House of Lords Votes Against Day-One Unfair Dismissal Rights

A proposed shake-up to UK employment law has been halted in its tracks. The House of Lords has voted against a key element of the draft Employment Rights Bill that would have given employees the right to claim unfair dismissal from their first day of employment.

Instead, the Lords supported an amendment that reduces the qualifying period for unfair dismissal protection from two years to six months - scrapping the proposed “day one” rights and the government’s original plan to implement a defined early employment period (similar to a probation period).

What was proposed?

The government originally intended to introduce day-one rights for protection against unfair dismissal, in line with its broader goal of strengthening worker protections and creating more secure work environments. It included a “short service dismissal” framework, during which employers could dismiss employees more easily without fear of legal claims.

What changed?

The House of Lords disagreed with this approach, arguing that a six-month qualifying period strikes a better balance between employee security and employer flexibility. As a result:

• The concept of day-one protection has been dropped from the draft bill.

• A simplified six-month qualifying period is now proposed instead.

• The Bill will return to the House of Commons for further debate, and the government may still attempt to restore its original plan.

What does this mean for employers?

Employers may soon need to adjust their HR policies and probation periods:

• A shorter qualifying period gives you less time to assess new hires before full unfair dismissal rights apply.

• There may be greater legal exposure if underperformance is not documented or managed promptly.

• You should consider reviewing your onboarding, induction, and probation review processes to ensure they are robust and time-efficient.

How DCG can help

Whether the six-month amendment stands or the government reintroduces day-one rights, employers will need to be ready. At DCG, we offer: policy and contract reviews, probation period planning, manager training to reduce dismissal risk and practical advice on lawful terminations.

Now is the time to prepare - not react. We’ll keep you informed as the Bill progresses and ensure your business stays compliant every step of the way.