Tuesday Blog (Legal Focus)

Employment Law 2026: Managing Short-Service Employees Fairly & Legally

Overview

In the UK, employees with less than two years’ continuous service generally do not have the right to claim ordinary unfair dismissal. However, this does not mean employers can act without risk.

At Consensus HR, we regularly support businesses who mistakenly believe short-service dismissals are “risk-free” — this is not the case.

Key Legal Considerations

Even under two years’ service, employees are still protected from:

• Discrimination under the Equality Act 2010
• Automatically unfair dismissal (e.g. whistleblowing, pregnancy, asserting statutory rights)
• Breach of contract or wrongful dismissal

Failing to follow a fair and reasonable process can still result in costly tribunal claims.

Best Practice Approach

We always recommend employers follow a fair and documented process, including:

• Clear communication of concerns
• Opportunity for the employee to respond
• Evidence-based decision making
• Written confirmation of outcome

This aligns with the ACAS Code of Practice on Disciplinary and Grievance Procedures, which, although not always legally required for short service, is considered best practice and strengthens your defence.

Why This Matters in 2026

With increasing tribunal awareness and evolving employment law, employers must:

• Be consistent in decision-making
• Avoid assumptions about “easy exits”
• Ensure documentation is robust

Remember: process protects your business.

How Consensus HR Supports You

As your outsourced HR partner, we:

• Provide real-time advice before action is taken
• Draft legally compliant letters and documentation
• Guide you through difficult conversations
• Reduce your risk of tribunal claims

👉 https://www.consensushr.com/hr-support-services-for-your-ccompany/

Comment from Matthew Chilcott – Owner, Consensus HR

“One of the biggest misconceptions we see is that employees under two years’ service can be dismissed without risk. In reality, employers must still follow a fair and reasonable process. Being proactive and consistent is key to protecting your business.”

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