The original proposal to cut the qualifying period for unfair dismissal claims from 24 months to the first day of employment has been axed.
Instead, the government now intends to introduce the right to protection after six months of service, while other day-one rights like paternity leave and sick pay are still set for April 2026.
This concession has sparked significant anger among Labour backbenchers and the Unite union, with some MPs calling it a "complete betrayal" and a "manifesto breach".
Business groups have welcomed the change, stating that a six-month qualifying period is crucial for business confidence, while ministers argue the new plan is a compromise found by unions and employers.