On 27 November 2025, ministers accepted a six‑month qualifying period for protection from unfair dismissal, dropping the manifesto plan to make it a day‑one right. The Department for Business and Trade described the change as a “workable package” to speed the Employment Rights Bill through Parliament.
The shift follows defeats in the House of Lords. Peers voted for a six‑month threshold at report stage in July and insisted on it again during parliamentary ‘ping‑pong’ on 17 November, slowing the bill’s passage and prompting talks with stakeholders.
Other measures remain on course. Day‑one statutory sick pay and day‑one rights to paternity and unpaid parental leave are scheduled for April 2026, alongside the creation of a Fair Work Agency and related enforcement changes set out in the Government’s implementation roadmap.
Current law stays in place until commencement. Employees typically need two years’ continuous service before they can claim unfair dismissal, and employers must show a fair reason and act reasonably during any process; grounds include conduct, capability, redundancy and illegality.
Originally, ministers proposed abolishing the qualifying period entirely, coupled with a statutory probation framework to be settled after consultation. The Government restated that position in the Commons as recently as 5 November; today’s decision represents a clear change of approach.
Trade unions have prioritised securing the wider package this session. The TUC had warned that a six‑month threshold would leave around two million workers without protection in the early months of employment, but has indicated it will support getting day‑one sick pay onto the statute book for April 2026.
Business groups argued the day‑one model risked discouraging hiring, particularly for younger or less experienced candidates; ministers say the revised threshold responds to those concerns while allowing the bill to advance. The opposition called the move a “humiliating U‑turn”.
For employers, the practical effect-once commencement dates are confirmed-is that dismissal risk will arise after six months of service rather than two years. Policies on probation, performance management and dismissal templates should be updated and applied consistently, with manager training to ensure process fairness.
From April 2026, payroll and HR teams should budget for statutory sick pay from the first day of absence and remove length‑of‑service checks for paternity and unpaid parental leave. Systems and onboarding materials will need to capture day‑one eligibility and any revised evidence requirements.
Claims handling timelines are also changing. From 1 December 2025 the Acas early conciliation period doubles from six to 12 weeks, which can extend limitation periods before tribunal claims are issued; case plans and reserves should reflect the longer pre‑claim window.