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.

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 and 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 change will be implemented in Autumn 2026. This means anyone commencing a new job now (October 2024) would have two years before they accrue unfair dismissal protection, that two year period then gradually reduces to zero for new recruits employed in Autumn 2026.

Why Autumn 2026?

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.

Probationary Periods

To avoid confusion about what is and is not a probationary period, Labour intend 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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