For decades, most workers have needed two years in a job before they could challenge an unfair sacking. From 1st January 2027, that drops to six months, and the cap on what a tribunal can award is scrapped. Here, in plain English, is what the change means for you.

What is changing

Unfair dismissal is the right not to be sacked without a fair reason and a fair process. Until 1st January 2027, most people only had that right after two years with their employer. Before then they could be let go for almost any reason, as long as they got their notice.

The Employment Rights Act 2025 changes that. Three things happen on 1st January 2027.

1. Two years becomes six months. If your employment ends on or after 1st January 2027, you can claim ordinary unfair dismissal once you have six months' continuous service.

The same applies to constructive dismissal, where you resign because your employer has seriously broken your contract.

2. The compensation cap goes. At the moment, the part of an award that covers your lost earnings is capped at a year's pay or £123,543, whichever is lower. For dismissals where your employment ends on or after 1st January 2027, there is no cap.

That matters most for higher earners and people who take a long time to find work.

3. Written reasons after six months. From 1st January you’ll be able to ask your employer to put the reasons for your dismissal in writing once you have six months' service, rather than two years.

The date that really matters

The date that really matters in working out how much service you need before you can claim unfair dismissal is the date your employment ends, not the date you were dismissed or given notice.

So if you are told in December 2026 that you are being let go, and your notice period runs into January 2027, the new six-month rule applies to you.

The change isn't backdated. If your employment ended on or before 31st December 2026, you still need two years' service to claim unfair dismissal, and the old cap still applies.

What doesn't change

• Statutory redundancy pay still needs two years' service.
• The basic award (the part of your unfair dismissal compensation worked out from your age, pay and length of service) is still calculated on capped weekly pay, which is £751 a week in the year beginning 6th April 2026.
• Many rights apply from day one, such as discrimination, whistleblowing, pregnancy and maternity, and health and safety.
• Your deadline. You normally have six months less one day from the date your employment ends to start the formal process (through Acas early conciliation). An internal appeal does not stop the clock. More on the new tribunal deadline.

If you are dismissed: a four-step plan

1. Check your dates. Your start date and the date your employment ends decide whether you have enough service and when your deadline falls.

2. Ask for the reasons in writing. A written reason is hard for an employer to change later.

3. Keep everything. Write down what happened while it's fresh.

4. Don't sit on it. Most cases settle, and employers take you more seriously when you know your rights and your deadline.

How Grapple Law can help

Grapple Law is a legal AI. It helps you work out whether you may have a legal case and what your deadline is for submitting a claim.

It can then help you challenge your employer’s dismissal decision, write to your employer and push for a fair settlement.

It’s free to start with and more lengthy and/or complex services are offered at a fraction of the cost of a traditional solicitors’ firm.

If you have been dismissed, or think you are about to be, find out at grapple.law whether you may have a case.

Find out more

• Unfair Dismissal
• Constructive Dismissal
• Made Redundant? Work Out What You're Owed and Check It's Fair
• How to Make an Employment Tribunal Claim: A Step-by-Step Guide

FAQs

I was given notice in November 2026 and leave in February 2027. Which rule applies? The new one. What matters is the date your employment ends, so you need six months' service, not two years.

Does the six-month rule apply during a probation period? Yes. The six months is about your length of service, not whether you have passed probation. If your employment ends on or after 1st January 2027 and you have six months' service, your employer still needs a fair reason and a fair process, even if you are on probation.

My job ends in 2027 when I will have only four months' service. Can I do anything? You won't have enough service to claim ordinary unfair dismissal, but you may still have a claim if the real reason was discrimination, whistleblowing, pregnancy, a health and safety concern or another reason the law protects from day one.

I was dismissed and my employment ended in 2026 with less than two years' service. Does the change help me? No. It isn't backdated, so if your employment ended on or before 31st December 2026 the two-year rule still applies to your unfair dismissal claim.

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