The Government had to modify a key legislation to avoid delays in implementing various changes, including alterations to sick pay regulations, according to a minister. Education Secretary Bridget Phillipson expressed concerns that without the adjustment, the new Employment Rights Bill might not be enacted by April. The decision to remove long-promised protections against unfair dismissal from the Bill, initially supported by Angela Rayner, has stirred controversy within Labour circles.
The alteration is expected to provoke dissatisfaction among Labour members. Phillipson emphasized the significance of the Employment Rights Bill, describing it as a substantial enhancement of workers’ rights. Following discussions with business representatives and the TUC, an agreement was reached to reduce the time limit for claiming unfair dismissal from two years to six months, while preserving crucial day-one rights regarding sick pay and parental leave. Failure to make progress on these adjustments could have postponed the implementation of these rights until after April next year.
Phillipson clarified that the Government did not violate its manifesto pledge, as the manifesto committed to a thorough consultation process before enacting legislation. The manifesto highlighted intentions to eradicate exploitative zero-hours contracts, end fire and rehire practices, and introduce immediate rights to parental leave, sick pay, and protection from unfair dismissal.
Former Employment Minister Justin Madders suggested that the compromise made in the Bill may be necessary for its rapid passage but constitutes a breach of the manifesto. When questioned about the broken promise, Phillipson reiterated the manifesto’s commitment to consulting with various stakeholders before implementing new protections.
With the revised legislation, employees will now need six months of service to file a claim for unfair dismissal, down from the current 24-month requirement. Despite this adjustment, the Bill, led by Angela Rayner, will still introduce significant reforms, including immediate rights to sick pay and paternity leave starting in April 2026 if the Bill becomes law.
Negotiations between business leaders and trade unions took place over two days to resolve disagreements and advance the stalled flagship bill. Companies argued that immediate rights for unfair dismissal could impact hiring practices. The Bill is currently facing delays in the House of Lords due to opposition from Tory and Lib Dem peers, as the Labour Government lacks a majority.