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.
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