Minister for Employment Rights and Consumer Protection (): 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, we have agreed a
way forward with trade unions and business representatives who
agree that the Bill should progress to Royal Assent as soon as
possible. We will table the necessary amendments to deliver the
Bill. Furthermore, the Government has reiterated its commitment
to full, fair and transparent consultation on the detail and
application of the secondary legislation as its moves to
implement the Bill. This will enable the Government to deliver
the necessary consultations and implementation in line with its
timetable and manifesto commitments to Make Work Pay.
We will not build a robust and growing economy through employment
insecurity. Instead, we are building an economy based on fair
competition between businesses, greater productivity in the
workplace, job security for workers, and fair reward for hard
work. Once implemented, these important and popular reforms will
give long overdue new rights to working people, including:
- ending exploitative zero hours contracts that leave some
workers unable to plan their working lives or manage their family
finances, saving them up to £600 in lost income from the hidden
costs of insecure work;
- establishing bereavement leave as a day one entitlement and
extending it to those who lose a pregnancy before 24 weeks,
giving the hundreds of thousands of families affected each year
the recognition and protections they deserve;
- supporting working parents to juggle the competing demands of
work and raising children, including the 32,000 fathers and
partners per year who are not entitled to paternity leave and the
1.5 million parents who are not allowed to take unpaid parental
leave.
- helping more working mothers stay in their jobs, including
the 4,000 women who are unfairly sacked each year when returning
from maternity leave;
- guaranteeing workers get paid when they have to take time off
because of illness and expanding statutory sick pay to up to 1.3
million of the most vulnerable workers in society who currently
earn below the lower earnings limit;
- re-instating the School Support Staff Negotiating Body to
improve pay and conditions for up to 800,000 school support staff
in England;
- providing for the establishment of a Fair Pay Agreements
process in the adult social care sector
in England and social care sectors in Scotland and Wales; and
- creating a single point of contact for advice and help for
businesses and employees – the Fair Work Agency - to ensure
better understanding of people's rights at work, best practice
for implementing employment law, and tackle the unfair
competition that some bad employers use to beat their
competitors.
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.
