The Guardian and The i quote Emily Chalkley on the UK government's U-turn on day one employment rights

At the end of November 2025, the UK government stepped back on its manifesto commitment to offer all workers the right to claim unfair dismissal from their first day in employment. Government ministers now instead intend to introduce the right after six months. One of the chief reasons for the U-turn, according to reports, was a number of business groups warning that introducing the protections would discourage firms from hiring.

The government has argued that it is taking this approach to avoid its employment legislation being delayed in the House of Lords. Other new day-one rights to sick pay and paternity leave will still go ahead, coming into effect in April 2026.

Emily Chalkey, Partner in our Employment team, comments on the U-turn for The Guardian and The i:

The headlines today have focused on the U-turn on day one unfair dismissal rights, but there has been far less commentary on the proposal that the compensation cap will be lifted, which is perhaps just as significant.

"This could mean the entire cap is being removed and all unfair dismissal awards will be unlimited (like discrimination and whistleblowing awards). Any lift of the statutory unfair dismissal cap is going to make it more costly for employers who dismiss employees without a fair reason or slip up on their dismissal process.

Read Emily's comments in The Guardian here and The i here.