Labour drops plan to give workers protection from unfair dismissal from first day in a job

The government has U-turned on its manifesto commitment to offer all workers the right to claim 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, employers face additional legal hurdles if they want to sack employees who have been in their role continuously for two years.

They must identify a fair reason for dismissal - such as conduct or capability - and show that they acted reasonably and followed a fair process.

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.

Ministers' decision to move to a six-month waiting period followed talks with business groups and unions.

The Trades Union Congress (TUC) welcomed the news, adding 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 called on the House of Lords to "respect Labour's manifesto mandate" and ensure the legislation was passed as soon as possible.

The Conservatives called the U-turn "humiliating" but added that the legislation was "still not fit-for-purpose".

"Keir Starmer must grow a backbone, stand up to his union paymasters and ditch every single job-destroying anti-growth measure in the employment rights bill now," added shadow business secretary Andrew Griffith.