The government has abandoned its flagship policy to grant workers unfair dismissal protection from their first day on the job, replacing it with a six-month qualifying period. The U-turn directly breaches Labour's manifesto pledge and follows a deal brokered between six major business groups and union leaders.
Business Secretary Peter Kyle, who vowed at the CBI conference not to let businesses 'lose' under the new law, said the compromise was necessary to balance worker protections with hiring confidence. The Trades Union Congress accepted the arrangement, with general secretary Paul Nowak stressing the priority is to get other rights, such as day-one sick pay, onto the statute book by next April.
However, the reversal has sparked infighting among unions, with Unite general secretary Sharon Graham calling the bill a 'shell of its former self' and warning that constant row-backs damage worker trust. The original plan would have scrapped the qualifying period entirely, but the new threshold reduces it from two years to six months, scrapping a proposed nine-month probation period.
The move adds pressure on ministers already facing criticism over Rachel Reeves's budget breaking pre-election tax promises. MPs are uneasy about the manifesto breach, while unions remain divided. A union source said the deal was struck to expedite the bill through the House of Lords, ensuring new rights like sick pay take effect from April 2025.
