Government Abandons Plans For Day-One Workers’ Protection Against Unfair Dismissal

Care home operators across the UK will need to prepare for changes to employment law after the Government announced significant revisions to its Employment Rights Bill this week.

The legislation, which has been progressing through Parliament, will now require employees to complete a six-month probationary period before gaining full protection against unfair dismissal claims. This represents a compromise position between the Government’s original proposal and existing employment law.

Under current regulations, workers must remain with an employer for two years before they can bring unfair dismissal claims to an employment tribunal. The new six-month threshold marks a substantial reduction in this qualifying period, though it falls short of the immediate protection initially envisaged.

The Department for Business and Trade confirmed the policy shift following extensive discussions between trade union representatives and business groups. Officials indicated that the revised framework aims to balance worker protections with operational flexibility for employers.

Employers should, however, note that existing first-day protections against discrimination and automatically unfair dismissal grounds remain unchanged. These safeguards, which cover issues such as pregnancy, whistleblowing, and protected characteristics, will continue from the first day of employment.

The Government has also pledged that any future changes to the six-month qualifying period must be made through primary legislation, providing certainty for employers planning their human resources policies. Additionally, the compensation cap for unfair dismissal claims will be lifted under the new arrangements.

The Bill had encountered resistance in the House of Lords, where peers raised concerns about multiple provisions, including proposals affecting zero-hours contracts. The Government’s decision to modify the unfair dismissal provisions forms part of efforts to ensure the legislation completes its parliamentary journey according to the published timetable.

Business department officials described the six-month qualifying period as “a workable package” that emerged from collaborative discussions between stakeholders. The Government maintains that millions of workers will benefit from enhanced employment rights while employers gain greater clarity about their obligations.