The Government convened a series of constructive conversations
between trade unions and business representatives. On the basis
of the outcome of these discussions, the Government will now move
forward on the issue of unfair dismissal protections in the
Employment Rights Bill to ensure it can reach Royal Assent and
keep to the Government's published delivery timeline.
This will mean delivering day one rights to sick pay and
paternity leave in April 2026 as well as launching the Fair Work
Agency. Reforms to benefit millions of working people, including
some of the lowest paid workers, would otherwise be significantly
delayed if the Bill does not reach Royal Assent in line with our
delivery timetable. Businesses too need time to prepare for what
are a series of significant changes.
The discussions concluded that reducing the qualifying period for
unfair dismissal from 24 months to 6 months (whilst maintaining
existing day one protection against discrimination and
automatically unfair grounds for dismissal) is a workable
package. It will benefit millions of working people who will gain
new rights and offer business and employers much needed clarity.
To further strengthen these protections, the Government has
committed to ensure that the unfair dismissal qualifying period
can only be varied by primary legislation and that the
compensation cap will be lifted.
As a result of these constructive conversations, tabling of the
necessary amendments, and a commitment by the Government to a
robust process to ensure full, fair and transparent consultation
and discussion on the detail and application of the secondary
legislation, businesses and unions agree that the Bill can
progress. This will enable the Government to deliver the
necessary consultations and implementation in line with its
timetable and manifesto commitments to Make Work Pay.
The Government was pleased to facilitate these discussions and to
set an example of the benefits of working together, and remains
committed to continue engaging with trade unions, business and
employers to make working lives better, support businesses and,
vitally, deliver economic growth and good job creation. The
Government is particularly aware of the need to support small
businesses in the effective adoption of these changes.
Constructive dialogue and full consultation with business,
employers and unions will continue beyond the passage of the Bill
