| The government promised to make unfair dismissal a day one right, this is a key part of its Employment Rights Bill, which is due to come into force in 2027.
However, calls from businesses and employment lawyers warned of the pressure this change would put on employers and an already strained Employment Tribunal due to a jump in cases from employees.
Figures released last month showed that the Tribunal’s open caseloads increased by 32 per cent from January to March 2024/25 compared to the same quarter the previous year.
The back log is considerable and only growing.
The Employment Rights Bill also introduced a new concept called an ‘initial period of employment’, which is likely be nine months, during which employers could dismiss staff using a simpler process – a probationary period by another name. The government plans to consult on the rules for this lighter-touch process over the next year.
However, the House of Lords has voted to remove the initial period entirely.
Instead, they have amended the Employment Rights Bill to reduce the qualifying period for unfair dismissal from two years to six months.
Much simpler and more straightforward for employers.
Supporters argue it is simple, gives workers protection sooner, and avoids the need for a new legal structure.
The Employment Rights Bill will now return to the House of Commons.
The government will probably reject the Lords’ amendment, using its majority to restore the original position.
The Lords must then decide whether to push back again or step aside.
Under constitutional tradition (known as the “Salisbury Convention”), they rarely block a government’s manifesto promise so it is likely they will voice their objection, seek reassurances, and then allow the Bill to pass.
The final decision will determine whether day one rights come with the more complex nine-month system or this simpler six-month rule.
Watch this space… |
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