According to reporting in the Guardian, ministers have agreed to advance the timetable for introducing new protections against unfair dismissal, following detailed discussions with Angela Rayner.
The Government will formally announce in the Commons that the revised rules will take effect on 1 January 2027, providing protection to employees who have completed six months of continuous service.
This decision represents a clearer and faster commitment than ministers had previously offered.
Until now, the Government had indicated only that the change would come into force sometime in 2026 or 2027, with October 2027 floated as one possible date.
By setting a firm implementation point, ministers say they hope to give certainty both to workers who stand to benefit from the reform and to employers preparing for the transition.
A Government source quoted by the paper welcomed having a definitive date and called on peers to pass the Employment Rights Bill so that “business can get the clarity they need and workers can get the security they deserve.”
Under the revised timetable, anyone hired from July 2026 will be covered as soon as they accrue six months’ service.
Employees already in post by that date will reach eligibility gradually as they pass the required service threshold.
Rayner’s intervention came after significant concerns within Labour about the Government’s move to adopt a six-month qualifying period rather than the originally proposed right to claim unfair dismissal from the first day of employment.
Although day-one protection will not go ahead, the reduction from the existing two-year qualifying period remains a substantial shift in employment law, and Labour MPs argued that it should be implemented as quickly as practicable.
According to Labour sources cited by the Guardian, there was strong support in the Commons and the wider labour movement for accelerating the timetable.
They suggested that, had ministers not agreed to bring forward the start date, MPs were prepared to back an amendment to compel earlier implementation. With the compromise secured, the matter will not need to be tested in a vote.
Trade unions have largely accepted the agreement. Unions had raised concerns over an alternative proposal under which employees would face a nine-month probation period before gaining protection, warning that such a system would demand extensive consultation and risk creating inconsistent practices. They also welcomed the Government’s decision to lift the cap on compensation for unfair-dismissal claims – a long-standing union objective.
The bill 2025 contains several other measures designed to reinforce worker protections. It ensures that individuals on zero-hours or otherwise unpredictable contracts will not be shut out of the new rights because of the nature of their working arrangements.
It also introduces financial penalties for employers who obstruct unions’ ability to engage with employees, aiming to strengthen collective representation in workplaces where access has traditionally been limited.
Overall, the advanced implementation date marks a notable acceleration of a key element of the employment-rights package and is expected to give many workers earlier access to meaningful job security.
On 10 December 2025, during a debate on the Employment Rights Bill (ERB), the House of Lords voted to retain the cap on unfair dismissal compensatory awards, which the Commons has proposed removing, and introduced an alternative amendment, requiring the bill to return to the Commons for further consideration.
With significant reforms now confirmed and further changes on the horizon, employers should begin reviewing their dismissal procedures, probation policies, and workforce planning to ensure compliance well ahead of the 1 January 2027 implementation date.
If you would like tailored advice on how these developments may affect your organisation, or support in updating your contracts, policies or HR processes, please contact our Employment Law team for specialist guidance.
