Major U-turn on flagship workers' rights policy
The Labour government has dramatically abandoned its pledge to give employees the right to claim unfair dismissal from their first day in a job. This represents a significant climbdown on what was once a cornerstone of Angela Rayner's workers' rights revolution.
Ministers have thrashed out a compromise behind the scenes that will see workers gain protection against unfair dismissal only after they have been employed for at least six months. While this is shorter than the current two-year qualifying period, it marks a substantial retreat from the original day-one rights proposal that had caused months of tension with business leaders.
Business relief and political fallout
The government's U-turn comes just days after Downing Street insisted it would resist all attempts to water down the Employment Rights Bill. Industry sources confirmed the dramatic policy reversal, which follows intense lobbying from business groups concerned about the impact on employers.
The move represents a particular blow to former deputy prime minister Angela Rayner, who had championed the day-one rights as "truly transformative" for workers. Shadow business secretary Andrew Griffith described it as a "humiliating U-turn" on Labour's flagship legislation.
Business leaders had savaged the proposed legislation, with the government's own assessment showing it would cost firms £5 billion per year in additional red tape. CBI chief Rain Newton-Smith had earlier described the bill as "disappointing and damaging," accusing ministers of ignoring employers' legitimate concerns.
Compromise reached after intense negotiations
A Whitehall source explained that ministers recognised employer concerns about the potential for vexatious claims from staff who had only just started work. The new six-month entitlement can only be reduced in future through primary legislation, providing businesses with greater certainty.
The Department for Business and Trade confirmed that talks between employers and unions had produced this compromise. A spokesman noted that other day-one rights, including those to sick pay and paternity leave, would still be introduced in April next year as planned.
"Reforms to benefit millions of working people would otherwise be significantly delayed if the Bill does not reach Royal Assent in line with our delivery timetable," the spokesman stated. "Businesses too need time to prepare for what are a series of significant changes."
Tory peer Lord Leigh, who helped lead opposition in the Lords, welcomed the government's change of heart, noting that "not one business representative body" had supported the original proposals.
