Companies are being urged to sack underperforming staff and extend probation periods ahead of Labour’s sweeping overhaul of workers’ rights.
Lawyers are advising their clients to take action in anticipation of the Government’s incoming Employment Bill, which is expected to include awarding workers’ full rights from day one.
Labour’s proposals have raised concerns about a wave of unfair dismissal claims, as staff will no longer have to wait two years until they have to submit lawsuits.
This has led to lawyers urging bosses to review how they dismiss underperforming staff.
Nicholas Le Riche, an employment lawyer at BDB Pitmans, said: “We’re definitely flagging the upcoming changes with clients and highlighting that now is the time to consider their workforce structures for the rest of the year.”
One City solicitor said he has told companies to think about sacking workers “sooner rather than later” if they are approaching two years in the job.
Already, this has sparked an increase in “quick-fire redundancies”, says Charlie Thompson, a lawyer at Stewarts.
James Davies, an employment lawyer for Lewis Silkin, added that some companies are also considering beefing up their probationary periods.
He said: “The advice we are giving at present includes looking at contracts for new hires to make sure they have properly drafted probationary periods.
“Many employers have historically managed them poorly as there was little legal significance to an employee failing a probationary period and an employer deciding a little later that it wasn’t working out.”
Caspar Glyn, chairman of the Employment Lawyers Association, added that businesses will want to “set up and implement more rigorous systems to ensure that new staff who don’t measure up can be fairly dismissed within their probationary period.”
However, day-one workers’ rights are not the only area making managers nervous, as the Government prepares for the biggest overhaul of employee rights in a generation.
This includes making flexible working the default for all staff members, which has led to some City bosses seeking ways in which they can work around the proposed policy.
Andrew Taggart, head of employment at Herbert Smith Freehills, said the hope is that ministers consult with businesses early before enacting their legislation.
He said: “Businesses need to think about what changes might be needed.
“We’re advising that clients get ready to contribute meaningfully to the consultation because the devil is in the detail.”
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