Labour has abandoned its pledge to grant workers protection from unfair dismissal from their first day on the job. The government now plans to introduce these rights after six months, following pressure from business groups who warned that day-one protections could discourage hiring.
Business Secretary Peter Kyle said the decision was a compromise reached between unions and employers to prevent delays to the Employment Rights Bill in the House of Lords. Despite the change, new day-one rights for sick pay and paternity leave will still take effect in April 2026.
Currently, employees gain unfair dismissal protection only after two years, requiring employers to provide a fair reason and follow proper procedures for termination. Labour had initially promised to remove this waiting period entirely and introduce a legal probation period, likely lasting nine months.
Reactions are mixed. Business leaders welcomed the six-month delay, saying it provides breathing room and protects jobs, while unions supported the move to ensure other day-one benefits proceed. However, Unite union criticized the U-turn, calling the bill a “shadow of its original promise.” Conservatives labeled it “humiliating” and argued the legislation still fails to safeguard workers effectively.
The government also confirmed that the Fair Work Agency, which will oversee the new rights, will launch in 2026.
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