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GUEST COMMENT: You may soon become more sackable in the first two years of service

If you're thinking of changing jobs, be warned. The coalition government is considering increasing the qualifying period of service that employees need to have before they can raise an unfair dismissal claim from 1 year to 2 years' service.

If the government decides to go ahead, this change could happen very quickly. It wouldn't require an Act of Parliament, just an order from the Employment Minister.

As an employee with less than two years' service, what would the change mean for you?

The danger is that your new employer could treat you badly. If an employee is eligible to claim unfair dismissal, any employer wanting to dismiss them will need to follow a lengthy and fair process. If it does not follow this process, the employee can bring a case to a tribunal and win up to 65,300 in compensation.

As part of this process, the bank will need to prove that there was one of the limited "fair" reasons for dismissal. However, when unfair dismissal claims are not an option, the bank could circumvent or simply avoid this altogether. At worst, an employee could be dismissed for no real reason.

Without the ultimate threat of seeking redress in a tribunal, an employee will have little or no leverage against his employer.

It will, however, still be possible for employees with less than 2 years' experience to raise claims for discrimination and a few other limited claims such as whistleblowing and breach of statutory rights.

Nevertheless, the danger is that if these changes go ahead, recently hired employees will be extremely vulnerable to being dismissed unfairly. This could create a stressful working environment in which employees with less than two years' service are constantly under pressure to attain a certain standard or face dismissal.

Finally, you should always bear in mind that the present 1 year qualifying period of service is slightly misleading. In most cases, due to the operation of the minimum statutory notice period of 1 week, an employee only needs 51 weeks' service to qualify for issuing an unfair dismissal claim.

Whilst larger banks will be aware of this, it is amazing how many employers of smaller or less well known financial institutions are not, and leave it until the last day before the complete calendar year to dismiss an employee who they believe will be unable to then make a claim. They are wrong.

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AUTHORPhilip Landau Insider Comment
  • Ja
    Jackal
    2 March 2011

    Hi XFiles

    Many thanks for spending so much time answering my questions. I am interested in Sydney or Melbourne. I left the UK at the beginning of the crisis because both finance and the country seemed to be sinking ships. I made a number of attempts to return to the UK but it is clearer than ever that its a broken country with unethical employers and recruiters. I am now working on finding something in Brazil or Australia, none of those is easy if you are based in Europe. Take care and good luck with your job search.

  • Xf
    Xfiles
    2 March 2011

    Hey Jackal

    When I went out there I didn't have any job sort ed out, but found work easy to come by when I was there. In the 7 years I was in Sydney, I was never out of work the whole time. I'm not sure what it is like at the moment what with this global recession, etc, but many of the big job agencies here are located in Australia as well, so they will be able to help I guess. But I reckon as of next year the Aussie economy is going to grow dramatically, and will be like that for the rest of the decade in my opinion, so will be a good place to be for jobs, as well as a nice place to live. Bear in mind Jackal, I am speaking on behalf of Sydney generally, I can't really speak for other places as such, but Sydney is a fantastic city, so is all happy days. Are you not liking it here in the UK then Jackal, what sort of work do you do??

    Cheers XFiles

  • Ja
    Jackal
    2 March 2011

    Hi XFiles

    Thanks for the info. Should I look for employment before I go or simply go and find employment when there? I don't think prospective Oz employers will pay for the flight / hotel to attend interviews. Can you recommend any serious recruiters there?

  • XF
    XFiles
    1 March 2011

    Hey Jackal

    That is complete rubbish. If you have the skills and experience in your chosen profession, they will welcome you with open arms. I find the aussies have a pioneering and optimistic spirit, and if you are willing to work well, and contribute to the country in a positive fashion, then the world is your oyster. I predict the Aussie economy in the next decade to be fantastic, so my advice Jackal is to go and have a look, and like me didn't look back. Have a good day peeps

  • Ja
    Jackal
    1 March 2011

    Hi Jackal, I find Oz very attractive, what holds me back is news that a lot of immigrants cannot find jobs in their original professions and end up being a real estate agent or insurance broker etc. Do you think there is any truth in such news? Thanks. Have a great day.

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