Employment Rights Act 2025: July 1st milestone on unfair dismissal protections
The 1st of July signifies an important milestone in the Employment Rights Act regarding unfair dismissal protection. Employers should already be compliant with the legislative changes that came into play in April (2026) and be in the process of updating contracts and documentation to ensure compliance with the upcoming changes being implemented in October as per the Government’s Roadmap. With the Fair Work Agency now actively able to take enforcement action, employers should be taking all the necessary steps to ensure compliance. Failure to do could result in costly financial penalties and even prosecution by the Fair Work Agency.
What happens regarding unfair dismissal protections on July 1st?
An employee starting work at a new company on or after 1st July 2026 will qualify for unfair dismissal protections after 6 months, instead of 2 years.
If an individual starts new employment with a new company in (for example, August 2026) and the employer looks to dismiss in October 2026, this can be classed as short service dismissal and is still dealt with under the current rules.
An employee starting a job after 1st July 2026 doesn’t receive protection, under the new legislation, until they reach the 6-month qualifying period.
From 1st January 2027, any employee who is in continuous employment of more than 6-months, but less than two years’ service will be protected from, 1st January 2027.
From 1st January 2027, an employee who has two years’ service will be will already qualify for protection.
Get expert advice on the upcoming changes to Employment Law
Croner have been advising businesses just like yours for over 80 years on how to navigate the ever-changing legal landscape of employment legislation. With the most dramatic changes to Employment Law in a generation coming into play via the Employment Rights Act (2025), it is vital that your business is equipped with the knowledge and support to handle the complexities of the new legislation.
Talk to a Croner Employment Law and HR advisor today and get expert support 24/7 on the Employment Rights Act 2025. Call today on 0800 470 9999.