UKHospitality welcomes government U-turn on ‘day one’ workers’ dismissal rights

UKHospitality has welcomed the government walking back proposals to offer workers the right to claim unfair dismissal from their first day of employment.

The Labour party had committed to ‘day one’ workers’ rights in its manifesto, but in government has now reduced the planned qualifying period for unfair dismissal to six months in the upcoming Employment Rights Bill.

The legislation is in the final stages of the UK parliamentary process, and the bill is due to return to the House of Commons for consideration on Monday 8 December before receiving Royal Assent.

The Department for Business and Trade said it had undertaken “constructive discussions” between trade unions and businesses representatives. The discussions concluded that reducing the qualifying period for unfair dismissal from 24 months to 6 months (whilst maintaining existing day one protection against discrimination and automatically unfair grounds for dismissal) is a “workable package”.

Other new ‘day one’ protections, such as rights to sick pay and paternity leave, will still be implemented in April 2026.

UKHospitality chair Kate Nicholls described the moves around day one dismissal as “a pragmatic change that addresses one of hospitality businesses’ key concerns”.

“We made clear representations to the government that a six-month qualifying period would be much more practical for businesses and maintain job opportunities for young people, and I’m glad they have acted on those concerns,” she said.

The British Beer and Pub Association also responded broadly positively to the changes, with CEO Emma McClarkin saying: “After a challenging Budget, the Employment Rights Bill has been adding to anxiety, so the decision to remove this clause will be a relief to many brewers and publicans who might otherwise have been cautious about taking on new staff.”

However, both associations called for further revisions of the legislation, with Nicholls adding: “The Employment Rights Bill will still bring substantial changes and extra cost to hospitality businesses. In light of the increases to wages, business rates and other costs coming in April, it would be sensible for the government to delay the introduction of statutory sick pay from day one by six months.

“This would give businesses much-needed breathing room and avoid further damage to employment opportunities.”

McClarkin agreed: “We now call on government to work with the BBPA and other trade sectors to further improve the Employment Rights Bill, retain flexibility and to avoid unintended consequences and costs which our brewers and pubs will struggle to absorb.”

The bill will be gradually introduced into law over the next two years, culminating in 2027 with measures including ending zero-hours contracts to provide workers with stable hours and predictable income.

The Caterer’s recent Breakfast Briefing Live event discussed the impact of the changes, with key tips for hospitality businesses to take forward encompassing conducting a detailed review of data, preparing and training managers and creating an employee-centric approach.