Minister defends ‘pragmatic’ U-turn on workers’ rights

The Education Secretary has defended Labour’s U-turn to give all workers the right to claim unfair dismissal from their first day on the job.

Instead, ministers now plan to reduce the eligibility period from the current two years to six months, in line with a compromise agreed by some unions and industry groups.

Bridget Phillipson told the BBC the move was a “pragmatic” step to ensure the “comprehensive benefits” in Labour’s employment rights bill could be delivered on time – and was not a breach of a promise made in Labour’s election manifesto last year.

The decision has been welcomed by business organisations, but has faced criticism from some left-wing Labor MPs.

Currently, workers receive additional legal protection against being fired after two continuous years in a job.

Employers must identify just cause for dismissal – such as conduct or ability – and show that they acted appropriately and followed a fair process.

Under Labour’s original plan, this qualifying period would have been scrapped entirely, with a new legal probation period, likely to be nine months, introduced as a safeguard for companies.

But business groups argued the plan could prove impractical, and expressed concerns that unfair one-day dismissal rights would discourage companies from hiring.

In a surprise announcement on Thursday, the government confirmed it will now bring in unfair dismissal protection after six months, and scrap the new legal probation period.

Ministers continue to insist that the move does not breach Labour’s election manifesto – even though that document explicitly commits to creating “fundamental rights to parental leave, sick pay and protection from unfair dismissal from day one”.

They are also arguing that the move would hinder passage of its sweeping employment rights bill through Parliament, as the House of Lords voted twice over a six-month period, delaying its progress.

Speaking on BBC Radio 4’s Today programme, Phillipson said the impasse over unfair dismissal could “jeopardise” the bill, which also includes new employee benefits, such as immediate rights to sick pay and paternity leave.

He said the move to reduce the unfair dismissal qualifying period from two years to six months was still a “big step forward”.

“Sometimes in life, you have to be practical to get the wider benefits”.

So far, reaction to the manifesto’s violations has been reserved for left-wing Labor Party MPs.

However, the Labor leadership will be less comfortable if former deputy PM Angela Rayner – the architect of the initial proposals – expresses criticism. He has not responded to requests for comment.

The Business Department confirmed on Thursday it still plans to bring in one day of sick pay and paternity leave rights from April 2026.

However, the start date for the new 6-month period is yet to be confirmed. Previous plans to implement rights from day one had already been delayed to 2027.

The government does not need to pass an Employment Rights Bill to change the qualifying period – it already has the powers to do so under existing legislation, which the Coalition government used to extend the qualifying period to the current two-year period in 2012.

But the purpose of writing the changes into a full Act of Parliament was to prevent new powers being easily co-opted by a future government.

On Thursday, the Trade Department said it was still committed to doing so as a means to “further strengthen” the new protections.