The rules around unfair dismissal under 2 years are changing significantly. As of October 2026, employees in England, Scotland and Wales generally still need two years of continuous employment to bring an ordinary unfair dismissal claim.
However, this qualifying period will reduce to six months from 1 January 2027. Short service does not mean an employee has no protection.
Automatically unfair dismissal, discrimination, wrongful dismissal and certain other claims can arise much earlier. Employers also need to consider notice, contractual terms, probation procedures and the reason behind any dismissal.
The tribunal deadline has changed too. For most relevant events occurring on or after 1 October 2026, the normal time limit is now six months rather than three months.
What Are the Current Unfair Dismissal Rules in 2026?
Until 31 December 2026, the ordinary unfair dismissal qualifying period in Great Britain generally remains two years of continuous employment.
This means an employee with less than two years’ service will not usually be able to bring an ordinary unfair dismissal claim simply because their employer lacked a sufficiently fair reason or procedure.
However, employers still need to consider other legal risks. Employees may have claims involving automatically unfair dismissal, discrimination, whistleblowing, contractual notice or another statutory right regardless of whether they have completed two years.
From 1 January 2027, the ordinary qualifying period reduces to six months.
| Effective Date Of Termination | Ordinary Unfair Dismissal Qualifying Period |
| Before 1 January 2027 | Usually 2 years |
| On or after 1 January 2027 | Usually 6 months |
The change means many employees currently classed as short-service staff will gain ordinary unfair dismissal protection during 2027.
What Changes on 1 January 2027?
The Employment Rights Act 2025 makes two particularly important changes for dismissal cases. First, the unfair dismissal qualifying period in 2027 will fall from two years to six months.
Second, the existing statutory cap on the compensatory award for unfair dismissal will be removed. Compensation will still depend on the employee’s actual and projected financial losses rather than automatically producing large awards, but removing the cap increases potential exposure in higher-value cases.
The qualifying period for requesting written reasons for dismissal will also reduce from two years to six months.
Employers should therefore stop treating the first two years as a long period of relatively low dismissal risk. From January 2027, employment decisions made after only six months of service may need to satisfy the ordinary fairness test.
Further reforms concerning dismissal during or after pregnancy and family leave are also expected through regulations. Businesses should check the final commencement dates and detailed rules as they are introduced.
New restrictions on certain fire-and-rehire dismissals are also expected to take effect from January 2027, making dismissal automatically unfair in many circumstances where an employee is dismissed for refusing specified contractual changes.
Who Can Claim Unfair Dismissal?
Ordinary unfair dismissal protection is primarily available to people who legally qualify as employees.
Employment status matters. Someone described as self-employed, an independent contractor, agency worker or zero-hours worker is not automatically included or excluded simply because of the label in their paperwork. The real working arrangement can determine legal status.
People who generally cannot bring an ordinary unfair dismissal claim include certain genuinely self-employed contractors, members of the armed forces, some police officers, share fishermen and employees whose claims have already been legally settled.
Signing a valid settlement agreement after receiving the required independent legal advice can also prevent an employee from later pursuing the claims covered by that agreement.
Whether a traditional document has been signed is not decisive. Employment rights can still exist without one, although clear employment contract and notice terms make disputes much easier to manage.
Does the Two-Year Rule Apply Across the Whole UK?
Not exactly.
England, Scotland and Wales broadly follow the Great Britain rules discussed in this article. The ordinary qualifying period is currently two years and is due to become six months from 1 January 2027.
Northern Ireland has a separate employment-law system. Its ordinary qualifying period is generally one year, so businesses operating there should not apply Great Britain rules automatically.
Most tribunal time limits changed to six months for relevant events occurring on or after 1 October 2026 in Great Britain. Scottish employment tribunal breach-of-contract claims remain subject to a separate transition, with the six-month change due from 9 November 2026.
Which Claims Can Be Made With Less Than Two Years’ Service?
Several protections can apply before the ordinary qualifying period is reached.
Automatically Unfair Dismissal
A dismissal may be automatically unfair where the main reason relates to matters such as:
- Pregnancy or maternity
- Taking qualifying family leave
- Requesting flexible working
- Taking time off for dependants
- Whistleblowing
- Raising health and safety concerns
- Asking for a statutory employment right
- National Minimum Wage rights
- Working time or holiday rights
- Trade union membership or activities
- Acting as an employee representative
- Jury service
- Protected official industrial action
- Certain zero-hours exclusivity protections
- Political opinion or affiliation
From 18 February 2026, protection against dismissal for taking part in qualifying official industrial action was strengthened by removing the previous 12-week protected-period limit.
From 6 April 2026, disclosures about sexual harassment can also qualify for whistleblowing protection.
There are exceptions to the general idea that every automatically unfair dismissal claim has no service requirement. For example, certain TUPE-related unfair dismissal claims currently require the normal qualifying service.
