Hold Fire on Recruitment?!

As you may know, the government has confirmed its intention to alter the qualifying period for unfair dismissal cases from one year to two years from 6 April this year.

When it announced its intention to do this on 3 October last year it gave no indication how it would affect existing employees who may already have qualified for unfair dismissal rights.

Although BIS has not yet made a formal announcement, it has informed a very reputable source that, subject to Parliamentary approval, the new two-year qualifying period will only apply to employees whose employment begins on or after 6 April 2012. Those who are already in employment before that date will retain the current one-year qualifying period. The Conservative government adopted the same approach in 1985 when increasing the qualifying period to two years.

What this means is that if you take on a staff member on 5 April they only need to have one year of employment with you before they can claim unfair dismissal. If you employ them starting on or after 6 April they need two years with you before they can claim this. This means that you have a longer period to see if they are a good fit for your organisation before being concerned about claims arising if you dismiss.

Clearly there is an argument for delaying start date for new recruits until after 6 April if business needs allow. Do consider this for posts you are filling in the next few months.

The change comprises part of the government's wide-ranging initiative to improve business confidence and boost economic growth.

Please do not hesitate to contact the Employment Team at Follett Stock if you have any questions or concerns about the above.