The government has agreed to bring forward new protections against unfair dismissal for UK workers, following a compromise brokered with Labour's Angela Rayner. The landmark change will now come into force on 1 January 2027, granting employees the right to claim unfair dismissal after six months of service.
From Planned Amendment to Swift Agreement
Angela Rayner, the architect of the employment rights bill and former deputy prime minister, had been preparing to lay an amendment in parliament to force the implementation of these protections from early next year. However, after direct conversations with Business Secretary Peter Kyle, a deal was struck. Rayner agreed to stand down her amendment in exchange for the government's firm commitment to the 2027 start date, which will be announced in the House of Commons on Monday.
A government source stated: “We are happy to have a clear date for this change. Now the House of Lords need to get on and pass this landmark bill so business can get the clarity they need and workers can get the security they deserve.”
What the New Rights Mean for Workers
The new rule significantly reduces the current qualifying period for unfair dismissal claims, which stands at two years. This threshold was increased from one year by David Cameron's government in 2012, having originally been reduced from two years to one by Tony Blair's administration in 1999.
The practical effect is that anyone employed from July 2026 onwards will benefit immediately, as they will have accrued the necessary six months of service by the time the law takes effect. The government had previously only committed to implementing the change at some point next year, with October 2027 being a potential date under discussion.
Labour's Campaign and Union Acceptance
Rayner's intervention followed considerable anger within the Labour Party after the government abandoned a manifesto pledge for 'day-one' protection against unfair dismissal. The compromise of a six-month qualifying period was presented as necessary to overcome staunch opposition to the bill in the House of Lords.
A Labour source close to the talks said MPs were “pleased ministers have listened and responded to their concerns and proposals.” They added that the earlier implementation was a “significant win” which Labour could campaign on next year.
Trade unions have largely accepted the six-month compromise, arguing that the government's original alternative—a nine-month probation period—was unworkable and required lengthy consultation. As part of the wider deal, the government also agreed to lift the cap on compensation for unfair dismissal claims, a long-standing union demand.
The broader employment rights bill, which returns to the Commons next week, also includes key measures to protect workers on zero-hours contracts and introduces fines for employers who deny unions access to their workforce.
