Kate Nicholls, chair of UKHospitality, said the revision was “a pragmatic change” that addresses one of the industry’s biggest concerns.
‘Much more practical’
“We made clear representations that a six month qualifying period would be much more practical for businesses and maintain job opportunities for young people,” she said. “I’m glad the Government has acted on those concerns.”
The Government confirmed today it will reduce the qualifying period for unfair dismissal from 24 months to six months, rather than introduce full day one rights as originally proposed.
Existing day one protections for discrimination and automatically unfair dismissal remain unchanged.
BBPA CEO Emma McClarkin said the decision would come as a “relief” to pub operators.
“After a challenging Budget, the Employment Rights Bill has been adding to anxiety, so the decision to remove this clause will be a relief to many brewers and publicans,” she said.
“We now call on Government to avoid unintended consequences and costs that our pubs will struggle to absorb.”
Wider reforms to proceed
The Government said the change enables the Bill to stay on track for Royal Assent, keeping its published timetable intact. This includes:
- Day one rights to statutory sick pay and paternity leave from April 2026
- The launch of the new Fair Work Agency
- Changes that will “benefit millions of working people”, including many on low pay
Ministers confirmed the compensation cap on unfair dismissal claims will be lifted, and that any future change to the qualifying period will require primary legislation.
The Government also committed to “full, fair and transparent consultation” with employers, unions and business groups on the detail of secondary legislation, and noted the need to support small businesses through implementation.
Nicholls added that, with wage rises, business rates changes and other cost pressures due in April, “it would be sensible for the Government to delay the introduction of statutory sick pay from day one by six months” to give firms breathing room.
The Bill will now be amended and progress through Parliament in the coming days.
