Unfair dismissal qualifying period: increase to two years will only affect new joiners

On 6th April 2012 the qualifying period for unfair dismissal will increase from one year to two years. There has not yet been any formal announcement from the Government as to how this change will affect existing employees (who may already have qualified for unfair dismissal rights).

However, we understand that the Department for Business, Innovation and Skills has indicated that the planned increase to the unfair dismissal qualifying period will only apply to those who start employment on or after 6 April 2012. Those who are already in employment before that date will retain the one-year qualifying period.

This decision remains subject to parliamentary approval.

Comment: This is the first guidance we have had to date regarding the proposed change to the qualifying period for unfair dismissal. This approach to implementing the change is not unexpected and mirrors the approach taken by the Conservative government back in 1985 when increasing the qualifying period to two years.

Employers may wish to take the date of the change into consideration when making – and timing - recruitment decisions. It may be prudent for employers to delay recruitment until 6th April 2012, or later where possible, so as to benefit from the increased qualifying period.

If you have any queries regarding this, or any other, employment law issue please contact a member of the Employment Team.