The Labour government is confronting a fresh wave of criticism after performing a significant U-turn on a key election pledge concerning workers' rights, marking the second potential manifesto breach allegation within forty-eight hours.
The Core of the Controversy
Business Secretary Peter Kyle announced on Thursday that the qualifying period for workers to claim unfair dismissal would be reduced to six months. This is a decrease from the current two-year requirement but falls drastically short of the 'from day one' protection that was a cornerstone of Labour's 2024 election manifesto.
This move comes just a day after Chancellor Rachel Reeves confirmed an extended freeze on income tax thresholds, a decision critics have also labelled a breach of the party's pre-election promises.
Defence and Backlash
Mr Kyle defended the change, stating that 'compromise is strength' and that the adjustment followed opposition from business groups. He argued that the six-month period creates a 'workable package' for the flagship Employment Rights Bill, which has been subject to parliamentary ping-pong with the House of Lords.
However, the reaction from opposition parties, unions, and even within Labour's own ranks has been fiercely critical.
- Tory leader Kemi Badenoch described it as 'another humiliating U-turn'.
- Andy McDonald, Labour MP for Middlesbrough, branded the move a 'complete betrayal'.
- Neil Duncan-Jordan, MP for Poole, said the government had 'capitulated'.
- Justin Madders, a former employment minister, explicitly stated, 'It might be a compromise, but it most definitely is a manifesto breach.'
Mixed Reactions from Business and Unions
The business community has largely welcomed the compromise. The Confederation of British Industry (CBI) expressed relief, stating the change would support business confidence to hire. The Resolution Foundation called it a 'sensible move' that strikes a balance between worker protections and encouraging hiring.
In stark contrast, the union response was hostile. Sharon Graham, general secretary of Unite, declared the bill a 'shell of its former self', especially with the perceived failure to outright ban fire and rehire and zero-hours contracts. The TUC, while disappointed, urged the Lords to pass the remaining legislation to secure other worker benefits like day one sick pay.
The controversy raises significant questions about the government's ability to deliver its original, ambitious agenda for workers' rights, a key theme of its election campaign.
