Proposed Key Changes to Unfair Dismissal Rights

It has already been widely reported that the Employment Rights Bill removes (or will remove) the qualifying period for unfair dismissal claims meaning that it will become a ‘day one right’. It is expected that there will be a transition to this change meaning that the change will not be introduced before the autumn of 2026 but with the qualifying period for making a claim reducing over time. Employees recruited today will qualify for unfair dismissal about two years from now. Employees recruited in a year’s time will qualify after about one year’s service and so on.

However, although there had been previous references to ‘workers’ gaining this ‘day one right’, it is still currently limited to ‘employees’. Further, the right to bring an unfair dismissal claim has not been extended to someone who is dismissed before he or she has started work, for example where an accepted offer of employment is subsequently withdrawn prior to commencement – unless the reason (or principal reason) for the dismissal falls within a number of prescribed reasons (discrimination for example).

In respect of probationary periods, the Bill is fairly light on detail, but it looks like it will be 9 months and dismissal must still be for fair reasons which must be based on the employee’s capability, conduct, statutory contravention or ‘some other substantial reason’, (but not redundancy). The Government suggests that there should also be a reasonable process which would consist of holding a meeting with the employee to explain the concerns about their performance (at which the employee could choose to be accompanied by a trade union representative or a colleague).

As Darren Newman commented in his blog (11 October 2024) there has to be a concern that the rules on probation will turn into something reminiscent of the statutory dispute resolution procedures (for those that remember that nightmare its not a pleasant prospect!)

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Employment Rights Bill: What You Need To Know