Why Can't I Just Fire Them... Anymore?

Employment Rights Act 2025: Why You Can't Just Fire Them Anymore

When we first answered "why can't I just fire them?", employees needed two years before unfair dismissal protection applied. From 1 January 2027, the Employment Rights Act 2025 reduces that to six months.

Unfair dismissal claims are up 72% year on year. The average case takes 33 weeks. The compensation cap is being removed. And if you run a six-month probation, reviews need to happen before that window closes — notice periods included.

In this episode: what's changed, what it means for small businesses, and why settlement agreements are about to become a much more common conversation.

• From 1 January 2027, unfair dismissal protection applies from six months. Employees whose probation falls into the July 2025 onwards window are already caught by transitional provisions. This isn't a January 2027 problem.
• If you run a six-month probation, you need to act earlier than you think. Any notice period eats into the window. On statutory notice, the probation meeting needs to happen at least a week before the six-month mark — or you're in unfair dismissal territory.
• The compensation cap is going. Combined with tribunal wait times now stretching toward 2030, the financial and operational cost of getting a dismissal wrong is rising sharply.
• Settlement agreements are becoming the rational option. An extra month's pay at seven months may cost far less than management time, legal fees, and a four-year tribunal wait.
• ACAS is under serious pressure. Letters are arriving after the conciliation window closes, meaning businesses lose their moment to settle. "Let's see what happens at ACAS" is no longer a reliable strategy.
• Process documentation is your only reliable protection. Most dismissals fail at tribunal on process, not on the reason for dismissal. Documented conversations and clear expectations throughout probation are what defend you.
• Managers can't afford to wait a few more weeks. The instinct to let underperformance slide is understandable — but within a six-month window, it's operationally dangerous. Conversations need to happen quickly and be documented.

• [00:15] What the ERA 2025 changes
• [01:16] Why July 2025 matters too
• [02:41] Six-month probation notice trap
• [05:30] Sharpen performance conversations
• [08:19] What fair dismissal process looks like
• [13:28] Settlement agreements as alternative
• [15:07] AI, employee expectations, backlogs
• [17:35] Documentation and tribunal protection

Resources Mentioned

1. Employment Rights Act 2025 — qualifying period reduces to six months from 1 January 2027: gov.uk
2. ACAS — early conciliation; currently experiencing significant delays: acas.org.uk

Employment Rights Act 2025, unfair dismissal six months, probation management, settlement agreements UK, performance management, ACAS backlog, dismissal process UK, HR podcast