When it comes to people management, two areas regularly trip up even experienced leaders – handling poor performance and managing fair dismissals. With the majority of newly appointed UK managers receiving no formal training, many are ill-equipped to deal with these challenges, putting both the individual and the business at risk. This issue is about to become even more important.
From 2027, the UK will introduce day one unfair dismissal rights, meaning employees will be protected from unfair dismissal from their first day of employment. This replaces the current two-year qualifying period, a buffer employers have relied on for addressing poor fit or performance with relatively low legal exposure.
While this reform is designed to protect workers, it places a greater burden on leadership, especially line managers. Without the proper preparation, businesses could see a rise in disputes reaching the Advisory, Conciliation and Arbitration Service and employment tribunals, stretching already burdened HR teams and exposing businesses to reputational and financial harm.
Why it matters
From 2027, the new legislation will raise the stakes for every hiring and performance-related decision. From probation reviews to final warnings, businesses will need clear processes, solid documentation and, most importantly, confident, trained managers.
This isn’t just a legal shift – it’s a cultural one. Employers are being asked to demonstrate fairness, transparency and consistency from day one. But without investment in people management skills, this higher standard could easily become a liability.
Understanding the challenge
Performance management is often inconsistent across organisations. Some managers avoid difficult conversations entirely. Others lack the confidence or knowledge to handle underperformance constructively, leading to low morale and higher turnover.
Most line managers are promoted based on their success in previous roles, not on their ability to lead or manage people. Often, they have had no training in conducting reviews, giving feedback, handling grievances or applying employment law. Even where HR support is available, managers frequently wait too long to seek it out.
New managers may learn how to use systems or manage budgets, but rarely receive practical instruction on setting performance expectations, giving structured feedback or handling underperformance fairly and legally.
Few feel confident holding honest yet respectful conversations with struggling staff. Even fewer understand the disciplinary process or when a situation carries legal risk and needs to be escalated to HR. There’s no longer time to wait and see whether someone improves. Managers need to know how to intervene early, apply consistent standards and follow the correct steps, all while documenting decisions and maintaining fairness.
Risk and opportunity
The cost of inaction is high. Organisations that fail to train managers properly face growing exposure to unfair dismissal claims, prolonged and expensive tribunal processes and reputational damage as an employer. Internally, unresolved performance issues can drag down team spirit and productivity. Talented staff may even leave if they feel others aren’t being held accountable. But there’s a clear upside.
With the right training, managers can spot problems early and offer support before issues escalate. They can hold constructive conversations that lead to genuine improvement or handle dismissals in a way that is legal and respectful. The result is stronger, more communicative teams and reduced pressure on HR.
What good training looks like
Effective training must go beyond theory. It should be practical and scenario-based, allowing managers to apply principles to real-life situations. It also needs to be ongoing. Coaching, refreshers and accessible resources are essential to build lasting confidence.
Core content should cover employment law basics – especially the new day one legislation – as well as how to conduct probation reviews, give feedback that balances honesty and support, manage underperformance with structured action plans and follow each stage of a fair disciplinary process. Managers should also know what documentation is required and when to involve other departments.
Start preparing now
To prepare your organisation for 2027, start by assessing where your managers are now and asking:
- Do they feel confident managing performance issues/challenges?
- Do they understand the legal implications of the upcoming changes?
- Do they know how the legal changes will affect their role?
Next, review your policies. Probation, performance management and disciplinary procedures must be up to date and written clearly. Then, build a targeted training programme. Focus first on teams where people management is central to success – keep the content practical and engaging, with follow-up support.
Senior leadership commitment is essential. They need to take ownership, model best practice and invest in development. Finally, monitor and measure progress. Ask managers about their confidence levels before and after training. Track how performance issues are handled and use real-world feedback to improve training over time.
Ready or not
The Day One Rights reform is a wake-up call for organisations across the UK. It demands more from employers and especially from managers.
This isn’t just a legal or HR issue – it’s a leadership challenge, and one that can only be solved through early, consistent and practical training. With the right preparation, businesses can meet this challenge head-on, avoiding legal pitfalls while improving morale, productivity and trust.
The law will be changing, but the real question is: are you ready?
Nick Sanders is Director at Helen Hamilton
