“Day-One” Unfair Dismissal Rights Scrapped - Employment Rights Bill Update

On 27 November 2025, the UK government altered a flagship commitment in the Employment Rights Bill and dropped plans to grant most workers protection from unfair dismissal from their first day of employment.  Instead, the Bill will now grant unfair-dismissal rights after six months of continuous service. 

What Has Changed and Why?

The originally proposed “day-one right” would have scrapped the requirement that employees accumulate two years’ service before they could claim ordinary unfair dismissal.  It was proposed that employees would have had unfair-dismissal protection from their first day - subject to a lighter “statutory probation” regime.

Following talks between government, business bodies and trade unions, the government has accepted a compromise: a six-month qualifying period before unfair dismissal claims can be made.  The change is framed by ministers as a pragmatic step to break a parliamentary deadlock that threatened to stall the entire Bill, allowing day-one rights for other entitlements (like sick pay and parental leave) to progress.

At the same time, the government committed that:

• Any further changes to the qualifying period would require primary legislation (ensuring no shortening of the qualification period in the immediate future).
• The statutory cap on compensation for unfair dismissal will be lifted - though exactly what “lifted” means in practice (either a higher cap or removed entirely) remains unclear. At present the cap is set at the lower of £118,223 or 52 weeks’ pay.

There is no confirmation on whether the proposed “lighter touch” dismissal regime during an “initial period of employment” will also be dropped.

What This Means for Schools?

Under the Bill new employees can no longer expect automatic protection against unfair dismissal from their first day.  During the first six months, schools / trusts will have time to take dismissal decisions without the risk of an ordinary unfair dismissal claim.

After six months’ employment, the right to claim unfair dismissal will apply. This will give greater protection than today’s two-year qualifying period but falls short of the original “day-one” ambition included in the Bill.

The compromise provides certainty for employers - a clear probation window before protections kick in, and more time to assess whether recruits are the right fit potentially reducing hiring risk.

Schools should note that employees will still be able to bring discrimination, and automatic unfair dismissal claims with no qualifying period.

Reducing the qualifying period to six months may lead to more tribunal claims but is still less burdensome than day-one eligibility.

Reactions to the Change in Approach

Some unions have expressed dismay at the decision arguing that six months is insufficient and still leaves too many vulnerable workers unprotected during an uncertain early employment period.

Government ministers have defended the compromise as a necessary trade-off to ensure the broader Bill - covering sick pay, parental leave, union rights, and zero-hours protections - can pass quickly and deliver real improvements for many workers.

Impact on the future progress of the Bill

The compromise was reached to avoid delaying the Employment Rights Bill timetable. The Bill could receive Royal Assent by Christmas, assuming remaining issues are resolved with some changes implemented as early as April 2026.

How Judicium can help... 

The Employment Rights Bill represents a major shift in employment law. Most changes are not immediate, but schools that prepare now will be better placed to manage risk, control costs, and maintain positive staff relations.

To keep you up to date with all the latest developments, we have set up an ERB email subscription where will be regularly sending out regular updates on the different aspects of the Bill. Subscribe here to keep informed of the proposed changes and how best to prepare for them. Our team are also here to help our clients review policies, train managers, and prepare for the new landscape.

As always, we're here to support you with any questions you may have in relation to the Employment Rights Bill. Please don’t hesitate to get in touch via the usual channels if you need advice or assistance.

Additionally, our HR Content Hub offers a range of comprehensive guidance and a variety of valuable tools and templates on a range of HR matters.

You can find information regarding our Employment Law and HR service here.

If you require any support in any of these steps or would like to talk to someone surrounding some support for your school, please do not hesitate to call us on 0345 548 7000 or email enquiries@judicium.com. 

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