Staff Can Claim Unfair Dismissal After 6 Months From January | Phoenix51
New employment law · starts 1 January 2027

From January, staff can claim unfair dismissal after just 6 months.Could you prove it was fair?

Right now, someone has to work for you for 2 years before they can claim you let them go unfairly. From 1 January 2027, that drops to 6 months. Phoenix51 keeps a written record of every review, the feedback and the support you gave, so you can show your decisions were fair.

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The Co-operative BankCISIReachIFSMediaComRedgateIrisBytesOrbitionTP ICAPEssenceJuiceLicensing SchoolUnlocking Language
Sound familiar?

Your gut won't back you up when someone isn't working out.

Great CV. Great interview. Everyone liked them. Six months later it isn't working, and from January, 6 months is all it takes for them to be able to claim unfair dismissal. It's rarely bad luck. It's usually the process.

“

Someone isn't working out, and nothing's written down.

You've had the chats. You've offered the support. But there are no scores, no agreed standard and no notes. If it becomes a formal conversation, you're relying on memory.

“

We keep losing our best people.

You build them up, they grow, then they go somewhere that shows them a clearer path. And you're back to backfilling the role, again.

“

Our managers all do it differently.

Three managers. Three standards. Reviews that happen when someone remembers, and notes nobody can find. When it matters, the loudest opinion wins.

“

They looked great on paper.

A CV tells you what someone says they've done. It doesn't show you what they're capable of. With AI now writing CVs and helping candidates prepare interview answers, it's becoming harder than ever to see the real person behind the application.

Every person you lose costs you twice.Once in recruitment, onboarding and management time. Then again when you start over.
The new rule, in plain English

What's changing on 1 January 2027?

First, what is unfair dismissal?It's when someone you've let go says you didn't have a fair reason, or didn't follow a fair process. They can take you to an employment tribunal over it.
6 months

instead of 2 years

Right now, someone has to work for you for 2 years before they can claim unfair dismissal. From 1 January 2027, it's just 6 months.

No limit

on compensation

If a tribunal decides you let someone go unfairly, there's no longer a cap on how much you could be ordered to pay.

Records

are what count

To show a dismissal was fair, you'll need evidence: the standard you set, the reviews you held, and the feedback and support you gave.

A simple example

You hire someone in March 2027. By September, it isn't working out. Under the new rule, if you let them go, they can already claim unfair dismissal. Without records, it's your word against theirs.

Phoenix51 keeps those records for you.Every review, score, piece of feedback and bit of support you give, saved in one place. No software can promise a legal outcome, and we won't pretend otherwise. But you won't be relying on memory.

Source: Employment Rights Act 2025, section 25, for dismissals on or after 1 January 2027. General information, not legal advice.

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See how Phoenix51 works in a 30-minute walkthrough.

The way out

Stop relying on memory. Start keeping evidence.

Phoenix51 was developed by a business psychologist and recruitment experts with over 45 years of combined experience in hiring and building high-performing teams. We've put that expertise to work with businesses including IFS and Bytes, helping them identify the right talent and make confident hiring decisions.

You decide what good looks like for the role. Every candidate, and every person you review, is assessed against that same standard. Every score comes with notes. Then you compare people side by side and make a decision you can explain.

Define the standardSet the taskCapture the evidenceCompare and decide
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30 minutes. A live walkthrough. No hard sell.

Phoenix51 dashboard

It doesn't make the decision for you. It gives your judgement better evidence.

Your people make every call. Phoenix51 makes sure they're making it on the same standard.
Your existing team

Keep your best people. Get the best out of them.

Most of the value isn't in your next hire. It's in the people you already have. Every month you're reviewing them, developing them and deciding who's ready for more. Phoenix51 uses the same standard for all of it.

Keep your best talent.

Monthly reviews against clear competencies show everyone where they stand and how to grow. Your best people get a clear path, and a reason to stay.

Promote on evidence.

Promote on capability, not time served. Spot gaps early and put training where it's needed, before they turn into problems.

Have a record you can stand behind.

If someone isn't working out, you've got the standard they were held to, their scores, the feedback and the support you gave, all in one place. From January, you'll need that after 6 months, not 2 years.

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See how it works for reviews and development, not just hiring.

When you do hire

Four steps from “I think” to “I know”.

1

Decide what good looks like.

Start with 18 ready-made competencies and 10 interview questions for each, or upload your own values and framework. Edit anything. Build the stages your hiring actually needs.

A role in Phoenix51 broken into hiring stages and tasks
2

Let video do the first screen.

Send candidates a link to record answers to your questions in their own time. No chasing phone calls. And anyone who won't spend two minutes on a video has already told you something.

Scoring a recorded video interview in Phoenix51
3

Watch them do the job.

Build in a real task: a sales call, a presentation, a written exercise. Every interviewer scores on the same 0 to 5 scale and adds notes, so nobody's opinion floats free of evidence.

Scoring a practical task in Phoenix51
4

Compare and decide.

