header-logo header-logo

Day one rights: what happened?

251514
© Getty images
Was the promise actually delivered? Robert Hargreaves & Lily Johnston explain why employers must act now
  • The Employment Rights Act 2025 reduces the unfair dismissal qualifying period from two years to six months and abolishes the statutory cap on compensatory awards entirely. Both changes take effect on 1 January 2027.
  • Anyone hired from July 2026 onwards will acquire protection at the six-month mark, and the financial exposure attaching to unfair dismissal claims is fundamentally changed.

When we wrote in these pages in November 2025, the Employment Rights Bill’s headline promise was straightforward: unfair dismissal would become a day-one right, with a statutory ‘initial period of employment’ during which a lighter-touch process would apply (‘Day one rights: a new chapter?’ 175 NLJ 8141, pp11-12).

The Employment Rights Act 2025 (ERA 2025) does not deliver that. Parliamentary events in the final weeks of the Bill’s passage produced a framework that is more modest in one respect and considerably more radical in another.

From promise to compromise

The

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
The High Court has upheld a rare successful serious-irregularity challenge after an arbitrator relied on an implied term neither party had advanced
Thirty years after The Future of Law shook a profession still using fax machines, its central forecast looks increasingly less like prophecy and more like description
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
back-to-top-scroll