Overview
- The plan for day‑one protection against unfair dismissal has been replaced with a six‑month qualifying period, cutting the current threshold from 24 months.
- Officials say the shift follows negotiations between unions and business groups to secure the bill’s passage through Parliament.
- Other day‑one measures, including sick pay and paternity leave, remain in the package, with implementation scheduled in stages from 2026 alongside the new Fair Work Agency.
- The government pledged that any future change to the qualifying period would require primary legislation and confirmed the cap on unfair dismissal compensation will be lifted.
- Business groups welcomed the compromise as supportive of hiring, while Unite, the TUC and several Labour MPs condemned it as a breach of the manifesto, leaving internal tensions as the bill moves forward.