Recruitment and probation under the Employment Rights Act 2025

What are the key changes?

The Act reduces the qualifying period for ordinary unfair dismissal protection from two years’ continuous service to six months. This means employees with six months’ service as at 1 January 2027 will gain unfair dismissal rights, so colleges will need to begin preparing for this change well in advance.

Another significant reform is the removal of the unfair dismissal compensation cap, which currently limits awards to the lower of 52 weeks’ pay or £118,223. Removing the cap could lead to substantially higher tribunal awards, particularly for senior or higher-paid employees, and may affect both dismissal decisions and settlement negotiations through ACAS early conciliation or otherwise.

Taken together, these reforms are likely to increase tribunal risk and place greater scrutiny on how colleges manage early-stage employment. This highlights the importance of having robust recruitment, onboarding and probation processes in place.

Preparing for the new landscape

Recruitment and onboarding

The reduction in the qualifying period for unfair dismissal rights means that dismissing underperforming employees will become more challenging. Even where an employee is still within a contractual probationary period, they will qualify for statutory unfair dismissal rights once they reach six months' service. Colleges should prioritise rigorous recruitment processes to reduce the risk of hiring unsuitable candidates.

Structured assessments, competency-based interviews, and thorough pre-employment checks, including detailed scrutiny of career history and verification of references as well as proportionate consideration of their online presence, can help ensure that new hires are well-suited to the demands of the role and the workplace culture at your college. Onboarding processes should also be enhanced to provide clear expectations and support for new starters. 

Probationary periods

Probationary periods will require closer management. Colleges should review their policies to ensure that they include clear criteria for assessing performance and behaviour during probation.

Consideration should be given to aligning contractual probationary periods more closely with the six-month qualifying period for unfair dismissal. Regular reviews during the probationary period, right from the outset of employment, are essential to identify and address any issues at an early stage. Additional training and clear guidance on the standards expected should be provided. The process should be collaborative and employees should be encouraged to be open about any training needs or reasonable adjustments that may be required to help them perform in their role.

Where performance is a significant concern, notwithstanding the support and guidance provided, it may now be appropriate to consider making decisions regarding the continuation or termination of employment before the employee attains six-months' service, with a formal probation review meeting in month five where performance is deemed to be falling short of the required standard. Policies should reflect when key decisions about the continuation of employment are likely to be made and the process that will be followed to manage employee expectations.

Dismissal decisions will need to be carefully documented and justified to demonstrate objective assessment and transparent decision-making. Providing written reasons for dismissal will be critical in managing risk should the employee seek to allege that the dismissal was discriminatory or for another reason that does not require qualifying service to bring a claim. 

Training and policy updates

Managers and HR professionals play a crucial role in implementing these changes. Colleges should consider training managers to ensure they are equipped with the skills to handle performance issues constructively and fairly. Ignoring under-performance is unhelpful to the employee, the morale of their colleagues and the effective operations of the college. With budgets under increasing pressure, it is more important than ever to ensure that staff appointments add value to the organisation and to avoid the cost of failed recruitment processes. A motivated and high-performing workforce is also the backbone of a positive workplace culture and good staff morale.

Employment contracts, handbooks, and policies should also be reviewed to ensure compliance with the Act and that your college's recruitment and probation policies are fit for purpose.

How VWV can help

The Act marks a significant shift in employment law. For colleges, where staffing needs are often diverse and complex, these reforms require proactive planning and a strategic approach.

To help employers navigate these changes, we are hosting a webinar on 25 March 2026. This session is designed to provide practical guidance on adapting to the new legal framework, with a focus on recruitment, probation, and early-stage employment decisions.

Attendees will receive a copy of our new probationary policy and line managers’ guide, along with practical advice on how to use these resources to support managers in making informed decisions. 

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For more information about the webinar or to discuss how VWV can support you, please get in touch with Elizabeth McTeigue in our Employment team.