Probation Periods Are Changing: Why the First Six Months Matter More Than Ever

If you employ staff in GB, an important employment law change is on the horizon.

The UK Government has confirmed that the qualifying period for ordinary unfair dismissal claims is expected to reduce from two years to six months from 1 January 2027.

That means that the first six months of employment will become much more important than they are today.

What Is Changing?

Currently, most employees need two years' continuous service before they can bring an ordinary unfair dismissal claim.

From 1 January 2027, that qualifying period is expected to reduce to six months in Great Britain.

This means employers will have less time to identify concerns, provide support, and decide whether a new hire is the right fit for the role.

For many businesses, a six-month probation period is already standard practice. The difference is that probation periods will need to be clearly documented and actively managed.

What Do You Need To Do?

The upcoming changes are a good opportunity to review your onboarding and payroll processes.

Probation affects employment management, but it does not change your payroll obligations. If someone is an employee, they should normally be paid through PAYE and receive the same payroll compliance as any other employee from their first day of work.

As you prepare for these changes, consider:

• Reviewing employment contracts and probation clauses.
• Making sure probation periods, review points and extension provisions are clearly documented.
• Registering new employees correctly from the start.
• Operating PAYE and submitting information to HMRC on time.
• Checking National Minimum Wage and National Living Wage compliance.
• Enrolling eligible employees into a workplace pension.
• Tracking holiday entitlement, statutory sick pay and other employment rights during probation.
• Keeping payroll and employment records up to date.

One of the most common mistakes employers make is treating probation as a reason to delay payroll setup or other employment obligations. In practice, probation is an assessment period, not a different employment status.

What About Northern Ireland?

Employment law is devolved in Northern Ireland, and there are currently no proposals to reduce the qualifying period for unfair dismissal claims.

That means employees in Northern Ireland still generally need one year's service before they can bring an ordinary unfair dismissal claim, compared with the planned six-month qualifying period in Great Britain.

If you employ staff in both Northern Ireland and Great Britain, it's important to understand that different rules may apply depending on where your employee works.

Other Employment Law Changes To Keep On Your Radar

The probation period reforms are not the only changes affecting employers.

In April 2026, National Minimum Wage and National Living Wage rates increased, Statutory Sick Pay rose to £123.25 per week, and statutory family-related payments increased to £194.32 per week.

For many employers, keeping up with payroll compliance, workplace pensions, statutory payments and HMRC reporting requirements is becoming increasingly complex. Reviewing your processes now can help avoid costly mistakes later.

Need Help Staying Compliant?

Small Business Payroll UK offers a complete payroll service for employers. Our service helps you meet your statutory obligations, saves valuable time, and helps you avoid HMRC penalties for late or incorrect filing.

Let us help you navigate these upcoming changes and manage your payroll with confidence.