Unfair dismissal - Government considering increasing the qualifying period
This week Lord Young, who has been tasked by the Prime Minister with reviewing the help given to smaller firms, confirmed that he will be exploring the possibility of increasing the length of service that an employee requires before they become eligible to make an unfair dismissal clam.
It is important to note that the qualifying period for unfair dismissal claims does not give an employer blanket protection against employment tribunal claims for the first year of employment. There are some exceptions to the rule where there will be no qualifying period whatsoever depending on the circumstances of the dismissal. Employers should also be aware that whilst they may be protected from some unfair dismissal claims for the first year of employment, there are other rights that an employee will have, such as discrimination rights, that do not require any particular length of service.
Since June 1999 the qualifying period for unfair dismissal claims has been one year. The Government is considering whether by increasing the length of this period to two years the number of spurious claims against employers by disgruntled employees will be reduced, therefore saving employers thousands of pounds in defending such claims.
This proposal is one of a number of measures that Lord Young will be considering in an attempt to boost medium and small sized businesses. He is due to report back on his findings in spring 2011 and we will keep you up to date as and when more information is available.
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