UNFAIR DISMISSAL:
The Six-Month Rule Is Coming...
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HR Services
How to Prepare
Rework probation and contract terms
Make probation clauses clear and consistent. Review their length, ensure all steps are documented, and keep simple records of all performance conversations.
Update disciplinary and dismissal policies
Set out clear investigation steps, the right to be accompanied, and how outcomes and appeals work. Use standard templates for notes and letters.
Train line managers
Give managers practical training on investigations, evidence gathering and fair process. Strong manager handling reduces the risk of claims.
Improve record keeping
Keep dated notes, meeting records and performance evidence. Good documentation is essential if a decision is ever challenged.
Seek specialist advice early
Get legal guidance before making dismissal decisions to ensure the process is fair, reasonable and defensible.
From 1 January 2027 the qualifying period for ordinary unfair dismissal will reduce from two years to six months, and the current cap on compensatory awards will be removed. This will increase the number of employees able to bring ordinary unfair dismissal claims and raise potential financial exposure for employers.
What this means for your business
- More employees can claim with only six months’ service required, so more dismissals will require the same fair process previously expected only after two years.
- Full ACAS Code standards (investigation, right to be accompanied, appeal) will apply from six months, not a lighter initial period.
- Potentially higher awards because the compensatory cap will be removed; tribunals will continue to calculate awards based on actual and projected losses.
How Peninsula helps
- Immediate legal advice 24/7, practical, step by step guidance at the point of risk to avoid rushed or procedurally flawed dismissals.
- Policy drafting and contract reviews, bespoke probation, disciplinary and dismissal templates aligned to the new six month threshold.
- Investigation support, templates, checklists and on call specialists to run or review investigations.
- Tribunal representation and cost protection, case preparation and representation to limit legal fees and reputational impact. We help reduce the average legal cost of defending claims by providing expert support from the outset.
