Angela Rayner MP’s amendment would implement the change next April rather than April 2027—while the Bill itself is scheduled to come into force in April 2026, the qualifying period is delayed until 2027 to give employers more consultation time.
Last week, ministers scrapped their manifesto plans for day-one protection from unfair dismissal, instead reducing the current 24-month period to six months in order to ensure the legislation passes through the House of Lords in time.
Lawyers have largely welcomed the U-turn.
Jo Mackie, employment partner at Michelmores, said a day-one right to unfair dismissal would have been ‘unwieldy and unworkable and we predicted this would happen as soon as it was launched.
‘Probation periods are important for both employees and employers and the tribunals would really have struggled to keep up with the raft of new claims that would have arisen’.
Rena Magdani, partner at Freeths, said the decision ‘offers clarity to employers and employees and avoids what would likely have been complexity and uncertainty generated by the government’s proposed “light-touch procedure” during an “initial period of employment”’.
Ministers also confirmed last week the unfair dismissal compensation cap will be lifted.
Magdani said: ‘The current compensation cap is the lower of one year’s pay or £118,223.
‘While the average unfair dismissal award is significantly lower than this cap, if the cap is significantly increased or removed, then the level of exposure to employers in unfair dismissal claims will increase, particularly in cases of high-earners, or those whose dismissal results in them leaving defined benefit pension schemes, or employees who struggle to find alternative employment.’
The Bill will retain day-one rights to sick pay and paternity leave.
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