Dismissing an employee with less than two years’ continuous service can seem straightforward for many UK employers, HR managers, and business owners. Because ordinary unfair dismissal rights do not apply until after two years’ service, these cases are often perceived as low-risk. However, “short-service” dismissals can still carry significant exposure for employers. Automatic unfair dismissal, breach of contract, or discrimination claims can all arise from day one.
Understanding where the risks lie and how to apply a fair process is crucial to avoiding costly mistakes.
At Kingfisher, our HR and employment law consultants help businesses manage short-service dismissals safely and effectively. We provide clear, practical guidance that allows employers to act confidently, protect their organisation, and ensure every step aligns with legal requirements and best practice.
Understanding “Short Service” Dismissal
What “Short Service” Means in UK Employment Law
In UK employment law, “short service” refers to employees with less than two years’ continuous service. The two-year mark is important because it determines whether an employee qualifies for ordinary unfair dismissal protection under the Employment Rights Act 1996.
This qualifying period often leads employers to believe that dismissals before the two-year point are risk-free. However, this is a misconception. Short-service employees still have several key legal rights that apply from day one.
These day-one protections cover discrimination, automatic unfair dismissal, and contractual notice rights.
Employers should therefore approach every short-service dismissal with care, ensuring decisions are well-documented, and justified.
Rights and Risks for Under-Two-Year Employees
Employees with under two years’ service cannot normally claim ordinary unfair dismissal, but exceptions exist. Employers remain exposed to several types of claims that apply from the first day of employment:
- Automatic unfair dismissal – for example, dismissing an employee for whistle-blowing, raising health and safety concerns, asserting statutory rights, or taking maternity leave.
- Discrimination – employees are protected from discrimination on grounds such as age, disability, race, religion, marriage , pregnancy/maternity, gender reassignment, sexual orientation or sex from day one under the Equality Act 2010.
- Wrongful dismissal – occurs if an employer breaches the employment contract, such as failing to give statutory or contractual notice.
Employers must also ensure any dismissal process is handled fairly and consistently. Procedural failings or inconsistency in treatment can increase tribunal exposure, even if the employee’s short service technically limits their rights.
A Step‑by‑Step Process for Dismissing Short‑Service Employees
Pre‑Dismissal Considerations
Before taking action, confirm the employee’s length of service and check their contract and company policies for any enhanced rights or procedural requirements. Review whether the dismissal reason could fall within an automatic unfair or discriminatory category (e.g., whistle-blowing, pregnancy, or health and safety concerns).
Gather evidence of performance or conduct issues and maintain documentation such as review notes, warnings, and correspondence. These records will support any decision made and protect against allegations of unfair treatment.
The Dismissal Letter & Notice
If dismissal is the final decision, issue a clear, written dismissal letter that includes:
- The reason for dismissal
- Termination date
- Notice period or payment in lieu
- Return of company property
Even short-service employees are entitled to statutory minimum notice – one week for those with at least one month’s service. Ensure payroll and final pay (including accrued holiday) are correctly processed.
Post‑Dismissal Follow‑Up
After dismissal, ensure all administrative steps are completed: return of company property, system access removal, and final payroll adjustments. Where appropriate, provide a factual reference.
Conduct a short internal review to identify any lessons learned from the case. This helps improve probation management, recruitment, and communication processes.
Using Probation Periods Effectively for Short‑Service Dismissals
A well-managed probationary period gives employers the opportunity to evaluate an employee’s suitability, capability, and cultural fit before full employment rights apply. Typically lasting between three and six months, it provides a defined period for assessing performance.
However, probation is not a “free pass” to dismiss without process. Employers should still act reasonably, follow fair procedures, and document decisions.
Good practice includes:
- Setting performance and conduct objectives at the start.
- Holding regular reviews (e.g., at one, three, and six months).
- Offering feedback and support to aid improvement.
- Conducting a formal review meeting at the end of probation.
If dismissal during or at the end of probation is necessary, ensure a short but fair process is followed: an investigation meeting, written confirmation, and appropriate notice or pay in lieu.
Exploring Alternatives to Dismissal
Before proceeding with termination of employment, even for a short-service employee, it is wise to consider whether alternatives might achieve a satisfactory outcome for both employer and employee. A properly documented exploration of alternatives can also help demonstrate reasonableness if the decision is later challenged.
Common alternatives to dismissal include:
- Informal intervention or counselling to address performance or conduct issues at an early stage.
- Formal warning(s) or an extension of the probationary period with clear improvement targets and support/training.
- Redeployment into a different role, or adjustment of duties/hours (especially where capability or fit is the issue).
- A settlement agreement or mutually agreed termination, where dismissal may be avoided but separation is still achieved.
- Adjusting work conditions or providing additional training/resources to address underlying performance or misconduct issues rather than immediate termination.
Practical guidance when considering alternatives:
- Ensure you give due consideration and keep records of the alternatives reviewed, rejected or accepted. This shows you have acted reasonably and in good faith.
- Confirm whether the contract or company policy includes any clause about redeployment or probation extension and follow it accordingly.
- Remember that even short-service employees retain day-one rights: if the reason for dismissal is in a protected category, considering alternatives does not remove the obligation to act fairly or lawfully.
- If no suitable alternative emerges and dismissal remains the only viable route, you should proceed using the fair process outlined earlier – and reference your consideration of alternatives in writing to support your decision-making.
At Kingfisher, we assist employers to evaluate these alternatives, support decision-making and ensure the selected course of action is compliant, documented and defensible.
How Kingfisher Professional Services Can Help
At Kingfisher, we help UK employers manage short-service dismissals confidently and lawfully. Our team of HR and employment law consultants provides bespoke support at every stage of the process.
Our services include:
- Reviewing contracts and probation clauses to ensure they are fit for purpose.
- Advising on performance, capability, and misconduct issues before dismissal action is taken.
- Drafting disciplinary and capability procedures tailored to under-two-year employees.
- Providing template letters, documentation and manager training to maintain compliance.
- Offering outsourced HR support and 24/7 employment-law advice for urgent situations.
Partnering with Kingfisher gives you the confidence that your organisation handles short-service dismissals fairly, lawfully and in line with best practices.
Conclusion
Dismissing employees with less than two years’ service requires careful judgment. While ordinary unfair dismissal protection may not apply, employers must still comply with legal and contractual obligations.
Automatic unfair dismissal, discrimination, and wrongful dismissal risks can all arise from day one, meaning each decision must be made with care and fairness.
Following a documented, transparent process, including investigation, meeting, written outcome, and appropriate notice, protects the business while maintaining integrity and consistency.
Employers who partner with Kingfisher gain access to expert advice, practical documentation, and ongoing HR support to manage short-service dismissals effectively and confidently. who partner with Kingfisher gain access to expert advice, practical documentation, and ongoing HR support to manage short-service dismissals effectively and confidently.