Unfair Dismissal Rights Scrapped - GBH Law
The Government has confirmed a significant change to one of the most controversial parts of the Employment Rights Bill.
The original proposal to give employees unfair dismissal protection from Day 1 has now been withdrawn. Instead, the qualifying period will move to six months. Importantly, this shift will be made through primary legislation which means a future government cannot easily reverse it.
There is also a strong indication that the Government intends to reform the compensation limits for unfair dismissal. At this stage it is unclear whether the entire cap will be removed – which would bring unfair dismissal awards into line with discrimination and whistleblowing claims, or whether one of the two existing limits will go. The current structure caps the compensatory award at the lower of a year’s gross salary or £118,223. Reforming either or both limits would have significant implications for employers and employees alike.
There are still several other areas of disagreement around the Employment Rights Bill, which has been going back and forth between the House of Commons and House of Lords. This decision, however, may mean that we also see progress in agreeing some of the other issues still in debate.
If you would like to understand how these developments might affect your workforce planning or your employment policies, please contact our Employment team.