Probation Periods: Why employers need to rethink them before 2027impact hr ident

SECTION GUIDE

Probation periods have been a standard part of employment contracts for decades. They’re familiar, widely used and, for many employers and employees, they are more than an administrative milestone.

But that’s changing.

Here’s something that surprises many employers: the Employment Rights Act 2025 doesn’t introduce new rules on probation periods. It doesn’t set a minimum length, impose a maximum, or require employers to include one in employment contracts.

So why is everyone suddenly talking about them?

Because the Act changes something that sits right next to probation, and it changes it enough that the way most businesses currently run probation is about to become a real risk.

PROBATION PERIODS

What is a probation period?

A probation period is simply a trial window at the start of employment. It gives the employer time to check whether someone is the right fit: skills and capabilities, performance, conduct and culture, before fully committing.

It gives the employee time to check the job is what they thought it was too; it works both ways.

A probation period isn’t a legal requirement. Instead, it forms part of the contractual arrangement between employer and employee.

Many probation clauses include:

  • Shorter notice periods on both sides
  • Regular review meetings
  • Clear performance objectives
  • The ability for the probationary period to be extended
  • That the probation may end unsuccessfully
  • If successful, that a probation confirmation letter will be issued
  • Some contractual benefits only becoming available once probation has been successfully completed (although statutory employment rights still apply where relevant)

For most employers, probation periods are simply good practice and help to ensure clear and transparent expectations.

  • So, what’s changing?

    The biggest shift isn’t probation itself. It’s the growing importance of making employment decisions much earlier.
    Currently, employees need two years’ continuous service before they can bring a claim for ordinary unfair dismissal (please note, this is different to ‘automatic unfair dismissal’ which can be protected from day 1)…

    That gives employers a relatively long period to identify concerns, support improvements and, where necessary, end employment with lower legal risk.

    However, under the Government’s current proposals, this position is expected to change significantly where the qualifying period for unfair dismissal is being brought down from two years to six months where the effective date of termination is on or after 1 January 2027, subject to the final regulations and any statutory probation framework being introduced.

    That’s a substantial reduction in the time employers must make important decisions about new recruits.

    There’s also an important transition point to consider.

    Employees hired during 2026 (specifically from 1st July 2026 onwards) could already have several months’ service by the time the new rules take effect, meaning employers may have far less time than they expect to assess performance and suitability.

    Alongside this, we’ve already seen a number of employment rights become available much earlier in employment, including:

    • Day one entitlement to paternity leave
    • Day one entitlement to unpaid parental leave
    • Removal of the three-day waiting period for Statutory Sick Pay

    Taken together, the direction of travel is clear.

    New employees are gaining workplace protections much earlier than in the past, making effective probation management increasingly important.

  • Why probation periods matter more than ever

    For many organisations, probation has become a paperwork exercise.

    A meeting gets postponed.

    Objectives aren’t documented.

    Managers assume they’ll “see how things go.”

    Then six months pass without anyone making a formal decision, and often employees pass probation by default, irrespective of performance.

    Under the proposed changes, that approach could expose employers to unnecessary legal and employee relations risks.

    Instead, a well-managed probation period allows employers to:

    • Identify concerns early, potentially nipping issues in the bud
    • Give employees meaningful feedback
    • Receive meaningful feedback from their employees and take a temperature check of the induction process (for instance)
    • Provide reasonable support and training
    • Keep accurate performance records
    • Make informed decisions before legal protections increase

    It’s no longer enough to simply have a probation clause in the contract. Employers need a robust probation process that actually works.

PRACTICAL PROBATION PERIODS ADVICE

How employers should prepare

Although the final legislation is still being developed, there are practical steps employers can take now to prepare. While some of the detail may change as the proposals progress, reviewing your current processes, policies and workplace practices can help identify potential gaps early and put your business in a stronger position when the final requirements are confirmed.

