East Midlands Chamber has responded positively to a government amendment to the Employment Rights Bill that will require employees to complete 6 months of service before they can claim unfair dismissal. The revised threshold is scheduled to come into force in 2027.
The Chamber had raised concerns earlier this year about the original proposal, which would have granted this right after one day of employment. Working with the British Chambers of Commerce, it contacted MPs across the region to highlight evidence from national research showing that the initial approach could have created operational and financial pressures for employers.
East Midlands Chamber Chief Executive Scott Knowles said: “Unchanged, the measures proposed in this Bill present a barrier to business growth and that’s why, after we wrote to MPs on behalf of our members earlier this year to clearly outline their concerns, I welcome the decision to extend the dismissal protection threshold proposed in the Bill to six months.
“Flexibility is an essential ingredient for business and disruption to the way firms operate, additional paperwork and associated costs is not conducive to growth, so it’s important that the government continues to address the concerns we raised.
“While this amendment is a step forward, the Bill, in its current form, will still add significant pressure to firms already dealing with the impact of rising staff costs from factors like soaring inflation and higher National Insurance contributions that came into effect earlier this year. I urge the government to prioritise greater consultation with business before the Bill is given Royal Assent.”
The Chamber maintains that the updated threshold is more workable for organisations managing recruitment, onboarding, and workforce planning. Still, it continues to call for deeper engagement with employers as the Bill progresses.
