Changes to Unfair Dismissal Rights
One of the most significant changes facing employers is the reduction in the qualifying service required for employees to bring an unfair dismissal claim.
From 1 January 2027, employers will no longer be able to rely on the traditional two-year qualifying period in the way they have historically. Transitional provisions mean that employees engaged from 1 July 2026 may fall within the scope of the new regime.
For many businesses, this change places a renewed focus on recruitment, onboarding, probation management and early intervention when concerns arise.
Key Message
The biggest lesson for employers is simple:
Probation periods can no longer be treated as an administrative exercise.
If there are concerns around:
- performance;
- attendance;
- conduct;
- suitability; or
- trust and confidence,
they should be identified, discussed and addressed at the earliest opportunity.
Practical Steps for Employers
I'd recommend employers review:
- probation policies;
- probation review processes;
- manager training;
- performance documentation;
- onboarding procedures; and
- recruitment decision-making.
Key Takeaway
The reduction in qualifying service means employers should focus less on service length and more on good people management from day one.
A well-managed probation period is likely to become one of the most important tools available to employers in managing risk and making informed employment decisions.
One thing I'd suggest before publishing anything definitive is making sure you've got the exact legislative wording, commencement date and transitional provisions in front of you. If you've got the source document or guidance you're relying on, send it over and I'll help draft the article around the actual provisions rather than assumptions.