Sir Keir Starmer is facing a Labour civil war after the Government scrapped a flagship pledge in the workers’ rights bill championed by Angela Rayner. The decision to abandon plans allowing employees to sue for unfair dismissal from day one has sparked a revolt among backbenchers and unions.
The Government now intends to introduce the right after six months of service instead, while other day-one rights such as paternity leave and sick pay will proceed as planned, coming into effect in April 2026. The move follows concerns from businesses about potential costs and recruitment challenges.
Labour MP Andy McDonald branded the concession a “complete betrayal” and vowed to campaign for its reversal. Neil Duncan-Jordan MP criticised the lack of consultation with the Parliamentary Labour Party, while Rachael Maskell argued that employers have nothing to fear from day-one rights.
Ex-employment minister Justin Madders, sacked earlier this year, disputed Business Secretary Peter Kyle’s claim that the move did not breach Labour’s manifesto, stating: “It most definitely is a manifesto breach.” Unite boss Sharon Graham said the Bill had become “a shell of its former self”.
Mr Kyle insisted the compromise was reached by unions and employers and that it was his job to accept it. Business groups welcomed the change, saying the six-month qualifying period was crucial for hiring confidence, though they warned that other powers in the Bill still raised concerns.
