The Employment Rights Bill was introduced to Parliament today, promised within Labour’s first 100 days of office which we reported on in February as we prepared for the election. Aimed at providing better support to employees, this is the first phase of their scheme “Plan to Make Work Pay”.

The Employment Rights Bill has been hailed as being a ‘once-in-a-generation’ overhaul of employment rights. While there is no doubt that these significant changes will be welcomed by some and challenged by others, there are a several areas where stakeholders will require further clarity. In particular, the Bill will need to make sure that new requirements do not conflict with each other and take account of existing employment rights and best practice. 

For example, one of the most significant changes the Bill introduces is that the ‘right to claim unfair dismissal’ will become a day one right. This is a vast change from the current law which means employees can only bring a claim after two years of continuous service with their current employer – unless the dismissal falls within one of the automatically unfair dismissals such as a dismissal that relates to pregnancy, childbirth or some other family reason or for making a protected disclosure. This change means that employers will need to introduce a more rigorous recruitment process to avoid any long-term conflicts.

However, the Bill will introduce a new statutory probation period - termed an “initial period of employment” - which will permit employers to dismiss employees within a probation period allowing for a proper assessment of an employee’s suitability to the role. Dismissal by reason of redundancy would not be exempt during this period. This could mean that many businesses reevaluate probation period terms and conditions to ensure long term talent retention goals are achieved. We expect that this will translate into more robust performance reviews taking place in a short amount of time.

The UK government has said it will continue to consult with stakeholders before implementation. We hope to see further clarifying details on probation period lengths and grounds for dismissal, although there has been no definitive timeline for consultation period announced as of yet.

We will be following developments closely, and will keep you updated on what businesses need to know. Keep an eye out for our next webinar, where we’ll be taking a deeper dive into the Bill.