What's happened
The UK government has revised the Employment Rights Bill, reducing the unfair dismissal qualifying period from 24 to six months after discussions with trade unions and business groups. The change aims to facilitate the bill's passage, with protections like day-one sick pay remaining intact. The bill is set for royal assent next year.
What's behind the headline?
The government's decision to lower the unfair dismissal qualifying period from 24 to six months reflects a strategic move to ensure the bill's passage. While unions and Labour advocate for protections from day one, the compromise balances business concerns about hiring deterrence with workers' rights. This shift indicates a pragmatic approach, prioritising legislative success over ideal protections. The inclusion of protections like sick pay from day one remains a significant win for workers, but the reduced dismissal threshold may temper some of the bill's broader impact. The move suggests the government aims to deliver tangible employment reforms by April 2026, potentially setting a precedent for future labour legislation. The bill's passage will likely influence employment practices and workers' rights in the UK for years to come.
What the papers say
The Independent reports that the government has backtracked on its initial plan for day-one unfair dismissal protections, citing concerns over small business impacts. Reuters highlights that the compromise was reached after talks with trade unions and business groups, removing the last major hurdle for the bill's passage. Sky News emphasizes the political importance of the bill for Labour's manifesto, noting unions' opposition to the change and their call for peers to oppose the reduction in the qualifying period. All sources agree that the bill's passage is crucial for implementing new workers' rights, including sick pay and paternity leave, from April 2026.
How we got here
The Employment Rights Bill was a key Labour manifesto pledge, promising protections such as parental leave, sick pay, and unfair dismissal rights from day one. Opposition from some businesses threatened its progress, prompting government negotiations with trade unions and industry representatives. The compromise now reduces the unfair dismissal qualifying period to six months, aligning with other protections.
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