The government had pledged to introduce protection against unfair dismissal from day one of employment. This was a central element of its Employment Rights Bill (ERB) set to take effect in 2027.
The proposed “initial period of employment”
As part of this, the government proposed to introduce an “initial period of employment” which was expected to run for a period of six to nine months.
During this period, employers would be able to dismiss staff through a more simplified process. The intention was to strike a balance between providing employees with a fair process whilst still maintaining flexibility for employers.
The government planned to consult on the specifics of this simplified process over the following year.
House of Lords vote
However, the House of Lords has voted to remove the “initial period of employment” altogether. Instead, the Lords amended the ERB to reduce the qualifying period of service for unfair dismissal from two years to six months.
Arguably, this approach provides clarity, grants employees protection sooner and eliminates the need for a new legal mechanism. It could also ease the workload on Employment Tribunals.
What happens next?
The ERB will now return to the House of Commons. It is believed that the government will reject the Lords’ amendment and use its majority to reinstate the original proposal.
Under the Salisbury Convention—a constitutional principle—the House of Lords rarely block legislation based on a government manifesto pledge and so it is expected that they will register their concerns, and then allow the ERB to pass.
Ultimately, the final outcome will determine whether day one protection comes with a more complex nine-month framework or a more simple six months’ service rule.
If you have queries about this update, please contact a member of the Employment team at Glaisyers ETL.
