Update on Unfair Dismissal Laws: House of Lords Blocks ‘Day One’ Rights in Favour of Simpler Six-Month Rule
The future of unfair dismissal law is taking shape, with the House of Lords recently amending the Employment Rights Bill – rejecting the government’s original plan to introduce ‘day one’ rights and instead backing a six-month qualifying period for employees to bring unfair dismissal claims.
This shift is a significant development for both employers and employees, and it’s essential to understand what it could mean for your business or employment rights in the years ahead.
What Was Originally Proposed?
Under the government’s Employment Rights Bill, due to come into force in 2027, unfair dismissal rights were set to apply from day one of employment. This was a key pledge, designed to strengthen job security and reduce arbitrary dismissal practices.
To balance this with flexibility for businesses, the Bill also included a proposed ‘initial period of employment’, likely lasting nine months, during which a lighter-touch dismissal process could be used. The finer details of this process were due to be consulted on in the coming months.
What Has Changed?
The House of Lords has now intervened. Rather than introduce a new and potentially complex legal framework around an initial period, they voted to remove the nine-month proposal entirely. Instead, they have amended the Employment Rights Bill to reduce the qualifying period for unfair dismissal from two years to six months.
Supporters of the amendment argue this approach:
- Simplifies the law
- Provides earlier protection for employees
- Reduces confusion for businesses
- Lightens the burden on employment tribunals
What Happens Next?
The Bill will now return to the House of Commons, where the government is expected to reject the Lords’ amendment and attempt to restore its original plan, using its majority. A further round of debate and negotiation is likely.
While it’s unclear what the final version of the law will be, this ongoing dialogue will shape the employment landscape for years to come.
What Does This Mean for Employers?
If the six-month qualifying period is adopted, it will bring forward the point at which employees gain protection from unfair dismissal — creating a need for clearer HR procedures and early performance management.
If the nine-month initial period survives, businesses will need to understand and adapt to a new legal structure for dismissal – which may add complexity in the short term.
What Should Employees Be Aware Of?
For employees, this change would provide earlier protection in the workplace. Being eligible to bring a claim after six months (instead of two years) strengthens your ability to challenge unfair treatment or dismissal. But clarity on the final outcome is still needed.
How Can A R Brown & Co Help?
At A R Brown & Co, our employment law specialists, led by Deborah Francis, can advise you on the latest legal developments and how they apply to your situation. Whether you’re an employer preparing for legislative change, or an employee seeking clarity on your rights, we’re here to help.
- Stay compliant with evolving dismissal rules
- Review and update employment contracts and policies
- Prepare internal processes for fair and lawful dismissals
- Understand your rights in the workplace
- Get support if you believe you’ve been unfairly treated or dismissed
- Explore your options for dispute resolution or legal action
Contact Us
To speak to an experienced employment solicitor about the changing rules around unfair dismissal, contact Deborah Francis, Managing Director at A R Brown & Co: dkf@arbrown-solicitors.co.uk or use our contact form to arrange a consultation.