The Government has announced that it is rolling back on their election campaign promise to give day one unfair dismissal rights to employees.
This commitment was set out in the Employment Rights Bill which has been bouncing between the Lords and the Commons for a few months. The qualifying period for unfair dismissal rights being a key point of contention between the two houses.
In the government’s announcement on this decision they have explained their change of heart as being based on ensuring the progress of the Bill remains on schedule.
The position now is that there will be a six-month qualifying period in order to obtain unfair dismissal rights. This is being presented as a compromise having taken into account the views of trade unions and business representatives.
This does still represent a major change, though qualifying periods have been subject to many changes over the years. The two-year qualifying period has been in place since 2012 and before that, from 1999, it was one year.
Whilst this piece of the Employment Rights Bill has received the most attention it contains many other reforms that will impact employers. These include a form of statutory bereavement leave, Statutory Sick Pay (SSP) to be paid from the first day of absence and changes to fire and rehire. Further details on these reforms are likely to come from secondary legislation.
For employers, this decision puts an end to a long period of uncertainty. They must now put plans in place to adjust their processes on recruitment, probationary periods, and performance management.
If you have any questions on any of the issues raised in this article, please contact Alan Sutherland.