Philip Landau is partner at London law firm Landau, Zeffertt Weir
Before you even think about moving jobs in the current climate, consider this – when you move jobs your legal rights to employment protection are weaker.
For example, employees who have worked for the same employer for more than a year have the right to claim either unfair or constructive dismissal if they are dismissed unfairly.
Unfair dismissal occurs when your employer has either not followed a fair dismissal process, or there is no fair reason for dismissal (such as redundancy, or capability). And constructive dismissal can be claimed if you are forced to resign following an employer's breach of contract.
Therefore as a long-term employee you will have a much more considered approach from your employer - they must follow a minimum statutory dismissal procedure and the dismissal must be proved to be for a fair reason. In contrast, a new employer can dismiss you in the first year without much fear of a claim.
(That fear isn't absent entirely - claims can still be brought for any form of discrimination; race, sex, or otherwise).
In the financial services industry which has a reputation for making large scale redundancies when there is a market downturn , the 'one year rule' throws up interesting questions. Why would an employer want to take the chance of dismissing a long-term employee who can kick up a fuss, when they can dismiss a recent hire who has no standing to making a claim?
Couple this with the fact that if you are dismissed in the first year, you are also not entitled to a statutory redundancy payment (you need two years of employment for this), and the resulting decision about who to get rid of is almost a no brainer. As a new recruit with under 12 months on your belt you can be very vulnerable.
This isn't to say there wouldn't need to be a proper redundancy selection process - but it can be engineered so that length of service may be the determining criteria. And even if performance and skills become the criteria for selection, it is typically harder to prove your worth in a company that you have only just joined.
You will always have a right of appeal, even if you are dismissed in the first year. Most appeals are, however, regrettably not upheld, and you are going to have difficulty justifying your position with such a short period of employment under your belt.
To ask advice about your legal position post a question in Philip's forum.
