Recruitment and Probation Changes Pt 1

From January 2027, one of the biggest employment law changes affecting equestrian employers is expected to come into force.

But these future changes will affect staff you employ NOW.

In this essential two-part series, the legal experts at HCR Law explain the changes, why you need to act now, and how updating and refining your recruitment process can help reduce your financial risk.

Part 1: Review your recruitment and probation practices

From January 2027 employees will be able to bring an ordinary unfair dismissal claim after six months' continuous service, rather than the current two-year qualifying period.

At the same time, the Government is abolishing the current cap on unfair dismissal compensation (currently the lower of 52 weeks’ gross pay or £123, 543).

This will further increase the financial risk of getting recruitment and dismissal decisions wrong.

Why employers need to act now

Importantly, there are no transitional provisions: any employee who has already reached, or will reach, six months’ service by 1 January 2027 will benefit from the change immediately.

This means it is essential to review recruitment and probation practices now, rather than waiting until closer to the change.

For employers, this means there will be significantly less time to assess whether a new recruit is suitable for the role before they gain unfair dismissal protection.

Making the right recruitment decisions and managing probation effectively will therefore become more important than ever.

Recruit right from the start

Recruiting the wrong person can be costly. Poor performance, attendance issues or an unsuitable attitude can impact horse welfare, customer service, team morale and productivity.

With less time available to identify and address problems, employers should ensure their recruitment process gives them the best possible chance of selecting the right candidate.

A structured interview is one of the most effective ways to do this.

Asking every candidate relevant, consistent questions helps employers make objective recruitment decisions and identify the applicant who is the best fit for the role.

The EEA's Interview Creator makes this easy. It allows employers to build bespoke interviews using professionally written questions tailored to the vacancy, helping ensure interviews are consistent, thorough and legally compliant.

Review your probation periods

Many equestrian employers currently use six-month probationary periods.

However, once the new rules take effect, this will not provide enough time to properly assess a new employee before they qualify for ordinary unfair dismissal protection.

Employers should consider whether a shorter probation period would be more appropriate.

Many employers are now moving towards probation periods of around three to four months, with a discretionary extension of up to one month. This leaves sufficient margin before the six-month threshold is reached.

This provides sufficient time to monitor performance, hold review meetings and, where necessary, make decisions before the employee reaches six months' service.

Leaving a probation review until the end of a six-month period could mean an employee can bring an ordinary unfair dismissal claim, if dismissed.

No legal definition

It's important to remember that there is no legal definition of a probationary period.

A probationary period is simply a contractual tool that allows employers to assess whether someone is suitable for the role while providing appropriate support, training and feedback. It should never be viewed as a period where an employee has no legal rights.

Employees are entitled to statutory employment rights from their first day of employment, including paid annual leave, National Minimum Wage, Statutory Sick Pay (where eligible) and protection from unlawful discrimination.

Do you need legal support?

The employment process doesn’t always run smoothly. The EEA provides advice and support to our members on everyday HR and employment matters but for more serious issues the team at HCR Law is here to help.

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