By Eniola Amadu
The UK Government has reversed its manifesto plan to grant all workers the right to claim unfair dismissal from their first day in a job.
Ministers now intend to implement the right after six months, following concerns raised by business groups that the proposal would frustrate companies.
The government said the reversal was necessary to end delays to the employment legislation in the House of Lords.
Meanwhile, the planned day-one rights to sick pay and paternity leave remain unchanged and will be implemented in April 2026.
In response to the change, six companies involved in the discussions said in a statement that businesses would be “relieved”.
“Businesses will be relieved that the government has agreed to a key amendment to the employment rights bill which can pave the way to its initial acceptance,” they said.
However, they also expressed “concerns about many of the powers” in the administration’s employment plan.
The general secretary of the Trades Union Congress (TUC), Paul Nowak, said they were prepared to accept the revised agreement.
“The absolute priority now is to get these rights – like day-one sick pay – on the statute book so that working people can start benefiting from them from next April,” he said.
He urged the House of Lords to “respect Labour’s manifesto mandate” and secure the swift passage of the legislation.
Kate Nicholls, chair of UK Hospitality, described the move as “a pragmatic change that addresses one of the hospitality sector’s key concerns”.
She added that the decision would “give businesses much-needed breathing room and avoid further damage to employment opportunities”.
Unite the Union, which contributes significantly to Labour through member affiliation fees, condemned the reversal, arguing that the employment bill was now a “shell of its former self”.
Unite’s general secretary, Sharon Graham, said: “These constant row backs will only damage workers’ confidence that the protections promised will be worth the wait. Labour needs to keep its promises.”
Conservative leader Kemi Badenoch described the move as “another humiliating U-turn”.
“Labour talk about stability, but govern in chaos. No company can plan, invest or hire with this level of uncertainty hanging over them,” she said.
Badenoch added that the bill still contained measures that would “damage businesses and be terrible for economic growth”, pledging that the Conservatives would oppose them.
The Department for Business and Trade said the decision was the result of a compromise process.
In a statement, it said, “The government was pleased to facilitate these discussions and set an example of the benefits of working together, and remains committed to continued engagement with trade unions, businesses and employers to make working lives better, support businesses and, vitally, deliver economic growth and good job creation.”
