A Practical Guide for Employers Navigating the Upcoming
Legislation
If you run a business and employ people, chances are you’ve heard murmurs about the new Employment Rights Bill. Perhaps you keep meaning to find out more, and there’s a niggling feeling that what you’ve heard so far doesn’t sound particularly positive.
At Clarke HR, we specialise in demystifying HR. This article is the first in a series designed to clearly explain what the Bill is, its impact on your business, and how we can support you as changes take effect.
In this edition, we’ll address the much-discussed changes to day one employment rights.
Common Rumours and the Reality
“It’s going to introduce day one employment rights, so you’ll never be able to dismiss anyone again without ending up in tribunal.”
This rumour, overheard at a recent networking event, is just one example of how second-hand news can be misleading.
Let’s start with the basics: hiring new staff is both time-consuming and costly. Recruiting someone ‘who will do’ simply because you believe you can dismiss them within two years is like agreeing to marry because divorce is always an option. If you invest in robust recruitment, effective onboarding, and make good use of probation, you should avoid the need for a ‘quicky divorce’.
Do you monitor your recruitment statistics? How many new hires are still with you after three months, six months, or a year? If retention is low, it’s a sign you may be hiring the wrong people or that your recruitment process needs an overhaul.
Understanding Day One Protection
“But what about probationary periods? If we get it wrong, we can’t rely on those anymore.”
The Bill proposes day one protection from unfair dismissal. However, it’s important to remember:
- There are five fair reasons for dismissal. If you follow a fair process and your own policies, you significantly reduce the risk of an unfair dismissal claim.
- The Bill introduces a statutory probation period, during which employment can be terminated or up to three months’ notice can be served for performance or conduct issues, using a less formal dismissal process. The duration—currently under discussion—is expected to be six or nine months, likely longer than your existing probation period.
Managing Probation: Common Concerns
“Our managers are busy; what if they miss probation deadlines?”
You’re not alone—managers missing probation deadlines is a frequent and costly issue. It’s essential to work with your managers so they’re clear on your policies, contractual terms, and their responsibilities. Automation can help: set up reminders in your HRIS to notify managers well ahead of probation end dates.
Timeliness is just the start. Do your managers know how to set targets for new starters and are they trained to manage probation effectively? Many employers believe probation is an HR responsibility, but only managers can assess a new hire’s performance. HR’s role is to provide guidance, support, and prompts.
Crucially, ensure your contractual probationary periods are shorter than the new statutory period. Otherwise, you may have to use the full dismissal process rather than the more streamlined approach introduced by the Bill.
Two Dismissal Processes
“So there are now two dismissal processes?”
Yes, the Bill introduces a lighter dismissal process for use during the statutory probation period. After this, you’ll need to revert to the standard process to protect against unfair dismissal claims.
Ideally, you won’t need to use the full dismissal process often. However, this can mean managers are unfamiliar with it, or that the policy hasn’t been reviewed recently. It’s sensible to have two clear processes—one for statutory probation and one for post-probation periods—and to provide sufficient awareness and training for managers.
Getting Ready for the Changes
“It sounds like there’s a lot to do!”
Yes, there’s a fair bit to look at; Recruitment, Selection, Induction and Probation all need to align with contracts and policies to ensure that you’re ready for the upcoming changes. But don’t worry, you have time. The first elements of the Bill take effect in April 2026, with further changes in Autumn 2026 and the final parts in January 2027.
If you have an internal HR team, Then they are probably already on with planning policy reviews, manager briefings, and training.
If you don’t have in-house support, or you need extra help to get ready for the changes, we’re here to help.
Contact Us:
M: 07479 927551
Want to Know More?
Stay tuned for our upcoming guides on other key changes in the Bill, including:
- Zero Hours
- Fire & Rehire
- Family Leave
- NDAs
- Sexual Harassment
- Trade Union Rights
- SSP
- The Fair Work Agency