For years, employers have relied on the two-year qualifying period before employees could claim for unfair dismissal. However, with the employment rights bill in place, this is all about to change.
Under the Employment Right Bills come Autumn 2026, employees will gain unfair dismissal rights from day one of employment. This means that the two-year buffer disappears, and dismissals will be open to immediate legal challenge. For employers, this shift necessitates a thorough understanding of the implications and adjustments of their dismissal procedures.
Firstly, employers must now be more vigilant about the reasons for terminating an employee’s contract. With the new regulations, dismissals must be justifiable and based on clear grounds, such as misconduct or performance issues. Employers will need to ensure that they have robust procedures in place for investigating any potential grounds for dismissal. This includes documenting performance issues, conducting fair hearings, and allowing employees to present their side of the story. Failing to follow these steps could result in unfair dismissal claims, leading to costly legal battles and potential compensation payouts.
Probationary periods will take on a new importance, with a new legal framework governing dismissal in the early months of employment. Redundancy dismissals during probation will be fully challengeable, just like any other unfair dismissal claim.
Additionally, the Employment Rights Bill emphasises the importance of communication and transparency in the workplace. Employers are encouraged to engage with employees about performance expectations and concerns early on. By fostering an open dialogue, employers can address issues before they escalate to the point of dismissal. This proactive approach not only helps reduce the risk of unfair dismissal claims but also contributes to a more positive workplace culture, ultimately benefiting employee morale and retention.
Even though this change won’t take effect before Autumn 2026, the practical impacts start now. Every new hire from this point forward will gain unfair dismissal rights sooner than before. By understanding the new regulations and implementing fair and transparent dismissal processes, businesses can protect themselves from legal repercussions while also creating a supportive environment for their employees. Embracing these changes can lead to a more engaged workforce and a stronger organisational reputation.
For more information and advice, please contact our Employment Team on 0345 646 0406 or complete an online enquiry form, and a member of the team will be in touch.