LONDON (Reuters) -Britain will scale back plans ​to give employees protection against ‌unfair dismissal from day one, reducing ‌the qualifying period to six months instead of two years, the government said on Thursday.

The change follows ⁠talks with ‌trade unions and business groups and removes the last major ‍hurdle for the Employment Rights Bill to pass into law.

Ministers said the ​compromise was a “workable ‌package” that would allow reforms to proceed on schedule, including day-one rights to sick pay and paternity leave from April 2026 ⁠and the launch ​of a Fair Work ​Agency.

Business groups had warned that day-one dismissal rights could ‍deter hiring,⁠ while the bill has been a flagship pledge for Labour ⁠since last year’s election.

(Reporting ‌by Sam Tabahriti; Editing ‌by Kirsten Donovan)