The UK government has agreed to bring forward new protections against unfair dismissal for workers, following negotiations between Business Secretary Peter Kyle and Labour's Angela Rayner. The landmark change will now come into force on 1 January 2027, granting employees the right to claim unfair dismissal after just six months of service.
A Compromise Reached in the Commons
Angela Rayner, the architect of the employment rights bill, had been preparing to table an amendment to force the implementation of these protections from early next year. However, after direct conversations with Peter Kyle, she has stepped back from that plan. In return, ministers will make a formal commitment in the House of Commons on Monday to the 1 January 2027 start date.
A government source stated: "We are happy to have a clear date for this change. Now the House of Lords need to get on and pass this landmark bill so business can get the clarity they need and workers can get the security they deserve."
From Two Years to Six Months
This represents a significant reduction from the current qualifying period of two years, which was introduced by David Cameron's government in 2012. The move follows the government's abandonment of a manifesto pledge for 'day-one' protection, a compromise brokered with businesses and unions to secure the bill's passage through the House of Lords.
The practical effect is that anyone employed from July 2026 will benefit immediately, as they will have accrued six months of service by the time the law takes effect. Rayner and former employment rights minister Justin Madders argued implementation could be swift, as it simply shortens an existing process rather than creating a new one.
Labour Claims a Significant Win
A Labour source close to the talks expressed satisfaction with the outcome, framing it as a victory secured through dialogue. "More working people now stand to feel the tangible benefit of stronger protection against unfair dismissal sooner and that has to be chalked up as a significant win, which Labour can campaign on next year," the source said.
While some MPs feared the climbdown on day-one rights might embolden critics of the bill, trade unions have largely accepted the six-month compromise. The government has also agreed to a long-standing union demand to lift the cap on compensation for unfair dismissal claims.
The wider employment rights bill, due back in the Commons next week, also includes measures to protect zero-hours contract workers and introduces fines for employers who obstruct union access.
