The “Day One” U-Turn: What the New Six-Month Qualifying Period Means for Your Business
In a significant policy shift that will breathe a collective sigh of relief into boardrooms across the UK, the Labour government has reportedly dropped its flagship pledge to introduce “day one” protection from unfair dismissal.
The government is now proposing to replace the idea of immediate protection—which was to be paired with a complex “statutory probation period”—with a simpler six-month qualifying period.
For months, we have been advising clients to prepare for a seismic shift in recruitment and retention strategies. The original proposal promised to upend the status quo by granting full unfair dismissal rights from the moment an employee started, subject only to a “light-touch” dismissal process during probation.
Here is a breakdown of what has happened and, crucially, what it means for employers and employees.
What Has Changed?
Under the current law (the Employment Rights Act 1996), an employee needs two years of continuous service to bring a claim for ordinary unfair dismissal. There has always been a ‘qualifying period’ or some duration since the unfair dismissal protection was first introduced in 1971.
Labour’s Employment Rights Bill proposed scrapping this waiting period entirely, making protection a “day one” right. To balance this, they proposed a statutory probation period (consulted on as potentially nine months) where dismissing a new hire would be procedurally easier.
However, facing intense pressure from business groups and legislative delays in the House of Lords, the government has reportedly compromised.
The new proposal:
Qualifying Period: Employees will now likely need to be employed for just six months before they acquire protection from ordinary unfair dismissal.
Probation: The complex “statutory probation period” framework (and the uncertainty over what a “light-touch” dismissal looked like) is likely to be scrapped or significantly simplified, as the six-month rule effectively serves this purpose.
Why the Change?
This is a pragmatic concession. Business leaders warned that “day one” rights would freeze hiring, as employers became terrified of taking risks on new staff if terminating them required a tribunal-proof process from the first week. By agreeing to six months, the government also ensures the Bill can pass quickly: votes in the House of Lords on such a period had already shown support.
The Impact on Employers
For employers, this is arguably the “best of both worlds” compared to the original proposals.
Employers retain a six-month window to assess a new hire’s suitability. If a new employee is not a good cultural fit or lacks the necessary skills, they can part ways within the first half-year without the risk of an ordinary unfair dismissal claim and do it without the burden of a protracted process.
While employers may no longer need a statutory government-mandated process, their internal probation periods grow in importance. A what is often now standard six-month probation period aligns perfectly with the new legal threshold.
Employers should make sure their contracts clearly state a six-month probation period. They must be rigorous in any mid probationary review at month 3 and in the run up to expiry, so around 5 months. If an employee isn’t working out, an employer needs to act before they cross the six-month line.
However, employers must remember that while unfair dismissal will require six months’ service, discrimination, whistleblowing and certain other claims have always been, and remain, day-one rights.
The Impact on Employees
For workers, this is a dilution of the “New Deal for Working People.” However, it still represents a significant upgrade from the status quo. Currently, an employee can be fired after 23 months with no recourse (barring discrimination). Under the new rules, job security will kick in four times faster—after just six months.
Key Takeaways for HR and Management
While the legislation is not yet finalized, the direction of travel is clear. Here is what you should be doing now in preparation:
Review your contracts of employment
Train managers on the Six-Month Clock: managers often let performance issues slide in the first year, thinking they have two years to act. That safety net is shrinking. A decision to retain or release must now be made firmly before the six-month mark.
Don’t ignore process: even without the risk of unfair dismissal in the first six months, following a fair process (warnings, meetings) is the best defence against discrimination claims.
