From 1 July 2026, a seismic shift in UK employment law comes into force. The Employment Rights Act 2024 removes the two-year qualifying period for unfair dismissal claims — meaning all workers, from their very first day, will have the right to challenge unfair dismissal through an employment tribunal.
For employers, this represents a substantial change. You can no longer dismiss a new member of staff without consequence. For employees and workers, it means immediate protection. This shift demands urgent action from every business. Here’s what you need to know.
At Wolf Law in Liverpool, we specialise in employment disputes and help employers understand their obligations. Whether you’re navigating the new rules or you’ve been unfairly dismissed, we’re here to guide you through the process.
What the Employment Rights Act 2024 Changes
For decades, UK employment law protected workers only after they’d served two years with an employer. A new employee could be dismissed for almost any reason during their first 24 months — redundancy, performance, personality conflict — with no tribunal claim available.
That protection is now gone. The two-year rule has been abolished for all new recruits from 1 July 2026. Every worker — full-time, part-time, or fixed-term — now has unfair dismissal rights from day one.
What does “unfair” mean in practice? You can’t dismiss someone without good reason. You must follow fair procedure. You can’t dismiss based on protected characteristics (age, disability, sex, race, religion, sexual orientation, pregnancy). And you must act consistently — if you dismiss one person for being late, you can’t let another off the hook without genuine reason.
The old rule was clear: “Don’t worry, they’re still within two years.” That rule no longer exists. Every dismissal from 1 July onwards must meet the fairness test, regardless of length of service.
Who Does This Apply To?
The new law applies to all workers employed under a contract of employment. This includes employees on probation, fixed-term contracts, and casual workers with written contracts. It does not apply to the genuinely self-employed, but the line between employee and self-employed is often blurred — and employers frequently get it wrong.
If you’ve dismissed someone between 1 July 2026 and now without following proper procedure, you may already be exposed to a claim. If you’re planning dismissals in the coming weeks, act now to ensure you follow the rules.
What Employers Must Do Immediately
If you run a business, this change demands immediate action. You can’t simply continue as you have been.
1. Update Your Disciplinary Procedures
You must have written disciplinary and grievance procedures in place. These should follow the ACAS Code of Practice on Disciplinary and Grievance Procedures. Why? Because if you breach the Code, a tribunal can increase compensation by up to 25 per cent. From day one, every new recruit has the right to know how you’ll treat them if things go wrong.
Your procedures must outline: investigation steps, the right to be accompanied, the right to appeal. These aren’t optional extras — they’re now mandatory from day one of employment.
2. Train Your Managers
Your line managers must understand the new rules. Many employers make mistakes because their managers don’t know what they can and can’t do. “But they’re still new” is no longer an excuse. Brief your team immediately.
3. Document Everything
Keep clear records of performance, conduct issues, and any warnings. If a dismissal is challenged, your evidence will make the difference. Poor record-keeping is the biggest liability employers face in tribunal claims.
4. Review Your Contracts
Employment contracts should reflect the new legal reality. Probation clauses that suggest dismissal without reason is possible in the first two years are now misleading and potentially harmful to your defence.
Rights That Already Protected New Workers
It’s important to understand: many protections have always applied from day one. The two-year rule only affected “ordinary” unfair dismissal. Discrimination, whistleblowing, and pregnancy discrimination have always been protected from day one.
If you dismiss someone because of their race, sex, disability, or religion, that’s unlawful from day one — and that’s been the law for decades. If someone refuses to do something illegal and you dismiss them for it (whistleblowing), that’s protected. If you dismiss a woman because she’s pregnant, that’s automatic unfair dismissal.
What’s new is that “ordinary” dismissals — where there’s no protected characteristic involved — are now also protected. An employee dismissed for poor performance, conduct, redundancy, or personality clash can now claim from day one.
What About Probation?
Some employers believe probation allows them to dismiss freely. It doesn’t. Probation is still subject to fairness. You must have grounds. You must follow procedure. You must not discriminate. Probation is not a get-out clause anymore — it’s simply a period where you’re assessing fit and performance, with the same fairness obligations as any other period.
What If You’ve Been Unfairly Dismissed?
If you’ve been dismissed recently and you believe it was unfair — whether the dismissal broke procedure, was based on discrimination, or had no genuine reason — you now have rights.
You must submit a claim to an employment tribunal within three months of your dismissal date. The tribunal will examine whether the dismissal was procedurally fair and substantively fair. If it wasn’t, you may be awarded compensation or even reinstatement.
Compensation is often split into basic award and compensatory award. The basic award is calculated from your age, length of service, and weekly pay. The compensatory award reflects your actual loss — unpaid wages, benefits, pension contributions, and future loss if you haven’t found work yet.
You don’t need a solicitor to bring a tribunal claim, but having legal representation significantly improves your chances. Employers will often have legal representation, and the tribunal process can be daunting if you go it alone.
Time Is Critical
The three-month deadline is strict. Miss it and your claim is rejected. If you’ve been dismissed, get legal advice quickly. At Wolf Law, we offer a free initial consultation to discuss your situation and whether you have a case.
Frequently Asked Questions
Can an employer still have a probation period?
Yes, but probation is no longer a “no dismissal rights” period. Probation now simply means you’re being assessed for fit and performance — with the same fairness rules. An employer must still have good reason and follow fair procedure during probation.
What counts as “unfair” dismissal?
Dismissal is unfair if: there’s no good reason (e.g. arbitrary dismissal), the employer didn’t follow fair procedure (investigation, hearing, appeal), it’s based on a protected characteristic, or it breaches the employee’s contract. An employer must prove the dismissal was for a potentially fair reason and that they acted reasonably.
Do part-time workers have the same rights?
Yes. All workers — full-time, part-time, fixed-term, or casual — now have unfair dismissal rights from day one, provided they have a contract of employment. The new law applies equally.
How long do I have to claim unfair dismissal?
You have three months from the date of your dismissal to submit a claim to an employment tribunal. This deadline is strict. If you miss it, you lose your right to claim unless there are exceptional circumstances.
What compensation can I get for unfair dismissal?
Compensation includes a basic award (based on age, service, and weekly pay) and a compensatory award (your actual losses — lost wages, benefits, pension, and future loss). Tribunals also consider failure to follow ACAS Code, which can increase compensation by up to 25 per cent.
Can I be dismissed during my first week?
Yes, but only for a fair reason, with fair procedure. If dismissed without reason or without following procedure, you can claim unfair dismissal — even if you’ve only been there a week. The length of service no longer protects unfair conduct from the employer.
Does this apply to employees already in post before 1 July 2026?
No. This change applies to new recruits from 1 July 2026 onwards. Employees already in employment on that date retain their protection from their start date (so someone hired in June 2024 is still protected from June 2026 onwards, not July).
Should I get a solicitor for an employment claim?
You don’t need a solicitor to bring a tribunal claim, but having one significantly improves your chances. Employment law is complex, and employers often have legal representation. A solicitor will help you gather evidence, draft your claim, and present your case effectively.
Legal Disclaimer
This article is intended for informational purposes only and does not constitute legal advice. For specific advice relating to your circumstances, please contact Wolf Law directly to arrange a consultation with one of our qualified solicitors.
Related Resources:
Official References:
- ACAS Code of Practice on Disciplinary and Grievance Procedures
- Employment Rights Act 1996 (legislation.gov.uk)
- Employment Tribunal Guidance (judiciary.gov.uk)
- Citizens Advice: Unfair Dismissal
