Labour's Bold Move: Shifting Labour Rights to Secure New Worker Benefits
In a surprising U-turn, the Labour government has altered its stance on workers’ rights by reducing the unfair dismissal qualifying period from two years to just six months. This change, described as a “pragmatic” solution by Education Secretary Bridget Phillipson, aims to ensure the timely delivery of a comprehensive employment rights bill, which includes new benefits such as immediate rights to sick pay and paternity leave.
Initially, Labour’s proposal would have allowed all workers to claim unfair dismissal from their first day on the job, potentially introducing a new probation period. However, following **business groups’* concerns that such a policy could discourage hiring, the government has decided to forgo the probation period altogether.
Phillipson emphasized that the decision does not breach Labour’s election manifesto, despite criticism from some left-wing MPs and unions fearing that it opens the door for further compromises in the workers’ rights agenda. Notably, it is a shift from the original commitment for immediate protections against unfair dismissal, which was reiterated during the Commons debate by Business Secretary Peter Kyle. He later justified the U-turn by referring to the need for a cohesive approach between unions and businesses.
The announcement has drawn mixed reactions, with business organizations welcoming the decision, citing it as essential for facilitating hiring, while the Unite union, a significant Labour backer, decried it as a violation of the party’s pledge to protect workers’ rights from day one.
As the government gears up to implement these changes, the next steps include establishing a timeline for when the six-month period will take effect, with expectations set for April 2026 for other employee benefits. Although the legislation can be altered without passing a new law, embedding these rights into a full Act of Parliament remains vital for their durability against potential future shifts in policy.