The government has U-turned on its manifesto commitment to offer all workers the right to claim unfair dismissal from their first day in a job.
Ministers now plan to introduce the right after six months instead, after business groups voiced concerns it would discourage firms from hiring.
The government argued it was making the climbdown to stop its employment legislation being delayed in the House of Lords, where it has run into opposition.
Other new day-one rights to sick pay and paternity leave will still go ahead, coming into effect in April 2026.
A source said most unions backed the changes, though Unite said the U-turn would “damage workers’ confidence”.
Business groups welcomed the announcement, which followed talks between major industry groups and unions.
In a statement, the six business groups involved in the discussions said companies would be “relieved” – but added firms still had “concerns about many of the powers” contained in the government’s employment package.
Currently, employers face additional legal hurdles if they want to sack employees who have been in their role continuously for two years.
They must identify a fair reason for dismissal – such as conduct or capability – and show that they acted reasonably and followed a fair process.
