Day-One Unfair Dismissal Rights under the Employment Rights Act 2025
The 2-year qualifying period for unfair dismissal is being removed. Here's what 'day-one' protection means in practice for employees and employers.
Prezentare generală
For decades, employees in Great Britain have needed 2 years' continuous service before they could bring an ordinary unfair dismissal claim. The Employment Rights Act 2025 removes this qualifying period: once commenced, employees will have protection from day one of employment, subject to a new statutory 'initial period of employment' (essentially a probation period) of up to 9 months. During the initial period, employers can dismiss with a 'lighter-touch' procedure to be set out in regulations and an ACAS Code of Practice. This is one of the most-discussed reforms in the ERA 2025. The change does not affect 'automatically unfair' dismissal grounds (whistleblowing, pregnancy, asserting statutory rights, discrimination) — those have always applied from day one. What changes is ordinary unfair dismissal, where the employer must show one of the five 'fair' reasons and act reasonably in treating that reason as sufficient.
Cine poate folosi acest proces
- All employees in Great Britain (not just those with 2+ years' service) — once commenced
- Workers (rather than employees) do not gain unfair dismissal rights — these remain an employee-only protection
- Does not apply in Northern Ireland (separate employment law)
Proces pas cu pas
Check commencement
Day-one unfair dismissal is not in force on Royal Assent — it requires commencement regulations and the detailed initial-period rules to be made. Expected commencement: Autumn 2026 at the earliest. Until then, the 2-year qualifying period continues to apply.
Employers: define your initial period of employment
Decide whether to use the maximum 9-month initial period or a shorter period (e.g. 6 months) for new hires. Update offer letters, contracts of employment, and handbook policies. Train line managers on the difference between the lighter-touch procedure during the initial period and the standard procedure afterwards.
Employers: design a lighter-touch initial-period procedure
The Government is consulting on the exact requirements. Likely elements: a meeting to raise concerns, a chance for the employee to improve, written reasons for dismissal, and a right of appeal. ACAS will publish a Statutory Code of Practice that tribunals must take into account.
Employees: understand what 'day one' means in practice
From day one of employment, you can claim ordinary unfair dismissal if dismissed without a fair reason or without a fair procedure. During the initial period, the employer has more latitude in process, but cannot dismiss for an automatically-unfair reason or in a manner that is otherwise unreasonable.
Bringing a claim
ACAS Early Conciliation is still required before issuing an ET1. The 3-month-less-1-day time limit from the effective date of termination continues to apply. Schedule of loss includes both basic award (calculated on age × weekly pay × years of service, capped) and compensatory award (capped at the lower of 52 weeks' pay or £115,115 from 6 April 2025 — uplifted annually).
Avertismente importante
Until commencement of the day-one provisions, the 2-year qualifying period continues. Do not bring a claim assuming day-one protection until the change is in force.
Employees on fixed-term contracts that end without renewal are dismissed for unfair dismissal purposes — day-one protection will apply to them too. Employers using rolling fixed-term contracts to avoid permanent status should review practices.
Some sectors (police, armed forces, share fishermen) have specific exceptions that are not changed by the ERA 2025.