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Labour’s education secretary has defended the party’s reversal on the proposal to grant all employees the right to claim unfair dismissal from their very first day at work. Rather than immediately extending protection from day one as originally planned, ministers have decided to reduce the current qualifying period from two years to six months. This adjusted approach aligns with an agreement made between certain unions and industry representatives.
Bridget Phillipson explained to the BBC that this change represents a pragmatic compromise designed to ensure that the broader benefits outlined in Labour’s employment rights legislation can be delivered within the expected timeframe. While the move has been welcomed by business groups, some Labour MPs on the party’s left wing have criticized the decision. At present, workers must remain with an employer for two continuous years before gaining legal protection against unfair dismissal, which requires employers to justify terminations with reasonable grounds and follow fair procedures.
Initially, Labour’s plan aimed to eliminate this qualifying period entirely and replace it with a legal probation period, likely lasting nine months, intended to protect companies. However, business organizations voiced concerns that day-one unfair dismissal rights might discourage hiring and complicate operations. In light of these concerns, the government announced an unexpected shift on Thursday, adopting a six-month qualifying period and scrapping the proposed probation period.
Ministers insist this adjustment does not violate Labour’s general election manifesto, which commits to establishing “basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.” Business Secretary Peter Kyle, who previously emphasized that the party was elected to provide day-one unfair dismissal protection, now contends that the revised approach is consistent with manifesto promises due to a concurrent commitment to consensus-building. He emphasized that his role is not to obstruct agreements struck between unions and businesses. The government also argues that this move will remove obstacles in Parliament, especially after the House of Lords twice supported a six-month qualifying period, which had delayed progress.
Phillipson told BBC Radio 4’s Today programme that the stalemate over unfair dismissal risked jeopardizing the entire employment rights bill, which includes immediate rights to sick pay and paternity leave for workers. She described the reduction in the qualifying period from two years to six months as “a big step forward,” remarking that sometimes pragmatism is necessary to achieve broader gains.
The decision received strong backing from British industry groups, with Martin McTague, national chair of the Federation of Small Businesses, highlighting fixing this part of the bill as a key priority. On the other hand, Labour left-wing MPs have voiced more reserved responses, while Unite union leader Sharon Graham—representing a major Labour donor—called the move “absolutely a breach” of the party’s manifesto. Graham expressed concern about potential further dilution of the employment bill.
The business department confirmed its commitment to introducing day-one sick pay and paternity leave rights starting in April 2026, though an exact date for implementing the six-month unfair dismissal qualifying period remains unconfirmed and is unlikely to be specified directly within the bill. Although Labour had originally committed to day-one rights beginning in 2027, the government does not actually require the passage of the employment rights bill to make changes to the unfair dismissal qualifying period, as existing legislation permits such adjustments—powers previously used to extend the qualifying period from one to two years in 2012. However, codifying these changes into a full Act of Parliament aims to provide stronger protection against future rollbacks. The business department reaffirmed its intention to pursue this legislative route to reinforce the new rights
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