How to operate now if you're hiring from July

There’s a big employment law change being enforced on 1 January 2027 that will affect every hire you make on and after 1 July this year.

Anyone you hire on or after 1 July 2026 could gain the right to claim unfair dismissal after just six months of service (down from two years).

What this actually changes

You no longer have two years as a buffer and the risk of dismissing someone and getting sued for unfair dismissal has dramatically increased. 

If something goes wrong early, you need to be able to show:

• What expectations were set 

• What concerns were raised 

• What support was given 

• And how the situation was handled 

Hiring now carries more weight

Every hire you make from July is a potential claim within six months if things aren’t handled properly.

That means the way you hire needs to change.

• Structured interviews

• Consistent questions

• Clear job requirements

• Proper references followed up

Onboarding is your first line of defence

If your onboarding is informal, that’s where problems start.

From day one, new starters need:

• Clear written expectations 

• A structured induction 

• Evidence it actually happened 

Because if things escalate later, the first question is always: What were they told and how do you know? If you can’t answer that, you’re exposed.

Performance management starts immediately

Most problems aren’t surprises.

They’re things that were noticed early and left too long.

If you wait until month five to raise concerns, you’ll have:

• No paper trail 

• No record of feedback 

• No evidence of support 

That’s a very difficult position to defend.

Regular one-to-ones. Short written notes. Clear, early feedback.

That’s what protects you.

You can still dismiss within six months

But you can’t do it informally. A quick “it’s not working out” with nothing documented won’t hold up. If you’re ending employment, you need:

• Documented concerns 

• Evidence of support 

• A fair process 

That applies even in the early months.

Your managers are where the risk sits

You can have strong contracts and policies.

But if your managers:

• Avoid difficult conversations 

• Don’t document issues 

• Delay raising concerns 

That’s where problems come from. The risk isn’t your documents. It’s how your business operates day to day.

The reality

If you’re hiring from July, the clock is already running.

By the time these rules are enforced in January 2027, some of your employees will already be within scope.

So, this isn’t about preparing for the future.

It’s about whether what you’re doing today would stand up in six months.

If you’re not sure where you stand

That’s the place to start.

We can look at:

• How you’re hiring 

• How you’re onboarding 

• How performance is managed early 

• And whether it would hold up if challenged.

If not, it’s much easier to fix now than when there’s a claim attached to it.

Get in touch for a confidential chat today.