New “Day 1 Rights” for Workers Coming Soon – 5 Top Tips for Employers

August 20, 2024

By Owen John

With growing calls for the UK Government to clarify how its proposals to give “Day 1” employment protections to all workers in the UK will work, our employment law specialists look at how this major change will affect employers and what you need to do to prepare.

How does the law work at the moment?

Under current UK employment law, in most cases, employees have to wait until they have completed 2 years’ employment with their employer before they have the right not to be unfairly dismissed. This gives employers some flexibility to let go recent hires if they commit misconduct or aren’t right for their role, and also means that casual workers are not covered by the same protections as permanent employees. However, some types of claims involving rights like whistleblowing and discrimination are day 1 employment law rights for the vast majority of workers.

What employment law changes are being planned?

The UK Government plans to overhaul employment law so that the 2-year threshold for unfair dismissal claims is scrapped (along with other rights connected with things like flexible working). It also wants to remove the distinction between permanent “employees” and casual “workers” so that everyone in these categories has the same rights from day 1 of their employment.

When will this happen?

The bare bones of the proposals were set out in Labour’s manifesto before the election and were confirmed to be going ahead in the recent King’s Speech. As Labour has committed to introducing the changes to Parliament within its first 100 days in office, we’re expecting further details by mid-October 2024. Keep an eye on our live employment law updates page to find out further details when they are released.

How might this affect employers?

The UK Government believes that these changes will get the job market moving and increase economic growth, because employees will feel more comfortable to move around if they know they will have employment protections from day 1 in a new job. However, at least in the short term, it is likely that the changes will also lead to an increase in unfair dismissal claims, particularly if employers are slow to get to grips with the new laws. It’s also likely that we will see an increase in internal workplace disputes such as grievances and disciplinary proceedings, and that recruitment may slow while the changes bed in.

Because the right to bring unfair dismissal claims will still be subject to employers’ right to use contractual probationary periods for new recruits, the contract of employment will become a vital tool for employers seeking to protect themselves from claims by recent hires.

Top tips for employers

Our employment law experts’ top 5 tips for preparing for these changes are:

1. Strengthen your employment contracts. Once the new rules come in, contractual probationary periods will be more important than ever. Keep an eye on Darwin Gray’s live updates page to hear the details about how this will work once they’re published, and get in touch with us if you need help reviewing your contracts.
2. Get recruitment right. If you have the right people in place, you’re less likely to need to consider dismissals. Carry out a review of your recruitment processes, job descriptions and adverts, and make sure hiring managers are familiar with effective interview techniques.
3. Make sure your disciplinary, capability and redundancy procedures are watertight. Both your written policy documents and the way you implement them in practice need to be up to scratch. Make sure managers are trained in carrying out investigations, hearings and making important decisions, or consider outsourcing your difficult cases to our HR experts if needed.
4. Take legal advice when considering dismissals. This will be more crucial than ever once all workers have protection from unfair dismissal, as it will no longer be possible to carry out a “safe” dismissal even in seemingly clear-cut cases.
5. Think about legal expenses insurance. This is a cost which may balance out in the long run if it covers your legal costs of defending any claims that are brought against you. Get in touch with one of the Darwin Gray team about this.

It’s vital to be on top of these changes and the many other employment law changes which the new Government plans to introduce in the next few months. Get in touch with our employment law experts, Owen John, now on ojohn@darwingray.com or 029 2082 9118 if you need guidance on reviewing and strengthening your employment practices.