Government drops plan for ‘day one’ unfair dismissal rights

In a press release on 27 November 2025, the government confirmed it will not make unfair dismissal protection a ‘day one’ right under the Employment Rights Bill (the Bill). Instead, the current two-year qualifying period for unfair dismissal protection will be reduced to six months.

The previous proposal for a light-touch dismissal process during an initial period of employment will now not be taken forward.

This change will be made through primary legislation, meaning future governments will find it harder to make further changes once implemented.

Other day one rights remain unaffected, with reforms to sick pay and paternity leave set to come into force in April 2026 as planned.

The reforms to unfair dismissal protection were due to be implemented from 2027, but it’s currently unclear whether this change will bring the timeline forward.

The shift appears to be an attempt to break the deadlock between the House of Commons and the House of Lords on this issue, with a view to accelerating the Bill’s enactment.

It has also emerged that the government plans to remove the compensation cap on unfair dismissal claims, but further detail is yet to be provided. It’s unclear whether the entire cap will be removed (meaning unfair dismissal awards will, in essence, be unlimited) or whether just one of the two current caps will be removed.

What this means for schools

We’ll keep schools updated as more details emerge, particularly around the proposed date of reform and the changes to the compensation cap. In the meantime, schools should be mindful of the upcoming changes, review their recruitment and probationary procedures and plan accordingly for the new landscape.

While this is a welcome change, the shorter qualifying period means employees will gain unfair dismissal protection much sooner. Schools will need to have a fair reason to dismiss staff and follow a fair process earlier in employment. Therefore, robust recruitment and probationary review processes will be essential.