There’s a shift coming in employment law that will change how you manage new hires — and it starts impacting your business before it officially comes into force.
From 1 January 2027, employees may gain the right to claim unfair dismissal after just six months of service. That’s a significant reduction from the current two-year threshold.
But here’s the important part: Anyone you bring into your business from 01 July 2026 could fall into that window.
So, this isn’t something to worry about later. It affects the decisions you’re making right now.
The Safety Net Is Smaller
Previously, there was more time to manage a new hire before the risk of an unfair dismissal claim became a factor. That margin is narrowing and if things don’t work out early on, you need to be able to clearly demonstrate:
- What the role required and what success looked like
- How expectations were communicated
- When concerns first came up
- What support or guidance was provided
- How you handled the situation
Without that clarity, you leave your business exposed.
Recruitment Needs More Structure
Hiring has always carried risk, but the consequences of getting it wrong are increasing. A more consistent and structured approach is no longer optional, it’s essential!
That means:
- Defining the role properly before you start
- Asking consistent, relevant questions at interview
- Assessing candidates against clear criteria
- Following up on references, not just collecting them
It’s about making informed decisions — and being able to stand behind them if needed.
Onboarding Sets the Tone (and Protects You)
Many issues that show up later can be traced back to the first few weeks. If onboarding is informal or inconsistent, expectations can become blurred very quickly.
From day one, your new starters should have:
- Clear, written expectations
- A structured introduction to the business and their role
- A record that this has been delivered
If concerns arise later, you will be asked what the employee was told — and how you know. Being able to evidence that matters.
Don’t Wait to Address Performance
Most performance issues aren’t unexpected, they’re just not addressed early enough. Leaving things until month four or five creates problems:
- There’s no clear record of conversations
- Feedback hasn’t been documented
- Support hasn’t been evidenced
That makes any formal action much harder to justify.
A better approach is simple and consistent:
- Regular one-to-one check-ins
- Honest conversations early on
- Brief written records of what’s been discussed
It doesn’t need to be complicated, it just needs to happen.
Early Dismissals Still Need a Process
You can still end employment within the first six months. What’s changing is how important your approach is.
An informal conversation with no documentation is unlikely to stand up if challenged.
You need to show:
- The concerns you identified
- The support you gave
- That you followed a fair and reasonable process
Even at an early stage, the basics matter.
The Real Risk Sits With Your Managers
Policies and contracts are important. But they don’t manage people — your managers do.
Risk tends to show up when:
- Difficult conversations are avoided
- Issues aren’t written down
- Concerns are left too late
The day-to-day reality of how your managers handle situations is what will make the difference.
Where This Leaves You
If you’re hiring from July onwards, the timeline has already started. By the time the legal change comes into force, some of your employees could already have six months’ service.
The key question is simple: Would your current approach stand up if it was challenged?
Not Sure? Start There
This doesn’t need to become complicated, but it does need to be looked at properly.
We support businesses to put the right foundations in place, including:
- A more robust approach to hiring
- Structured and consistent onboarding
- Practical, early-stage performance management
- Clear processes that protect the business if issues arise
- Management training on how to manage performance effectively
It’s far easier to get this right now than deal with it when there’s a claim attached.
If you’d like to sense-check where you are, we’re always happy to have a confidential conversation.