In a dramatic political reversal, the UK government has abandoned its flagship 'day-one' employment rights policy, opting instead for a six-month qualifying period that marks a significant shift in the nation's employment landscape.
Parliamentary Standoff Ends in Government Concession
The decision came on Thursday evening after weeks of intense parliamentary ping-pong between the House of Commons and the House of Lords over the controversial Employment Rights Bill. The Department for Business and Trade put forward new proposals that effectively scrap the automatic 'day-one' rights in favour of a six-month clause.
This stunning U-turn occurred just before the government's summer recess, following a Conservative-led amendment in the House of Lords that challenged the core principles of what was once a significant part of Labour's manifesto.
Legal Experts React to Dramatic Shift
Colin Leckey, partner at Lewis Silkin, described the move as a "stunning U-turn by the government." He explained that "the House of Lords has repeatedly dug its heels in and insisted that this be looked at again to the point where an impasse had been reached."
Tim Gilbert, partner at Travers Smith, noted that this development "should finally break the deadlock stalling the Employment Rights Bill in Parliament." He added that it will provide "welcome relief for employers who have long been left in the dark about how the changes would affect them."
From Two Years to Six Months: What Changes
Despite the compromise from automatic 'day-one' rights, the new six-month threshold still represents a substantial reduction from the current two-year requirement to claim unfair dismissal. This dramatic shortening of the qualification period is expected to have far-reaching consequences for both employers and employees across the United Kingdom.
James Townsend, partner at Payne Hicks Beach, suggested that "there's still time for Ministers to rethink and scale back other measures, particularly those that will significantly expand union power."
Meanwhile, Caspar Glyn KC, Chair of the ELA, indicated that the six-month qualification period might be implemented sooner than the originally proposed October 2027 timeline.
Legal experts are warning that despite the government's compromise, the enhanced rights coming into effect after six months rather than two years will likely lead to a surge in tribunal claims, placing additional pressure on an already overstretched Tribunal system.
