Legislation Countdown…

Six Months to Prepare: Why Employers Should Review Their Hiring Process Now

As we move into July 2026, employers have reached an important milestone. While no new employment legislation comes into force on July 1st itself, it marks the start of the final six-month countdown before significant changes to UK employment rights take effect on January 1st 2027.

For organisations recruiting today, now is the time to ensure that hiring and people management processes are fit for purpose.

What Is Changing?

Under the forthcoming Employment Rights Act reforms, one of the most significant changes relates to unfair dismissal protection.

From 1 January 2027:

• The qualifying period for unfair dismissal claims will reduce from two years to six months.
• The current statutory compensation cap for unfair dismissal claims will be removed.

Together, these changes will increase the importance of making sound recruitment decisions from the outset and ensuring robust people management practices are in place throughout employment.

Why Does July 1st  Matter?

Although the law does not change on July 1st, the date is significant.

Anyone recruited from 1 July 2026 will have completed at least six months’ service when the new rules come into effect. Likewise, existing employees with more than six months’ service will immediately benefit from the revised qualifying period.

This gives employers a relatively short window to review and strengthen their employment practices before the reforms take effect.

Areas Employers Should Be Reviewing

With the new legislation approaching, organisations should consider whether their current processes are sufficiently robust.

Key areas include:

• Recruitment and selection processes
• Probation structures and review periods
• Performance management procedures
• Manager capability and training
• Documentation and record keeping
• Early intervention where performance concerns arise

The objective is not simply to reduce legal risk, but to ensure every new hire is given the best opportunity to succeed while enabling managers to make informed, well-documented decisions.

The Cost of a Bad Hire Is Increasing

Recruitment has always been about more than filling vacancies.

As the timeframe for assessing new employees shortens, organisations will have less opportunity to identify performance issues before statutory protections apply. This places greater emphasis on attracting the right candidates, carrying out thorough assessments and providing effective onboarding from day one.

Investing time in hiring well is likely to become considerably more valuable than managing the consequences of a poor recruitment decision later.

A Strategic Opportunity

While much of the discussion around employment law focuses on compliance, forward-thinking employers should see these changes as an opportunity to improve recruitment and people management practices.

Strong hiring processes, structured onboarding, clear expectations and effective performance management not only reduce organisational risk but also improve employee engagement and long-term retention.

Good recruitment has always mattered. From January 2027, it will matter even more.

At Val Wade Recruitment, we believe successful recruitment is about making informed hiring decisions that support both organisational performance and long-term employee success. By helping employers identify candidates who are the right fit from the outset, we aim to reduce the risk of costly mis-hires while supporting sustainable workforce growth.