The Labour government has performed a significant U-turn on its flagship workers' rights policy, abandoning plans to give employees day-one protection against unfair dismissal.
Six-month qualifying period introduced
Instead of the promised immediate protection, workers will now need to complete six months of service before they can claim unfair dismissal against their employer. This represents a reduction from the current two-year qualifying period but falls short of Labour's manifesto commitment to implement day-one rights.
The change was announced on Thursday 27th November 2025 as ministers sought to break a parliamentary deadlock that threatened to derail the entire Employment Rights Bill. The legislation had become caught in a stand-off between the House of Commons and the House of Lords over the original day-one protection plans.
Business relief versus union disappointment
Business Secretary Peter Kyle had hinted at the concession earlier this week, aiming to reassure concerned employers. The Department for Business and Trade insisted the revised package would still "benefit millions of working people" while providing "much-needed clarity" for businesses.
Major business organisations including the Confederation of British Industry (CBI), British Chambers of Commerce, and Federation of Small Businesses welcomed the compromise. They stated that the six-month qualifying period was "crucial for businesses' confidence to hire" while still protecting workers.
However, the move has drawn criticism from within Labour's own ranks and from trade unions. Labour MP Andy McDonald described it as a "complete betrayal" of the party's manifesto commitments, while Unite general secretary Sharon Graham warned that "these constant row-backs will only damage workers' confidence."
Broader implications for employment law
The government has committed to ensuring that any future changes to the unfair dismissal qualifying period would require primary legislation, and has promised to lift the compensation cap for successful claims.
TUC general secretary Paul Nowak struck a more conciliatory tone, stating that the "absolute priority" was to get the legislation onto the statute books so that workers could benefit from other measures, including day-one sick pay, from next April.
The controversy highlights the challenging balance the new government faces between delivering on its pro-worker election promises and addressing business concerns about regulatory burdens. The Employment Rights Bill continues its journey through Parliament with the government hoping the compromise will secure its passage.
