Labour ditches day-one workers’ protection against unfair dismissal

Business Secretary Peter Kyle had hinted at concessions over the government’s workers’ rights package.

Ministers have abandoned plans to give workers day-one protection against unfair dismissal in a bid to ensure the Government’s Employment Rights Bill makes it through Parliament.

People will need to have six months of service to claim unfair dismissal against their employer, in a watering down of the legislation and a breach of Labour’s manifesto.

This is reduced from the current qualifying period of 24 months.

The legislation has been caught in a stand-off between peers and MPs over the government’s plan to give workers protection on their first day in a job, as well as measures to ban “exploitative” zero-hours contracts.

In an update on Thursday, the Department for Business and Trade (DBT) said: “The government convened a series of constructive conversations between trade unions and business representatives.

“On the basis of the outcome of these discussions, the government will now move forward on the issue of unfair dismissal protections in the Employment Rights Bill to ensure it can reach royal assent and keep to the Government’s published delivery timeline.”

It went on: “The discussions concluded that reducing the qualifying period for unfair dismissal from 24 months to six months (whilst maintaining existing day-one protection against discrimination and automatically unfair grounds for dismissal) is a workable package.”

The government insisted the amended package would “benefit millions of working people who will gain new rights and offer business and employers much-needed clarity”.

“To further strengthen these protections, the government has committed to ensure that the unfair dismissal qualifying period can only be varied by primary legislation and that the compensation cap will be lifted,” the DBT said.

Tory leader Kemi Badenoch described the move as “another humiliating U-turn” for Labour and said the legislation still contains “measures that will damage businesses and be terrible for economic growth”.

“If Labour won’t scrap the worst elements of this awful Bill, we will.

“Britain cannot build prosperity with more and more bureaucracy,” she said.

Prime Minister Sir Keir Starmer visited a community centre in Rugby, Warwickshire, on Thursday. / Credit: PA

There has been a mixed reaction to the U-turn from unions, which follows concerns voiced by some businesses about potential costs and recruitment challenges.

Unite boss Sharon Graham said the Bill had become “a shell of its former self” while TUC general secretary Paul Nowak said the “absolute priority” was to get the legislation on to the statute books.

“Following the government’s announcement, it is now vital that peers respect Labour’s manifesto mandate and that this Bill secures royal assent as quickly as possible,” Mr Nowak said.

Ms Graham said: “These constant row-backs will only damage workers’ confidence that the protections promised will be worth the wait. Labour needs to keep its promises.”