Employment Rights Bill: Government U-turn on Day One Unfair Dismissal Rights
The Government has confirmed a significant change to one of the most talked about proposals in the new Employment Rights Bill. Plans to introduce day one protection from unfair dismissal have now been scaled back, with ministers announcing a six month qualifying period instead (whilst maintaining existing day one protection against discrimination and automatically unfair grounds for dismissal)
Under earlier proposals, employees would have been protected from unfair dismissal from the moment they started their job. This would have represented one of the largest shifts in UK employment law in decades.
However, following concerns from business groups and employers about the operational impact, the Government has amended the proposal. Workers will now need six months of service before gaining protection, which acts as a compromise between the current two year qualifying period and the previously announced day one approach.
The U-turn means ministers can now move forward on the issue of unfair dismissal protections in the Employment Rights Bill in the hope that it reaches Royal Assent and keeps to the government’s published delivery timeline.
This will mean delivering day-one rights to sick pay and paternity leave in April 2026, as well as launching the Fair Work Agency.
While the change still represents a significant reduction in the qualifying period, the shift away from day one rights provides employers with more breathing room during the early months of employment.
Important points for employers to consider include:
Probationary periods will remain important, as the new timeframe aligns with many existing probation structures.
Performance management remains essential, as clear processes continue to reduce risk.
Employers may feel more confident when hiring, especially smaller businesses that rely on early flexibility during the onboarding phase.
At Cubed Talent, we view this update as an important stabilising move for the labour market.
Had day one rights been introduced, employers may have become more cautious about hiring quickly. The six month compromise helps avoid unnecessary hesitation while still improving protections for workers.
Our view at Cubed Talent
This is a major policy shift, but also a pragmatic one. The Government’s decision aims to balance fairness with flexibility, supporting a more confident and stable recruitment environment.
We will continue to monitor developments within the Employment Rights Bill and will keep our clients and candidates updated as further details emerge.
If you would like support reviewing your hiring processes or preparing for upcoming legislative changes, we are here to help.
