Henry Zeffman,<\/span>Chief political correspondent<\/span>and<\/span><\/p>\n Paul Seddon,<\/span>Political reporter<\/span><\/p>\n <\/span><\/div>\n<\/div>\n 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.<\/p>\n Ministers now plan to introduce the right after six months instead, after business groups voiced concerns it would discourage firms from hiring.<\/p>\n 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. <\/p>\n Other new day-one rights to sick pay and paternity leave will still go ahead, coming into effect in April 2026. <\/p>\n A source said most unions backed the changes, though Unite said the U-turn would “damage workers’ confidence”.<\/p>\n<\/div>\n Business groups welcomed the announcement, which followed talks between major industry groups and unions.<\/p>\n In a statement, the six business groups involved in the discussions said companies would be “relieved” – but added firms still had “concerns about many of the powers” contained in the government’s employment package.<\/p>\n Currently, employers face additional legal hurdles if they want to sack employees who have been in their role continuously for two years.<\/p>\n They must identify a fair reason for dismissal – such as conduct or capability – and show that they acted reasonably and followed a fair process.<\/p>\n<\/div>\n Labour had planned to abolish this qualifying period completely, alongside a new legal probation period, likely to have been nine months. <\/p>\n 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.<\/p>\n Labour pledged to create “basic rights from day one to parental leave, sick pay, and protection from unfair dismissal”.<\/p>\n But asked if it was a breach of the Labour manifesto, Business Secretary Peter Kyle said: “No.”<\/p>\n Instead, he argued the manifesto had pledged to “bring people together” and “that this would not be legislation that pits one side against another”.<\/p>\n Speaking to broadcasters, Kyle said the compromise had been found by “unions and the employers” and it was “not my job to stand in the way of that compromise”. <\/p>\n The government now plans to implement unfair dismissal protection after six months instead of day one, and ditch the new legal probation period.<\/p>\n In recent weeks, the House of Lords has twice voted in favour of a six-month period, slowing the legislation’s passage through Parliament. <\/p>\n The Fair Work Agency – a new body tasked with overseeing the new rights – will also be set up in 2026, the government announced.<\/p>\n<\/div>\n There had been fears day one rights could overwhelm an employment tribunals system already facing huge backlogs.<\/p>\n One union source has told the BBC that the “vast majority of unions” present at discussions were comfortable with introducing unfair dismissal only after six months.<\/p>\n The Trades Union Congress (TUC) welcomed the news, adding the “absolute priority now is to get these rights \u2013 like day one sick pay – on the statute book so that working people can start benefitting from them from next April.”<\/p>\n 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.<\/p>\n Kate Nicholls, chair of UK Hospitality, said: “This is a pragmatic change that addresses one of hospitality businesses key concerns.”<\/p>\n The six month waiting peroid would “give businesses much-needed breathing room and avoid further damage to employment opportunities,” she added.<\/p>\n Labour MP Andy McDonald branded the move a “complete betrayal” and vowed to push for its reversal.<\/p>\n “When Keir Starmer asked me to work with our trade unions to develop a programme for the biggest uplift in workers’ rights and protections in a generation, I did exactly as I was asked and we produced the New Deal for Working People,” he said.<\/p>\n But Unite the Union – a major Labour donor through the affiliation fees its members pay to the party – hit out at the U-turn, adding the employment bill was now a “shell of its former self”.<\/p>\n Unite general secretary Sharon Graham added: “These constant row backs will only damage workers’ confidence that the protections promised will be worth the wait. Labour needs to keep its promises.”<\/p>\n The Conservatives called the U-turn “humiliating” but added that the legislation was “still not fit-for-purpose”.<\/p>\n “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.<\/p>\n<\/div>\n<\/div>\n![\"Getty](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/3183\/live\/8c8bb0d0-cbcb-11f0-8e93-71481b645865.jpg.webp\")
Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\n‘Humiliating’<\/h2>\n<\/p>\n