January 27, 2026

New UK employment law changes mean construction businesses have just six months, not two years, to get new hires right. Here's what's changing and how to protect your business.

What's Changing in 2026

Major reforms to UK unfair dismissal law are coming, and they'll reshape how construction businesses approach hiring, onboarding, and early-stage employee performance.

The key changes:

1. Six-month qualifying period (down from two years) Currently, employees must complete two years of service before they can claim ordinary unfair dismissal. From 2026, that drops to just six months.
2. Compensation caps may disappear The government plans to remove statutory limits on unfair dismissal awards. Currently capped at 52 weeks' pay or a fixed amount (whichever is lower), awards could soon be unlimited meaning high-earner dismissals could cost significantly more.
3. Day-one protections remain Protections against discrimination, whistleblowing, and automatically unfair dismissals (like trade union activity) still apply from day one but the six-month rule expands ordinary unfair dismissal rights dramatically.

What This Means for Construction Businesses

The first six months are now make-or-break.

Previously, businesses had a two-year window to assess cultural fit, performance, and whether a new hire was right for the role. That safety net has shrunk to six months.

The implications:

Higher risk of claims More employees will qualify for unfair dismissal protection sooner, likely leading to more claims overall.

Greater scrutiny on early dismissals Any dismissal around the six-month mark will face intense scrutiny. Was it fair? Was process followed? Is documentation robust?

Financial exposure Without compensation caps, dismissing high-paid employees (senior site managers, project directors, specialists) could result in awards far exceeding current limits.

Increased pressure on managers Line managers must handle probation, performance management, and difficult conversations correctly from day one or risk costly mistakes.

Why Onboarding Is Your First Line of Defence

Here's the uncomfortable truth: most unfair dismissal situations start with poor onboarding.

When new hires don't understand expectations, don't feel connected to the team, or don't receive proper support in their first weeks, performance issues emerge. Managers panic. Dismissals happen hastily. Claims follow.

But research shows the opposite is also true:

Harvard Business Review research found that formal onboarding programmes lead to 50% greater employee retention and 62% higher productivity.

Gallup research shows that employees who experience exceptional onboarding are 2.6 times more likely to be extremely satisfied with their organisation.

The Bottom Line: Get onboarding right, and you dramatically reduce the risk of having to dismiss someone in the first six months.

What Great Onboarding Actually Looks Like

Onboarding isn't just paperwork and a health & safety video. It's the process of making someone feel welcomed, clear on expectations, and confident they made the right decision joining your business.

Great onboarding is:

1. Experiential, not transactional: It's about relationships, not forms. New hires need to feel connected to their team, understand the culture, and see how they fit into the bigger picture.
2. Structured across key milestones: Pre-arrival, day 1, week 1, month 1, month 2, month 3, and the six-month mark all have specific goals and check-ins.
3. Manager-led with support: Managers are the cornerstone but they need tools, templates, and training to deliver consistently great experiences.
4. Two-way communication: It's not just telling new hires what to do; it's checking in on how they're feeling, what support they need, and whether expectations are clear.

How The Condor Collective Helps Construction Businesses Get Onboarding Right

We've developed a structured Onboarding Framework specifically for construction businesses, guiding managers through every stage of the first six months.

Manager Training: The Missing Piece

Even with a great framework, managers need training to execute it well.

Many managers in construction are promoted for technical expertise, not people management skills. They've never been taught how to:

• Set clear expectations
• Have difficult conversations early
• Build psychological safety
• Give developmental feedback
• Document performance concerns properly

Our Manager Training equips them to:

• Conduct structured onboarding conversations
• Recognise early warning signs of disengagement or poor fit
• Address performance issues constructively before they escalate
• Build trust and connection from day one

The Bottom Line

The 2026 unfair dismissal reforms aren't just an HR compliance issue; they're a business performance issue.

With only six months before new hires gain unfair dismissal protection, construction businesses can't afford to wing onboarding or leave it to chance.  Contact us to find out more.

Great onboarding isn't just about avoiding dismissal claims. It's about building teams that stay, perform, and thrive.

Want to ensure your onboarding process protects your business and sets new hires up for success?

Get in touch to learn about our Onboarding Framework and Manager Training programmes.