ERB compromise is welcomed — but more must be done

The Chartered Institute of Personnel and Development (CIPD) has welcomed the Government’s decision to amend the Employment Rights Bill, saying the compromise on unfair dismissal rules reflects a balanced approach between worker protection and business flexibility.

The change — confirmed following parliamentary negotiations this week — reduces the qualifying period for unfair dismissal claims to six months, down from the current two years, but stops short of granting employees protection from day one. The adjustment was made in response to concerns from employers that the original plan could deter recruitment and increase workplace disputes.

Peter Cheese, chief executive of the CIPD, said the organisation was pleased to have been involved in discussions that led to the amendment.

“We’re pleased to have been in the negotiations with the Government about changes to unfair dismissal reforms, representing the voice of the HR profession,” he said. “Many of our members were concerned that scrapping the unfair dismissal qualifying period risked organisations cutting back on recruitment, particularly for younger people or those who might need more support.”

Cheese added that the outcome showed constructive collaboration between government, employers, and unions.

“We’re encouraged by the Government’s willingness to listen and that working together with unions, we’ve reached a workable approach for employers that also delivers stronger protection for employees,” he said.

The Employment Rights Bill represents the most significant overhaul of UK employment law in decades. Alongside changes to unfair dismissal, it includes new measures covering zero-hours and low-hours contracts, flexible working, statutory sick pay, parental leave, and trade union recognition.

According to government sources, the six-month qualifying period was introduced to strike a balance between protecting workers’ rights and maintaining flexibility for employers. The Department for Business and Trade said it would continue to consult on aspects of the Bill that have yet to be finalised, with Royal Assent expected in early 2026.

The CIPD said that while resolving the unfair dismissal issue was important to allow the Bill to progress, further work would be needed to ensure other reforms were “workable and properly supported by employers.”

“There are still areas of the Bill that need further clarity and consultation — such as new rights for zero-hours and low-hours workers, and proposals on trade union access and recognition,” Cheese said. “These changes could affect recruitment and growth or create workplace tensions if not made workable and properly supported by employers.”

He added that smaller organisations without dedicated HR teams would require particular support as the reforms take effect.

The Government has pledged to engage with employer groups and publish detailed implementation guidance before the Bill takes effect. The CIPD said it would continue to work with its members to ensure HR policies, line manager training, and employment practices are updated in line with new requirements.