Day 1 Unfair Dismissal and Recruitment

Big changes are on the horizon for UK employers. The new Labour government has promised a major shift in employment rights .  One of the headline reforms is the removal of the qualifying period for unfair dismissal claims. In other words, employees will have unfair dismissal protection from day one of employment.

If you’re a business owner, or manager, this is a game-changer!!

What’s Changing?

Currently, employees need two years of continuous service before they can bring an ordinary unfair dismissal claim (with exceptions for things like discrimination, whistleblowing or health and safety). That buffer has given employers some breathing room to assess new hires and let go of poor fits or performers without a formal process.

Under the proposed changes:

Unfair dismissal rights will apply from the first day of employment.

This means that from day one, if you dismiss someone, you’ll need a fair reason and have followed a reasonable process—or risk a claim at tribunal.

Why Recruitment Decisions Just Became More Critical

The stakes are now higher than ever. Without that two-year window, businesses will no longer be able to rely on the old “let them go if it’s not working out” fallback without due process. Every hire becomes a potential legal liability from the moment they start.

Getting it wrong could cost you:

• Time and stress dealing with claims
• Legal fees or settlements
• Reputational damage

How to Protect Your Business:

5 Recruitment Tips That Matter More Than Ever

1. Be Crystal Clear About the Role
   1. Use well-crafted and accurate job descriptions.
   2. Be honest about expectations, culture and challenges.
2. Invest in Structured Interviews
   1. Move away from “gut feel” and adopt scoring systems.
   2. Ask consistent questions tied to job criteria.
3. Screen for Fit and Capability
   1. Use practical assessments or work simulations.
   2. Don’t skip references or background checks.
4. Use the Probation Period Effectively
   1. Set clear objectives and review progress regularly.
   2. Document concerns and feedback—don’t just “hope for the best.”
5. Train Your Hiring Managers
   1. They need to understand what a fair recruitment process looks like and the risks of getting it wrong.

Rethinking Probation Periods

Whilst the details haven’t yet been confirmed, it’s expected that the Employment Rights Bill will introduce a statutory ‘initial period of employment’ (probation period), potentially with a ‘lighter touch’ process for dismissal and there are likely grounds for dismissal that won’t be covered, i.e. redundancy. However, we don’t yet know the full details of what this will look like or how it will operate in practice. What is clear is that employers will need to manage probation periods more rigorously than ever. That means setting clear expectations, providing regular feedback, and crucially, keeping excellent records.  If a dismissal is necessary, you’ll still need to follow a fair and well-documented process to reduce risk.

What About Flexibility?

Some employers may worry these changes will make it harder to remain agile. But the answer isn’t to avoid hiring, it’s to recruit better, train line managers, and manage risk through strong HR practices.

This reform doesn’t mean you can’t dismiss someone; it just means you’ll need a fair reason and a basic process in place to do so.

Timeline & next steps

At the time of writing, (24 June 25), The Bill has had its second reading and it’s now in committee with further regulation and consultation expected throughout 2025, ahead of implementation, likely in Autumn 2026.

Employers should use this upcoming period to prepare – i.e. revise contracts, update policies and train line managers on good recruitment practice, managing probation periods and managing dismissals.

Final Thoughts

If businesses are not prepared, it could hurt!

Now’s the time to:

• Review your recruitment process
• Upskill managers
• Seek advice on early performance and conduct concerns

Because when day one rights kick in, recruitment isn’t just about hiring the best person for the job, it’s your first line of defence.

Tel: 0845 838 2607 or Email: liz@originpeople.co.uk