Unfair Dismissal Extended To Day One
Remove the service requirement for unfair dismissal claims
Unfair Dismissal Extended To Day One. Labour plans to remove the length of service requirement; meaning unfair dismissal to become a day one right for all workers. The proposed new rules will require an employer to have a fair reason and follow a fair process when dismissing an employee, regardless of length of service, giving employees immediate access to unfair dismissal claims.
This page was first published on 21 August 2024, the latest update was made on 5 July 2025.
History Of Unfair Dismissal Rights
Unfair dismissal rights were first introduced in February 1972 when the qualifying period for claiming unfair dismissal was six months. The qualifying period for claiming unfair dismissal has fluctuated from the first six months of a new job to the first two years since its introduction, but has been set at two years since 2012.
Once an employee has accrued unfair dismissal rights the employer must rely on one of the five fair reasons for dismissing the employee and follow a fair process. Prior to accruing unfair dismissal rights the employer has more flexibility on how they dismiss an individual.
New Unfair Dismissal Rights
The length of service requirement for accruing unfair dismissal rights will be removed; meaning unfair dismissal will become a day one right for all workers. The proposed new rules will require an employer to have a fair reason and follow a fair process when dismissing an employee, regardless of length of service.
The time limit for bringing an unfair dismissal claim will also be extended from the current three months to (in most cases) six months.
Employment Rights Bill Delivery Roadmap
The government’s ‘Next Steps to Make Work Pay’ paper had previously said that “Reforms of unfair dismissal will take effect no sooner than autumn 2026”, the Employment Rights Bill delivery Roadmap states implementation will not take place until 2027. However, it remains unclear whether this will be early, mid, or late in the year. To iron out more of the details about this change, such as how long the probationary period should last, a consultation will be launched – expected sometime during the summer or autumn of 2025 I will update this page when that is open for comment.
When the change is implemented there will be a phasing in period, meaning if the implementation date was April 2027 anyone starting a new job now (July 2025) would have 21 months before they accrue unfair dismissal protection, that period would then gradually reduce to zero for new recruits employed in April 2027.
Why The Delay?
The government could have removed the two-year qualifying period relatively quickly through a statutory instrument. They have instead chosen to go through this longer process. The significance of this longer process is that it will be difficult for any future government to re-introduce a timeframe for accruing unfair dismissal protection. Meaning day one right for unfair dismissal will be with us for the long term.
Although the proposed changes are over a year away, it’s important that owners of businesses and managers of people understand what the new dismissal legislation entails and how it differs from existing legislation.
Proactively managing and having evidence of poor performance will become crucial as we transition in to the new regime.
Probationary Periods
To avoid confusion about what is and is not a probationary period, Labour intends to introduce a Statutory Initial Period of Employment. During the initial period of employment, a short service dismissal process will be allowed where a new recruit is underperforming or unsuitable.
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Right To Receive Written Reasons For Dismissal
The right to receive written reasons of dismissal currently has a two year length of service requirement. The Bill changes the framework, so that employees who have completed their Initial Period of Employment before qualifying for the statutory right to receive written reasons.
Getting Ready For The Changes
In anticipation for these changes, employers should ensure that probationary periods are properly used. This means establishing clear internal processes, such as scheduling mid-probation check-in meetings to review the progress of the new team member. These meetings provide an opportunity for employers to discuss performance and areas for improvement to avoid blindsiding employees.
Understanding the implications of these changes, will be key to navigating the new legal regime. But properly using probationary periods, diarising when probationary periods expire and documenting performance discussions and their outcome will have significantly increased importance. The Breathe HR Software can help automate the management of probationary periods.
Take the next 18 months to review your probation and performance review processes and iron out any issues so by the Autumn 2026 they are running seamlessly and you and your managers are confident in the new rules.
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