Employment Rights Bill  – Finally Some Good News for Employers!

December 1, 2025

BY

Suzanne Mainwaring

It seems as though the Labour Government is finally willing to listen to the House of Lords and business leaders as it has announced that they are scrapping their plan to introduce day one unfair dismissal rights as part of the Employment Rights Bill.

On Thursday night the business secretary, Peter Kyle, announced that Labour was scrapping its manifesto pledge of day one unfair dismissal rights for all employees and would instead replace it with a qualifying period of 6 months. Whilst this is still a significant reduction on the current qualifying period of two years for such claim, it is a far more sensible approach particularly as it removes the headache that would have no doubt been caused by the introduction of a 6 month statutory probationary process.

Unfortunately, it is not all positive news as at the same time Labour have mooted an intention to remove the compensation cap on unfair dismissal claims but we’ll have to watch space for more news on this……

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