Labour has pledged to expand the basic rights of workers from day one. This includes the right to parental leave, sick pay, and the ability to bring unfair dismissal claims. The change in unfair dismissal rights is particularly notable, as it could affect how employers handle probationary periods.
We know from previous changes in government that adjustments to the qualifying service period for lodging a claim for unfair dismissal can be brought about pretty quickly via statutory instrument. However, with Labour’s other commitment to consulting businesses we should hopefully have some breathing space to prepare.
Labour’s position on Employment Laws
Labour has stated, “Britain’s outdated employment laws are not fit for a modern economy.” One of a raft of changes, for the new Labour government, is to remove the two-year qualifying period for unfair dismissal claims. However, Labour has said that a fair dismissal will still be possible for reasons of capability, conduct, redundancy or probationary periods.
Understanding probation periods
Most employers will have some experience of using probation periods and will already have them as part of their existing contractual framework. However, most also know that even if probation periods are passed, this still currently gives plenty of time to continue to assess the recruit’s suitability for continued employment up to the 2-year qualifying service mark. Often, the main benefit of a quick decision during probation comes down to costs (such as shorter notice periods, certain benefits not kicking in until after probation is passed) rather than increased claim risk.
Scrutinising probationary policies and practices
But would your probationary policies and practices stand up to scrutiny in an employment tribunal?
Consider the following:
- Has a full and thorough induction process taken place to equip the new employee with the tools they need to succeed?
- Has management support been proactive?
- Have probation review meetings taken place?
Most importantly, ensure the whole process has been adequately documented, including a probation progress review meeting, clear and reasonable targets, and extensions where appropriate. All of this is likely to matter far more once the right to claim unfair dismissal becomes a day one right.
Preparing for change
While we don’t yet know the exact details of what this change will entail, we recommend starting to review your recruitment practices, onboarding processes, probationary policies, and new starter contracts of employment as a bare minimum. Perhaps most importantly, get ahead of the game by training line mangers to proactively and effectively use the probation period as a genuine tool to ensure that new employees have the best possible onboarding experience, and that goals are aligned with those of the employer, rather than it being seen as a mere formality that is often passed by default rather than given the attention it deserves.
