From 1st July, the qualifying period for unfair dismissal claims will be reduced from two years to just six months for all new employees starting a job on or after that date. In practical terms, this means your window to address underperformance in new hires is about to get much shorter – and this change will impact businesses across every sector.
So, what should you be doing now to prepare?
1. Review your probationary periods
Ensure probationary clauses in employment contracts for new starters are capped at a maximum of five months – giving you a buffer before the new six-month threshold kicks in.
2. Train line managers to act early
Performance issues must be flagged and formally logged well before the six-month mark. Waiting too long could leave you exposed.
3. Strengthen your record-keeping
Written notes of conversations, meetings, and performance reviews have always been important – but now they’re essential. Why? Because employees dismissed at or after six months will gain a new legal right to receive written reasons for their dismissal, and you’ll need clear evidence to back up your decisions.
How Marsland Nash Payroll can support you through these changes
While we are not HR or employment law advisers, we understand that these legislative shifts place new pressures on your payroll and reporting obligations. As your dedicated payroll partner, we ensure that the PAYE and RTI side of your business remains fully compliant, accurate, and stress-free.
Marsland Nash Payroll offer a fully mangaed, proactive payroll service. We do more than process payroll – we partner with you. Our software is fully RTI compliant and HMRC approved, and we are regulated by the Chartered Institute of Taxation. We take the time to understand your workforce, reduce your admin burden, and give you complete peace of mind that your payroll is running smoothly, so you can focus on the people-management decisions that sit with you.
Visit us at:
Vantage Point House, Silverhills Road, Decoy Industrial Estate, Newton Abbot, TQ12 5ND
Need expert guidance on HR processes, contracts, or capability procedures?
We highly recommend WBW Solicitors for all your employment law requirements. They are a well-established firm with offices in Devon, Somerset, and Cornwall, offering an Employment Law Package that includes unlimited quality advice, tailor-made documents, and affordable monthly payments.
For more information, contact James Edmonds at WBW Solicitors – or follow the link to their page from our website – https://mnpay.co.uk/employment-law-specialists/
📞 Contact Marsland Nash Payroll today to keep your payroll compliant while you prepare for July’s changes.
