How to manage probation periods effectively

Your probation period is about to become a problem.

From July 2026, probation periods could become one of the biggest legal risks for UK employers. If you're still treating probation as a six-month "wait and see" period, it might be time to rethink your approach.

Because let's face it - hoping someone magically transforms into your best employee by month five isn't exactly a business strategy.

What’s changing from July 2026?

The proposed employment law changes mean that employees hired from 1 July 2026 could be eligible to bring an unfair dismissal claim after just six months of service, rather than waiting two years.

On top of that, proposals suggest the compensation cap for unfair dismissal could also be removed, meaning the financial consequences of getting dismissals wrong could become significantly more expensive.

In short?

Your probation process just graduated from "nice HR admin" to "boardroom priority."

Why this matters to employers?

Many businesses have traditionally used a six-month probation period because "it feels like enough time", "It's always been that way" or "the contract template has said six months since 2013 and nobody wants to touch it".

Unfortunately, employment law doesn't care how old your Word document is. If someone reaches that six-month milestone, ending their employment could require:

• A fair reason

• A fair process

• Clear, documented evidence

• Consistent decision-making

In other words...

"No one really liked Dave" probably won't hold up particularly well.

Why a three-month probation period could be the smarter option?

One of the simplest changes employers can make is moving to a three-month probation period. Not because you're trying to get rid of people faster. Because you're encouraging managers to make decisions sooner.

A shorter probation helps you:

• Identify performance issues earlier.

• Give meaningful feedback while there's still time to improve.

• Hold structured review meetings.

• Make confident decisions before the six-month legal threshold arrives.

Ironically, good employees usually appreciate this too.

Nobody enjoys spending six months wondering whether they're actually doing okay.

The bottom line

The proposed employment law changes aren't designed to catch employers out. They're encouraging businesses to have fair processes, give meaningful feedback and make informed decisions earlier.

Which, if we're honest, is good management anyway.

A well-run probation process protects your business, supports your employees and helps managers tackle issues before they become legal headaches.

And that's considerably cheaper than discovering employment law through a tribunal.