Government Backtracks on Key Workers' Rights Pledge
In a significant policy reversal, the Labour government has abandoned its manifesto commitment to grant workers day-one protection against unfair dismissal. Ministers have instead proposed a new qualifying period of six months of service before an employee can bring such a claim against their employer.
This move, announced on Thursday 27 November 2025, marks a breach of Labour's election promise and is designed to break a parliamentary deadlock that was threatening the passage of the Government's flagship Employment Rights Bill. The current qualifying period stands at 24 months.
Business Relief and Union Pragmatism
The Department for Business and Trade defended the updated package, insisting it would still "benefit millions of working people" while offering businesses "much-needed clarity." The department also committed to ensuring that any future variation to the unfair dismissal qualifying period would require primary legislation and pledged to lift the compensation cap.
Business groups, including the Confederation of British Industry (CBI) and the Federation of Small Businesses, welcomed the change. They issued a joint statement saying the six-month period was "crucial for businesses’ confidence to hire" and expressed relief that the government had listened to their concerns.
Paul Nowak, General Secretary of the Trades Union Congress (TUC), struck a pragmatic tone. He stated that the "absolute priority" was now to get the legislation, which includes other rights like day-one sick pay, onto the statute books so workers can start benefiting from them by next April.
Criticism and Broken Promises
The U-turn has not been without its critics. Conservative leader Kemi Badenoch labelled it "another humiliating U-turn" for Labour, warning that the bill still contains measures damaging to economic growth.
More stinging criticism came from within the labour movement. Sharon Graham, General Secretary of Unite, said the Employment Rights Bill is now a "shell of its former self," citing the failure to ban fire and rehire and zero-hours contracts. She warned that these "constant row-backs" damage workers' confidence that promised protections will materialise.
This shift directly contradicts Labour's election manifesto, which explicitly promised to introduce "basic rights from day one to parental leave, sick pay, and protection from unfair dismissal." Business Secretary Peter Kyle had hinted at a concession earlier in the week, aiming to reassure firms about the bill's measures.
