The Labour government faces mounting criticism after performing a surprise U-turn on its manifesto commitment to provide day-one protection against unfair dismissal in its flagship employment rights bill.
Government backtracks on key workers' rights pledge
In a dramatic policy reversal late yesterday afternoon, ministers announced they would remove the day-one unfair dismissal provision from the employment rights legislation. This represents a significant departure from Labour's election manifesto promise and comes despite repeated assurances from Number 10 that they would defend the measure.
Just days earlier on Monday, government sources had told journalists they would "overturn all attempts to scupper the employment rights bill plans including watering down Day 1 protection from unfair dismissal". The bill had reached the parliamentary "ping-pong" stage between the Commons and Lords, with MPs having already twice overturned Lords amendments that sought to block the day-one protection.
Business pressure drives policy shift
The concession appears driven by significant pressure from employers who argued that day-one protection would deter companies from hiring new workers. With unemployment rising and the hospitality sector expressing particular alarm about budget measures, the government decided that compromise offered the best path to getting the bill passed quickly.
Most unions appear willing to accept the climbdown as the price for securing the broader employment rights legislation, though notable exceptions have emerged. The move will significantly ease business concerns about the legislation while maintaining the core elements of the workers' rights package.
Labour backlash and leadership implications
The decision has provoked strong reactions within the Labour party, with former deputy prime minister Angela Rayner emerging as a potential focal point for dissent. Rayner, who oversaw the bill until her resignation, had strongly defended day-one protection in a speech earlier this month.
Rayner stated previously: "The last Conservative government shamefully doubled the qualification period against unfair dismissal to two years and stripped workers of protections at the stroke of a pen. Government members believe that workers deserve fairness, dignity and respect at work, and they deserve it from day one on the job."
With Rayner still considered a strong candidate to replace Keir Starmer before the next election, her response to this policy reversal could have significant implications for Labour's internal dynamics. Sources indicate she is consulting with MPs before making any public statement.
Ministers deny manifesto breach
Government ministers have vigorously denied that the policy change constitutes breaking a manifesto commitment. Business Secretary Peter Kyle argued yesterday that the decision actually fulfills another manifesto pledge to bring people together and find compromise.
Kyle stated: "We also promised in the manifesto that we would bring people together, that this would not be legislation that pits one side against another. The manifesto committed to day one rights. We are committing to day one rights. The manifesto committed us to finding compromise and we are delivering on that."
Education Secretary Bridget Phillipson similarly rejected characterisations of the move as a U-turn during her media rounds this morning, describing the employment rights bill as "the biggest upgrade to workers' rights in a generation".
Union and backbench criticism mounts
Despite government assurances, significant criticism has emerged from trade unions and Labour backbenchers. Unite leader Sharon Graham, whose union is a major Labour donor, denounced the decision, warning it could damage workers' confidence in promised protections.
Graham declared: "The employment rights bill is a shell of its former self. With fire and rehire and zero hours contracts not being banned, the Bill is already unrecognisable. These constant row backs will only damage workers' confidence that the protections promised will be worth the wait. Labour needs to keep its promises."
The Unite leader has previously hinted that her union could disaffiliate from Labour, a move that would involve withdrawing financial support, and this latest development makes that outcome more likely.
Among Labour MPs, former shadow cabinet minister Andy McDonald called the decision a "sellout", while former employment rights minister Justin Madders acknowledged it might be necessary to pass the bill but confirmed it "most definitely is a manifesto breach". John McDonnell, shadow chancellor under Jeremy Corbyn, similarly condemned the move as a sellout of fundamental principles of workplace fairness.
The government is scheduled to hold a Number 10 lobby briefing at 11:30am today, where further details about the compromise and the path forward for the employment rights bill are expected to emerge.
