The Government is abandoning plans to allow all workers to claim unfair dismissal from day one, instead proposing a six-month qualifying period.

The decision is a U-turn on a manifesto commitment and follows concerns raises among businesses that the move would dissuade firms from hiring.

The Government blamed opposition to its employment legislation in the House of Lords for the climbdown.

The move is expected to prevent delays to the legislation being passed, which will still grant workers rights to sick pay and paternity leave from day one. The changes will come into effect in April 2026.