Background
The UK Employment Rights Bill (ERB), taking effect from late 2025 and other sections expected in 2026 and 2027, introduces major reforms to probationary periods. Key changes include:
- Unfair dismissal protection after six months (rather than two years, and not day one as originally proposed).
- Greater emphasis on probation management, with employers needing clear, fair documented processes from the outset.
- Day-one rights for sick pay and parental leave (from April 2026), which will affect workforce planning.
These reforms mean probation is no longer a “low-risk” period for employers. Instead, it becomes a critical window for structured assessment and documentation. To help put these changes into real terms we’ve drafted a scenario case study:
Company: A 50-person Kitchen & Bathroom company
Challenge: Historically relied on informal probation reviews at 3 and 6 months, with limited documentation.
Risk Under ERB: With unfair dismissal rights applying after six months, dismissals at the end of probation now carry higher tribunal risk if processes are not robust.
Our approach:
Step 1: Redesigning Probation Policy
- Contracts updated to reflect six-month qualifying period.
- Probation review checkpoints set at 2, 4, and 5 months (don’t forget to think about statutory notice periods eating in to the 5th month).
- Clear criteria: performance, conduct, attendance, and cultural fit.
Step 2: Manager Training
- Managers trained to document concerns early.
- Use of structured feedback templates to ensure fairness.
- Emphasis on support plans (training, mentoring) before dismissal considered.
Step 3: Employee Communication
- Transparent onboarding: employees informed of probation expectations.
- Access to appeal routes even during probation (optional but recommended).
- Reinforcement that probation is a developmental stage, not just a test for both the employer and employee. Is the employer right for the employee and vice versa.
Outcomes
- Reduced risk of unfair dismissal claims by evidencing fair process.
- Improved employee engagement: staff felt supported rather than scrutinized.
- Compliance achieved: contracts, policies, and review systems aligned with ERB requirements.
Key takeaways:
- Move away from informal probation management
- Create templates for probation management to set everyone up for success – think about how long it took you to hire this employee in the first place.
- Communication is key
- Avoid being reactive – plan onboarding your new team member in advance and then you have a template for everyone else.
Risks & Considerations
- Tribunal exposure: Six million more employees gain unfair dismissal rights under ERB.
- Manager confidence: Poorly trained managers may rush dismissals, increasing claims.
- SME burden: Compliance adds admin, but failure to adapt risks reputational and financial damage
In summary: Probation management under the ERB shifts from informal practice to a legally sensitive process. SMEs must adopt structured reviews, transparent communication, and documented fairness to balance compliance with employee support. KeystoneHR can help you design and implement your probation management approach to help you be compliant but fundamentally keep the great talent and develop them.
