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Commercial Awareness Compass
Hiring under pressure: The reform that could rewrite recruitment
The Employment Rights Bill would reshape unfair dismissal by reducing the current two-year qualifying period and introducing an “initial period of employment” that functions like a statutory probation.
The headline proposal is unfair dismissal protection from day one, although recent parliamentary debate has floated alternatives such as a shorter qualifying period (e.g., six months).
How might a statutory probation affect hiring and exit practices? Could tribunals handle a likely rise in claims? Would employers turn to agency labour or fixed-term contracts to manage risk?
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