On 10th October 2024, the government’s employment rights bill was introduced. It will need to go through the parliamentary processes that will involve consultations, amendments, and shelving of parts, but the various proposals will likely be introduced during 2025 and 2026.
Of the numerous proposals in the bill, the most talked about is the government’s plan to make the entitlement not to be unfairly dismissed a right from day one of employment. Currently, the qualifying period in which to bring a claim for unfair dismissal is two years.
The Labour Party Employment Rights green paper says this:
“Labour will give all workers day one rights on the job. Labour will also strengthen the protections afforded to all workers by ending the qualifying periods for basic rights.
The current arbitrary system leaves workers waiting up to two years to access some basic rights, including protection against some types of unfair dismissal. Labour will end this arbitrary system and scrap qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave.”
At present, the requirement for continuous service before a claim for unfair dismissal allows employers to get to know an employee. Employees are already protected from day one in respect of wrongful dismissal and discrimination, but a dismissal based on poor conduct, for example, can be effected by giving relevant notice.
This means the employees who are consistently late, who don’t pull their weight, who go awol, who are rude, or whose work ethic is poor can be given notice without the requirement on the employer to take the time and expense of following the ACAS procedure to justify the dismissal was for the fair reason of the poor conduct. Sometimes relationships just don’t work out as we can all attest to, and at present, if this happens in the first two years of employment, either party can end the relationship without claiming to an employment tribunal that the dismissal was constructive or unfair.
The new proposals aim to bring an end to the inequity in the relationship and protect the perceived weaker party in the situation, the employee.
So, what does this mean for Lawgistics members, the majority of whom are SMEs? Good recruitment and the effective use of probation periods are key, and we advise our members to consider the following points in the event protection from unfair dismissal becomes a day-one right:
- Recruitment processes must be robust with valid references, evidence of ID, and qualifications provided by the new employee.
- Employment contracts must be complete with agreed terms and conditions and signed by the employee.
- Probation periods should be used effectively, although their length may be capped by the government at six months.
If our members require guidance with the employment law changes or any employment issues, please do contact us.
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