The Labour government’s U-turn on its planned policy to grant employees the right to claim unfair dismissal from their first work day has been welcomed by bakery trade bodies.
The Department for Business and Trade published an update yesterday (27 November) stating that reducing the qualifying period for unfair dismissal reduced from 24 months to six months was a workable package instead, whilst maintaining existing day one protection against discrimination and automatically unfair grounds for dismissal.
Discussions between trade unions and business representatives were said to have provided the basis for the decision, with the government now to move forward on the issue of unfair dismissal protections in the Employment Rights Bill and ensure it can reach Royal Assent and keep to the published delivery timeline inside 2025.
Day-one rights to Statutory Sick Pay (SSP), paternity leave, and parental rights – currently tied to 26 weeks service – are to be delivered in April 2026 as well as the launch of the Fair Work Agency, which consolidates existing employment rights enforcement bodies.
The Craft Bakers Association (CBA) said it acknowledged the government’s decision to reverse its plan for day-one unfair dismissal rights, noting that many bakery roles require extended training and adaptation before an employer can properly judge capability and fit.
“This change reflects concerns we have consistently raised,” commented CBA chief executive Karen Dear. “A day-one system would have placed excessive and unrealistic burdens on small bakery businesses, forcing employers into full disciplinary procedures even when it becomes immediately clear that a new employee is not suited to the role.
“In an industry where specialist skills, consistency, and pace take time to develop, this would have been wholly unworkable,” she said, adding that the six-month qualifying period was “still far from ideal, but considerably more manageable than day-one rights”.
Service sector trade body UKHospitality also welcomed the “pragmatic” change in the unfair dismissal policy, saying it addressed one of hospitality businesses key concerns. “We made clear representations to the Government that a six-month qualifying period would be much more practical for businesses and maintain job opportunities for young people, and I’m glad they have acted on those concerns,” expressed UKHospitality chair Kate Nicholls.
Meanwhile, the CBA reiterated that day-one protections for workers with disabilities remain unchanged. “Our HR team is fully equipped to support members on all HR matters,” said Dear.
Sick pay and parental rights
Significant concerns were voiced, however, on the introduction of day-one sick pay rights. “These measures risk adding substantial new costs at a time when bakery businesses are already grappling with sharply rising wages, inflationary pressures, and persistent operational challenges. For many small bakeries, April 2026 is simply too soon,” noted Dear.
Nicholls concurred, saying it would be sensible for the Government to delay the day-one SSP implementation by six months. “This would give businesses much-needed breathing room and avoid further damage to employment opportunities,” she added.
Compounding matters further, the Lower Earnings Limit (LEL) for sick pay is to be scrapped next April.
“Introducing day-one SSP and removing the LEL will create a significant financial impact for employers and increases the risk of higher short-term absence and reduces workforce reliability,” highlighted Dear. “Employees who are currently on or just above the LEL would be able to take sick leave from day one without any financial burden on themselves, placing the full cost onto businesses.”
There was pushback on the proposed shift to day-one paternity and parental rights too.
“While the CBA and its members have a long history of supporting employees with childcare and family responsibilities, mandating these entitlements from the very first day of employment creates challenges around staffing stability and cost planning,” said Dear.
“Our members already demonstrate flexibility and compassion in supporting working parents and in many cases go well beyond statutory requirements, but enforcing these rights from day one may introduce administrative strain and financial pressures that small bakeries are ill-equipped to absorb.”
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