5. What impact does the reduction in the unfair dismissal qualifying period have on redundancy dismissals and entitlement to statutory redundancy pay?

The qualifying period for unfair dismissal decreases from two years to six months for dismissals with an effective date of termination on or after 1 January 2027.

There is no change being made to the qualifying period for a statutory redundancy payment, which remains at two years.

When it comes to the fairness of any dismissal for redundancy, the six-month qualifying period will apply. So, an employee who is made redundant after six months of service will not qualify for a redundancy payment but will be entitled to bring an unfair dismissal claim. The employer will need to show that it is a genuine redundancy and that it has followed a fair procedure in dismissing the employee.