Government Retreats On Day-One Unfair Dismissal Pledge

Family Business United has welcomed the Government’s decision to drop plans that would have allowed workers to claim unfair dismissal from their first day in a job, marking a retreat from one of Labour’s headline manifesto pledges.

Ministers confirmed that the right will instead apply only after six months in post, following sustained pressure from business groups who warned that day-one protection could make employers more cautious about hiring. The Government has also faced resistance in the House of Lords, prompting concerns that its flagship Employment Rights Bill could be delayed.

While the climbdown represents a significant shift in the legislation, other promised day-one rights — including statutory sick pay and paternity leave — are still expected to come into force in April 2026.

Paul Andrews, Founder and CEO of Family Business United, said the move would be welcomed by firms struggling to balance recruitment with rising costs.

“We welcome the Government’s decision to move away from day-one rights for unfair dismissal and introduce a six-month probationary period,” he said.

“This is a positive step that gives businesses the flexibility they need to recruit and retain the right people. For family businesses across the country, a fair probationary period provides the chance to ensure new hires are genuinely the right fit for the role and the business.”

Commenting on the announcement that the Government has agreed to a six-month qualifying period for unfair dismissal in the Employment Rights Bill, Stephen Phipson CBE, CEO at Make UK said:

“Manufacturers will applaud the Government for its decision to amend the Bill to include a six month qualifying period for unfair dismissal. It will give employers the confidence to continue to recruit employees, who remain the lifeblood of manufacturing businesses, who offer high quality high paid jobs up and down the country."

“We are grateful to the Government for their ongoing, and constructive dialogue on the Bill. We look forward to continuing to work with the Government, unions and fellow business groups to ensure the successful implementation of the Bill that offers protection and flexibility for employers and employees alike."