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Rayner proposes flexible probation periods to reduce long-term sickness leave

October 2, 2024

The UK government is exploring the introduction of extended probation periods for workers returning from long-term sickness, in an effort to encourage businesses to hire them without the risk of legal repercussions.

Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds are leading discussions around “flexible probation periods” as part of a broader strategy to reduce the record 2.8 million workers on long-term sickness leave. The idea is that allowing longer probation periods could incentivise employers to rehire staff who have been out of the workforce, without fear of facing employment tribunals if the arrangement doesn’t work out.

The proposal mirrors a system used in Ireland, where probation periods typically last six months but can be extended to a year in exceptional circumstances, such as prolonged illness.

Ministers are also trying to balance these reforms with Labour’s commitment to strengthening workers’ rights, particularly its pledge to grant full employment rights from day one of a new job. Currently, employees must work for two years to qualify for full employment rights, including protection from unfair dismissal.

Unions are likely to oppose the extended probation proposal, arguing that day-one rights should apply universally, including to those returning from illness. They view the length of probationary periods as the next major battleground in the ongoing debate over workers’ rights.

During recent meetings with unions and business leaders, Ms Rayner and Mr Reynolds discussed ways to make it easier for long-term sick workers to return to the labour market. Reynolds acknowledged the need for businesses to have confidence that hiring people who have been out of work will not expose them to additional risks.

The proposal is part of Labour’s pledge to overhaul workers’ rights within the first 100 days of government, with ministers racing to finalise agreements. However, many business leaders expect more complex regulations, such as day-one workers’ rights, to be implemented by 2026.