Workers may not get ‘day one' protection against unfair dismissal despite government pledge

Independent

16-07-2025

Proposals to give new workers 'day one' protection against unfair dismissal has suffered a heavy defeat in the House of Lords on Wednesday.
The defeat is a new blow for the government as the proposals were a Labour manifesto commitment.
The House of Lords backed by 304 votes to 160, majority 144, a Conservative -led measure which would instead reduce the existing qualifying period for the workplace safeguard from two years to six months.
It was the latest setback suffered by the Labour frontbench to its Employment Rights Bill in the upper chamber and puts peers on a collision course with the administration, given it was an explicit election pledge.
The change will be considered by MPs when the draft law returns to the Commons during so-called 'ping-pong', when legislation is batted between the two Houses until agreement is reached.
The proposed reforms also give workers other 'day one' rights, such as sick pay, paternity leave and the right to request flexible working.
In addition, the Bill would introduce new restrictions on 'fire-and-rehire' processes when employees are let go and then re-employed on new contracts with worse pay or conditions.
Business minister Baroness Jones of Whitchurch told peers: 'This Government was elected on a manifesto to provide unfair dismissal protections from day one of employment.
'Not two years, not six months, but day one.
'To deliver this commitment we will remove the qualifying period for these rights.'
She added: 'These amendments would not deliver on the Government's manifesto commitment to introduce a day one right against unfair dismissal, leaving many newly hired employees without robust employment protections.'
However, Tory shadow business minister Lord Sharpe of Epsom said: 'We are debating a change that will fundamentally alter the balance of risk in hiring, and at a time when unemployment has risen in every month this government has been in power.'
He added: 'This clause will do nothing to promote fairness in the workplace.
'It will erode flexibility, it will choke opportunity, and it will harden the barriers that those on the margins already face.'
He pointed out the Government's own impact assessment which said that introducing the day one right to claim unfair dismissal 'could damage the employment prospects of people who are trying to re-enter the labour market, especially if they are observed to be riskier to hire', including younger workers with less experience and ex-offenders.
Lord Sharpe went on: 'The Government already knows and thinks this so why are they doing this?
'So I don't believe this clause is ready. I don't believe that it's safe, I don't believe that it's wise.'
Independent crossbencher Lord Vaux of Harrowden said: 'With this Bill, the Government is knowingly and deliberately damaging the life chances of the most vulnerable, in particular young people trying to get their first step on the employment ladder, and for no apparent tangible benefit.
'I urge them to think again.'
The Government was subsequently dealt a further blow as peers backed by 248 votes to 150, majority 98, a change to the legislation, proposed by the Liberal Democrats, which would force ministers to strengthen whistleblower protections.