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Employment Rights Act Factsheet: Unfair Dismissal Changes & How to Prepare

From 1 January 2027, unfair dismissal risk will arrive much sooner for schools and trusts. Employees with six months’ service will be able to bring ordinary unfair dismissal claims, significantly reducing the window employers have to assess suitability, manage probation and make evidenced decisions.

At the same time, the cap on unfair dismissal compensatory awards will be removed. This may increase financial exposure, particularly in senior appointments or cases involving substantial pension loss.

This factsheet includes:

• What the new six-month qualifying period means for schools and trusts
• Why new starters hired from 1 July 2026 may be affected by the January 2027 changes
• The impact of removing the unfair dismissal compensation cap
• Why probation periods need to be actively managed and properly documented
• The importance of reviewing recruitment procedures, contracts and dismissal policies
• Practical preparation steps for HR teams, school leaders and line managers