Labour has U-turned on its manifesto commitment to grant all workers the right to claim unfair dismissal from their first day in a new job.
The Government is now planning to launch the right after six months’ service, following business groups expressing concerns that it would discourage firms from hiring, the BBC reported.
Labour argued that it was making the U-turn to prevent the Employment Rights Bill from being delayed in the House of Lords.
Day-one rights to sick pay and paternity leave are still set to go ahead, commencing from April 2026.
The new proposals scrap the Government’s plan for a new nine-month statutory probation period.
A new Fair Work Agency is to be set up next year to oversee the new rights.
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The decision has been welcomed by the British Retail Consortium (BRC).
The trade association’s CEO Helen Dickinson said: “This is an important, practical step in creating an Employment Rights Bill that will protect employment opportunities as well as employees.
“We are pleased to see that government has listened, and this is proof that meaningful engagement between businesses, trade unions and government can lead to positive outcomes for everyone.”
She continued: “We now need similar engagement on other areas of the bill that are of significant concern. For example, guaranteed hours, where current proposals would make it harder for retailers to offer local, flexible and part-time jobs.
“The delay to the bill’s royal assent must not result in a compressed implementation roadmap.
“The Government has asked business to engage with its consultations on the bill, and it is crucial that the implementation timeline allows for quality engagement with high-employment industries to ensure the bill is fit for purpose, protecting employment opportunities as well as employees.”
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