Employment Rights Act 2027: How schools and trusts should prepare for the new 6-month unfair dismissal rules

Last reviewed: June 2026

From January 2027, one of the most significant changes under the Employment Rights Act (ERA) will reduce the qualifying period for ordinary unfair dismissal claims from two years to just six months. 

For schools and academy trusts, this means that employees will gain protection much earlier in their employment.  As a result, probationary periods, performance management, conduct concerns and dismissal decisions will all require greater planning, stronger documentation and more consistent management.

Although the legislation doesn't take effect until January 2027, many employees recruited in 2026 will already have more than six months' service by the time the new rules come into force. That means the time to prepare is now. 

In this guide, we'll explain: 

Read on for:

1. What changes under the Employment Rights Act?
   

2. Should schools change their probation periods before January 2027?
3. How should probation be managed within a 6-month timeframe? 
4. What should schools and trusts consider when making dismissal decisions? 
5. How should schools and trusts prepare?
   
6. What else should schools and trusts consider?
   
7. FAQs
8. How EPM can help

Employment Rights Act changes at a glance

 The new legislation introduces several important changes for employers. 

✅ Employees will gain unfair dismissal protection after six months' service, rather than two years. 

✅ The cap on compensatory awards for unfair dismissal will be removed.

✅ Employers will need stronger evidence to demonstrate that dismissal decisions were fair and reasonable.

✅ Robust probation management and clear documentation will become increasingly important.

For schools and trusts, this places greater emphasis on managing employees effectively during the earliest stages of employment.

What is changing under the Employment Rights Act?

The qualifying period reduces to six months 

From January 2027, employees will be able to bring an ordinary unfair dismissal claim after completing six months' continuous service.

This means schools and trusts will have a much shorter timeframe to assess whether new employees are suitable for their role.

Performance concerns, conduct issues and attendance management will need to be identified and addressed much earlier than under the current rules.

Removal of compensation caps

The Employment Rights Act (ERA) also removes the statutory cap on compensatory awards for unfair dismissal, allowing tribunals to award compensation that reflects the employee's full loss of earnings if unfair dismissal is raised.

This is likely to increase settlement pressure where disputes arise earlier.

Greater emphasis on evidence

The ERA also places greater emphasis on the need for clear documentation from employers. If an employee is dismissed after 6 months,  employers will need to demonstrate not only that there was a fair reason for dismissal, but also that a fair process was followed.

Clear records relating to probation, capability, conduct, attendance and support provided to employees will become increasingly important.

What do the new unfair dismissal rules mean in practice?

Although the legislation begins in January 2027, its practical impact starts much sooner. 

Where the changes come into force from January 2027, schools and trusts can expect more teaching and support staff in the pipeline who will cross over into the threshold for the reduced unfair dismissal claims as soon as the law starts.  

Example scenario

A member of staff joins your school on 1 January 2026.

By 1 January 2027, they have completed one year's service.

Under the current legislation, they would not normally qualify to claim ordinary unfair dismissal until January 2028.

However, once the new legislation comes into force, they will already have exceeded the new six-month qualifying period.

This means many employees already working within schools and trusts will immediately benefit from the new protections

Key takeaway

Schools should identify employees who are likely to pass the six-month qualifying period shortly before or after January 2027 and review whether probation processes, documentation and performance management are sufficiently robust.

How schools and trusts can prepare for the new unfair dismissal rules

 The legislation does not require employers to shorten or extend probationary periods. 

 However, schools and trusts should review whether their current approach remains appropriate given the shorter timeframe before unfair dismissal rights apply. 

Across the education sector, we are seeing two common approaches emerge:

• Retaining a six-month probation period while introducing more structured review meetings and earlier decision-making. 
• Reducing the length of existing probation periods to allow for earlier decision-making within the 6-month window.

For schools and trusts, there is no single recommended model. The right approach largely depends on the school's size, structure, roles and risk appetite.

What becomes essential is documenting decision-making throughout an employee's probationary period.

How should schools manage probation within six months?

 A shorter qualifying period means managers have less time to identify concerns and support improvement. 

Schools should review probation procedures to ensure expectations are clear from day one. 

Where unfair dismissal claims can be raised earlier, being explicit about risks early sets clear expectations. Employees should be clearly told about failure to improve potentially resulting in probationary periods being failed and dismissed.

 Best practice includes:

• Setting clear expectations from the outset
•  Scheduling structured probation review meetings throughout the six months
• Providing timely, clear and documented feedback
• Addressing concerns as soon as they arise. 
•  Recording agreed actions and sharing meeting notes with employees
  

Our recommendation

Rather than leaving the final probation review until the end of month six, consider bringing it forward to around month five.

This provides sufficient time to make informed decisions before employees acquire unfair dismissal protection.

Waiting until the final weeks of probation may leave insufficient time to act appropriately.

What should schools and trusts consider when making dismissal decisions? 

 If an employee has not met the required standards during probation, both timing and process become increasingly important. 

To avoid risk:

• Decisions to dismiss should ideally be made and communicated before 6 months’ service
• Employers should consider whether notice will extend employment beyond 6 months
• Contract terms should be reviewed for the individual, particularly regarding:
  
  • Notice periods during probation
  • The right to pay in lieu of notice (PILON)

It’s important to note that if dismissal is necessary, it can still take place after an employee has reached 6 months of service, but dismissal protections will be in force under the ERA. That’s why a well-managed and recorded probation period becomes critical to avoid legal and reputational risk.  

What about teachers working in academies and trusts?

Academies and trusts should also consider their approach to probationary periods for teaching staff.

Unlike support staff, probation arrangements for teachers are not always consistently applied across the sector, and some organisations may not currently operate a formal probation process.

 Given the reduced qualifying period, trusts should consider introducing a structured probation framework for teachers where one does not already exist. 

A clearly defined probationary process helps schools:

• Assess suitability, capability and conduct early
• Provide appropriate support
• Make evidence-based employment decisions
• Reduce legal and employee relations risks
  

How schools and trusts can prepare now

Although the legislation does not take effect until January 2027, planning ahead will reduce future risk while maintaining flexibility to manage performance effectively.

 We recommend that schools and trusts: 

• Review probation policies and procedures ahead of January 2027

• Identify employees who may be affected by the transition
• Follow your probation policy and timelines rigorously
• Document everything clearly, provide clear records of meetings, outcomes, and ensure notes are shared with the employee
• Build additional probation review meetings into the first six months
• Address concerns early rather than waiting until probation is nearly complete
• Check contractual notice provisions and ensure these are understood
• Provide additional training to support managers in handling probation periods confidently 
  

If you need support with training you staff, EPM can help with this > Training & Events – Helping You Respond to Change | EPM 

Other legal risks for schools to remember

 While the change to unfair dismissal qualifying service is significant, it is important to remember that some risks are not affected by length of service.  

In particular, claims relating to:

• Discrimination
• Whistleblowing
• Health and safety
• Certain statutory rights
  

These do not require a minimum length of service, which means decisions during recruitment and probation can still be challenged from day one.

 For this reason, schools should also review: 

• Recruitment and selection practices
• Manager capability in handling performance and conduct issues
• Consistency and documentation of decision-making

 Taking a broader approach will help ensure employment decisions remain fair, proportionate and defensible from an employee's first day. 

Conclusion

 The reduction in the unfair dismissal qualifying period represents one of the most significant employment law changes affecting schools and trusts in recent years. 

While January 2027 may seem some way off, the practical impact begins much earlier. Schools that review their probation procedures, strengthen manager capability and improve documentation now will be far better placed to manage risk once the legislation takes effect.