Julia Woodhouse, Employment Solicitor in Leamington Spa, considers the Employment Rights Bill, including unfair dismissal changes

What is the current position on the Bill?

Before it becomes law, the Bill and amendments to it, have been passing between the House of Lords and the House of Commons.

Despite amendments proposed by the Lords, the Commons voted to retain most of the Government’s original proposals, including one of the most significant: the right to make a claim for unfair dismissal, from day one of employment. This article concentrates on that change only.

Day one right to claim unfair dismissal

Under current law, there is a two year qualifying period before employees can claim ordinary unfair dismissal (although there are exceptions for certain automatically unfair dismissals e.g.  whistleblowing).

The Lords had made an amendment to the proposed Day One right in the Bill so that an employee could only make a claim for unfair dismissal if they had six months’ service; however    this was rejected by the Commons. It seems likely that the Day One right will become law, as originally proposed.

We will need to see the detail of the Day One right, in due course. It is expected that employers will still be able to fairly dismiss employees during an “initial” period of employment. However, employers will need to follow a “light touch” procedure, notice to terminate will need to be  given in the initial period and the termination date will need to be no later than three months after the end of the initial period. The duration of the initial period has not yet been decided upon but the Government’s preference is that it is 9 months long.

Unlike dismissals for say misconduct or poor performance, it seems that dismissals for redundancy and for “Some Other Substantial Reason” (SOSR) relating to the employer, will not have the benefit of the initial period and light touch procedure. Therefore, for employers seeking to dismiss for redundancy or for SOSR relating to the employer, it is likely that they will need to follow full and fair (not light touch) procedures with all employees, from the outset of employment.

The Day One right to claim unfair dismissal is expected to take effect in 2027.

Employment Rights Bill roadmap

The Government has published its roadmap for implementing the Employment Rights Bill.  At pages 9 to 10 of the roadmap, the initial timeline which has been set out by the Government, indicates when the numerous measures are likely to take effect.

Most of the significant changes will take effect in 2026 and 2027.

The above does not constitute legal advice.

If you would like to discuss any employment matter contact, please Julia Woodhouse at 01926 831231 or jhw@blytheliggins.co.uk.

Julia is an Employment Solicitor based in Leamington Spa and advises clients across Leamington Spa, Warwick, Kenilworth, Coventry, Rugby, Nuneaton, Atherstone and further afield.