Protection connected with spent convictions also currently interacts with qualifying-service rules, although that restriction is due to be removed from January 2027.
Discrimination
Discrimination is separate from automatically unfair dismissal.
A person does not need two years’ service to bring a discrimination claim relating to a protected characteristic such as:
- Age
- Disability
- Gender reassignment
- Marriage or civil partnership
- Pregnancy or maternity
- Race
- Religion or belief
- Sex
- Sexual orientation
Depending on the circumstances, the same dismissal could result in both an unfair dismissal claim and a discrimination claim.
Wrongful dismissal is mainly a contractual claim. It commonly arises where an employer fails to provide the contractual or statutory notice to which an employee is entitled.
No two-year qualifying period applies.
Constructive Dismissal
Constructive dismissal can arise where an employee resigns because the employer has committed a serious breach of contract.
Ordinary constructive unfair dismissal usually follows the same qualifying-service rules as ordinary unfair dismissal. However, other claims may still exist where the circumstances involve discrimination, whistleblowing or certain statutory protections.
Resigning to pursue constructive dismissal is a significant legal step, so individual advice should normally be obtained first.
How Do Notice Periods Affect the Two-Year or Six-Month Threshold?
For employees who have worked at least one month but less than two years, the statutory minimum employer notice is generally one week, unless summary dismissal for gross misconduct is justified.
A contract can provide a longer notice period.
The effective date of termination is particularly important when an employee is dismissed close to the qualifying-service threshold. Statutory notice can be taken into account when determining qualifying service in some dismissal situations, even where the employer does not actually allow the employee to work that notice.
An employer should therefore not assume that dismissing someone several days before their second anniversary automatically prevents an unfair dismissal claim.
From January 2027, the same issue becomes relevant around the six-month anniversary.
Payment in lieu of notice can also affect contractual payments and termination arrangements, so the contract should be checked before the dismissal is implemented.
Can You Be Fired During Probation in the UK?
Yes. Probation does not create a separate category of employee with no employment rights.
An employer may dismiss someone during probation if there is a lawful reason, but discrimination, whistleblowing, statutory rights and automatically unfair reasons remain protected.
Businesses should use probation periods actively rather than allowing them to expire without meaningful review. Performance concerns should be recorded, expectations communicated and review dates diarised.
From January 2027, an employee who reaches six months’ qualifying service may gain ordinary unfair dismissal protection even if an unusually long probation period is still continuing.
What Happens When a Fixed-Term Contract Ends?
The expiry and non-renewal of a fixed-term employment contract counts as a dismissal for unfair dismissal purposes.
Until the end of 2026, an employee will generally need the current qualifying service to bring an ordinary unfair dismissal claim. From January 2027, employees with at least six months’ qualifying service may be able to challenge an unfair non-renewal.
Employers should therefore record the business reason for allowing a fixed-term contract to expire rather than assuming that the agreed end date removes all dismissal obligations.
What Process Should Employers Follow for Short-Service Dismissals?
Even where an ordinary unfair dismissal claim appears unavailable, using a consistent process is usually safer.
Employers should:
- Identify The Real Reason: Confirm whether the concern involves conduct, capability, redundancy, attendance, statutory restriction or another substantial business reason.
- Check For Protected Issues: Look for connections with pregnancy, disability, whistleblowing, health and safety, family leave, union activity or statutory rights.
- Review The Contract: Check probation terms, notice provisions and contractual disciplinary procedures.
- Investigate Where Necessary: Serious allegations should not be treated as proven without reasonable investigation.
- Give The Employee An Opportunity To Respond: For disciplinary matters, sufficient preparation time matters. Employers should consider what constitutes reasonable notice before a disciplinary hearing rather than relying on an arbitrary number of hours.
- Confirm The Outcome In Writing: Record the reason, termination date, notice arrangements and final payments.
- Offer An Appeal Where Appropriate: An appeal can identify factual or procedural errors before the dispute escalates.
Employers should maintain a clear audit trail. This becomes even more important once six-month employees gain ordinary unfair dismissal protection.
How Should Redundancy Be Handled?
Short service does not make every redundancy risk-free.
Employers should be able to demonstrate a genuine redundancy situation and use selection criteria that do not unlawfully discriminate. Consultation requirements, alternative vacancies, notice and contractual obligations should also be considered.
Particular care may be necessary where absence or disability is involved. A redundancy affecting an employee on sick leave should be based on genuine business requirements rather than using illness as a reason to remove the individual.
The issues surrounding redundancy while on sick leave can involve both dismissal and discrimination risks.
Statutory redundancy pay normally requires at least two years’ continuous service. The January 2027 reduction in the ordinary unfair dismissal qualifying period does not automatically reduce every other employment-rights service threshold.
What Should an Employee Do After Dismissal?
