When the government first announced the Employment Rights Bill (ERB), one headline proposal was giving employees protection from unfair dismissal from their very first day. It would have replaced the two-year qualifying period with immediate protection - a major shift for employers.
But following significant business pushback, and failure to get the Bill progressing through the Lords, the government has now confirmed a change of direction: employees will gain ordinary unfair-dismissal rights after six months of continuous service, not from day one.
For employers and HR teams, this isn’t simply a policy tweak - it reshapes how you hire, manage, and retain people across your organisation.
What’s changed
There’s been so much back and forth on the ERB that’s it’s no surprise that everyone is confused. In summary, what looks likely now is:
- Employees will gain unfair-dismissal protection after six months of service.
- The previous two-year qualifying period will end.
- Crucially, other rights - including sick pay, flexible working, parental leave and bereavement leave - will still become available from day one.
What the U-Turn Means for Employers
· Some breathing space during early months
The shift from day-one protection to six months gives you space to operate probation periods effectively. Many employers feared that immediate unfair-dismissal rights would remove a vital assessment window; the revised plan restores that flexibility, helping you manage suitability, performance, and behaviour early on.
This is especially relevant if you hire frequently for office-based roles in finance, or if you use temporary or fixed-term arrangements to flex your workforce.
· Still requires rigour and clarity
While six months offers more room to assess new starters, it also creates a clear deadline: once someone reaches that point, they can bring an unfair-dismissal claim. And in reality, six months often doesn’t feel long, so you need to get new starters onboarded quickly and effectively.
To reduce risk, your internal processes must be watertight. That includes:
· Clear probation-period terms
· Structured review meetings
· Properly documented performance discussions
· Timely intervention where performance concerns arise
Managers must be confident in applying these processes fairly and consistently, without letting time slide due to operational pressures.
· Onboarding, retention and risk assessment
Because many other rights now start from day one, expectations will rise. Employees may feel greater protection and flexibility as soon as they join. Robust, transparent onboarding becomes essential. This is not only for compliance but to build engagement and set expectations early.
This is also a chance to strengthen early retention. Roles with traditionally high turnover (such as customer service) may benefit from improved induction, early mentoring, and clearer performance pathways.
· A chance to update policies and plan proactively
With the ERB now looking to have a much clearer shape, this is the moment to refresh your organisation’s documentation and working practices. Review your:
· HR handbook
· Probation-period policy
· Dismissal and capability procedures
· Onboarding and induction processes
· Approaches to temporary or fixed-term engagements
If you rely on flexible workers, ensure contractual arrangements are correctly structured so that you’re not unintentionally creating ongoing employment relationships that could activate new rights after six months.
The U-turn may feel like a more workable compromise for employers, and in many ways it is. But it still signals a wider shift towards strengthening workers’ rights. Strong HR practice and proactive planning will be essential to navigating the new landscape confidently. It’s important to embrace the change as opportunity for cultural strength, rather than to push against it.
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