In a significant policy shift, the Labour government has announced it is abandoning its flagship commitment to grant workers protection from unfair dismissal from their very first day in a job.
Key Concessions to Unblock Parliamentary Delays
The move forms part of a deal to get the stalled workers' rights bill through the House of Lords, where it has faced significant delays and amendments from Tory and Liberal Democrat peers. The business secretary, Peter Kyle, has vowed to do "what it takes" to unblock these parliamentary holdups.
Instead of the promised day-one rights, the qualifying period for unfair dismissal will now be reduced from the current two years to six months. Furthermore, the government's proposed lighter-touch probation period, which was to be legally limited to nine months, has been completely removed from the legislation.
Business Concerns Heeded, Union Concessions Won
The U-turn follows direct engagement with business leaders. At a CBI conference, Kyle assured businesses that he had listened to their concerns about the potential impact of the new law on hiring. He committed to ensuring the changes would not become a "zero-sum" game where businesses "lose".
While the core promise on unfair dismissal has been altered, the bill still includes other landmark reforms, such as a ban on zero-hour contracts. Union sources have indicated they secured other concessions in the negotiations, including on costs, though the change is still likely to anger left-wing Labour MPs for whom the employment rights bill was a key offering.
Kyle, who has replaced Jonathan Reynolds as business secretary, has stated that the government will now consult on the implementation of the bill's key parts, ensuring the voices of both business and workers are heard.
