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.

The government has committed to this change coming into effect from 1 January 2027, meaning anyone with 6 months’ service on or after that date will be able to claim unfair dismissal.