The Resolution Foundation said plans to get rid of qualifying employment periods and replace them with ‘day one rights’ will harm the economy, describing the government’s plan as a ‘messy compromise’.

‘There is a risk that it is likely to be poorly understood by many employers, meaning that it may not fully mitigate any adverse effects on employers’ willingness to hire,’ the Resolution Foundation warned.  

As the Employment Rights Bill returns to the House of Lords on Tuesday, the debate will focus on how to water down the rules before they come into effect from 2026.