See every candidate side by side, by stage and by competency, making it easier to reach fair, evidence-based hiring decisions. Every candidate receives a personalised feedback report highlighting their strengths and areas for development against the role requirements, with other candidates' details and private notes kept confidential.

Phoenix51 selection table comparing candidates
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We'll walk you through all four steps, live.

Proof

Used by teams that can't afford to guess.

Before

CISI

Every manager ran interviews their own way. Some asked competency questions, others worked through the CV. HR couldn't compare candidates or give clear feedback, and interview notes weren't captured properly.

After Phoenix51

One standard, clear records

Every manager now scores against the same competencies on a simple scale. HR has clear records of interview outcomes and assessment evidence, and candidates get timely, evidence-based feedback. One early hire through the new process was promoted within about a year.

CISI's HR team says working with Phoenix51 doesn't feel like dealing with a faceless software provider.

3,500+

graduate applications per intake screened with Phoenix51 solo video interviews at The Co-operative Bank, on the platform for over three years.

100+

people assessed or hired through Phoenix51 at Iris Software, starting with entry-level sales roles.

2 weeks

from brief to a fully configured Phoenix51 platform for executive search firm Orbition.

MediaCom

Result

Replaced paper and Post-it notes with one platform for 20+ hiring managers.

Reach plc

Result

Assesses existing salespeople on real prospecting, discovery calls and pitches, so development is ongoing, not once a year.

IFS

Result

Uses Phoenix51 assessment data to back promotion decisions, so progression is based on evidence, not opinion.

Bytes

Result

Assesses sales candidates on real tasks, from written outreach and video prospecting to discovery and presentations, not interview polish.

What you get

Everything you need to hire, review and keep your best people. From £97 a month.

  • Your superuser licence: build roles, run assessments, see every score
  • 18 ready-made competencies with 10 questions each, all editable
  • Solo video interviews and built-in live video interview rooms
  • Scoring for face-to-face interviews and practical tasks
  • Side-by-side candidate comparison and competency heat maps
  • Candidate feedback reports, with names and private notes hidden
  • Monthly reviews, development plans and promotion decisions for your existing team
  • Real people you can speak to when you need support, plus a helpdesk and training portal
Platform
£97 / month

For your superuser. Add managers to score candidates from £27 a month each, less as your team grows.

Example: you plus three managers scoring = £178 a month

Monthly plan. 30 days' notice. No long contract.

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See Phoenix51 in action.

Discover how Phoenix51 can help you make fairer, more confident decisions about your people.

Book a 30-minute call with one of our team and see the platform in action. We'll walk you through how it works, show you the key features and answer any questions you have.

Prefer to explore it yourself? Sign up and get started today.

The new rules start on 1 January 2027. The records you'll need start with your next review.

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No hard sell. If it's not right for you, we'll tell you.

Questions

The things owners ask before they book.

What's actually changing in January?

Unfair dismissal is when someone you've let go says you didn't have a fair reason or a fair process, and takes you to an employment tribunal. Right now they need 2 years with you before they can do that. From 1 January 2027, it's 6 months, and there's no longer a cap on the compensation a tribunal can award. So you need fair, consistent, written-down reviews from much earlier on. This is general information, not legal advice.

We're not hiring right now. Is it worth £97 a month?

Yes. Most of the value comes between hires. You use the same competencies for monthly reviews, development and promotion decisions with the team you already have. And it's a monthly plan with 30 days' notice, so it has to keep earning its place.

Aren't these tools for big companies?

Not any more. Phoenix51 moved to a simple monthly price so smaller businesses can use it. It works even if you're the only person doing the hiring. You start with ready-made competencies and questions, so there's no framework to write from scratch.

Will my managers actually use it?

Scoring is a 0 to 5 scale and a notes box. Interviews, video and tasks all sit in one place. If anyone gets stuck, there's a training portal, a helpdesk and real people to speak to.

Is this AI choosing who we hire?

No. Your people make every decision. Phoenix51 structures the process and keeps the evidence so those decisions are consistent and easy to explain.

We already use an ATS or job boards.

Keep them. An ATS tracks applicants. Phoenix51 assesses them, so the two work side by side. The Co-operative Bank, for example, uses Phoenix51 to screen and assess more than 3,500 graduate applications per intake.

Will this protect us if something goes wrong with an employee?

No software can promise a legal outcome, and we won't pretend otherwise. What Phoenix51 gives you is a fair, consistent process and a clear record of how each decision was made, from the hire through every review, plus the feedback and support you gave. That's a far stronger position than a memory of a conversation.

How quickly can we start?

Phoenix51 sets up your account for you. The ready-made competencies mean you can build your first role straight away, and the training portal walks you through the rest.

What about candidate data and GDPR?

Candidates only see their own results. You can hide other candidates' names and remove assessor notes before any report is shared.

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Still got a question? Ask it on the call.

From January, every people decision needs a record. Start keeping one now.

30 minutes. A live walkthrough. A clear answer on whether Phoenix51 fits your business.

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