Six-month rule or day-one rights? Lords amend Employment Rights Bill

The government’s flagship Employment Rights Bill, set to come into force in 2027, has hit a key roadblock in the House of Lords, with significant implications for employers.

Originally, the Bill proposed to give employees the right to claim unfair dismissal from day one of employment.

To counterbalance this shift in employee protection, the government also introduced the concept of an “initial period of employment”, expected to last around nine months during which dismissals could be handled under a simplified process.

The aim was to strike a fairer balance: enhancing job security for workers without overburdening employers.

However, the House of Lords has now voted to remove the concept of the initial period entirely.

Adrian Hoggarth, Head of Employment Law at Jurit LLP, commented: “The introduction of day one rights would have had a far greater impact on employers and the tribunal system, and would have acted as a disincentive to employers wishing to hire new employees.”

Instead, the government has amended the Bill to reduce the unfair dismissal qualifying period from two years to six months, eliminating the need for a new legal framework.

What this effectively does is revert to what we are used to, albeit significantly reducing the qualifying period.

Had we moved to “day one” unfair dismissal rights, this would have had a monumental impact on employment rights and would have created significant numbers of new Tribunal claims on an ongoing basis.

What has changed?

The amendment proposed will still be significant from an employer perspective but it is far more manageable, with the right legal advice.

The Lords’ amendment means:

• The complex ‘initial period’ model, which was to be subject to further consultation, would be scrapped.
• A simplified, six-month qualifying period would replace both the current two-year threshold and the proposed day-one rights.
• This change would apply to all employees, regardless of sector or size of employer.

Supporters argue this approach offers earlier protection for workers, simplifies the law, and avoids the creation of a new dismissal regime. It could also ease the pressure on employment tribunals by removing the need to litigate complex “initial period” cases.

What happens next?

The Bill now returns to the House of Commons.

Given the government’s strong majority and the fact that day-one unfair dismissal rights were a manifesto commitment, it is likely to reject the Lords’ amendment and reinstate the original proposal.

Under the Salisbury Convention, the Lords typically do not block legislation that implements government promises. However, they may press for reassurances or seek compromise before allowing the Bill to pass.

What does this mean for employers?

Whether the final law adopts a six-month rule or the more complex day-one rights with a simplified dismissal process, change is coming- and soon.

Employers should prepare by:

• Reviewing probation and onboarding policies: A shorter qualifying period will mean earlier exposure to unfair dismissal claims.
• Reassessing dismissal procedures: Even under a simplified process, dismissals will still require fair treatment and clear documentation.
• Updating contracts and handbooks: Ensure alignment with the new legal thresholds as they are confirmed.
• Training line managers: Supervisors must understand the revised rules to avoid unintentional legal risks.

How Jurit can help

Navigating the changing employment law landscape can be daunting.

At Jurit, our expert employment lawyers help businesses stay ahead of the curve. Whether you need to update policies, manage dismissals, or prepare for what’s ahead in 2027, we provide clear, commercial advice tailored to your business.

Get in touch today to ensure your business is ready for the new world of unfair dismissal rights – whatever shape it takes.