Reduced Qualified Service
Currently, an employee seeking to bring a claim against their current or former employer must be employed for at least two years before they obtain the right to pursue an ordinary unfair dismissal claim.
Following what appeared to be an impasse around ‘day one’ rights, a compromise has finally been reached between the House of Commons and Lords. The arrangement means that an employee is only required to have been employed for six months to bring a claim. Whilst this is not the outcome the Labour government sought to implement, it represents a middle ground among all as employers are likely to welcome the removal of the previously proposed ‘day one’ rights.
Additionally, the change is expected to be actioned through primary legislation meaning that future governments will be unable to change the prospective right with ease.
Compensation Award
Should an employee succeed with an unfair dismissal claim, there is presently a compensation cap of £118,223 (or one year’s salary – whichever is less) in terms of the award they might receive.
The government appears to be taking steps to “lift” the cap meaning compensation awards may become unlimited, depending on the circumstances of the case. This would align with the position on whistleblowing and discrimination awards, which are uncapped.
However, the specific details remain ambiguous, including whether the lifting of the cap simply signifies an increase or an altogether removal.
Significance
Unsurprisingly, the changes aim to swing heavily in the employee’s favour, which will make it much easier for them to bring an unfair dismissal claim, raising the financial stakes for employers.
