header-logo header-logo

Day one rights: a new chapter?

237021
Robert Hargreaves & Lily Johnston report on the demise of the two-year rule & what this means for employers & advisers
  • The Employment Rights Bill 2024–25 abolishes the two-year qualifying period for unfair dismissal protection, giving every employee ‘day one rights’.
  • Employers must revise probation, capability and disciplinary procedures so that fairness applies from the first day of employment.
  • Litigation risk will move from eligibility disputes to the quality of process and evidence of reasonableness.

The Employment Rights Bill 2024–25 delivers the most far-reaching change to dismissal law since the Employment Rights Act 1996 (ERA 1996). By removing the two-year qualifying period, it draws every worker within the scope of unfair dismissal protection from day one.

For many, this corrects a long-criticised imbalance between flexibility and fairness. For others, it threatens to blur managerial discretion with judicial oversight. Whatever the view, it will transform how HR teams and employment lawyers approach dismissal decisions.

At present, s 108, ERA 1996 prevents most employees from bringing an unfair dismissal claim until they have two years’ continuous service.

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
back-to-top-scroll