Peter Kyle speaking at the CBI conference last week

The government has reversed its contentious plans to hand all new staff protection from unfair dismissal from day one, after months of warnings about the workers’ rights package from industry and fierce political resistance from the House of Lords.

Under revised proposals announced by the Department for Business and Trade (DBT) on Thursday, the protection will now come into force after six months of an employee starting at a new job.

The policy, which formed an integral part of the government’s flagship Employment Rights Bill , was reversed amid concerns the package would continue to be held up by the House of Lords and jeopardise its ability to deliver the rest of the measures.

Employers are currently able to remove staff without

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