Major changes to UK employment law are on the horizon, and businesses across Tyne & Wear and indeed the entre country need to prepare now. The Employment Rights Act of 2025 introduces one of the most significant shifts in unfair dismissal law in decades: the qualifying period for an employee to bring an ordinary unfair dismissal claim will drop from the current two year period down to just six months, taking effect officially from 1 January 2027.

Throughout the planning and discussion phase, this was originally proposed as a right from day one of employment, but strong opposition in the House of Lords resulted in a compromise. Whilst a compromise was reached, the resulting arrangement still dramatically reshapes employer responsibilities. Once implemented, any employee with six months’ service by 1 January 2027 will gain automatic unfair dismissal protection.
 

This creates a far shorter window for employers to assess new starters and make informed decisions on suitability and performance. Robust probation reviews and effective management training will be essential to adapt to this compressed timeframe.

Is there anything that can help with this?

In our opinion, this is why software based solutions for time and attendance and HR are now essential and a valuable tool in helping companies meet their obligations. With unfair dismissal rights kicking in earlier, clear and accurate employee records are no longer just helpful - they are critical. A modern time and attendance system, combined with an HR document repository, provides the evidence employers may need should a dismissal be challenged.

✔ Accurate, tamper‑proof attendance data

Consistent lateness, absence patterns and timekeeping issues must be evidenced, particularly as tribunal risks increase.

✔ Streamlined performance documentation
With only six months to assess suitability, prompt and well‑recorded performance feedback becomes vital.

✔ Centralised HR records

Disciplinary notes, probation reviews, training logs and informal conversations can be stored in one secure location—allowing employers to demonstrate fair process if a claim arises.

✔ Better protection against rising litigation risks

The removal of the cap on compensatory awards, which we'll cover in another news article, for unfair dismissal further hammers home the importance of strong documentation and transparent processes.

Employers now have a clear deadline: 1 January 2027. Experts recommend updating internal procedures, strengthening probationary reviews, and equipping managers with effective performance‑management training well ahead of the change.

The final word and an offer of free help:

A reliable time and attendance solution—paired with consistent HR record‑keeping—will give businesses the confidence and evidence base needed to navigate this new legal landscape. If you’d like help reviewing your systems or exploring digital HR tools to stay compliant, feel free to reach out. It costs nothing to have a chat!