Unfair Dismissal Qualifying Period: House of Lords Rejects Day‑One Protection

Published : August 12, 2025

The Employment Rights Bill has been frequently discussed since it was first introduced. Among the many changes it aims to implement, the day-one unfair dismissal right has been highly anticipated. However, recently, the House of Lords has rejected this idea, instead pushing for a six-month unfair dismissal qualifying period.

We dive into the recent amendments being proposed and what this may mean for employees once the bill comes into force in 2027.

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Unfair Dismissal Qualifying Period: What Does The Law Say?

At present, employees need to have been working for two years to be eligible for unfair dismissal protection. With probation periods being part of most employment contracts, employees have been dismissed before they can reach their two-year qualifying period. This leaves them with little protection.

The Employment Rights Bill aimed to strengthen workers’ rights and put an end to one-sided flexibility. So, while employees can still bring a claim for any “automatically unfair” reason for dismissal, the bill was to introduce a statutory employee probation period and day one protection.

However, in the most recent stage, Lords have refused day one unfair dismissal rights and instead voted in favour of a six-month qualifying period. While the Lords did acknowledge that the two-year period is long and unfair, they believe day one rights could tip the scales (too) significantly.

Amendment Proposed

When first proposed, the Employment Rights Bill was planning to introduce a “statutory probation period” for more transparency. This was supposed to be a nine-month period where businesses could assess whether employees are fit for a role. At the same time, employees were to be granted day one unfair dismissal rights.

During this nine-month period, a “lighter touch” process would allow businesses to dismiss employees if they are not fit for the role. And should an employee be successful in a claim for unfair dismissal, the cap for the unfair dismissal compensatory award would be lower.

This has now been entirely scrapped, and instead, a shorter unfair dismissal qualifying period has been proposed. This newly proposed six-month qualifying period is likely to apply to all employees, irrespective of sector or employer size.

One of the main reasons this has been proposed is to create a balance between workers’ rights and job creation. It has been argued that removing the qualifying period – and introducing day one unfair dismissal rights – may prevent businesses from hiring. Moreover, day one rights may also put strain on employment tribunals as unfair dismissal claims could increase.

With the uncertainty probation periods bring (as they are not consistent across businesses), a statutory six-month unfair dismissal qualifying period is argued to strike a better balance. This period will ensure employees have a reduced qualifying period for claims, while businesses can still take time to evaluate new hires.

What Does This Mean for Employees?

Naturally, this would mean reduced qualifying periods, for starters. Once implemented, employees would not have to wait for two years to bring an unfair dismissal claim. Keep in mind that employees can still bring claims from day one for any “automatically unfair” reason for dismissal. Among other things, this includes dismissals for factors such as maternity or whistleblowing.

This will be a stark improvement for workers who had no legal protection for two years. However, with the likelihood of employees still being subject to probationary periods, a six-month unfair dismissal qualifying period could leave them feeling vulnerable. With worker protection being a key part of the government’s manifesto, the amendment could be rejected.

It is imperative for workers to keep an eye out for changing legislation and stay informed. The Bill will now return to the House of Commons.

Get Help with Redmans

If you have any questions about unfair dismissals or believe your employment rights have been breached, contact us now. Redmans Solicitors are employment specialists, and following a brief chat, we can provide expert advice on your possible next steps.

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The information on this page is intended for general informational purposes only and does not constitute legal advice.