The UK Government’s ambitious Make Work Pay plan is set to transform the landscape of employment law. Central to this reform is the controversial proposal to remove the two-year qualifying period for unfair dismissal claims. This change would grant employees “day one” rights, fundamentally shifting the balance between employers and workers.
The Make Work Pay agenda is primarily delivered through the Employment Rights Bill (ERB), which is currently progressing through Parliament. However, the plan also includes consultations, new regulations, and updates to guidance. Furthermore, parallel changes are being introduced under the Equality (Race and Disability) Bill.
The Flagship Reform: Day One Unfair Dismissal Rights
The most significant change under the Make Work Pay plan is the removal of the two-year qualifying period for unfair dismissal. Currently, employees need two years of service to bring such a claim. The government argues this will protect workers from the outset of their employment.
To balance this new right, the government proposes introducing a new, statutory probation period. The details of this probation period are still under debate. Consequently, this element remains a key point of contention between the House of Commons and the House of Lords.
Current Legislative Status and Key Debates
The Employment Rights Bill is currently in the ‘ping-pong’ stage between parliamentary houses. This means the Commons and Lords are disagreeing on specific amendments.
On 17 November 2025, the Lords made several changes to the bill. Notably, they voted to moderate some provisions on zero-hours contracts. They also voted to retain the 50% turnout threshold for trade union strike ballots. However, the biggest disagreement continues to be over the flagship day one unfair dismissal rights.
What People Professionals Can Do Now
For HR professionals and business leaders, preparation is key. Understanding the potential timeline and implications of the Make Work Pay reforms is crucial for a smooth transition.
- Review Contracts:Â Begin reviewing employment contracts and company handbooks. Specifically, assess how a new statutory probation period might integrate with your existing policies.
- Enhance Onboarding:Â Strengthen your onboarding and induction processes. With the potential for day one claims, ensuring a fair and transparent start for new hires is more important than ever.
- Train Managers:Â Invest in training for line managers. They must be equipped to handle performance issues fairly and document them thoroughly from an employee’s first day.
- Stay Informed: The legislative process is dynamic. Follow trusted sources like the CIPD’s Public Policy team for the latest updates and detailed analysis.
It is important to note that the majority of the ERB will not apply in Northern Ireland, where employment law is a devolved matter. The NI Executive has published its own separate proposals for employment law reform.
The Make Work Pay plan represents the most significant shift in UK employment rights in a generation. By understanding these changes now, people professionals can lead their organizations through this transition effectively, ensuring compliance and fostering fair workplaces.