Employment Rights Act 2025: July 1st milestone on unfair dismissal protections

The 1^st 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 1^st?

• Anyone starting work at a company they previously did not work 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 company they previously didn’t work at, (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.
• To reiterate, an employee starting a job after 1st July 2026 doesn’t offer any added protection until they reach the 6-month qualifying period. (Starting on 1st July 2026, means 1st January 2027 will be the 6-month point).
• From 1st January 2027, any employee who does not already have two years’ service will be protected from that date e.g. an October 2025 starter, will be protected from 1st January 2027.
• From 1st January 2027, any employee who already has two years’ service will be unaffected by the change as they 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 01455 858 132.