The New Unfair Dismissal Era: What Employers Must Know

For decades, the “two-year rule” has acted as a safety net for UK employers, providing a window to assess staff without the risk of an ordinary unfair dismissal claim. From 1 January 2027, that safety net will be removed.

Combined with the abolition of compensation limits and a doubling of the timeframe for employees to bring a claim, the potential cost of a “bad hire” or a procedural error has never been higher.

Join Business HR Solutions as we break down these seismic changes and show you how to bulletproof your business against the new litigation landscape.

Register Now – Thursday 9 April 2026 – 10:00 am – 11:00 am 

What We Will Cover: 

The Six-Month Qualifying Service

The two-year qualifying period is being reduced to six months. We will discuss how this changes everything for your recruitment, onboarding, and probation processes.

Removal of the Compensatory Cap

Previously, most successful unfair dismissal claims were capped at a year’s salary or a statutory limit (approximately £118,000). That cap is being removed.

We’ll explain why “ordinary” unfair dismissal claims may now be as financially risky as discrimination or whistleblowing cases, especially for higher earners.

Extended Claim Timescales

The window for an employee to bring a tribunal claim is doubling from three months to six months.

We will examine the practical consequences, including claims arising long after an employee’s departure and the increased difficulty of locating witnesses when memories have faded.

Probationary Periods

Under the new laws, your probation clauses will be your first line of defence and will need to be reviewed.

Other Significant Tribunal Rule Changes

We will also highlight additional significant reforms affecting redundancy, whistleblowing, and the new Fair Work Agency enforcement regime.

The Financial Impact on SMEs

Explore the financial implications of these reforms and learn how to prepare for the changes ahead.

Why It Matters

An error in a dismissal process involving a senior staff member could now result in a six-figure award that would previously have been capped. Preparation isn’t just “good HR” — it’s a financial necessity.