Unfair Dismissal – New Regulations in 2026

Changes to employee protection against unfair dismissal mark a significant step forward in strengthening workers' rights from the first day of employment. With new regulations coming into effect in 2026, employees in England, Scotland, and Wales will benefit from greater job security and fairer workplace conditions.

Current Dismissal Rules

Currently, employees can only bring claims for unfair dismissal after working for their employer for at least two years. However, certain “automatically unfair” reasons—such as pregnancy, whistleblowing, or trade union membership—grant protection from day one.

Additionally, the right to a written statement of dismissal reasons is subject to a two-year qualifying period, except in cases of dismissal during pregnancy, maternity leave, or adoption leave. Probation periods in the UK are contractual rather than statutory, and their duration varies depending on the employer.

Policy Objective

The government aims to end one-sided flexibility in workplaces and ensure that all employees are protected against unfair dismissal from day one of their employment. At the same time, new rules will give businesses more certainty when hiring new employees by introducing a “statutory probation period” to assess their suitability for the role.

How Will It Work?

Starting in 2026, the two-year qualifying period for unfair dismissal claims will be removed, ensuring protection for all employees from the first day of employment. A statutory probation period lasting nine months will be introduced, during which a simplified dismissal process will allow employers to fairly dismiss employees who are not suited to the role.

The two-year qualifying period for the right to a written dismissal explanation will also be removed—employees will be eligible for this right after completing the statutory probation period. If an employee dismissed during probation successfully challenges their dismissal, a lower compensation cap may apply, determined by the employment tribunal based on financial loss, salary, and benefits.

The government plans to hold public consultations on various aspects, including the length of the probation period, dismissal standards, and compensation limits for dismissals during probation.

What Will Change for Employers?

The new regulations will not prevent employers from fairly dismissing employees. Businesses will still be able to implement contractual probation periods of any length and determine which non-statutory benefits employees can access during probation. In some cases, probation periods for certain roles may exceed nine months.

After the statutory probation period, employee dismissals will be subject to existing employment laws rather than lighter dismissal standards. Clearly defining performance expectations at the start of employment will ensure employees understand what is required of them.

Conclusion

These planned reforms represent a significant step toward improving employee protection against unfair dismissal while maintaining a balance between employer flexibility and job security. Removing the two-year qualifying period and introducing a statutory probation period are expected to increase workplace stability and raise employment standards.