Despite some parliamentary ‘ping pong’ along the way, the Employment Rights Bill continues its progression and is expected to receive Royal Assent this autumn.

When it becomes law, the Bill will introduce additions and amendments to existing legislation, including the Employment Rights Act 1996.

Although full details are not yet finalised, the direction of travel is now very clear. This Bill will introduce the biggest employment law reforms in a generation, affecting every employer and employee.

WorkSmarter’s HR Newsroom reports keep you up to date, helping you understand the significance and impact of some of the key changes.

Day one unfair dismissal rights amount to a fundamental change to both employment law and the reality of recruitment and HR practice. Here's what we know so far.

What’s Changing?

• The current minimum 2 years’ continuous service qualifying period for ordinary unfair dismissal will be repealed. 
• Employees will gain the right to claim ordinary unfair dismissal from day one of employment. Protection applies once someone has started work and not before then (with exceptions such as whistleblowing and trade union activity if the job offer has been withdrawn.)
• A statutory probationary period (‘Initial Period of Employment’) will be introduced. The government’s preference is for this to be nine months but says it will consult extensively – there is lobbying from trade unions for the period to be shorter.  
• During this period (and up to 3 months after, if notice was served during probation), there will be a simplified, ‘light touch’ dismissal process. This is likely to require at least one meeting to discuss performance issues and an opportunity for the employee to be accompanied. 
• Redundancy dismissals are excluded from this ’lighter touch’ process, so ordinary fairness tests still apply to redundancies even during probation.
• The government has also indicated there will be a different compensation regime for employees who are dismissed during this ‘Initial Period of Employment’. 

The duration of the ‘Initial Period of Employment’ (when the ‘light touch’ dismissal process will apply) and details of the compensation regime are still uncertain. These will be set out once consultation has taken place. 

When Will Changes Come in?
Day 1 unfair dismissal rights are subject to government consultation, along with some of the other major changes. So whilst the Bill will become law soon, the change to day one rights will not be implemented at that point. The current projected timeline is 2027, but no exact date has yet been announced.

Be Aware

• Early decisions (e.g., probation outcomes) will carry greater legal risk if processes aren’t fair, documented and timely. Decision-making around dismissals must be clear, consistent, and legally defensible.
• Tribunal time limits are planned to move from 3 to 6 months in October 2026, extending potential claim windows. 
• The government estimates that around 9 million employers with under two years’ service (about 31% of the workforce) would gain stronger protection.
• If an employee makes a claim, poor paperwork and slow action - combined with longer tribunal time limits - could put employers at risk of greater costs.

Good to Know
Employers can still have longer contractual probation periods, for example for benefits or other contractual purposes. 

Practical Steps
Although final rules are pending, ground work can be put in place to help ease the pressure before the changes become law: 

• Look at your employment data to understand any dismissal history and related employment issues. Look for hotspots by role, team or manager and address root causes (recruitment, expectations, induction).
• Sharpen your recruitment and hiring practices, including selection criteria, so they’re as effective as possible. 
• Make sure job descriptions are accurate and comprehensive.
• Review and refresh your contracts & handbooks. 
• Set out all company policies and expectations, and make sure current and new employees are fully aware. 
• Check your probation reviews are fit for purpose. Consider and plan a light-touch, fair process for probation with scope for at least one meeting to set out concerns, with the employee’s right to be accompanied. 
• Diarise regular reviews. Schedule structured check-ins throughout probation being aware that, if needed, you can act before probation ends so you remain within the lighter-touch window.
• Make sure you have a robust system in place to document everything. Keep an audit trail. 
• As details become known, update your template documents so they’re legally watertight. Flag accompanying rights and appeal routes in templates. 
• Once the final changes are clear, update and train managers on how to follow proper processes every time: actions and decisions must be fair, and reviews recorded and documented properly. 

WorkSmarter is Helping
We’re helping customers prepare for what lies ahead. Our suite of online HR tools make it easy to stay compliant with changing legislation.

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