By Crystel Robbins Rynne, CEO, HRLocker
Recruitment agencies move fast. Consultants are hired in batches, given targets in their first week and judged on their numbers within months. Under the old rules, most people who left in their first two years could not bring an unfair dismissal claim. That changes on 1 January 2027.
From that date, protection against ordinary unfair dismissal starts after six months’ service instead of two years, and the cap on compensation is removed. The time limit for bringing a claim has already doubled, from three months to six, from 1 October.
Our recent research, Unfair Dismissal: The Six-Month Rule, found that the recruitment sector ranks highest on our Exposure Index. The index gives each sector a risk score out of 100. It looks at how often businesses let people go in their first two years and whether they keep written records to back those decisions up.
Recruitment came out highest of the 12 sectors we ranked, ahead of hospitality, healthcare and construction. Yet only 3% of recruitment firms could name all three of the changes to unfair dismissal laws.
Why recruitment agencies are more exposed
Letting people go early is common in every sector. Four in five employers (80%) have dismissed someone with between six months’ and two years’ service in the last three years. In recruitment, it is more than nine in ten (93%).
The bigger difference is how often it happens. Almost half of recruitment agencies (47%) have done it three or more times, compared with just over a quarter (27%) of employers overall. And 43% of the agencies that dismissed gave missed targets as a reason. That is more than twice the 20% average.
Missed targets are harder to prove than bad behaviour. If someone is rude to a client, there is usually an email to show for it. A missed target only stands up if someone wrote down what was agreed and what happened. One in five agencies (21%) say they rely on a manager’s memory or a verbal conversation as one of the ways they record performance concerns.
During our research, we worked with an experienced employment lawyer to substantiate our findings and provide advice on what legal experts look for from employers.
“When someone is dismissed for poor performance, a tribunal will expect an employer to be able to answer: Did the employee know what was expected of them? Were they told when they weren’t meeting it? And were they given a fair chance to improve? Employers should be able to answer all three with notes written at the time.”
Amy Harvey, Consultant Solicitor at Cognitive Law
The following advice builds on that, and you can use it to support your teams and ensure you are prepared for the changes.
What to do before the end of the year
1. Find out who is covered
Anyone hired on or before 1 July 2026 will have six months’ service on 1 January. List them by name and start date, along with anyone still on probation. Review their files first, because these are the people who could bring a claim as soon as the new rules start.
2. Put targets in writing from day one
Many agencies set targets in an induction or a team meeting and never write them down. Record each target with the date it was agreed, the support on offer and when it will be reviewed. If a consultant misses it later, you can show it was clear from the start.
3. Rework probation reviews
Nine in ten employers (91%) end probation at or before six months, which is exactly where protection will begin. Book reviews at month one and month three, with a final review in month five. That gives you time to act on what you find before the six-month point.
4. Record missed-target conversations on the day, in one place
You are already having these conversations in one-to-ones and pipeline reviews. Afterwards, write three dated lines: what is going well, what needs work and what was agreed. A note like this will hold up far better than a manager’s memory:
12 November. Going well: has built good relationships with two new clients. Needs work: brought in £4,000 in fees against a £12,000 target this quarter. Agreed: two extra client meetings a week, with a review on 4 December.
Keep every note in one system that someone other than the line manager can find.
5. Train the team leaders who write the notes
In most agencies, team leaders are billers too, and record-keeping is the first thing to slip in a busy month. An hour’s training covers the basics: be specific, date everything, stick to facts and note what was agreed.
Getting ready for January
January is closer than it looks, and the end of the year is a busy time for any agency. It is tempting to leave this until the new rules arrive. However, the people who will be covered on 1 January are already on your books, and the cap on compensation goes on the same day.
None of this means slowing down or hiring less. Your team already has the conversations that matter. Writing them down takes a few minutes each time. Agencies that keep a dated record of those conversations will be able to stand behind their decisions in 2027.
About Crystel Robbins Rynne
Crystel has been with HRLocker since 2013 and now leads the company as CEO. She drives the organisation’s strategic direction, aligning product, operations and customer experience to support HRLocker’s next stage of growth. A long-standing advocate for better employee experience, she is recognised as a leading voice in the HR space, with more than two decades of HR experience.
About HRLocker
Leading people management platform HRLocker helps SMEs replace manual HR tasks with simple, secure and intuitive tools. Core HR provides one central location to store, manage and organise all employee data. Perform supports structured employee development. Recruit streamlines hiring. Onboard delivers a smooth start for every new employee. Each product works independently or as part of the wider HRLocker suite. Together they provide accurate and compliant record-keeping that strengthens confidence, reduces risk and supports audit readiness. Find out more at hrlocker.com.
