Managers guide to dismissing an employee with less than two years service

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A practical manager's guide to deciding whether to dismiss an employee with less than two years' service without automatically entering a lengthy formal process. Covers the commercial decision, key legal risks, notice requirements and when to involve HR.

Use this guide to:

  • Decide whether dismissal is the right business decision.
  • Identify legal or contractual risks before taking action.
  • Avoid unnecessary formal meetings and procedural steps in straightforward cases.
  • Understand when a more formal process may be appropriate.
  • Check notice, final pay and written confirmation requirements.
  • Know when to pause and seek HR or legal advice.
Managers guide to dismissing an employee with less than two years service
2026 Reviewed
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What's included in this guide?

This guide brings together the key information, considerations and practical guidance you need to understand the subject, make informed decisions and take an appropriate and consistent approach. Preview the document below.

  • A straightforward approach to assessing whether dismissal is the right commercial decision.
  • Guidance on identifying discrimination, automatically unfair dismissal and other legal risks.
  • Advice on when a direct approach may be appropriate and when to pause.
  • Practical guidance on contractual notice, statutory notice and payment in lieu of notice.
  • Advice on gross misconduct, written confirmation and appeals.
  • A five-step implementation guide with suggested responsibilities and timescales.
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Managers guide to dismissing an employee with less than two years service

Purpose of this guide

This guide is designed to help managers make a commercially sound decision about whether to dismiss an employee with less than two years' service, without automatically committing the business to a lengthy formal process.

In a straightforward case, it may be possible to make and communicate a dismissal decision directly, provided the reason is lawful, contractual obligations are met and there are no circumstances requiring a more formal approach. The aim is to use a proportionate process, not to bypass legal protections or ignore relevant facts.

Stage 1: Decide whether dismissal is the right business decision

Start with the underlying business problem. Why is the employment relationship not working, and what is the impact on the team, customers, production, service or wider business?

Consider whether the problem is significant enough to justify dismissal, whether it is likely to improve, and what retaining the employee would mean in practice. Balance this against the cost and disruption of dismissal, recruitment, training and bringing in a replacement.

The objective is to reach a clear decision based on the actual

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£12.99
Specifications
Access 12 months, with updates
Length 3 pages • 895 words
Jurisdiction England, Wales, Scotland
Based on UK law, ACAS guidance
Last update 12/10/2026
Update reason Terminology update.
Next review 12/04/2027
Delivery & Format Instant digital delivery, .doc · .pdf · .txt · email

What is a managers guide to dismissing an employee with less than two years service?

Managers guide to dismissing an employee with less than two years service preview

Dismissing an employee with less than two years' service can sometimes be more straightforward than dismissing a longer-serving employee, but it is not automatically risk-free. Managers still need to understand why the employment relationship is not working, make a sound business decision and check whether any legal, contractual or policy requirements affect the proposed dismissal.

This guide is intended to help managers take a proportionate approach. Rather than defaulting to a formal disciplinary or capability procedure, it explains how to assess the situation, identify warning signs and decide whether a direct dismissal route is appropriate.

Start with the business decision

Consider the impact of retaining the employee, the seriousness of the issue, the likelihood of improvement and the cost and disruption associated with dismissal and recruitment. The aim is to make a reasoned decision that can be explained, not to complete a lengthy checklist for its own sake.

Know when not to take the direct route

Short service does not remove protection against discrimination or certain automatically unfair reasons for dismissal. A complaint about health and safety, whistleblowing, pregnancy, family leave or the exercise of an employment right may change the risk assessment. If the facts are unclear or a protected issue may be involved, consult HR before taking action.

Keep the process proportionate

Where the reason is lawful, the facts are clear and there is no contractual or policy requirement for a formal process, it may be possible to communicate the decision directly and confirm it in writing. Do not automatically arrange a formal hearing, but do not bypass a process that is required or needed to deal properly with the circumstances.

Get the practical details right

Before confirming dismissal, check notice, PILON, holiday pay, final salary and the termination date. Explain the decision professionally, provide written confirmation and check whether an appeal is required by contract or policy. The qualifying period for ordinary unfair dismissal protection in Great Britain is due to change on 1 January 2027, so managers should check the rules applicable on the relevant termination date.

Best in class example

A warehouse employee has been employed for four months and is repeatedly failing to meet basic role requirements despite clear expectations. The manager is spending significant time correcting errors, and the problems are affecting the rest of the team. The manager considers whether retaining the employee is commercially justified or whether recruitment and training of a replacement would be a better option.

