Day One Employment Rights in the UK
The landscape of UK employment law is set for a significant shift. With a dramatic departure from legal norms, with wide-ranging implications for employers, HR professionals, and employees alike.
While the proposed Employment Rights Bill aims to create fairer access to employment rights, many practical and legal questions remain unanswered. As the details evolve, understanding what’s changing, what’s still uncertain, and what actions to take now will be critical.
This page breaks down the current law, explains what’s changing, and highlights what employers should do to stay ahead.
The Current Day One Employment Rights in the UK:
The current laws for Day One Rights are:
2 Years’ Service for UDL Claims
As things stand, for almost all unfair dismissal claims (UDL), a former employee requires 2-years continuous service.
Tribunal Jurisdiction Depends on Service Length
Without the necessary continuous service, an employment tribunal (ET) will not have jurisdiction to hear the claim.
Protected Reasons for Dismissal
There are some exemptions to the 2-year rule. An ET will have jurisdiction to hear an UDL claim where it is established that the reason for the dismissal was for a ‘protected’ reason. For example, dismissing an employee for a discriminatory reason, such as their gender, would be a ‘protected reason’. As such the employee would not require the 2-years’ service to make a claim. The dismissal would also be automatically unfair.
The Changes:
- The Bill will repeal the 2-year qualifying period for UDL claims.
- A lighter touch dismissal procedure will replace the qualifying period during a new statutory probationary period.
- Ultimately though, there will be a right for an employee to claim UDL from day one of their employment.
- There will be a new compensatory regime for unfair dismissals during the statutory probationary period.
- There is no fixed commencement date for this change, but the suggestion is Autumn 2026.
What’s Missing From The New Day One Employment Rights in the UK?
There are significant details that are still missing from the Bill. Largely because the Government prioritised its ‘100-day’ promise, regardless of the gaps in the Bill.
Currently, the Bill lacks:
- a fixed commencement date,
- the length of the statutory probationary period (6 or 9 months have both been suggested),
- details of the ‘lighter touch’ approach,
- info. on the new compensatory regime,
- details of the transitional arrangements,
- info. on the enforcement of the new right.
Focus Point:
From a strictly legal perspective, the main point of interest in this Bill is the development of the statutory probationary period (SPP).
Probationary Periods Take Centre Stage
The SPP will push the concept of probationary periods from largely irrelevant to centrally important when considering UDL.
From Formality to Legal Focal Point
Currently probationary periods serve to keep employees under notice of scrutiny. Holding back certain contractual benefits until the employee completes the probationary period. Aside from these factors, probationary periods are not the ultimate backstop when dismissing an employee. The existing 2-year qualifying period is.
Action Points:
Given the lack of detail already highlighted, for now, we recommend a watching brief. In terms of preparatory work, businesses should consider:
Interrogating current employment data
What are the current levels of dismissal that would fall within the current 2-year UDL timescale?
Auditing current recruitment processes
Currently, with the 2-year UDL qualifying period, some employers take a more laissez faire approach to verifying employees. With no 2-year backstop from autumn 2026, employers will need to conduct more tough recruitment processes to vet candidates. Auditing current processes allows businesses to design new processes when more detail is forthcoming.
Be ready
When we do have the detail, businesses will need to consider redrafting their documents, altering their recruitment practices and considering different forms of engagements. As always, we’ll be on-hand to provide the tailored advice you need.
FAQ For Day One Employment Rights in the UK
Here are some frequently asked questions round the new legislation.
1. What is the current rule for unfair dismissal claims?
Employees need two years of continuous service to make most unfair dismissal claims.
2. Are there any exceptions to the two-year rule?
Yes. If the dismissal is for a protected reason, like discrimination, no qualifying period is needed.
3. What is changing under the new Bill?
Employees will gain the right to claim unfair dismissal from day one of employment.
4. What is the statutory probationary period (SPP)?
The SPP is a new concept that will replace the two-year rule with a lighter dismissal process during probation.
5. When will the new rules start?
There is no fixed date yet, but Autumn 2026 is likely.
6. Will employers still be able to dismiss during probation?
Yes, but they must follow a lighter, yet defined, dismissal process during the SPP.
7. How long will the statutory probationary period last?
The exact length is unclear. Six or nine months have been suggested.
8. Will compensation rules change during probation?
Yes. A new compensatory regime will apply to dismissals during the SPP.
9. What should employers do now?
Review current recruitment and dismissal practices. Prepare for more robust processes.
10. Will contracts need to change?
Most likely. Employers should be ready to update contracts once full details are confirmed.
