Business & Finance

Labour ditches day-one protection from unfair dismissal in U-turn

The government has U-turned on its manifesto commitment to offer all workers protection against unfair dismissal from their first day in a job.

Ministers now plan to introduce the right after six months instead, following concerns from business groups.

The government argued it was making the climbdown to stop its employment legislation being delayed in the House of Lords, where it has run into opposition.

Other new day-one rights to sick pay and paternity leave will still go ahead, coming into effect in April 2026.

Currently, employees need to have been in a role for a minimum of two years before they are entitled to protection from unfair dismissal.

Labour had planned to abolish this qualifying period completely, alongside a new legal probation period to be determined after a consultation.

The promise was a central pledge in Labour’s manifesto ahead of last year’s general election, and a key plank of its Employment Rights Bill.

But in recent weeks the House of Lords has twice voted in favour of a six-month period, slowing the legislation’s passage through Parliament.