Another day, another drama. On Thursday afternoon, it emerged that Sir Keir Starmer’s government were rolling back their commitment to change the ‘qualifying period’ for unfair dismissal from 24 months to day one. Now workers will have to have been in their job for at least six months to qualify, in a move that ministers hope will push the controversial employment rights bill through the House of Lords. But the U-turn has sparked anger among Labour MPs…
The move is a breach of Labour’s 2024 manifesto – and backbenchers have not been quiet in their objections. Left-wing Labour MPs have hit out at the PM for stripping back the employment bill, while the union Unite is on the warpath too. Former housing minister Justin Madders fumed on Twitter: ‘It might be a compromise. It might even be necessary to get the Bill passed asap. But it most definitely is a manifesto breach.’ Meanwhile an unnamed Labour minister told the Times that the announcement was ‘total self-destruction’ and Sharon Graham, Unite’s general secretary, said the move had made the bill ‘a shell of its former self’. More than that, former deputy prime minister Angela Rayner – who drew up the bill – is also said to be considering opposing the government decision. Crikey!
However government ministers, including education secretary Bridget Phillipson, have claimed the legislation could have been delayed ‘by another year’ without the U-turn. Culture Secretary Lisa Nandy told LBC today that the decision was ‘the right thing to do’ to resolve an impasse. The bill is still going through parliament, with the Commons considering the changes that peers want to make to the legislation – after Conservative, Liberal Democrat and crossbench peers united to oppose day-one rights – prompting Labour’s volte face after talks with unions and business groups in an attempt to find a workaround.
The employment bill will still include day-one rights to sick pay and paternity leave, while the Fair Work Agency, an organisation responsible for enforcing these rights, will be created, coming into force from 2026. However new workers won’t be able to claim unfair dismissal against their employer until they have been in their job for six months. While business has signalled it is happy with the changes, there appears to be trouble brewing on the Labour backbenches. Stay tuned…
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