Before deciding, the manager checks the facts and speaks to HR. There is no indication that the issue relates to a protected characteristic, a protected complaint or another automatically unfair reason. The contract and relevant policies are checked, and there is no requirement to follow a formal capability procedure in these circumstances.

The manager decides that dismissal is the appropriate business decision and arranges a conversation to communicate it, explaining the reason professionally. The manager checks the contractual notice period and whether PILON is permitted, and confirms the final working arrangements and any outstanding holiday pay.

The manager sends written confirmation setting out the reason, termination date, notice or PILON arrangements, final pay and any applicable appeal route. The decision and key checks are recorded. If a protected issue, disputed facts or a contractual requirement had emerged, the manager would have paused and agreed a different approach with HR.

The wider HR process

Related HR resources and workflow

Explore the HR resources that may be relevant before and / or after using the Managers guide to dismissing an employee with less than two years service, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.

This
Managers guide to dismissing an employee with less than two years service
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Scripts
Dismissal confirmation meeting script

Our Dismissal Confirmation Meeting Script template provides a structured approach, maintaining sensitivity and clarity while discussing the reasons for dismissal with the employee.

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5 Steps to Success

Use the following as a practical framework for assessing the situation, considering the available options and deciding on the appropriate course of action. Follow each step in sequence to support consistent, informed and appropriate decision-making.

Step Description Responsibility Timing (Days from Issue)
1 Identify the problem, the impact on the business, the prospects of improvement and the likely cost and disruption of retaining or replacing the employee. Line Manager Day -2 to Day -1, before any dismissal decision is communicated.
2 Confirm service and termination dates, the real reason for dismissal, any protected circumstances, contractual procedures and notice requirements. Line Manager and HR Day -1, before deciding the route to follow.
3 Where the case is straightforward, confirm whether a direct and proportionate approach is appropriate. Line Manager and HR where required Day 0, before communicating the decision or starting a formal process.
4 Explain the decision clearly, confirm the reason and discuss the termination date, notice arrangements and immediate practical steps. Follow any applicable formal procedure. Line Manager, with HR support where appropriate Day 0 or following completion of any required process.
5 Issue written confirmation, process final salary and holiday pay, arrange return of company property and confirm any applicable appeal arrangements. Line Manager and HR/Payroll Day 0 to Day +3, with payments and contractual obligations completed within the applicable deadlines.
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Common mistakes

Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.

  • Assuming that less than two years' service means an employee can be dismissed for any reason without legal risk.
  • Starting a formal disciplinary or capability procedure automatically, without first considering whether it is required or appropriate.
  • Taking a direct route without checking for discrimination, automatically unfair dismissal risks, protected complaints or contractual requirements.
  • Failing to check contractual notice, PILON provisions, holiday pay and the effective termination date.
  • Dismissing for gross misconduct without a sound basis or without properly addressing the facts and applicable procedural requirements.
  • Failing to explain the decision clearly, confirm it in writing or check any applicable appeal arrangements.
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HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

This guide reflects the position in Great Britain as at October 2026. Short service may limit access to an ordinary unfair dismissal claim, but it does not remove all employment rights. Managers should check the law, the employment contract and the organisation's policies before acting. Northern Ireland has a separate employment law framework.

Ordinary unfair dismissal and short service

For dismissals with an effective date of termination before 1 January 2027, the usual qualifying period for an ordinary unfair dismissal claim in Great Britain remains two years, subject to exceptions. Under the Employment Rights Act 2025, the qualifying period is due to reduce to six months from 1 January 2027. Transitional rules mean the effective termination date is important. Do not rely on a simple calculation of the employee's service or assume that PILON avoids a qualifying threshold. See GOV.UK: https://www.gov.uk/dismiss-staff/eligibility-to-claim-unfair-dismissal and the Employment Rights Act 2025: https://www.legislation.gov.uk/ukpga/2025/36/section/25

Discrimination and automatically unfair dismissal

Employees do not need two years' service to bring certain claims, including discrimination under the Equality Act 2010 and claims relating to automatically unfair reasons for dismissal. Protected matters can include pregnancy and maternity, disability, other protected characteristics, whistleblowing, health and safety activities, trade union activity, family-related rights and asserting certain statutory rights. Managers should pause and seek HR advice if the proposed dismissal may be connected with such a matter. See ACAS: https://www.acas.org.uk/dismissals/unfair-dismissal and GOV.UK: https://www.gov.uk/dismiss-staff/unfair-dismissals

