Business groups have welcomed the UK Government’s decision to drop its commitment to offer all workers the right to claim unfair dismissal from their first day in a job.

It will be pushed back to six months, following pressure from businesses.

Ministers claimed it had made the change in order to prevent its Employment Rights Bill being delayed in the House of Lords, where it has run into opposition.

Other new day-one rights to sick pay and paternity leave will still go ahead, coming into effect in April next year.

However,  Labour MP Andy McDonald branded the move a “complete betrayal” and vowed to push for its reversal.

Another Labour backbencher, Bell Ribeiro-Addy, said she was “very disappointed” that the party was rolling back on a fundamental manifesto pledge, something that will “worry a lot of people”.

She said hat the move showed “we’re beholden to what businesses seem to want when this was meant to be a bill for working people”.

A statement from six business groups which had lobbied for the change, 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.

“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.”

The statement, issued on behalf of the British Chambers of Commerce, Chartered Institute of Personnel and Development, CBI, Federation of Small Businesses, Recruitment and Employment Confederation and Small Business Britain, added: “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.”

Helen Dickinson, chief executive of the British Retail Consortium, said: “This is an important, practical step in creating an Employment Rights Bill that will protect employment opportunities as well as employees.

“We are pleased to see that Government has listened, and this is proof that meaningful engagement between businesses, trade unions and Government can lead to positive outcomes for everyone.

“We now need similar engagement on other areas of the Bill which are of significant concern. For example, Guaranteed Hours, where current proposals would make it harder for retailers to offer local, flexible, and part-time jobs.”