Labor Backs Down on Day-One Unfair Dismissal Rights in Employment Bill U-Turn
In a notable shift,Labour has abandoned it’s pledge to provide workers with unfair dismissal protection from their frist day of employment. the move follows repeated votes in the House of Lords favouring a six-month qualifying period and pressure from employer groups.
Business Secretary Kemi Badenoch announced the government will now implement unfair dismissal protection after six months,scrapping the proposed new legal probation period. Badenoch stated the compromise was reached by “unions and the employers” and that it was “not my job to stand in the way of that compromise.”
The House of Lords had twice voted in favour of the six-month period, delaying the legislation’s progress. A new Fair Work Agency, responsible for overseeing the new rights, is still planned for establishment in 2026.
The decision has sparked a mixed reaction. The Trades Union Congress (TUC) welcomed the news, stating the “absolute priority now is to get these rights – like day one sick pay – on the statute book so that working people can start benefitting from them from next April.” TUC General Secretary Paul Nowak urged the Lords to ”respect Labour’s manifesto mandate” and expedite the bill’s passage.
Though, the change has drawn criticism from within Labour’s ranks. Labour MP Andy McDonald labelled the move a “complete betrayal,” referencing his work developing the ”New Deal for Working People” at Keir Starmer‘s request. Unite the Union, a major Labour donor, described the bill as a “shell of its former self,” warning the U-turn would “damage workers’ confidence.” Unite general secretary Sharon Graham added: “Labour needs to keep its promises.”
Employer groups have largely praised the decision. Kate Nicholls, chair of UK Hospitality, said the six-month waiting period would “give businesses much-needed breathing room and avoid further damage to employment opportunities.”
the Conservatives have branded the U-turn “humiliating,” with shadow business secretary Andrew Griffith calling on Keir Starmer to “grow a backbone” and abandon other “job-destroying anti-growth measure[s]” in the bill.
Concerns had been raised that day-one rights could overwhelm employment tribunals already facing significant backlogs. A union source indicated that the “vast majority of unions” were agreeable with the six-month implementation timeframe.
