More than three-quarters of employers are worried about the introduction of day-one rights for unfair dismissal, according to research from Brightmine.
As the Employment Rights Bill goes through its second reading today, Brightmine’s survey of 274 HR professionals found that 58.4% thought preparation for new unfair dismissal rights would require the most resources to implement.
Currently, employees cannot lodge a claim for unfair dismissal until they have two years of continuous service. The Employment Rights Bill proposes making this a day-one right, although a probationary period would still be allowed. It is expected the legislation will be enacted in 2026.
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Almost half of respondents (48.5%) said that none of the proposals would bring a benefit to their organisation. Of those who did believe the new day-one rights would be beneficial, 24.8% said paternity and ordinary parental leave changes would have the most benefit, and 24.1% the statutory right to bereavement leave.
More than half (51.6%) of respondents with fewer than 250 employees anticipated that day-one flexible working rights would have a big impact on their organisation, compared with just over a quarter (25.9%) of larger employers.
Stephen Simpson, content manager for employment law and compliance at Brightmine, said HR teams were concerned about how to navigate the new rights.
“By far the biggest impact for businesses and the one HR are most concerned about is the removal of the two-year qualifying period for unfair dismissal,” he said.
“Previously, the two-year qualifying period allowed employers more flexibility in managing underperforming staff with less than two years’ service.
“This might not seem drastic, and companies can still use probation periods, demonstrating that a fair process has been followed from the outset will put a lot of pressure on line managers, and will require the most resources to implement.”
Simpson urged employers to act now. He added: “The key is not to wait until 2026. Our advice is to conduct an audit of your current policies and processes now and ensure that all managers are trained in how to effectively manage the changes the Bill will bring in.”
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