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View full libraryA 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.
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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.
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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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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
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