What is The New Qualifying Period for Unfair Dismissal Protection?

Published : December 12, 2025

After several rounds of “parliamentary ping-pong” between the House of Commons and House of Lords, an agreement on the new qualifying period for unfair dismissal protection has been reached. The government has confirmed an expected date for this change, which forms one of many under the Employment Rights Bill.

Read on as we examine the current unfair dismissal qualifying period, the changes underway, and how this will affect employment. We then discuss what individuals can do if their rights have been breached.

If you’re in the process of making an unfair dismissal claim and want expert legal help, contact Redmans Solicitors now. Our team of employment specialists is here to help. Following a brief chat, we can assess your situation, answer your questions, and discuss your possible options.

It only takes a moment to learn how we can help you, simply:

What is the Qualifying Period for Unfair Dismissal Protection?

Under the Employment Rights Act 1996, eligible individuals are protected against unfair dismissal. This protection ensures that said individuals can only be dismissed for one of the “potentially fair” reasons—including misconduct, capability, redundancy, a legality, or “some other substantial reason”—and following a fair process. If an employer fails to comply with these requirements, it may give rise to an unfair dismissal claim.

However, to enjoy such protection, individuals must be employees and satisfy the qualifying period for unfair dismissal, currently two years of continuous service with their employer. If an employee doesn’t meet the service length requirement, they may still be able to make an automatic unfair dismissal claim, but this is limited to certain grounds, including pregnancy and whistleblowing.

Government Changes Under the Employment Rights Bill

When the Employment Rights Bill was initially introduced, the government proposed scrapping the unfair dismissal qualifying period, making it a day-one right. This was exciting news for the workforce, as it meant they could start and change jobs without fear of being dismissed unfairly.

But employers had a different view. They argued that removing the service length requirement altogether would increase employment expenses—especially for smaller businesses—and expose them to significantly more employment tribunal claims, thereby increasing time and costs.

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The House of Lords held a similar view and rejected the government’s proposals. It, instead, suggested reducing the current qualifying period for unfair dismissal protection to six months. This led to a period of “parliamentary ping-pong,” in which the House of Commons and the House of Lords repeatedly rejected each other’s amendments to the Bill. Ultimately, though, the government conceded, agreeing to the six-month qualifying period proposal.

Subsequently, an implementation date of 1 January 2027 is expected, with a retrospective approach planned. Under this approach, employees who have completed six months of continuous service by 1 January 2027 will be immediately covered. Employees who reach six months’ service after said date will gain the same protection, regardless of their start date.

The Unfair Dismissal Compensation Cap

Were an employee to succeed with their unfair dismissal claim, a compensatory award—which provides compensation for loss of earnings and other losses directly related to the dismissal—is often provided. Tribunals determine what to award based on what is “just and equitable in all the circumstances.”

There is currently a statutory cap on compensatory awards of 52 weeks’ pay or £118,223, whichever is lower. However, alongside agreeing to the six-month qualifying period for unfair dismissal protection, the government announced it will amend the Employment Rights Bill to lift this cap. Whether this means scrapping the cap entirely or simply increasing it, though, remains unclear.

Strengthened Protections and What Comes Next

Ultimately, the changes to the Employment Rights Bill will strengthen protections for the workforce. While employees won’t receive the day-one rights initially proposed, the agreed compromise will still ensure they’re better protected without unduly burdening employers’ time or finances. Additionally, with amendments to the unfair dismissal compensation cap, employees may be eligible for higher compensation, further strengthening their entitlements.

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Going forward, employees should track upcoming changes to ensure they understand their updated rights. Meanwhile, employers must ensure they remain compliant with employment law, while acknowledging the greater scope for liability and costs if they lose an unfair dismissal claim.

Been Unfairly Dismissed? Here’s What to Do

If an employee believes they have been dismissed unfairly, several avenues for redress exist. Since employment tribunal claims carry stringent time limits, though, acting swiftly is essential.

Before pursuing any measure, it’s important to gather evidence of why the dismissal was unfair. This helps explain the employee’s point and strengthens their case should it proceed to a tribunal hearing.

Once evidence has been gathered, the next step is to appeal the decision internally. It may be that a misunderstanding has taken place, allowing the employer to remedy the situation quickly and avoid escalation.

However, should the employer maintain its position, the employee could then initiate early conciliation with Acas. This free and independent process is usually required before most tribunal claims can be brought and provides another opportunity to resolve the matter without the need for legal action.

As a last resort, the employee could bring an employment tribunal claim. To do so, strict eligibility criteria and time limits must be met—this includes being an employee, satisfying the service length requirements, and claiming within three months less one day from the effective date of termination. If the employee’s claim proceeds and is upheld, depending on the circumstances, they may be awarded reinstatement, re-engagement or compensation.

Get Help with Redmans

If you satisfy the qualifying period for unfair dismissal protection, along with the other eligibility requirements, and want to bring a claim, contact Redmans Solicitors. As employment specialists, we can analyse your circumstances, provide answers, and ensure you achieve an optimal outcome.

To begin your journey with us today, please:

The information on this page is intended for general informational purposes only and does not constitute legal advice.