Day 1 Rights: Implications for hiring and onboarding

With much uncertainty surrounding the changes in employment law, we discussed how this is impacting HR professionals and employer policies and procedures with our HR specialist, Charlotte Chandler. Following this, we have highlighted the key takeaways to help employers understand the implications of the upcoming changes and prepare for the transition.

As the Employment Rights Bill 2024 moves forward, one of the most impactful updates for employers is the introduction of "Day 1 Rights," which will grant employees certain protections from the very first day of their employment. This is a significant reduction from the current requirement that employees must complete two years of service before becoming eligible to file unfair dismissal claims. With these changes, employers, HR professionals, and hiring managers must reconsider their recruitment, onboarding, and employee management practices to comply.

What are the Day 1 Rights?

The Day 1 Rights extend employment protections to new hires as soon as they begin their role, with the most notable being the right to claim unfair dismissal. Currently, employees must have at least two years of continuous employment before they can file unfair dismissal claims. The introduction of Day 1 Rights drastically shortens this timeline, meaning that once a hire has completed their probation, they are immediately eligible to challenge a dismissal if it is deemed "unfair."

Other employment rights that will come into effect on Day 1 include the existing right to request flexible working ,as well as the rights for paternity leave, unpaid parental leave, and entitlement to bereavement leave. By removing the previous waiting period, the bill will improve job security and employee support.

How Will Day 1 Rights Impact Hiring Processes?

The shift to Day 1 Rights will require employers to be more diligent and cautious when hiring. Below are some ways the changes will affect hiring practices and what employers should do to prepare:

More Rigorous Recruitment and Screening

With the potential for legal claims from the start of employment, companies may need to implement stricter hiring processes. Employers will likely invest more time and resources into vetting candidates to ensure they are a strong fit for the role and the company culture. This could involve:

Enhanced Interview Processes: Employers may want to restructure their interviews to focus more on competency based questions, practical assessments or behavioural tests, to better assess candidate suitability.

Background Checks: Ensuring that background and reference checks are comprehensive will help verify the applicant's work history and skills.

Clarity and Expectations: Being explicit about expectations, performance standards, and probationary criteria from the outset will be essential in preventing misunderstandings and setting a clear framework for evaluating hires.

While these changes will help employers mitigate risks, they could also lead to longer hiring timelines, potentially causing delays in filling positions. Therefore, you will need to find a balance of a thorough yet efficient process to avoid losing applicants.

Extended Probationary Periods

The bill does allow companies to keep new hires on probation for up to six months, providing a buffer period where employees are not yet fully covered by Day 1 Rights. Although this is already a business standard for many, this adjustment will give employers time to evaluate the employee's performance and cultural fit before offering permanent protections.

However, employers must still follow fair procedures during probation. This means providing feedback, documenting performance issues, and ensuring that employees are aware of the criteria. For hiring managers, this could involve:

Setting Performance Metrics: Establishing measurable goals and timelines for hires will allow for more objective evaluation during the probation period.

Frequent Check-Ins: Regularly scheduled performance reviews during probation can help address any issues early on, reducing the likelihood of disputes.

Documenting Processes: Proper documentation of performance management during the probationary period will be critical if an employee is dismissed, as this will help demonstrate that the employer acted fairly.

Increased Training for HR and Managers

As Day 1 Rights raises the stakes for dismissals, hiring managers and HR teams must be well-equipped to handle new expectations. This will likely necessitate additional training on:

• Management Best Practices: Managers will need to develop skills to effectively monitor, evaluate, and address employee performance during probation.
• Understanding Employment Law: Training on the updated legal framework will be crucial for HR and line managers, ensuring they are compliant with the new requirements.
• Handling Probationary Reviews: Ensuring that those involved in hiring and onboarding understand how to conduct fair and comprehensive reviews will be key to managing the risks associated with Day 1 Rights.

Potential Shifts in Employment Practices

The introduction of Day 1 Rights is expected to have broader implications beyond just hiring processes. Employers may adopt new strategies to minimize risks associated with the changes, including:

Rise in Temporary and Fixed-Term Contracts

To manage the legal risks posed by the new protections, companies may increase the use of temporary or fixed-term contracts for new hires. These arrangements provide employers with greater flexibility and reduce long-term commitments, while still allowing companies to assess employees' suitability for permanent positions.

More Structured Onboarding Programs

With employee rights starting from the first day, structured onboarding programs will become even more critical. A well-designed onboarding process can help new hires adjust quickly and understand the expectations and culture of the organisation. Key elements will include:

• Comprehensive Induction Training: Covering company policies, performance expectations, and available support resources.
• Early Performance Feedback: Providing constructive feedback during the initial weeks to help employees improve and align with company standards.
• Mentoring: Pairing new employees with experienced team members can facilitate smoother transitions and foster a supportive work environment.

The Candidate Perspective: How Will Day 1 Rights Benefit Job Seekers?

For candidates, the shift to Day 1 Rights will be a positive change, offering greater job security and support from the outset. Enhanced protections will enable employees to feel more confident about raising concerns and resolving unfair treatment. This could also impact job satisfaction, as workers may perceive that they are being safeguarded, leading to better retention rates.

Furthermore, these changes could shift the talent pool with candidates empowered to negotiate employment terms and ask more questions during the interview process. Some of the questions to expect will be about clear career development opportunities, probation criteria, and the company's stance on flexible working.

The move towards Day 1 Rights will transform UK employment. You will need to adapt your company's hiring processes to ensure compliance, which will involve more rigorous recruitment, structured onboarding programs and better performance management. While the changes will result in operational changes for HR and hiring managers, they also offer a chance to create supportive working environments.

Employers who proactively update their practices and policies will be better positioned to attract and retain their people while strengthening their workforce to remain compliant.

If you are wanting more support on how the changes will impact your business or your People Strategy please contact our Huntress teams who can give you further guidance or refer you to external legal advisors.