In the run-up to the recent general election, Labour announced plans to make unfair dismissal a ‘day one right’. So what's the latest on this potentially significant development?
Day one or not day one?
Currently, employees normally need 2 years’ continuous service before they can claim unfair dismissal. So the prospect of all employees being able to bring unfair dismissal claims from their first day of their employment represents a very significant change in the law. Needless to say, it has ‘spooked’ a lot of employers.
There has been considerable speculation about the precise manner in which Labour might implement this new policy. Senior Labour politicians have suggested that employers would still be able to operate appropriate probationary periods for new joiners. But how long could these probationary periods last and exactly how would they work?
Some answers and still some questions
Amongst the 28 planned reforms contained in the recently published Employment Rights Bill, the government has confirmed its intention to notionally give all employees the right to bring unfair dismissal claims from their first day of employment. The Bill would entirely remove the current 2-year service requirement. However, as expected, the government has also announced plans to consult on proposals to allow employers greater freedom to dismiss during new statutory probationary periods.
Presently, we still don’t know how any new statutory probationary period regime might work. According to speculation appearing in the media, it may be as long as 9 months, after employers baulked at reports it could be as short as 6 months. The expectation is that within this initial 9-month period, employers will be able to adopt a ‘lighter-touch process’ when dismissing employees. The likelihood is that employers may need to provide written reasons for dismissal, possibly following a meeting with the affected employee. However, much will depend on the outcome of an upcoming consultation exercise.
Keep your eyes peeled
If you are keen to participate in the consultation process, keep your eyes peeled for more details. Also bear in mind that nothing is going to happen any time soon. The government does not anticipate introducing these reforms before Autumn 2026, giving both businesses and individuals some time to adjust.
James qualified as a solicitor in 2001, having completed his academic studies at the University of Sheffield. Throughout his career, he has worked for a number of prestigious regional law firms, joining stevensdrake as Head of Employment Law in 2012.
As well as pursuing and defending the full range of Employment Tribunal claims, James spends a considerable amount of his time providing advice and support to businesses of various sizes. He advises on a wide variety of HR and employment law issues, including employment contracts, HR processes and procedures, grievances, disciplinary issues, absenteeism, performance management and settlement agreements. He also regularly helps clients with redundancy exercises and internal reorganisations.
James has previously been described as an ‘Associate to Watch’ by Chambers UK, an independent guide to the legal profession. His clients regard him as “thorough”, “easy to work with” and someone who avoids blinding them with legal jargon.
Outside of work, James balances family life with ambitions of swimming, running and cycling a bit faster.
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