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Howes Percival


Recruitment in a new legal landscape


Graham Irons Employment Partner Howes Percival


T e new year is always a time when people consider a new start with a new job. Taking on a new employee creates risk and opportunity for an employer. Planned changes to employment law may mean more risk for employers and fewer opportunities. T e Government recently stepped back from its original


proposal under the Employment Rights Bill (ERB) to implement ‘day-one’ unfair dismissal rights for employees and instead introduced a six-month qualifying period for unfair dismissal. The original roadmap published alongside the ERB suggested that the new qualifying period would be introduced in early 2027, but it is now likely that the Government will be fast tracking the new law so that it will take eff ect from early 2026. T e House of Lords had pushed back on the day-one


rights pledge and insisted that a nine-month statutory probation period would need to be utilised as an alternative


buff er for the enhanced rights. Having consulted with trade unions on the point, the Government has compromised on one of its major manifesto pledges by sacrifi cing the day- one right to unfair dismissal protection and instead will be reducing the qualifying period for unfair dismissal from two years to six months. As a result, the change has been fast- tracked to a far earlier implementation date believed to be early 2026 and without further consultation on the point. T is will mean that employers will have to dismiss for a


fair reason and only after having followed a fair process for those employees who have six months or more continuous employment. In addition, the Government has also just announced that it is removing the cap on the unfair dismissal compensatory award. Whilst in practice, many claimants do not get compensation anywhere near the cap (currently the lesser of a year’s pay or £118,223) the removal of the limit could have signifi cant implications for employers facing claims from higher earning ex-employees. T is means that getting recruitment right, training new


starters and properly managing probation periods has never been more important.


Graham Irons, left, and Simon deMaid


ALL THINGS BUSINESS | 18


RECRUITMENT & TRAINING


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