend that employers and employees seek legal advice, if they are in doubt about any legal situation.

The above does not constitute legal advice

If you would like to discuss any employment matter contact Julia Woodhouse at 01926 831231 or jhw@blytheliggins.co.uk 

Julia is an Employment Solicitor based in Leamington Spa and advises clients across Leamington Spa, Warwick, Kenilworth, Coventry, Rugby, Nuneaton, Atherstone and further afield.