In a significant policy shift, the UK government has abandoned its flagship pledge to grant workers protection from unfair dismissal from their very first day in a job.
Key Concessions to Business
The move comes after the new Business Secretary, Peter Kyle, vowed to listen to corporate concerns, telling a CBI conference audience that he would ensure businesses did not "lose" under the new workers' rights bill. The original plan, steered through by his predecessor Jonathan Reynolds and former deputy PM Angela Rayner, has been substantially altered.
Instead of the promised day-one rights, employees will now face a six-month qualifying period before they can claim unfair dismissal. This replaces the current two-year threshold. Furthermore, a proposed nine-month probation period that businesses could use has been completely removed from the legislation.
Breaking the Parliamentary Deadlock
A union source indicated that these changes were agreed upon to help the bill progress faster through the House of Lords, where it has faced significant delays and amendments from Tory and Liberal Democrat peers.
Kyle had previously stated he would do "what it takes" to unblock these parliamentary hold-ups, committing to a consultation on the implementation of key parts of the bill afterwards. "The voice of business, the voice of people who work in business, will be heard when we get down into the weeds of implementing those key parts of the employment rights bill. And yes, I’m talking about zero hours contracts and day-one rights," he said.
Union Concessions and Political Fallout
While unions have insisted they secured other concessions, including on costs, the government's U-turn is likely to anger left-wing Labour MPs. They had viewed the employment rights bill as a cornerstone of the party's offer, which also includes a ban on zero-hour contracts.
This compromise illustrates the balancing act the new administration faces between delivering on its pro-worker promises and addressing the concerns of the business community about the potential impact on hiring and flexibility.
