10 October 2024 | HR & Employment Law Update
The UK Government has introduced its Employment Rights Bill, proposing significant changes to employment law and workplace protections.
One of the most notable proposals is the removal of the current two-year qualifying period for ordinary unfair dismissal protection.
Under the proposed reforms, employees would have protection against unfair dismissal from their first day of employment.
The Government announced the proposals on 10 October 2024 as part of its wider Make Work Pay agenda.
What is changing?
Under the existing rules, employees generally need two years of continuous service before they can bring an ordinary unfair dismissal claim.
The proposed reform would remove this qualifying period and introduce protection from Day One of employment.
The Government has described this as a significant change intended to provide greater job security and strengthen workers' rights.
However, the proposal is not intended to prevent employers from dismissing employees where there is a legitimate and fair reason.
What about probation periods?
The Government has recognised that employers need an appropriate period to assess whether a new employee is suitable for the role.
As part of the proposed reforms, the Government intends to introduce a statutory probation period for new hires.
At the time of the announcement, the Government stated that it preferred a nine-month probation period, although the precise length and operation of the proposed probation arrangements would be subject to consultation.
This means that the proposed system would seek to balance two objectives:
Greater protection for employees + appropriate flexibility for employers.
Why does this matter for HR?
The proposed changes could have a significant impact on how businesses manage new employees.
HR teams may need to place greater emphasis on:
- clear job descriptions and expectations;
- structured onboarding;
- probationary reviews;
- performance management;
- accurate documentation;
- early identification of performance or conduct concerns; and
- consistent dismissal procedures.
For employers, effective HR processes could become increasingly important because decisions made during the early stages of employment may have greater legal significance.
What should employers do now?
At this stage, the proposals are part of the Employment Rights Bill and are subject to the legislative process and further consultation.
Employers do not need to treat the proposed Day One right as an immediate change to the existing unfair dismissal rules.
However, businesses may wish to start reviewing their current employment practices, particularly their:
Probation procedures
Are new employees given clear objectives and regular feedback?
Performance management
Are concerns identified and addressed early?
Documentation
Are important decisions and discussions properly recorded?
Manager training
Do managers understand how to manage performance and conduct issues fairly?
Looking ahead
The Employment Rights Bill represents a significant proposed change to the UK's employment law framework.
For employers, the key question will be how the Government balances stronger employee protection with the need for businesses to assess whether a new hire is suitable for a role.
As the Bill progresses through Parliament and further details emerge, HR professionals should continue to monitor developments and review their policies accordingly.
Key date: 10 October 2024
The Employment Rights Bill was introduced to Parliament, proposing to remove the two-year qualifying period for ordinary unfair dismissal and introduce protection from Day One, alongside a new statutory probation period.
Disclaimer: This article provides general information on proposed UK employment law reforms and should not be relied upon as legal advice. Employers should seek independent legal advice where appropriate.
