Day-one unfair dismissal rights U-turned by Labour

The Labour Government has made a major U-turn on its plan to make unfair dismissals a day-one right for employees, a pledge first made by the party in its manifesto and a key area set out in the Employment Rights Bill.

In this blog, our employment law solicitors explain more about what was originally proposed by the Government and what this change to unfair dismissal rights means for employers and employees.

What is unfair dismissal?

Unfair dismissal is when your employer dismisses you from work without good reason, or if they have failed to follow the correct dismissal process.

Whilst it depends on each situation, an employee is usually considered fairly dismissed if:

• There was a fair reason; and
• The reason was sufficient to justify a dismissal; and
• The employer followed a proper and fair procedure.

If your employer does not do the above, an employee may have an unfair dismissal claim.

What is the current legislation?

Currently, employees must have been employed for at least two years before making an unfair dismissal claim, unless their dismissal is classed as ‘automatically unfair,’ in which case, there is no minimum period to make a claim.

What was proposed in Labour’s manifesto?

The Government originally proposed to give workers the right to claim unfair dismissal from day one of their employment, rather than an employee needing to work two years’ service; however, this would have been a huge shift in employment law, and there has been lots of opposition to this change.

Labour proposed to ‘consult fully with businesses, workers, and civil society on how to put plans into practice before legislation is passed’, which included protection from unfair dismissal. However, following significant opposition in Parliament, the Government will instead reduce the time period to bring an unfair dismissal claim from two years to six months.

Why have day-one unfair dismissal rights been overturned?

Many businesses raised concerns about potential costs and recruitment challenges that this change would have caused. The change to six months can be viewed as a compromise to get these changes through.

Can employees still claim for unfair dismissal?

Yes, employees will still be able to claim for unfair dismissal, but the qualifying period has changed.

Employees can claim for unfair dismissal after they have worked for their employer for six months or longer, rather than this being a day-one right with the deal already agreed by some businesses and unions.

When does this change become law?

A date is yet to be confirmed when this will come into action. Before Royal Assent can be granted, the Employment Rights Bill needs to return to both the House of Commons (which is scheduled for 8^th December 2025) and the House of Lords. However, the Government has stated that it intends to deliver implementation in accordance with the original timetable, so we will need to watch this space.

Contact our unfair dismissal solicitors

If you believe you have been unfairly dismissed at work and need advice, our employment solicitors are here to help. Call us on 0117 325 2929 or fill in our online enquiry form.