The Employment Rights Act 2025 will introduce some of the most significant changes to UK employment law in decades. While several reforms will affect employers across 2026 and 2027, one change stands out for organisations currently hiring new employees:
From 1 January 2027, employees will gain unfair dismissal rights after six months of service instead of two years.
That means that employers will have just six months to assess whether a new hire is the right fit for the role and organisation. With less time to evaluate performance, capability and cultural alignment, ensuring probation reviews are structured, documented and completed on time will become more important than ever.
For life sciences businesses investing heavily in specialist, leadership and hard-to-find talent, this means probation periods are about to become much more important. This guide explains the changes coming into force and the actions employers should take today to avoid costly mistakes in the future.
The key message is simple: Any employee hired from summer 2026 onwards could reach six months’ service after the new rules take effect. If probation reviews are delayed, missed or poorly documented, employers could find themselves facing significantly greater legal and financial risk.
Why action do hiring managers need to take?
Many organisations already have probation processes in place, but in practice they are often inconsistent. Managers become busy, reviews are postponed and objectives are not clearly documented. Concerns about performance or cultural fit are discussed informally rather than formally recorded.
Historically, this has often been manageable because employers had a two-year window before unfair dismissal protections applied. However, that window shrinks dramatically 6 months from now in January 2027 meaning employers need a clear understanding of how every new hire is progressing well before they reach six months’ service.
The biggest risk is missing the probation window
In life sciences organisations, new employees frequently spend their first few months:
- Completing compliance and regulatory training
- Learning internal systems and processes
- Building relationships with key stakeholders
- Understanding complex products, programmes or pipelines
As a result, managers often feel they do not have enough information to make a judgement by the end of probation and reviews can slip.
Under the new legislation, delaying these conversations becomes far riskier.
If concerns exist around:
- Performance
- Technical capability
- Behaviour
- Cultural fit
- Leadership effectiveness
- Delivery against objectives
These factors should be identified, discussed and documented as early as possible.
The goal is not necessarily to end employment. It is to ensure there is a clear record of performance, appropriate support has been provided, and any decisions are made before the six-month threshold is reached.
Employers should adopt a clear pathway for new hires from their first day through to end of probation
Rather than waiting until the end of probation, employers should consider a structured review process from day one.
Month 1: Set expectations
Every employee should understand:
- What success looks like
- Their key objectives
- Performance measures
- Behavioural expectations
- Probation review dates
Documenting expectations early creates a clear benchmark for future discussions.
Month 3: Formal progress review
This should be more than an informal catch-up.
Managers should assess:
- Progress against objectives
- Areas of strength
- Any performance concerns
- Support or development required
Any concerns should be documented and followed up with agreed actions.
Month 5: Critical review point
This is arguably the most important stage under the new legislation.
By month five, employers should have a documented view on:
- Whether the employee is meeting expectations
- Whether probation should be extended (where contractually permitted)
- Whether additional support is required
- Whether the role remains the right fit
Leaving this assessment until month six may leave insufficient time to take action if concerns emerge.
Month 6: Final decision
Employers should already have a clear understanding of performance by this point.
The final probation outcome should never come as a surprise to either party.
A quick audit for hiring teams and HR
If your organisation is actively recruiting, now is a good time to ask:
- Do we know where every current probationer is in their employment journey? – Create visibility of all employees currently within probation periods.
- Are probation reviews automatically scheduled? – Review meetings should be diarised when an offer is accepted, not when a manager remembers.
- Are managers trained to manage probation effectively? – Many technical and scientific leaders are promoted because of subject matter expertise rather than people management experience. They may need additional support to navigate the new requirements.
- Are expectations documented clearly? – Probation decisions become much harder to defend when objectives are vague or undocumented.
- Can concerns be evidenced? – Informal conversations are unlikely to be enough. Employers should ensure feedback, actions and review outcomes are properly recorded.
Other employment law changes to be aware of
While probation management should be an immediate priority, employers should also prepare for other reforms within the Employment Rights Act 2025.
Already in force: Day-one Statutory Sick Pay
Since April 2026:
- SSP is available from the first day of sickness absence
- The three-day waiting period has been removed
- Eligibility has been extended to more lower-paid workers
January 2027: Restrictions on fire-and-rehire
Dismissing and re-engaging employees to impose contractual changes will become automatically unfair in most circumstances.
2027: Zero-hours contract reforms
Employers using variable-hours arrangements may be required to offer guaranteed-hours contracts based on average hours worked over a reference period.
So what should hiring managers do next?
The legislation does not mean organisations should become more cautious about hiring, but it does mean they should become more structured and thoughtful in their porcesses. The businesses that will adapt most successfully are those that:
- Set clear expectations from day one
- Conduct regular probation reviews
- Document performance consistently
- Train managers to have effective performance conversations
- Address concerns early rather than waiting until the end of probation
Most importantly, they will ensure that no probation period is allowed to drift beyond the point where meaningful action becomes more difficult. With the six-month unfair dismissal threshold approaching, now is the time to review your probation process and ensure every new hire receives the right level of support, assessment and oversight from day one.
This guide is intended for informational purposes only and does not constitute legal advice. Organisations should seek independent legal guidance on their specific obligations under the Employment Rights Act 2025.
Established in 2006 by ex-industry professionals, Carrot has become one of the most highly regarded and trusted recruitment partners within the Pharma, Biotech, and Med-Tech sectors, spanning North America and Europe. We hope this guide has given you some key takeaways to help prepare you for the Employment Rights Act .
If you are looking to grow your team or need to speak to us about your recruitment challenges, please get in touch. We offer a range of services and can adapt our approach easily to fit with your resourcing requirements.
Louise Lavelle
Associate Director
