Employment lawyers have reacted positively to the Government’s U-turn on day-one unfair dismissal rights – but urged businesses to seek expert guidance to prepare for wide-ranging workplace reforms.
Labour had made a controversial manifesto commitment to offer all workers the right to claim unfair dismissal from their first day in the job as part of sweeping reforms in its Employment Rights Bill.
The party has now scrapped the proposal after business groups voiced concerns it would discourage firms from hiring.
From 2026, ministers now plan to introduce unfair dismissal rights for workers after six months instead – down from the current two-year period.
The Government says it made the climbdown to stop its employment legislation being delayed in the House of Lords, where it has run into strong opposition. The amended Bill will next be considered in the House of Commons on 8 December.
Sally Morris, who heads up the Employment Law and HR Services team at Worcestershire-based mfg Solicitors, said: “The Government’s plan to give workers the right to claim unfair dismissal from day one caused particular concern to businesses and faced strong opposition in the House of Lords.
“Business groups argued that it would simply stop companies from hiring, and their valid concerns have driven this U-turn. The Government is now reducing the qualifying period from 24 months to six months as they believe this is a workable package in practice, while maintaining existing day one protection against discrimination and automatically unfair grounds for dismissal.
“This change is a positive one for businesses. A six-month qualifying period is much more practical and will enable businesses to align probation periods for workers.”
Despite the U-turn, a raft of other employment reforms are still planned, including day-one rights for statutory sick pay and paternity leave, and the lifting of the compensation cap for unfair dismissal. Changes will also be made to fire and rehire rules, collective redundancy consultations, zero-hour contracts and flexible working.
Ms Morris said: “Understandably, there are still many concerns from businesses about the sweeping reforms to employment rights.
“These are wide-ranging legislative changes that will transform workplace policies, and it is vital businesses understand what they mean and prepare in advance to ensure they don’t fall foul of the law.
“I would urge employers to seek expert advice and review contracts of employment now.
“With policies being phased in following three stages of consultation, this gives employers some time to understand the details and impact of the reforms and develop effective plans before they become law.”
mfg Solicitors has seven offices across the region in Kidderminster, Bromsgrove, Birmingham, Worcester, Telford, Ludlow and the Black Country.