The Government has recently announced its new proposal involving introducing ‘day one’ unfair dismissal rights in the upcoming Employment Rights Bill.
Labour’s pledge would mean “day one rights for all workers”, which would entail abolishing the current requirement for most employees to have two years of service to be protected against unfair dismissal. However, the Government will allow employers to keep new starters on probation for up to six months.
Until now, whilst lots of companies use probationary periods (which usually are between 3 – 6 months in duration), they have not played any real part in employment law. This will now all change.
The Government has argued that this would give employees job security and would help decrease the opportunity for exploitive employment practices.
Potential implications for employers
This proposal, if implemented could have various significant impacts on employers:
1. Heightened caution in employing: Employers may become more cautious in their employing processes, possibly leading to longer recruitment cycles and more thorough vetting of applicants.
2. Enhanced importance of probation periods: While probation periods don’t affect statutory rights, they may become more crucial as a tool for assessing employee suitability.
3. Larger need for documentation: Employers will need to ensure they have robust systems in place for keeping track of any performance issues and following correct procedures from day one of employment.
4. Potential increase in Tribunal claims: It is expected that there may be an initial increase in Employment Tribunal claims as employees become aware of their new rights.
5. Review of contractual terms: Employers may need to review and potentially revise employment contracts and handbooks to ensure they’re aligned with the new legislation.
What should I be doing as an employer?
Even though this proposal is not yet law, employers should consider thinking of making some changes if needed for when this is passed through Parliament. We advise employers to review their recruitment and onboarding process as well as make sure managers are trained in performance management and disciplinary procedures, if they aren’t it’s worth putting time aside for them to be well trained in this.
Comment
The proposal for ‘Day One’ unfair dismissal rights signifies a big potential shift in UK employment law. While the proposal aims to provide greater protection for employees it can raise some challenges for employers.
It is important to monitor the proposal and ensure you have systems in place for when or if this becomes law.
What should I be doing as an employer?
Even though this proposal is not yet law, employers should consider thinking of making some changes if needed for when this is passed through Parliament. We advise employers to review their recruitment and onboarding process as well as make sure managers are trained in performance management and disciplinary procedures, if they aren’t it’s worth putting time aside for them to be well trained in this.
Comment
The proposal for ‘Day One’ unfair dismissal rights signifies a big potential shift in UK employment law. While the proposal aims to provide greater protection for employees it can raise some challenges for employers.
It is important to monitor the proposal and ensure you have systems in place for when or if this becomes law.
How can we help?
If you would like any advice concerning the subjects discussed in this article, please contact our expert Employment Law team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
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