One of the headline reforms in the Government's landmark Employment Rights Bill (ERB) is the overhaul of protection from ‘ordinary’ unfair dismissal, introducing day-one protection in place of the existing two-year qualifying period
The proposed changes to unfair dismissal protection have been some of the most hotly anticipated developments since the Government first outlined its proposals for employment law. However, despite the attention, key details about how these reforms will operate in practice remain scarce, with significant further consultation expected towards the end of 2025. This blog sets out what we know so far and explores the potential implications for employers.
For more information about the ERB more broadly, see our overview of the Bill and what it means for employers.
The current unfair dismissal framework
Currently, employees must have two years’ continuous service to bring a claim for ordinary unfair dismissal.
To lawfully dismiss an employee with unfair dismissal protection, employers must identify a potentially fair reason for dismissal – such as conduct, capability, redundancy, statutory illegality, or some other substantial reason – and follow a fair procedure. They must also be able to demonstrate that they acted reasonably in treating the chosen reason as sufficient to justify dismissal.
This is distinct from certain ‘automatic’ unfair dismissal claims, which do not require any qualifying period of service. These include (among others)...
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