Employment Rights Act 2025

The Employment Rights Act 2025 will reduce the qualifying period from two years to 6 months’ employment.

Currently employees need to work for 2 years before they have the right not to be unfairly dismissed. Employers must give written reasons for dismissal to employees with 2 years’ service on request.

The original intention in the Bill was that the right to claim unfair dismissal would be a Day 1 right. However, in late negotiations to get the Bill passed, a compromise agreement was reached substituting 6 months for the Day 1 right.

This change will be done by primary legislation, not the existing power to vary the qualifying period in the Employment Rights Act 1996 – which means a future government won’t easily be able to change it, at least not without primary legislation.

In addition, the 2-year qualifying period for protection against unfair dismissal because of spent convictions will be removed and the qualifying period for a right to written reasons for dismissal will be reduced from 2 years to 6 months.

This change will come into effect from 1 January 2027, meaning anyone with 6 months’ service on or after that date will be able to claim unfair dismissal. Employers should note that, in some cases, an employee dismissed before that date may still benefit from the new regime if their effective date of termination falls on or after 1 January 2027, for example where statutory notice provisions extend the termination date.