While the Employment Rights Bill awaits final approval, people professionals can get ahead of new unfair dismissal rights by reviewing processes and upskilling line managers
The CIPD is urging businesses to review hiring and people management practices ahead of major reforms to unfair dismissal rules under the Employment Rights Bill.
One of the most significant reforms would see the two-year qualifying period for unfair dismissal replaced with a nine-month statutory probation period, and a new ‘light touch’ process for dismissing staff during this time.
These new ‘day one’ employment rights, contained in the government’s Employment Rights Bill, are still being contested by opposition peers in the House of Lords. The Lords are backing an amendment, supported by the CIPD, that would see the unfair dismissal qualifying period reduced to six months, rather than replacing it with a statutory probation period and a new (and as yet unknown) process for dismissing staff fairly.
Whichever proposal is ultimately taken forward, employers will need to review how they hire, onboard and manage new starters. Crucially, they’ll need to make sure managers are properly trained to make fair, evidence-based decisions.
Although the new rules won’t apply until 2027 at the earliest, employers should start to review their current practices and ensure managers are actively managing the performance of new staff during contractual probation periods, to ensure they are ready for the changes.
CIPD members have told us they’d much prefer to see the qualifying period for unfair dismissal shortened to six months rather than abolished and replaced with a potentially complex process during a new statutory probation period.
People professionals will be key to helping organisations comply with new laws and strengthen their approach to performance management – through policies, processes and training for line managers.
Under any new system, employers will still need evidence of concerns about conduct, capability or another substantial reason if they dismiss someone under the new light touch dismissal process. People teams will play an essential role in creating clear processes that help managers assess performance early and make fair, consistent decisions.
Early preparation should include strengthening recruitment practices to ensure candidates are a good fit and setting clear expectations through structured induction and onboarding. Employers should also ensure managers have simple tools and guidance to record any performance concerns consistently from day one. Where employers have a longer probation period than the one proposed by government, they will want to consider how that could be shortened to fit with a potential statutory process.
There is still some uncertainty around the proposals in the Employment Rights Bill but employers can start now by strengthening recruitment processes, setting clear expectations through better onboarding and giving managers the tools to recognise and record performance concerns consistently.
We’ve been engaging closely with policymakers and the people profession throughout the development of the bill, ensuring your insights helped inform the legislation.
At the CIPD Annual Conference and Exhibition earlier this month, we hosted a series of roundtable discussions on the Employment Rights Bill. Attendees shared a wide range of views on how the profession can influence the way the reforms work in practice.
Many saw an opportunity to improve performance management, especially in organisations where difficult conversations are often avoided. Others raised concerns that, without clear guidance, managers may become more cautious in hiring – which could disadvantage certain groups.
Attendees also strongly supported training on performance management and employment law for line managers, and called for clear, accessible ACAS guidance to support fair decisions.
With the exact timelines still uncertain, we will continue to engage with government, whilst also looking ahead to how we can help organisations understand the changes and implement them effectively.
As the reforms progress, we’ll continue to champion members’ views and push for legislation that supports people management practices that are fair, workable and drive the right outcomes for people and business.
The changes to unfair dismissal rules are only one part of the Employment Rights Bill. Employers and people professionals should also prepare for other changes due from April 2026, including reforms to statutory sick pay.
The government’s roadmap sets out which changes are intended to come in when. With delays to the bill there could also be changes to this timeline. But currently employers should expect key changes, including a legal requirement to pay statutory sick pay from day one of sickness and day one paternity leave from the start of April 2026, so should be prepared with proper process in plenty of time.
For the most up-to-date information, timelines and guidance, visit our Employment Rights Bill tracker. For help with preparing for the changes, see our video including priority actions for employers.
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