Contractual rights and notice

Employees may bring a wrongful dismissal claim if the employer breaches the employment contract, including by failing to provide the correct notice or notice pay. Employees with at least one month's service are generally entitled to at least one week's statutory notice, subject to exceptions; a longer contractual notice period may apply. PILON should only be used where the contract or another lawful arrangement permits it. Final pay should be checked carefully, including accrued holiday pay and other sums due. See ACAS: https://www.acas.org.uk/notice-periods/notice-when-being-dismissed-or-made-redundant and https://www.acas.org.uk/final-pay-when-someone-leaves-a-job

Formal procedures and accompaniment

A direct approach may be appropriate in a straightforward short-service case where no contractual or policy requirement calls for a formal process. However, where the employer conducts a qualifying disciplinary or grievance hearing, the statutory right to be accompanied may apply. The employment contract and internal policies may also require particular steps. If misconduct or capability is disputed, or the facts need investigation, HR should advise whether a formal procedure is appropriate. See the ACAS Code of Practice: https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures

Gross misconduct and dismissal without notice

Short service alone does not justify summary dismissal. If the employer intends to dismiss for gross misconduct without notice, there should be a sound basis for treating the conduct as gross misconduct and the employer should take particular care to establish the relevant facts and follow any applicable contractual or policy requirements. A failure to provide notice when it is due can create a wrongful dismissal risk. See ACAS: https://www.acas.org.uk/dismissals/dismissals-with-and-without-notice

Written confirmation and appeals

It is good practice to confirm dismissal in writing, including the reason, termination date, notice or PILON arrangements, final pay and any applicable appeal route. A right of appeal may arise under the contract or policy, and an appeal can be a useful safeguard where the circumstances warrant it. Do not assume an appeal is always legally required or that it can always be omitted. Seek HR advice where the position is unclear. See ACAS: https://www.acas.org.uk/dismissals/unfair-dismissal

Important: This guide provides general management guidance, not a substitute for case-specific legal advice. Any concern about discrimination, protected activity, contractual obligations, gross misconduct or a potential claim should be referred to HR before dismissal is confirmed.

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FAQs

Can I dismiss an employee with less than two years' service without a formal disciplinary meeting?

In some straightforward cases, yes. There is no universal requirement to hold a formal disciplinary meeting before every short-service dismissal. First check the reason for dismissal, the employment contract, relevant policies and any potential legal risks. If a formal procedure is required or the circumstances warrant one, do not bypass it simply to save time. Seek HR advice if unsure.

Can I dismiss someone simply because they are not right for the role?

Potentially, where there is a genuine and lawful reason, such as a poor fit with the role or unsatisfactory performance. The decision should be based on the actual circumstances and not on a protected characteristic, protected activity or another unlawful reason. Check the contract and policies before deciding how to proceed.

Do I need to give notice?

Usually, yes. Check the contract and statutory notice requirements before confirming dismissal. Employees with at least one month's service are generally entitled to at least one week's statutory notice, unless an exception applies. A contractual notice period may be longer. Payment in lieu of notice should only be used where permitted by the contract or another lawful arrangement. Summary dismissal for gross misconduct requires a sound basis.

Does the two-year rule still apply?

As at October 2026, the usual qualifying period for an ordinary unfair dismissal claim in Great Britain remains two years where the effective termination date falls before 1 January 2027, subject to exceptions. The qualifying period is due to reduce to six months from 1 January 2027, with transitional rules applying. Discrimination and certain automatically unfair dismissal protections apply regardless of length of service. Northern Ireland has different rules. Check the current law before acting.

Why use HRDocBox?

HRDocBox provides practical HR resources to help managers and HR professionals make informed decisions and apply workplace processes consistently. This guide focuses on the commercial decision, the legal risks and the practical steps needed to handle a short-service dismissal proportionately, rather than defaulting to an unnecessarily lengthy procedure.

Why use HRDocBox rather than asking AI?

This guide provides a structured, reusable starting point for managers, with references to ACAS and official UK guidance. AI can help explore a situation, but its output may omit relevant facts or misstate the law. Always check the current legal position, your organisation's contract and policies, and seek HR or legal advice where the circumstances create uncertainty or risk.

How this content is developed and reviewed

The Managers guide to dismissing an employee with less than two years service is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing dismissal HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

HRDocBox has been creating practical UK HR documents since 2009.

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"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

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