We’ve been talking a lot lately about the upcoming Workers Rights Bill, and for good reason. It represents one of the most significant changes to UK employment law in recent years. At the heart of the legislation is the “day-one rights” clause, which will extend protection against unfair dismissal to employees from the very start of their employment.

This is a significant shift from the current legislation, where employers have up to two years to dismiss an employee without the risk of an unfair dismissal claim. What you need to know is that the proposed change will be retrospective. This means it will apply not just to new recruits but also to existing employees who are currently within their first two years of service.

What this means for employers is that underperforming or disruptive staff who are still within the two-year window could soon become much harder, and more expensive, to dismiss.

This legislation is not a distant possibility. The concept of day-one rights for workers was a Labour Party manifesto pledge, which means the Government will not want to be seen rescinding on their promise and so is committed to making it become law. Despite strong resistance in the House of Lords, the measure was eventually accepted with the caveat of what is being described as a “light-touch” dismissal option within the first six months of employment.

The trouble is, no one has been able to define what this “light-touch” approach really means, and probably, no-one one knows. It just sounds like a good phrase that will keep the resistors appeased.

Without clear guidance however, employers will be unable to plan with confidence. What we do know is that once the bill receives Royal Assent, potentially as soon as next month, employers will have to comply. The uncertainty only adds urgency for employers to act now.

Employers have long relied on the two-year window as a safeguard against poor hiring decisions or underperforming staff. Whilst we have always condoned and promoted a robust and properly implemented probation policy, the two-year rule has always been something of a backstop. Removing this buffer though, could lead to several consequences:

• Reduced appetite to recruit: Employers are likely to become hesitant to take on new staff for fear of being stuck with someone unsuitable.
• Increased tribunal risk: The scope for unfair dismissal claims will expand overnight. Compensation awards in unfair dismissal cases averaged nearly £14,000 last year, with maximum payouts reaching almost £180,000. Discrimination awards can be even higher.
• Employees playing the system: No-one wants to dismiss a good and productive employee, but there are those who deliberately do the bare minimum, or less. Knowing they will be difficult to dismiss gives no incentive to new employees to perform well and excel in their roles.

If you currently employ staff who are within their first two years of service and you have doubts about their performance, behaviour, or overall fit, now is the time to examine them closely, and where necessary, act. Waiting until after the new law takes effect could mean these individuals gain unfair dismissal rights overnight, leaving you exposed to legal claims if you try to remove them later.

However, employers still need to tread carefully. Tribunals will still expect to see evidence that employees were given a fair chance, appropriate feedback, and support. Managers should ensure that they have carried out training, appraisals, one-to-one meetings, and documented performance discussions. This evidence not only demonstrates fair treatment but also strengthens the employer’s position if dismissal becomes necessary. And to be fair, it’s what good managers and employers do anyway.

On an individual level, dismissing someone is rarely easy. Managers need to be prepared to hold difficult conversations about performance, suitability, and more sensitive issues such as personal conduct. Avoiding or delaying these conversations risks leaving problematic employees in place, which will soon be much harder to reverse.

The reality is that too many managers have never been properly trained to handle performance concerns, probationary reviews, or disciplinary conversations. That’s where targeted training becomes essential.

At HR Champions, we deliver specialist training to equip managers with the confidence and skills to tackle underperformance head-on. Our “Holding Difficult Conversations” programme helps managers address sensitive issues directly, constructively, and fairly; whether the problem is poor performance, lack of suitability, or even something as awkward as poor personal hygiene.

We also provide training on recruitment, probation, induction and performance management, ensuring managers know how to spot potential underperformers before they join, and how to set up new recruits for success during their first few months. Strong recruitment and induction practices are the best defence against costly mismatches.

The new Workers Rights Bill will fundamentally change the balance of power in the employment relationship. Employers who fail to act now risk being left with staff they cannot easily dismiss, leading to costly legal disputes and disruption within their teams.

Now is the time to review your workforce, take action on underperformers, and most importantly, train your managers to handle these challenges effectively. Give your managers a fair chance to be able to confidently manage their people in line with your company policies and procedures.

Contact HR Champions Ltd today to discuss our extensive suite of training programmes and how they meet your company needs. Give your managers the tools to manage confidently, protect your organisation, and ensure you are ready for day-one workers’ rights when it hits. Call us on 01452 331331, or complete the contact form.