Probationary Periods: Are Employers More at Risk Than They Think?
Feb 27, 2026
Most UK employers see probation periods as a safety net.
You hire someone, try them out for three to six months, and if it’s not working, you part ways. Simple. Low risk. Or so it seems.
The problem is that the safety net doesn’t really exist.
Probation periods don’t reduce legal risk in the way many employers assume. They don’t remove employment rights. They don’t make dismissal easy.
And with unfair dismissal protection reducing to six months from January 2027, the room for error is about to shrink even further.
Meanwhile, employers carry all the upfront cost of hiring in recruitment, training, onboarding and lost time, with far less protection than they realise.
The False Sense of Security Around Probation
In many businesses, the thinking is the same:
“If they’re on probation, we can just let them go if it doesn’t work out.”
That belief is common and wrong.
Probation is a contractual arrangement, not a legal shield. It may allow for shorter notice and set review points, but it does not and shouldn't take away employment rights.
From day one, employees are protected against:
- Discrimination
- Whistleblowing dismissal
- Pregnancy or family-related dismissal
- Unlawful pay deductions
- Breach of contract
Dismiss someone during probation for the wrong reason, follow a poor process, or fail to pay them correctly, and you can still end up facing a tribunal, no matter how long they’ve worked for you.
What Probationary Periods Actually Do
Used properly, probation can be useful. It helps set expectations and gives structure to early employment.
A typical probation period includes:
- Shorter notice periods
- Regular performance check-ins
- The option to extend probation if needed
- Written records of progress and concerns
What it doesn’t do is remove the need for fairness.
Even during probation, employers must:
- Explain what isn’t working
- Give the employee a chance to improve
- Keep records of concerns
- Follow a reasonable process before dismissal
Skip these steps, and you leave yourself open to claims, even if the employee has only been with you a few weeks.
The Real Risk: All the Cost, Little Protection
Hiring is expensive, long before you know if someone will work out.
You pay for:
- Advertising, recruiters, and interview time
- HR admin, IT setup, and induction
- Training, shadowing, and management support
- Reduced output while the new hire gets up to speed
Often, new starters cost more than they produce for several months while they're getting up to speed in the business and role.
If the hire fails, that money is gone. There is no refund. And probation doesn’t protect you from the loss.
Until now, the two-year unfair dismissal qualifying period gave employers some breathing space, but that cushion is disappearing.
How the Six-Month Rule Changes the Use of Probationary Periods
From 1 January 2027, employees hired from July 2026 will gain unfair dismissal protection after just six months.
This has major consequences.
- Most probation periods last three to six months, meaning protection starts almost immediately after probation ends
- Employers will have far less time to assess performance safely
- Dismissal processes will need to start much earlier
- Compensation limits are expected to be removed, increasing financial risk
For businesses used to a two-year window, this is a big shift.
Common Misunderstandings About Probation
Some common mistakes that increase risk:
- Calling someone a “probationer” — labels don’t remove rights
- Extending probation repeatedly — this looks unfair and indecisive
- Using vague reasons like “not a good fit” — these won’t stand up if challenged
- Assuming short service means low risk — discrimination and whistleblowing claims have no minimum service
How to Reduce Risk Without Relying on Probation
If probation isn’t the answer, what is?
Hire more carefully
Better interviews, proper assessments, and thorough reference checks reduce the chance of a bad hire in the first place.
Be clear from day one
Spell out what good performance looks like and how it will be measured.
Raise concerns early
Don’t wait until the end of probation. Address issues as soon as they appear.
Write everything down
Keep records of feedback, support given, and progress made. This matters if decisions are later challenged.
Act when it’s clearly not working
Dragging things out costs time and money. If someone isn’t meeting standards despite support, deal with it properly and promptly.
The Reality for Small Businesses
Large organisations can absorb hiring mistakes. Small businesses usually can’t.
One poor hire can:
- Drain management time
- Damage team morale
- Disrupt clients
- Put real pressure on cash flow
Smaller employers also tend to have fewer HR resources and less experience managing dismissal risk, yet the new rules affect them the most.
What Happens When Dismissals During Probationary Periods Go Wrong
Getting dismissal wrong during probation can lead to:
- Tribunal claims and legal costs
- Damage to reputation and hiring ability
- Months of management distraction
- Significant compensation awards
The idea of “just letting someone go” is far riskier than it used to be.
Rethinking Probationary Periods Under the New Employment Rules
The move to six-month protection means employers need to rethink hiring:
- Take more time before making offers
- Use structured onboarding and regular reviews
- Address performance issues early
- Get professional HR advice when needed
The cost of getting this wrong is now higher than the cost of getting help.
The Bottom Line
Probation periods were never the safety net many employers believed. From 2027, they will offer even less protection.
Hiring risk starts the moment you make an offer. The answer isn’t tighter probation wording, it’s better hiring decisions, clearer expectations, and stronger processes.
The real question isn’t whether probation protects you; It’s whether you’re doing the things that do.
Need support navigating probation and hiring risk under the new rules?
Through outsourcing HR, The HR Doctor helps businesses put practical, lawful processes in place, from recruitment through to probation and dismissal.
Get in touch for clear, practical advice that protects your business while you grow your team.