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Labour Scales Back Day-One Unfair Dismissal Right to Push Workers’ Rights Bill Forward

Ministers struck a deal to swap day-one coverage for a six-month threshold with protections starting in January 2027 for hires from July 2026.

Overview

  • The Employment Rights Bill returned to the Commons on Monday in continued parliamentary ‘ping‑pong’ after Lords amendments, with ministers urging peers to stop delays.
  • The revised plan replaces the promised day-one unfair dismissal protection with a six-month qualifying period while applying the right from January 2027 to employees hired from July 2026.
  • Angela Rayner and Justin Madders held talks with Business Secretary Peter Kyle and Employment Minister Kate Dearden to avert a rebellion over the dilution.
  • Ministers also moved to remove the cap on unfair dismissal compensation, a change that could face renewed resistance in the House of Lords.
  • Draft rules for electronic union ballots warn of cybersecurity risks, require storing IP addresses for up to a year, and advise members not to vote on workplace networks.