Government scraps day-one protection from unfair dismissal in U-turn on manifesto pledge
The government has delivered on its manifesto promise to provide day one protection against unfair dismissal.
Sir Keir Starmer’s party campaigned last year on a pledge to introduce “fundamental rights” including parental leave, sick pay and protection from unfair dismissal as part of the Employment Rights Bill.
But the government backed away from the policy after concerns raised in the Lords about the impact it could have on small businesses saw the policy struggle to progress through parliament.
Ministers had previously rejected the Lords’ proposal to extend the vesting period to six months, with business secretary Kate Dearden saying she was “committed to ensuring unfair dismissal protection from day one”.
But in an update on Thursday, the government added that the protections would now be in place from six months and that it was preparing a “workable package” that would be more likely to be approved by MPs. Currently the vesting period is 24 months.
The Department of Business and Trade (DBT) said: “The government has held a number of constructive discussions between unions and business representatives.
“Based on 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 achieve Royal assent and meet the government’s published delivery timeline.”
It continued: “Discussions concluded that reducing the qualifying period for unfair dismissal from 24 months to six months (while retaining existing day one protection against discrimination and automatic unfair dismissal grounds) was a feasible package.”
The government insisted the amended package would “benefit millions of workers who will gain new rights and offer much-needed clarity to businesses and employers.”
“To further strengthen these protections, the government has committed to ensuring that the qualifying period for unfair dismissal can only be changed by primary legislation and that the compensation cap is removed,” DBT said.
Responding to the change, the Trades Union Congress backed the government, saying the “absolute priority” was to get benefits such as first-day sick pay on the statute book.
TUC General Secretary Paul Nowak said: “The Employment Rights Bill is essential for better quality, safer jobs for millions of workers across the economy.
“The absolute priority now is to get these rights, such as first day sick pay, into the statute book so that working people can start to benefit from these rights from next April.
“Following the Government’s announcement, it is now vital that Peers respects Labour’s manifesto mandate and that this bill receives Royal Assent as soon as possible.”
