Unfair Dismissal Claims - Back to 2 Years' Service Needed

The Industrial Relations Act 1971 introduced the statutory right for an employee not to be unfairly dismissed by his or her employer. This right has been subject to many amendments as from 1971.

The Coalition Government has recently stated that the employee will need to have worked for the employer for at least two years to qualify for the right.

The Employment Protection (Consolidation) Act 1978 introduced by the then Labour Government provided for a six month qualifying period to be able to claim unfair dismissal. Under the subsequent Conservative Government the qualifying period was raised to two years, but in 1999 (under the then new Labour Government) the qualifying period was reduced to the current period of one year.

It is proposed the change back to two years takes effect as from 6th April next year (2012).

There is likely to be a significant reduction in unfair dismissal claims being made but an increase in other claims which do not require a two year qualifying period such as statutory maternity pay (26 weeks with conditions) or discrimination claims (no qualifying period).