Newsflash: Lords Vote Against Making Ordinary Unfair Dismissal a Day One Right 

23rd July 2025
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    The House of Lords has voted to amend the Employment Rights Bill (ERB) in relation to ‘day one ordinary unfair dismissal rights.’  Whilst the amendment still marks a significant reduction in the length of service an employee would need to bring an ordinary unfair dismissal claim, it is nevertheless a development that is likely to be welcomed by businesses. 

    1. What is the new amendment?
    2. Why did the Lords vote for the amendment?
    3. Is this the final word on the qualifying period for unfair dismissal in the ERB?

    1. What is the new amendment?

    It reduces the qualifying period for ordinary unfair dismissal from two years to six months. 

    As you will no doubt remember, the ERB was originally planned to make ordinary unfair dismissal a day one right, subject to an initial period of employment (anticipated to be around nine months) during which a simpler but as yet unexplained process could be used to dismiss in most cases.

    2. Why did the Lords vote for the amendment? 

    Reasons included:

    • A belief that the new amendment is simpler and clearer, and strikes a fair balance
    • There were concerns over the impact on businesses and those looking for work if the original clause had been approved – increased cost and risks for businesses, and that employers would be less likely to ‘take a chance’ on someone with a less than perfect employment record if it was too difficult to be able to safely dismiss
    • Dissatisfaction about the uncertainty around how the government was planning the original clause would work in practice 
    • Concern about the burden on an already strained employment tribunal system of unfair dismissal as a ‘day one right’

    3. Is this the final word on the qualifying period for ordinary unfair dismissal in the ERB?

    No, the ERB is still going through the legislative process so this could change. The ERB will go back to the House of Commons, where the government could reject the amendment.  

    We will keep you updated on developments in relation to the ERB. In the meantime, if you have an HR matter you would like assistance with, please get in touch.