A Key Employment Law Change for Employers: What Happens from 1st July 2026

While there are no legislative provisions coming into force during the summer period itself, the timing of new hires becomes highly significant.

Any employees hired from 1 July 2026 will become eligible for unfair dismissal protection after six months’ continuous service, rather than the current two-year qualifying period.

This change forms part of wider reforms taking effect in January 2027, but its practical impact begins much earlier for those joining from July onwards.

With the 1 July milestone approaching, employers should begin reviewing their current processes to ensure they are fit for purpose.

Key steps include:

• Reassessing probation periods – many employers may wish to shorten these (for example, to three months) to allow more flexibility
• Strengthening onboarding and early performance monitoring – ensuring concerns are identified and addressed promptly
• Improving documentation – keeping clear records of performance, feedback and any issues raised
• Reviewing recruitment processes – placing greater emphasis on getting hiring decisions right first time
• Training managers – ensuring those responsible for managing new hires understand the shorter timeframe and associated risks

Taking action now will help minimise risk as these changes begin to take effect in practice.

The 1st July milestone is just one element of a broader package of Employment Law reforms under the ERA 2025.

Further significant changes are due to come into force later in 2026 and in January 2027, including the formal reduction of the unfair dismissal qualifying period and wider reforms affecting harassment, redundancy processes and workplace protections.

To help businesses navigate what is changing, and when, we have created a practical Guide for Employers.

The guide sets out:

• What’s changed and what’s still to come
• Where the risks are increasing for employers
• The key actions to take now
• All explained without legalese

Download our handbook below to ensure you are prepared.