Qualifying period for unfair dismissal (and written reasons for dismissal) to be increased

The qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years on 6 April 2012.

The Government have introduced this to “provide more time for employers and employees to resolve difficulties, give employers greater confidence in taking on people and ease the burden on the employment tribunal process” (Resolving workplace disputes: public consultation BIS website)

The increase will apply only to employees who join your organisation on or after 6 April 2012. The current one-year qualifying period will continue to apply to employees who started their employment prior to 6 April 2012.

The draft order also increases the qualifying period that applies to the right to receive a written statement of reasons for dismissal, on request. The current one-year qualifying period (which applies in most cases) will increase to two years for employees who start their employment on or after 6 April 2012.

But please keep in mind…

• As with the current one year qualifying period, it’s really important to consider the potential dismissal of employees well in advance of the expiry of the two year period – not least because an underperforming employee can be a significant cost over 24 months.
• In some cases, no qualifying period of employment is required to bring a claim for unfair dismissal. An example of this is where the dismissal is because the employee has asserted a relevant statutory right or made a protected disclosure (whistleblowing).
• Discrimination claims can be brought without any period of continuous employment.
• A good probationary policy and procedure that you use consistently will enable you to make clear, objective and timely decisions about an employee’s future with your organisation, and will make sure you are able to defend any claims that can be brought without any period of continuous service.