25/03/2026
Big changes to unfair dismissal law are coming (2027)
From 1 January 2027, the qualifying period for unfair dismissal claims will drop from 2 years to just 6 months under the Employment Rights Act 2025.
What’s changing?
• More employees will gain protection much sooner
• Right to written reasons for dismissal after 6 months (not 2 years)
• Cap on compensation for unfair dismissal will be removed
• Stronger protection around spent convictions (day one right)
What stays the same?
• Day one rights (e.g. discrimination, whistleblowing) remain unchanged
Why it matters
Employees: Earlier protection + more job security
Employers: Greater risk of claims + need for fair, well-documented processes
Important: The current 2-year rule still applies until 2027
Now is the time for both employers and employees to prepare.
https://castleassociates.org.uk/blog/two-years-service-unfair-dismissal-law-change