Henry Zeffman, Chief political correspondent
Paul Seddon, Political reporter
The government has abandoned its manifesto promise to give all workers the right to claim unfair dismissal from their first day of employment, instead planning to introduce that protection after six months.
Ministers said the retreat was necessary to avoid further delays to the Employment Rights Bill in the House of Lords, where peers have twice voted for a six-month qualifying period. Business groups had warned that immediate day-one protection would discourage hiring and overwhelm employment tribunals.
Other day-one measures — statutory sick pay and paternity leave — will still take effect in April 2026, and the new Fair Work Agency will be established the same year. The planned legal probation period has been dropped under the compromise reached in talks between unions and major employers.
Currently, most employees gain stronger protection from unfair dismissal only after two years in a job; employers must identify a fair reason for dismissal (such as conduct or capability) and show they acted reasonably and followed a fair process. Labour had pledged to abolish the two-year qualifying period and introduce basic rights from day one, including protection from unfair dismissal.
Business Secretary Peter Kyle rejected the idea that the change broke Labour’s manifesto, saying the manifesto committed to bringing people together and that it was right to accept a compromise struck by unions and employers. He said it was not his role to block that agreement.
Six business groups involved in the discussions said companies would be “relieved” by the move but warned they still had concerns about other powers in the employment package. UK Hospitality chair Kate Nicholls described the six-month period as a pragmatic response that would give businesses “breathing room” and avoid harming employment opportunities.
Union reaction was mixed. A union source said the majority present at talks were comfortable with a six-month wait. The Trades Union Congress welcomed securing other day-one rights and urged peers to respect Labour’s mandate and pass the legislation quickly. TUC general secretary Paul Nowak stressed getting rights like day-one sick pay onto the statute book as a priority.
However, Unite criticised the U-turn. General secretary Sharon Graham said repeated backtracks would damage workers’ confidence and called on Labour to keep its promises. Labour MP Andy McDonald described the move as a “complete betrayal” and vowed to seek its reversal.
The Conservatives called the U-turn “humiliating” but argued the bill still contained measures that were “not fit-for-purpose.” Shadow business secretary Andrew Griffith accused Sir Keir Starmer of bowing to unions and urged the removal of what he called job-destroying elements of the employment rights bill.
