One of the most significant and perhaps most controversial of the Labour Government’s promises to reform employment law has been the removal of the 2 year qualifying period for bringing unfair dismissal claims. Protection from being unfairly dismissed is going to be a day one right.
Labour’s manifesto and the notes accompanying the King’s Speech made reference to this right being subject to the operation of a probationary period.
Now the Financial Times has reported that a number of Whitehall figures have told them that there will be a probationary period of six months during which employees can be dismissed more easily. Probationary periods should have “fair and transparent rules and processes”. The Government have not made an official announcement as yet nor have they provided any comment.
If what the Financial Times has reported is correct, this marks a compromise between providing businesses flexibility to terminate new hires and granting more rights and certainty for workers.
A six month probationary period aligns with what we see in most current contracts of employment. The introduction of a six month probationary period in itself is therefore not unusual. What we do not know yet is how the probationary period is going to be introduced into legislation. Will it become an additional fair reason for dismissal (in addition to conduct, capability, redundancy, contradiction of a duty or restriction or some other substantial reason)? Will it become something that an Employment Tribunal will take into account when considering the fairness of a dismissal in same way that they take into account the size and administrative resources of the employer? Will there be an ACAS Code of Practice to govern how probationary periods should be applied and managed (presumably yes to this one)? We will have to wait and see.
In early October, we are expecting to know more about this right, together with the other package of employment rights announced in the Kings Speech. We will be providing more updates as and when they happen.
Limited access modeSorry, you need to be an HR Protect client to access this content.
HR Protect clients receive all the employment law advice they need across the year, delivered by experienced specialist lawyers, at a single fixed price. In addition, being a client gives you access to our templates, flowcharts and guidance notes on this Hub, where you can also return to your favourites, share content with colleagues, and manage your account.
For a full list of benefits, click here, or enquire to talk to one of our lawyers about how it could work for your organisation, and to receive a bespoke quotation.
Already have an account?
Log in below to access this content.