But the Bill, which is expected to come into law in April 2026, will still include day one rights to sick pay and paternity leave and will also see the launch of the Fair Work Agency.
The Chamber, alongside other business organisations across the UK, campaigned for the amendment following consultation with members.
Corin said: “Anyone who knows me and knows my background will understand that I am a huge advocate for making workplaces as fair as they can possibly be for everyone.
“As a Chamber, we’re here to support our businesses and the local economy to grow so that everyone in the city and the county benefits.
“But there was real concern that having day one rights for unfair dismissal was going to have a negative effect on businesses looking to hire – it would feel like too big a risk, especially when the cost of employment has risen so starkly in recent years.
“We do, therefore, believe this is a sensible approach from the Government and I am delighted that our members have been listened to and it shows how powerful it can be when business, unions and Government work together.
“However, businesses across the city and the county should still ensure they are up to speed with everything else that is in the Employment Rights Bill because it is sill going to have an impact.”
A statement issued by the British Chambers of Commerce, Chartered Institute of Personnel and Development, Confederation of British Industry, Federation of Small Businesses, Recruitment and Employment Confederation, and Small Business Britain said: “Businesses will be relieved that the Government has agreed to a key amendment to the Employment Rights Bill which can pave the way to its initial acceptance.
“We welcomed this chance to hold meaningful dialogue and believe the constructive nature of our discussions can be a template to resolve outstanding issues.
“Businesses have always been clear that making the Employment Rights Bill work would take business, trade unions and government working together to find a landing zone for these major policy changes.
“This agreement keeps a qualifying period that is simple, meaningful, and understood within existing legislation. It is crucial for businesses’ confidence to hire and to support employment, at the same time as protecting workers.
"This change addresses the key problem that must be sorted in primary legislation. It shows that dialogue works and is a model for how to consider the important questions that need answering in regulations before new rules come into force.
“Businesses will still have concerns about many of the powers contained in this Bill. This includes guaranteed hours contracts, seasonal and temporary workers and thresholds for industrial action.
“We remain committed to working with government and unions to dealing with this in the necessary secondary legislation to implement the Bill. We must ensure that it supports opportunity for workers while avoiding damage to economic growth.
“That also means agreeing guidance and support for businesses to understand and effectively implement the many changes, alongside sufficient resources for the Fair Work Agency and tribunal system.”
