Employment Bulletin: Government backtracks on Day 1 Unfair Dismissal Rights

The Government announced last week that it has now dropped its plans to allow employees to claim unfair dismissal from day 1 of their employment. It has also dropped the proposed statutory probationary period.

The announcement followed months of opposition from employers and the House of Lords, which has delayed the progress of the Employment Rights Bill.

At present, only employees with 2 years’ service can claim unfair dismissal.

Under the new plan, the qualifying period for unfair dismissal rights will be reduced to six months.

The Government also stated that the compensatory award cap for unfair dismissal claims will be removed, although details remain unclear.

This measure is intended to break the deadlock and allow the Employment Rights Bill to progress to Royal Assent, keeping the wider reforms on track.

The House of Commons will reconvene on 8 December to consider the remaining provisions. A series of 26 consultations to determine the finer details will also follow.

For any Employment related advice please contact Nicola Tager and Lucy Voyce on 020 7439 8692.