1. Unfair Dismissal – Day One Rights

1.1. With the intention of giving greater job security to workers in the early months of their employment, the requirement to have 2 years’ continuous service before being eligible to bring an unfair dismissal claim will be abolished.

1.2. Instead, subject to an “Initial Period” (probationary period), an employee will have a right to bring a claim for unfair dismissal from day one.

1.3. Employers can potentially justify a decision to terminate employment during the Initial Period where they can demonstrate:

1.3.1. That the decision falls within 4 potentially fair reasons for dismissal: capability, conduct, statutory restriction or some other substantial reason (SOSR); and

1.3.2: They have followed the statutory procedure (which is yet to be determined but is likely to be fairly light touch).

1.4. The Initial Period is likely to be 9 months, but we are waiting for further Regulations before this is certain. Further detail is required, but the intention is to make it easier for an employer to dismiss someone during this period if it is not working out.

1.5 The government has also indicated that compensation for successful unfair dismissal claims during the Initial Period will attract lower compensation than the usual remedies for unfair dismissal.

1.6. This change is not going to be made until autumn  2026 at the earliest. We would recommend that you start to train managers on how to manage a probationary period effectively, so that it is second nature by the time the changes come in.