The January Reset

Welcome back. I hope you managed some genuine time off. While you were away, I spent the break reviewing the EAT's December output and monitoring the competitor newsletters that filled my inbox. The consensus? Everyone is talking about the Employment Rights Act 2024, but few are providing practical checklists.

Allow me to fill that gap.

What's Actually Happening (and When)

The Employment Rights Act received Royal Assent in late 2024. Implementation is staggered, but the headline reform, Day One Unfair Dismissal rights, is expected to take effect in Q2/Q3 2026 (the precise commencement date depends on secondary legislation). That gives you approximately 20 weeks to prepare.

Here is what you should be doing now:

1. Audit Your Probation Policies

Under the current two-year qualifying period, probationary dismissals are low-risk. That changes dramatically when protection kicks in from Day One. Your probation policy needs to specify:

  • Clear performance objectives
  • Regular documented check-ins
  • A fair process for ending probation (even if streamlined)

The "probation light" statutory process promised in the Act still requires reasonableness. Handshake dismissals will become litigation.

2. Fix Your Onboarding Documentation

If your standard induction involves handing someone a laptop and hoping for the best, January is the time to change that. From Day One protection, every file needs:

  • Signed contract (not just an offer letter)
  • Documented objectives for the first 3, 6, and 12 months
  • Evidence of training provided

Think of it as building your "fair dismissal defence" from the moment someone walks through the door.

3. Train Your Line Managers

HR professionals understand capability processes. Line managers often do not. If your managers think they can simply "let someone go" during probation, they are operating on outdated assumptions. Book the training now, before implementation chaos sets in.

4. Review Your Recruitment

Day One protection means the cost of a bad hire increases significantly. Consider:

  • Are references actually being verified?
  • Do you have a structured interview process, or is it ad hoc?
  • Are trial periods or fixed-term contracts appropriate for certain roles?

The Tribunal Backlog

One fact that is not being discussed enough: the Employment Tribunal backlog currently stands at over 18 months in many regions. If you make a redundancy decision today and an employee brings a claim, you may not see a final hearing until mid-2027.

Strategic implication? For employees, consider the listing region when lodging claims. For employers, early settlement may be more attractive than ever. The cost of waiting is real.

Chaudhry Update

In December, I covered the EAT's decision in Chaudhry v Paperchase Products Ltd, which confirmed that employees whose employers become insolvent cannot recover a basic award from the Secretary of State without an actual Tribunal judgment.

Cloisters has now secured permission to appeal to the Court of Appeal. Watch this space. If the CA overturns the EAT, it opens a significant route for employees to recover losses in insolvency situations.

For insolvency practitioners: consider consenting to lifted stays on the narrow undertaking suggested by the EAT. It costs you nothing and avoids exposure to costs applications.

What I'm Watching This Month

  • First ACAS guidance on the Employment Rights Act
  • Any further developments on the For Women Scotland implications (I covered Peggie v Fife last month, but the ripples are still spreading)
  • EAT decisions on TUPE transfers in the gig economy

Need a Steer?

If your 2026 planning feels less like strategy and more like firefighting, I can help. Whether it is reviewing your probation policies ahead of the ERA changes, or sense-checking a redundancy consultation before it goes live, get in touch.