The government propose that unfair dismissal will become a day one right.
No dates have been confirmed as to when this new right will become law, however it is expected to come into force October 2026 (date to be confirmed).
What does this mean?
Currently if the employee has under two years’ service, the employer can dismiss them without them being able to claim unfair dismissal. Under the proposed new law, where this comes into force, protection for unfair dismissal will apply immediately – ‘day one right’.
Where the employer is looking to dismiss an employee with under two years’ service, they should seek HR guidance as there may be other protections to consider e.g. whistleblowing, disability.
What these proposed changes will mean for the employer?
Employers will no longer be able to dismiss an employee without going through a full process e.g. disciplinary.
The HR associated processes that the proposed new legislation will affect include:
- Recruitment – Employers are less likely to take a potential candidate through to offer of employment if they feel that they are ‘taking a chance’ regarding their suitability in the role.
- Probation – The proposed bill covers an ‘initial period of employment which is reported to be nine months from the employment start date. This initial period of employment would allow for a lighter touch procedure, and may be applied as a way to dismiss an employee due to performance concerns (yet to be announced).
We see that this lighter touch procedure is going to be key in ensuring that any concerns over the initial period of employment can be addressed fairly and a potential dismissal applied if required.
The initial period or probation period is therefore going to be an essential process for line manager to use to assess the suitability of the employee in the role, and where it does not work out, to fairly dismiss without a prolonged process, or the risk of a costly tribunal claim.
Other areas to be impacted includes Performance, including capability / conduct. – Where employees are not meeting the expected standards in the role, or not displaying the behaviours expected, then having a robust procedure (following the initial period of employment) to pick this up without unnecessary delay is going to be vital.
What can employers do?
HR policies will be key to managing the proposed law, to embed the procedures into the business. Training HR and line managers in these procedures will be vital.
If you are looking to improve your current processes to prepare for the new law, then contact our HR Consultants for a free initial assessment on 0345 646 0406 or fill in our online enquiry form and we will be in touch.