What’s next for employment law?

What’s next for employment law?

The Labour Party achieved its predicted victory in the 2024 General Election, which means it’s time look to the party’s manifesto and take a look at what the win will mean for employment law in the coming years.

In a bid to deliver on major manifesto pledges, the new Government is likely to implement some significant changes to employment law, particularly within its first 100 days – most notably a day-one right to protection from unfair dismissal.

Unfair dismissal and the law

Under the current law, employees are eligible to claim unfair dismissal after two years or more of service with their employer. The only exception to this rule is when someone is dismissed for an automatically unfair reason, such as discrimination.

Labour is proposing that this right will apply to employees from day one of employment, subject to the relevant probationary period.

However, there is no suggestion that dismissals for reasons of conduct or redundancy will be restricted, within the probationary period or after.

Additionally, it sems likely that the probationary period will need to be subject to some kind of limitation on the allowable reasons for dismissal, as no limit may simply impose a new minimum length of service before making a claim.

The probationary period

What is not currently clear is how the proposals will deal with probationary periods.

There is no limit on the length of probationary periods that employers are allowed to set, although they typically last between one and six months depending on the level of skill needed for the role, employer preferences and seniority of the position.

With no limit set, employers may seek to impose longer probation periods on new employees in order to ringfence a period of time during which they may dismiss an employee without fear of a claim.

Increasing the number of claims

It seems inevitable that there will be an increase in the number of unfair dismissal claims made overall, as the right to make one is extended to new employees – within the first few years or months of the policy, at least.

As a result, we’re expecting to see employers become more cautious in their approach to bringing on new employees. Employers may wish to make their recruitment processes more rigorous to ensure that the correct employee is recruited to the role, particularly as the costs of recruitment remain high.

Ultimately, the next few years will involve substantial changes to the rights of employees and workers – relating to unfair dismissal and beyond.

For tailored advice on upcoming changes to employment law and how they may impact you, please contact our expert team today.

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