An employee who believes the dismissal may be unlawful should act promptly.
Useful steps include:
- Keep the dismissal letter, contract, payslips and relevant emails
- Record important conversations and dates
- Check the employer’s appeal procedure
- Identify the effective date of termination
- Check whether discrimination or an automatically unfair reason may apply
- Obtain union, insurance or professional legal assistance where available
- Notify Acas for early conciliation before starting most employment tribunal claims
Acas early conciliation is not the tribunal claim itself. If the dispute is not resolved, the claimant may then submit the appropriate claim to the employment tribunal.
In certain automatically unfair dismissal cases, including some whistleblowing and health and safety representative cases, interim relief may be available. The application normally has to be made within just seven days of the effective date of termination, making urgent advice particularly important.
How Long Do You Have to Claim Unfair Dismissal?
The rules changed on 1 October 2026.
| Relevant Date | Normal Time Limit For Most Claims |
| Before 1 October 2026 | Usually 3 months minus 1 day |
| On or after 1 October 2026 | Usually 6 months minus 1 day |
For unfair dismissal, time normally runs from the effective date of termination.
Early conciliation can affect the final deadline, so employees should not simply calculate six months and wait until the final few days.
How Much Compensation Can Be Awarded?
A successful ordinary unfair dismissal award can include a basic award and a compensatory award based primarily on financial loss.
For dismissals before the January 2027 reform takes effect, the statutory compensatory cap continues to apply. From 1 January 2027, that cap will be removed.
Removal of the cap does not mean every successful claim will produce unlimited compensation. Claimants will still need to establish their losses, and factors such as mitigation, contribution to dismissal and procedural issues may affect the award.
A tribunal can also order reinstatement or re-engagement in appropriate cases.
Discrimination compensation is different. It is not subject to the ordinary unfair dismissal compensation cap and can include injury-to-feelings awards.
Worked Examples Around the 2026 and 2027 Changes
| Example | Likely Position |
| Started 3 March 2026 and employment ended 10 September 2026 | Less than 2 years, so ordinary unfair dismissal protection would generally not apply under the old qualifying rule |
| Employment ended 30 September 2026 | Older tribunal time limits generally continue to apply |
| Employment ended 10 October 2026 | Six-month tribunal time limit generally applies |
| Started 1 July 2026 and effective termination is 1 January 2027 | Six months’ service may satisfy the new qualifying period |
| Started 1 September 2026 and dismissed in January 2027 | Employee will normally need to reach six months’ qualifying service before ordinary protection applies |
Exact dates can depend on continuous employment, notice and the effective date of termination.
Conclusion
The law on unfair dismissal under 2 years is at a major transition point. In October 2026, the ordinary qualifying period remains two years in Great Britain, but employees can already have important protection through discrimination law, automatically unfair dismissal rules, whistleblowing rights and contractual notice requirements.
From 1 January 2027, the ordinary qualifying period falls to six months and the compensatory award cap is removed. For businesses, that makes probation management, documentation and fair dismissal procedures more important much earlier in the employment relationship.
Employees should also be aware that most tribunal deadlines increased to six months for relevant events occurring on or after 1 October 2026, although urgent claims such as interim relief can have much shorter deadlines.
FAQs
Can I Claim Unfair Dismissal With Under Two Years’ Service?
Possibly. Until 31 December 2026 ordinary unfair dismissal usually requires two years, but automatically unfair dismissal and other claims can arise earlier.
When Does the Six-Month Unfair Dismissal Rule Start?
The new ordinary unfair dismissal qualifying period takes effect from 1 January 2027 in England, Scotland and Wales.
Can I Be Sacked During My First Six Months?
An employer can dismiss an employee during the first six months, but discrimination, whistleblowing, contractual and automatically unfair dismissal protections can still apply.
What Is Short Service Dismissal?
It is a commonly used term for dismissing an employee before they have completed the qualifying period required for an ordinary unfair dismissal claim.
Can My Employer Dismiss Me Just Before My Two-Year Anniversary?
Potentially, but statutory notice and the effective date of termination can affect qualifying service. The exact dates should be checked carefully.
Does Probation Remove Unfair Dismissal Rights?
No. A probation clause does not remove statutory employment rights or extend the legal qualifying period.
Is Verbal Dismissal Valid?
A dismissal can sometimes be communicated verbally, although written confirmation reduces disputes over the reason and effective termination date.
Do I Need Two Years’ Service If I Am Pregnant?
Pregnancy-related dismissal and discrimination protections do not depend on completing the ordinary two-year qualifying period.
Does the Six-Month Rule Apply in Northern Ireland?
No. Northern Ireland has separate employment legislation and its ordinary unfair dismissal qualifying period is generally one year.
Can I Go Straight to an Employment Tribunal?
For most claims, early conciliation must normally be started first. Early conciliation and filing a tribunal claim are separate steps.
