The government has abandoned its manifesto pledge to allow workers to bring unfair dismissal claims from their first day of employment, instead agreeing a six-month qualifying period for the protection.
Ministers said the change was necessary to avoid further delays to the Employment Rights Bill in the House of Lords, where peers have twice backed a six-month threshold. Business groups had warned that immediate day-one protection could deter hiring and risk swamping employment tribunals.
Other day-one commitments in Labour’s package will still go ahead: statutory sick pay and enhanced paternity leave are due to take effect in April 2026, and a new Fair Work Agency is scheduled to be established the same year. As part of the compromise reached in talks between unions and major employers, a proposed legal probation period has been dropped.
Under existing law most employees only gain stronger protection from unfair dismissal after two years in a role. From that point employers must show a fair reason for dismissal — such as conduct or capability — and demonstrate they acted reasonably and followed a fair process. Labour’s original manifesto had pledged to abolish the two-year qualifying period and introduce basic employment protections from day one, including unfair dismissal rights.
Business Secretary Peter Kyle rejected claims the adjustment breached Labour’s manifesto, saying the party had committed to seeking consensus and it was appropriate to accept the agreement reached by unions and employers. He said it was not his role to block that deal.
Six business organisations that took part in the negotiations said firms would be relieved by the shift to six months but warned they still had concerns about other powers contained in the employment package. Kate Nicholls, chair of UK Hospitality, described the six-month period as pragmatic, giving businesses breathing space and reducing the risk of harming job opportunities.
Union reaction was mixed. A source involved in the talks said most attendees were comfortable with a six-month delay, while the Trades Union Congress welcomed the retention of other day-one rights and urged peers to respect Labour’s mandate and pass the legislation swiftly. TUC general secretary Paul Nowak emphasised the importance of getting measures such as day-one sick pay onto the statute book.
But Unite criticised the reversal. General secretary Sharon Graham warned repeated U-turns would undermine workers’ confidence and called on Labour to keep its promises. Labour MP Andy McDonald described the move as a “complete betrayal” and said he would press for the decision to be reversed.
The Conservatives labelled the decision humiliating and argued the bill still contained elements they consider unsuitable. Shadow business secretary Andrew Griffith accused Sir Keir Starmer of bowing to union influence and urged removal of what he described as job-destroying measures from the employment rights legislation.