The Government has dropped its plan to allow full employment rights, including the right not to be unfairly dismissed, from day one, replacing it with a six-month qualification period.
The change will bring forward the time period from which employees attain full protection against unfair dismissal from two years to six months.
The Government says it will still bring in day one sickness and paternity leave rights from April 2026.
A joint statement from the British Chambers of Commerce, CIPD, Confederation of British Industry, Federation of Small Businesses, Recruitment and Employment Confederation and Small Business Britain welcomed the u-turn. The statement said: “Businesses will be relieved that the Government has agreed to a key amendment to the Employment Rights Bill which can pave the way to its initial acceptance.
“We welcomed this chance to hold meaningful dialogue and believe the constructive nature of our discussions can be a template to resolve outstanding issues.
“Businesses have always been clear that making the Employment Rights Bill work would take business, trade unions and government working together to find a landing zone for these major policy changes.
“This agreement keeps a qualifying period that is simple, meaningful, and understood within existing legislation. It is crucial for businesses confidence to hire and to support employment, at the same time as protecting workers.
“This change addresses the key problem that must be sorted in primary legislation. It shows that dialogue works and is a model for how to consider the important questions that need answering in regulations before new rules come into force.
“Businesses will still have concerns about many of the powers contained in this Bill. This includes guaranteed hours contracts, seasonal and temporary workers and thresholds for industrial action.
“We remain committed to working with government and unions to dealing with this in the necessary secondary legislation to implement the Bill. We must ensure that it supports opportunity for workers while avoiding damage to economic growth.
“That also means agreeing guidance and support for businesses to understand and effectively implement the many changes, alongside sufficient resources for the Fair Work Agency and tribunal system.”
Vicky Schollar, Head of Employment at Gardner Leader says: “In a dramatic turnaround the government has conceded to pressure from the House of Lords to drop unfair dismissal rights from day one of employment. Instead, the right will apply after six months. This is great news for employers, who now have a bit of breathing space to assess whether or not an employee is suitable for the role they have been employed to perform. However, employers will need to ensure that they have clear processes in place for monitoring and evaluating suitability over a relatively short period of time to minimise the risk of other day one claims such as discrimination.”
