Short Service Dismissal Letter

Dismissal is regrettably something that employers may have to do from time to time. Whilst the decision should not be taken lightly, a short service dismissal is one such way an employer can navigate the pitfalls of the dismissal process in a legal and compliant way. This article outlines what constitutes a short service dismissal and when it can be applied and when it cannot. 

You can also download our FREE short service dismissal letter template, to help ensure that you adhere to the legal requirements when dismissing an employee with less than two-years length of service. 

Be mindful that as of July 1st, 2026, any employee joining your organisation will qualify for protection against unfair dismissal from January 1st, 2027, meaning the window to legitimately use short service dismissal will be reduced from 2 years to 6 months. 

As always you can contact a member of the Croner HR and Employment Law advisory team for guidance on legal compliance and ACAS code of practice, to avoid costly employment tribunal claims. Call today on 0800 470 9999.

What is short service dismissal?

Short service dismissal can be applied to any employee before they've reached a minimum of two years of continuous service. Under the current legislation any employee with less than two years’ service do not have the full rights to make a claim of unfair dismissal, this means that employers can typically speed up the dismissal process and, in some cases, avoid payments for making staff redundant. Typically, this will depend on your company’s disciplinary procedure and the information outlined in an employee's contract of employment.

It should be noted, however, that there are some circumstances that are deemed automatically unfair even if an employee is within the two-year period, and this can result in a costly unfair dismissal claim. Therefore, it is highly recommended that you follow a fair procedure to avoid this possibility.

Changes to short service dismissal under the Employment Rights Act 2025

The Employment Rights Act 2025will change the way short service dismissals operate by reducing the two-year continuous service requirement regarding ordinary unfair dismissal to six months. This is set to come into effect from the 1st of January 2027 and will apply retrospectively so an employee with 6 months service as of Jan 1st 27 can claim unfair dismissal.

The legalities of short service dismissal

There is a popular misconception that an employee who has less than two years' service can be dismissed instantly without due process, however in reality, this could prove to be a costly miscalculation on an employer's behalf.

Employees are protected by certain rights under employment law from their first day of employment, any breach of these protections is considered as automatic grounds for unfair dismissal. Below are some of the more common examples:

Family leave

An employee cannot be dismissed on the grounds that they have exercised their legal right to family related leave such as maternity and paternity.

Refusing to give up statutory rights

Employees are entitled to certain statutory rights under employment law. If you dismiss an employee to deny them statutory rights this is considered automatically unfair dismissal. For example, if an employee makes a demand to be paid the minimum wage, dismissing them to avoid paying would constitute unfair dismissal.

Refusal of certain tasks

If an employee refuses to carry out a task that puts them, or others in the workplace at risk and is dismissed as a result, then this is grounds for automatically unfair dismissal.

Affiliation or membership of a trade union

An employee cannot be dismissed because of their affiliation with or their membership of a trade union under UK law. This is considered grounds for a claim of unfair dismissal.

Protected characteristics

There are nine protected characteristics, under employment law they are grounds for unfair dismissal (if the employee currently has over 2 years’ service) and discrimination if an employer dismisses a staff member because of the following:

• Age.

• Disability.

• Sex.

• Gender reassignment.

• Pregnancy and maternity.

• Race.

• Sexual orientation.

• Religion or belief.

• Marriage and civil partnership.

As well as the risk of an unfair dismissal claim, there is also the risk of a discrimination claim if you dismiss an employee for any of the above characteristics.

Follow a fair, lawful short service dismissal process

When dismissing an employee with short service your dismissal procedure should fall in line with the process set out in the ACAS code of practice.For more advice on dismissal procedures contact a Croner HR and Employment Law expert to get FREE ACAS code-based employer advice. Call today on 0800 470 9999.