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How a Labour government could impact probationary periods
Labour has pledged to expand the basic rights that are available to all workers from day one. This includes the right to parental leave, sick pay, and the ability to bring unfair dismissal claims. The latter could be particularly significant, and could impact how employers approach probationary periods.
How do employers currently use probationary periods?
Most employers will have some experience of utilising probationary periods and will already include them as part of their existing contractual framework. However, given the current laws around unfair dismissal, most also know that even if probationary periods are passed, they currently have plenty of time to continue to assess the recruit’s suitability for continued employment up to the two-year qualifying service mark, at which point any action will be riskier.
Quick decisions during the probationary period aren’t solely about minimising the risk of claims, although that is a significant consideration. The primary benefit often comes down to cost savings, as short-service employees typically have shorter notice periods and certain benefits won’t apply until after the probationary period is completed.
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How might probationary periods change under Labour?
Labour has stated that “Britain’s outdated employment laws are not fit for a modern economy”. One of the key changes the party has committed to, as alluded to above, is eliminating the two-year qualifying period for unfair dismissal claims. This will open the door to claims from short-service staff, a prospect that may cause concern for employers.
However, Labour has stated that a fair dismissal will still be possible for reasons of capability, conduct, redundancy, or probationary periods. So what does this mean?
Scrutinising probationary policies and practices
While it will still be possible to fairly dismiss an employee during the probationary period, if the right to claim unfair dismissal becomes a day one right under Labour, it will be even more crucial to ensure the correct processes are followed.
The question is, would your probationary policies and practices stand up to scrutiny in an Employment Tribunal?
Consider the following:
- Has a full and thorough induction process taken place to equip the new employee with the tools they need to succeed?
- Has management support been proactive?
- Have probation review meetings taken place?
- Most importantly, has the whole process been adequately documented, including a probation progress review meeting, clear and reasonable targets, and extensions where appropriate?
Developing and implementing strong probationary processes will allow for fair dismissals in the early stages of employment and shield your organisation from the impact of this change in law.
Preparing for change
While we don’t yet know the exact details of what this change will entail, we recommend starting to review your recruitment practices, onboarding processes, probationary policies, and new starter contracts of employment as a bare minimum.
Perhaps most importantly, get ahead of the game by training line mangers to proactively and effectively use probationary periods. It’s important that managers view probationary periods as a genuine tool – a way of ensuring new employees have the best possible onboarding experience and that their goals align with the employer’s – rather than a mere formality often passed by default.
In terms of timescales, we know from previous changes in government that adjustments to the qualifying service period for lodging a claim for unfair dismissal can be brought about pretty quickly via statutory instrument. Thankfully, with Labour’s other commitment to consulting businesses, employers should hopefully have some breathing space in which to prepare…
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