Rather than waiting for the legislation to come into force, employers should consider the following:

  • Review your probation period

    Many organisations use a six-month probation period which aligns with the current legislation changes set out above; this means that at the end of a six-month probation period, employees will have accrued the right to claim for unfair dismissal if they feel a probationary dismissal decision has been unfair.

    Given this, employers should ideally be reviewing probation durations (such as three or four months) allowing for enough time to adequately assess overall performance and feedback, including any potential need for extension, as well as to include time for appropriate final decision-making on the probation outcome.

  • Schedule regular review meetings

    Don’t wait until the final week of probation.

    Build review meetings into the process from the beginning, for example:

    • One month
    • Two/Three months
    • Final review

    This gives employees clear feedback and creates a documented record of any concerns.

  • Train your managers

    Managers often make or break a probation period.

    Ensure they understand:

    • What good performance looks like including key criteria
    • How to provide timely constructive feedback
    • When concerns should be escalated
    • How to document conversations
    • When HR support is needed
  • Keep clear records

    If performance issues arise, documentation matters.

    Keep notes of:

    • Review meetings including employee feedback
    • Objectives set and performance against these
    • Support provided
    • Training offered
    • Improvement plans
    • Additional employee responses

    A clear paper trail supports better decision-making and reduces risk.

  • Audit your contracts and policies

    Now is a good time to review:

    • Employment contracts
    • Probation processes and policies
    • Manager guidance
    • Performance review templates
    • Notice period clauses

    Small updates now could prevent bigger issues later.

  • probation periods

What this means if you’re the employee

Probation isn’t something employees should fear.

In fact, when it’s managed well, a good probation period benefits everyone. It gives you a clear understanding of what’s expected, regular opportunities to discuss your progress and the chance to raise any concerns early.

As an employee, you should:

  • Ask what success looks like from day one
  • Take regular review meetings as an opportunity to discuss progress, feed back to your employer and ask for support (where needed).
  • Raise concerns early if training or expectations are unclear
  • Keep a record of agreed objectives and feedback

A good probation process shouldn’t contain any surprises.

Both employer and employee should be clear on where things stand throughout.

Probation periods

Looking ahead

Probation periods haven’t changed in law.

But the environment around them is changing. As employment protections begin earlier, employers may have less time to identify concerns, provide appropriate support and make informed decisions about a new starter’s future.

That means probation periods shouldn’t simply be a date in the diary or a box to tick at the end of three or six months. They should be an active process of setting expectations, giving feedback, addressing concerns and supporting performance from day one.

For employers, taking this approach now can help create greater clarity for managers and employees, reduce the risk of issues being left too late and put businesses in a stronger position as the Employment Rights Act reforms continue to take shape.

Is your probation process ready for 2027?

At impact HR, we can help you review your current approach, identify any gaps and put a clear, consistent probation process in place, so managers know what to do, employees know what’s expected and important decisions can be taken in good time.

Need a hand getting your probation process ready? Get in touch with our team!

Book a call

Your Questions Answered

Everything you need to know about Probation Periods

  • Do probation periods have a legal maximum length in the UK?Reveal

    No. UK law does not set a minimum or maximum probation period. The length is detailed within the employment contract.

  • Can an employee be dismissed during a probation period?Reveal

    Yes, provided the employer follows the terms of the employment contract and complies with relevant employment law. Having a probation period does not remove an employee’s statutory rights.

  • What is the standard probation period in the UK?Reveal

    Many employers use probation periods of three or six months, although there is no legal standard. As a consequence of the legal changes, many those using six-month probationary periods are now reducing their probation durations.

  • Can a probation period be extended?Reveal

    Yes, if the employment contract or probation policy allows for it. Employers should explain why an extension is needed, set clear objectives and confirm the new review date.

  • Will the Employment Rights Act 2025 change probation periods?Reveal

    The Act itself does not set new rules on probation periods. However, wider employment law reforms are expected to increase the importance of managing probation effectively, particularly as changes to unfair dismissal protections are introduced.

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