Businesses welcome new 'simple, meaningful' reform to the qualifying period
The United Kingdom government is revising its proposed qualifying period for unfair dismissal to six months after consultation with businesses and trade unions.
The Department for Business and Trade on Thursday said discussions with businesses and unions concluded with the six-month qualifying period being a "workable package."
This shift is significantly shorter than the current 24-month qualifying period, enabling employees to get full unfair dismissal rights after six months of service with an employer.
However, the revised period is much longer than the government's previous commitment of making unfair dismissal protections a day-one right for employees.
In its statement, the department said the new package will deliver "much needed clarity" for employers, as well as benefit millions of working people who will gain new rights.
"To further strengthen these protections, the Government has committed to ensure that the unfair dismissal qualifying period can only be varied by primary legislation and that the compensation cap will be lifted," the department added.
Six major business groups in the UK said employers will be "relieved" about the key amendment in the qualifying period.
"This agreement keeps a qualifying period that is simple, meaningful, and understood within existing legislation," the groups said in a joint statement.
"It is crucial for businesses confidence to hire and to support employment, at the same time as protecting workers."
Shift from a day-one right
The six-month qualifying period is a major change from the government's previous commitment of making protection against unfair dismissal a day-one right for workers.
In its "Make Work Pay" initiative introduced last year, the government said it aims to make basic individual rights, such as protection against unfair dismissal, available to employees on their first day of service with an employer.
Business groups previously warned that introducing the reforms on day one would discourage firms from hiring, BBC reported.
While the qualifying period has been changed in the proposal, the government maintained that day-one protection against discrimination and automatically unfair grounds for dismissal will remain as day-one rights.
Sick pay and paternity leave will also be retained as day-one rights, with the government aiming to introduce the reforms in April 2026.
"Reforms to benefit millions of working people, including some of the lowest paid workers, would otherwise be significantly delayed if the Bill does not reach Royal Assent in line with our delivery timetable," the department said.
"Businesses too need time to prepare for what are a series of significant changes."
