For years, employers have depended on the two-year qualifying period before their employees could claim unfair dismissal. But that’s about to change.
Under the new Employment Rights Bill, your employees will gain unfair dismissal rights from their first day on the job. This means the current two-year buffer will be eliminated, making dismissals immediately subject to legal challenge. Probationary periods will become more critical than ever, as a new legal framework will govern dismissals during these early months. Even redundancy dismissals during probation will now be fully challengeable, just like any other unfair dismissal claim.
Although this legislation won’t take effect until Autumn 2026, businesses need to act now. Every new hire from this point forward will gain unfair dismissal rights sooner than before, changing the way you must approach hiring, probation, and terminations.
Yet, many questions remain unanswered. The government has hinted at a “light-touch” dismissal process during probation, but will it provide real protection for businesses? How will employment tribunals assess dismissals in the first months of employment? Will employers face the same level of scrutiny for probationary dismissals as they do for long-term employees? And with a possible cap on compensation, how will financial risks change for businesses?
This is one of the most significant shifts in employment law in years, and HR Caddy is here to help you prepare. Our expert HR consultants provide clear, practical advice to ensure your business stays compliant and protected.
Don’t wait until the law changes—be proactive. Contact HR Caddy today to discuss how we can help you navigate these changes and safeguard your business.
