Labour's U-Turn: Workers' Rights Bill Drops Day-One Dismissal Protection
Labour waters down workers' rights bill

The Labour government is facing significant criticism after confirming a major dilution of its landmark Employment Rights Bill, a move opponents label a betrayal of a key manifesto pledge.

At the heart of the controversy is the decision to water down protection from unfair dismissal. The original bill, a cornerstone of Labour's 'Plan to Make Work Pay', proposed granting this right from the very first day in a new job. However, following what the government describes as "constructive conversations" with both trade unions and business leaders, the qualifying period has now been set at six months.

Key Changes to the Employment Rights Bill

Business Secretary Peter Kyle has defended the compromise, insisting it does not breach the party's manifesto. He stated that unions and employers engaged in a difficult process to find a middle ground, and it was not his job to stand in the way. Despite this, the change has sparked fury within parts of the Labour party.

Labour MP for Middlesbrough and Thornaby East, Andy McDonald, condemned the move as a "complete betrayal" and has vowed to campaign for its reversal, calling it a "wrong-headed move."

What the Bill Still Delivers for Workers

Despite the climbdown on unfair dismissal, the bill still introduces a suite of significant reforms set to reshape the UK workplace. The legislation will now make only parental leave and sick pay available from day one for all workers.

Other major provisions remain intact, including a ban on what Labour terms "exploitative" zero-hour contracts. This measure will ensure workers receive a contract reflecting their regular hours and be compensated for last-minute shift changes.

Furthermore, the controversial practice of 'fire and rehire' will be outlawed. This tactic, which gained notoriety during the Tesco dispute, sees employees dismissed and then rehired on less favourable terms. Labour has pledged to replace the current statutory code with a strengthened one to prevent such abuse.

Strengthening the Power of Trade Unions

A significant part of the bill focuses on empowering trade unions. The government claims it will "modernise trade union legislation" by repealing two key Conservative-era acts.

The first is the Strikes (Minimum Service Levels) Act 2023, which was criticised for undermining the right to strike. The second is most of the Trade Union Act 2016. Its repeal will extend the mandate for industrial action from six to twelve months and reduce the notice period unions must give employers from 14 days to ten.

While the government frames the changes as pragmatic for ensuring the bill's passage, the row over the six-month compromise highlights the delicate balancing act between fulfilling election promises and political reality.