Short Service Dismissal: Can I Dismiss an Employee Under Two Years?
An employee has only been with you a short time and things are not working out. Can you end their employment, and what risks should you check first?
At a Glance: Short Service Dismissal Facts
- No Universal Exemption: Short service does not prevent claims for unlawful discrimination, whistleblowing, or automatically unfair dismissals.
- Changing Legal Horizon: The Employment Rights Act 2025 reduces the unfair dismissal qualifying period from two years to six months starting 1 January 2027.
- Identify the True Reason: Never mislabel conduct as capability or vice versa simply to circumvent procedural standards.
- Contractual Compliance: Always respect contractual notice provisions, accrued holiday pay, and relevant internal policy obligations.
Short service does not mean no rights
As at October 2026, most employees in Great Britain normally need two years’ continuous service to bring an ordinary unfair dismissal claim. However, that qualifying period is not a blanket permission to dismiss without considering the circumstances. Claims involving discrimination, whistleblowing, certain automatically unfair reasons, contractual breaches and other statutory protections may arise without two years’ service.
⚖️ The law on dismissal is changing in January 2027
The Employment Rights Act 2025 is scheduled to reduce the ordinary unfair dismissal qualifying period to six months for dismissals from 1 January 2027. The statutory cap on compensatory awards is also due to be removed. Employers should update probation, performance and dismissal processes now rather than relying on the existing two-year threshold.
What should you check before deciding to dismiss?
Establish the real reason for dismissal. Has the employee raised concerns about safety, pay, discrimination or wrongdoing? Have they disclosed a health condition, requested adjustments or taken protected leave? Check the employment contract, notice requirements and whether a fair opportunity to improve or respond is appropriate.
Day-One Rights vs Ordinary Unfair Dismissal: Risk Assessment Checklist for Short-Service Staff
Performance and conduct are different
Poor performance generally calls for clear standards, feedback, support and reasonable time to improve. Alleged misconduct may need investigation and a fair disciplinary process. Do not label a conduct issue as capability simply to avoid procedural steps.
Performance / Capability Issues
Requires clear communication of benchmarks, constructive feedback, supervisory coaching, and reasonable review timelines.
Aim: Support improvement while documenting objective performance data.Misconduct / Disciplinary Issues
Requires proportional fact-finding, setting out specific allegations, and holding a formal hearing under the ACAS framework.
Aim: Fair investigation and adherence to natural justice principles.How to reduce the risk of dismissal
Keep a clear chronology of concerns, explain expectations, hold a meeting, consider the employee’s explanation, check any protected issues, and confirm the decision and payments in writing. Follow contractual commitments and consider the Acas Code where disciplinary matters arise.
A sensible employer approach to dismissal
The key question is not simply “Have they reached two years?” It is “What is the reason, what rights might apply, and what process is reasonable in these circumstances?” That approach will be even more important under the new six-month threshold.
Frequently asked questions
Can someone claim discrimination with only a few weeks’ service?
Yes. Discrimination claims do not generally depend on a minimum period of service.
Does probation remove employment rights?
No. A probationary period does not override statutory protections or contractual notice rights.
Will the two-year rule still apply in 2027?
Government guidance states the ordinary unfair dismissal qualifying period will reduce to six months for dismissals from 1 January 2027.
How Nectar HR can help
You do not need to work through a difficult employee issue alone. Nectar HR supports employers with practical advice, documentation, fair procedures and hands-on HR case management. We will help you understand your options, the risks and the next sensible step.
📖 Related Guidance in This Series
Explore related guidance to manage performance, probation reviews, and disciplinary actions:
Tell us what’s happened
Need support with this issue? Get HR Support or Tell Us What’s Happened using the enquiry form. Nectar HR supports employers with practical advice, documentation, fair procedures and hands-on HR case management. We will help you understand your options, the risks and the next sensible step.
You don't have to navigate short-service dismissals alone. Tell us what's happened.
Tell Us What's Happened
Share a quick summary below and an experienced UK HR adviser will contact you confidentially.