By Jo Seery Professional Support Lawyer
The government has confirmed it will abandon plans for day one unfair dismissal rights in the Employment Rights Bill (ERB), opting instead for a six-month qualifying period following sustained opposition in the House of Lords and pressure from business groups. The move, announced in a press release on 27 November, is presented as a “compromise” to secure passage of the Bill through Parliament.
Under the revised approach, the current two-year qualifying period will fall to six months, while existing exceptions—such as automatically unfair dismissal claims requiring no qualifying service—remain unchanged. The government also intends to drop the Bill’s proposed regulation making power over probationary periods and to prevent future administrations from changing the qualifying period without primary legislation.
The announcement also stated that “the compensation cap will be lifted,” though without clarifying whether this meant removal or increase. The current cap is the lesser of 52 weeks' pay or £118,233. Subsequent comments from those involved in discussions suggest the 52-week pay cap introduced in 2013 is expected to be abolished, while the overall statutory limit—currently £118,233—would remain in place. Formal amendment papers have not yet been published.
Further Commons consideration of the ERB is scheduled for 8 December 2025.
