⚠️ Employment Rights — UK 2026

Continuous Service UK: Your New Unfair Dismissal Rights (2026–2027)

From 1 January 2027, the unfair dismissal qualifying period drops from two years to six months. If you started a job on or after 1 July 2026, your clock is already running — and you don't need to do anything to activate the protection.

Updated June 2026

Not legal advice. This page is general information. If your situation is serious or time-sensitive, contact ACAS or a qualified employment solicitor.
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What Is Continuous Service?

Continuous service is the legal clock that starts running from your very first day of work. It doesn't matter whether you're full-time, part-time, or on a zero-hours contract — the clock starts on day one.

It's governed by the Employment Rights Act 1996, and it runs quietly in the background whether your employer acknowledges it or not. The length of your continuous service determines when certain employment rights kick in — most importantly, the right to claim unfair dismissal.

Law: Employment Rights Act 1996, Part XIV — sets out how continuous service is calculated, what counts towards it, and what breaks it.

What Does NOT Break Continuous Service

Most employees assume that any absence resets the clock. It doesn't. The following do not break continuous service:

✅ These keep your clock running

What DOES Break Continuous Service

⚠️ These reset the clock

The Notice Period Rule Your Employer Won't Tell You

If you're within one week of hitting the qualifying threshold and your employer dismisses you without giving you your legal statutory notice period, the law allows you to add that notice time onto your termination date. So if you're at five months and three weeks and they fire you without notice — you may still be able to cross the six-month line.

The New Law: What Changes on 1 January 2027

Under the Employment Rights Act 2025, the qualifying period for ordinary unfair dismissal drops from two years to six months. From that date, you only need six months of continuous service before you can bring a claim if you're unfairly dismissed.

Current rule (until 31 December 2026): Two years' continuous service required to bring an ordinary unfair dismissal claim.
New rule (from 1 January 2027): Six months' continuous service required. Applies to dismissals on or after 1 January 2027.

The law is retrospective — it doesn't just protect people who start new jobs after January 2027. Anyone with at least six months of continuous service on 1 January 2027 gets the protection immediately from that date.

Are You Already Protected?

Why Your Probation Period Is Legally Irrelevant

Your employer may put you on a six-month — or even a one-year — probation period. They may tell you that you don't have full employment rights until probation is passed. That is not how the law works.

Probation is a performance review process written into your contract. It has no legal power to delay when your employment rights begin. Your continuous service clock runs from day one, regardless of what your contract says about probation.

From 1 January 2027, once you have six months of continuous service, you have the right to claim unfair dismissal — full stop. If your employer tries to extend your probation by a few weeks specifically to push you past a key decision point, document it. Get the emails. That kind of timing is exactly what employment tribunals examine.

The Compensation Cap Is Also Being Removed

There is a second change landing on the same date that receives far less attention.

Currently, if you win an unfair dismissal claim at tribunal, your compensation is capped at either £118,000 or 52 weeks' gross pay — whichever is lower. From 1 January 2027, that cap is removed entirely. A tribunal will be able to award whatever it considers fair based on your actual financial losses, with no ceiling.

For most employees on average wages, the practical difference won't be dramatic in the short term — the median unfair dismissal award in recent years has been around £6,700. But for higher earners and those whose career prospects are seriously damaged, the change is significant. It also changes how employers calculate settlement offers, since they can no longer cap their exposure at a known maximum figure.

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Day-One Rights — No Qualifying Period Required

Some dismissals are automatically unfair from your very first day of work, regardless of how long you've been employed. These include dismissals related to:

If any of these apply, neither the two-year rule nor the new six-month rule affects your ability to claim — you're protected from day one.

Frequently Asked Questions

Does the new six-month rule apply to me if I started my job in 2025?

Yes — as long as you are still employed on 1 January 2027 and have at least six months of continuous service by that date, you benefit from the new rule automatically.

My employer says I'm still on probation. Can they still dismiss me without consequence?

Probation has no legal meaning when it comes to your statutory rights. Once you reach the qualifying period — currently two years, and from January 2027, six months — your employer must have a fair reason to dismiss you and must follow a fair process. Your contract's probation clause does not override this.

I was dismissed just before hitting two years. Do I have any options?

Possibly. If your employer failed to give you your statutory minimum notice period, the law may allow you to add that notice period on top of your termination date, which could bring you over the threshold. It's also worth checking whether your dismissal falls into any day-one category (whistleblowing, pregnancy, etc.). Contact ACAS for early conciliation before assuming you have no claim.

What is TUPE and how does it affect my continuous service?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. If the business you work for is sold, transferred or merged with another organisation, your employment and your continuous service automatically transfer to the new employer. You do not start again from zero — all your prior service counts.

Will the six-month qualifying period apply to zero-hours contracts?

Yes. Continuous service applies regardless of contract type — full-time, part-time, and zero-hours contracts all start the clock from day one.