KR HR & TRAINING NEWS ARTICLES

The government has confirmed a major change to the Employment Rights Bill.  The proposed day-one right to claim unfair dismissal has been scrapped and replaced with a six-month qualifying period. This decision has brought a collective sigh of relief from employers and HR professionals, ending months of uncertainty and allowing businesses to start planning for this change.

While this compromise offers clarity, it still represents a significant shift from the current two-year qualifying period. Employers will need to review their onboarding and probation processes to carefully manage the first six months of employment.

One significant detail in the small print is that this change from 2 years to a six month qualifying period for ordinary unfair dismissal will be made by primary legislation. This means it would be harder for a subsequent government to reverse the change. We are awaiting details around whether the timing will be brought forward from 2027 to 2026.

How Can Businesses Prepare?

Effective management of probationary periods and onboarding will be crucial and key actions for businesses should include:

• Addressing performance or cultural issues early and don’t wait until month five.
• Documenting and recording everything.  Keep clear records of feedback, reviews, and any concerns raised during probation.
• Ensuring probation clauses and notice periods are fit for purpose under the new regime.

How can managers be supported?

Managers will play a critical role in effectively managing the recruitment of new employees and their first six months. They need equipping with the confidence to monitor performance closely and avoiding knee-jerk dismissals. Practical steps:

• Ensure recruitment processes are robust and line managers receive appropriate training to make fair, consistent and effective recruitment decisions.
• Train managers with skills to handle early-stage performance conversations fairly and consistently and to be confident in handling difficult conversations.
• Provide guidance for managers on what constitutes a fair dismissal during probation.
• Ensure managers have an induction handbook/documentation for structured reviews throughout the first six months.

The reduction from two years to six months is a game-changer. Whilst it gives employers more flexibility than day-one rights,  planning and manager training will be essential to navigate this new landscape.

This compromise by the government paves the way for a smoother path for this Bill being passed, so the existing roadmap published in July can go ahead, including important changes to sick pay from April 2026.

Our Director, Kathryn, is running a Management Masterclass on Wednesday 4th February which will equip managers with the tools required for this new legislation.