28/11/2025

On 27 November 2025 the Government confirmed a major change to its reform of employment rights. The plan to introduce a Day 1 right to claim unfair dismissal has been abandoned. Instead, the qualifying period in GB will be reduced from 2 years to 6 months – much to the relief of employers. See An update on the Employment Rights Bill.

This amendment is a significant shift in approach following debate of the Employment Rights Bill in the House of Lords.

Employers will welcome the clarity and change in approach. A new 6 month qualifying period removes the risk of potentially facing immediate unfair dismissal claims from new starters. This change also means employers can continue to manage probationary periods and short‑term contracts. However it is still a significant shift from the current 2 year qualifying period in GB. In Northern Ireland there are no current proposals to reduce the qualifying period from 1 year.

In its Press Release the Government also states ‘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.’ Whether this means that the current cap on unfair dismissal compensation will be lifted remains to be clarified.

Employers will know that employees in both GB and NI will continue to have Day 1 protections against discrimination and discriminatory dismissals and those based on automatically unfair grounds for example for Whistleblowing.

It is possible now in GB that the reduced qualifying period for unfair dismissal rights could be introduced earlier than 2027.

It also keeps the Government’s timetable to introduce other changes to SSP in April 2026 in place.

New Statutory Rates from April 2026

• SMP, Maternity Allowance, SPP, Neonatal Care Pay, Shared Parental Pay, Parental Bereavement Pay, and Adoption Pay will rise to £194.32 per week;
• SSP will increase to £123.25 per week, alongside reforms making SSP a Day a right and removing the lower earnings threshold (changes applying in both GB and NI).