Business groups welcomed the announcement, which followed talks between major industry groups and unions.
In a statement, the six business groups involved in the discussions said companies would be “relieved” – but added firms still had “concerns about many of the powers” contained in the government’s employment package.
Currently, employers face additional legal hurdles if they want to sack employees who have been in their role continuously for two years.
They must identify a fair reason for dismissal – such as conduct or capability – and show that they acted reasonably and followed a fair process.
Labour had planned to abolish this qualifying period completely, alongside a new legal probation period to be determined after a consultation.
The promise was a central pledge in Labour’s manifesto ahead of last year’s general election, and a key plank of its Employment Rights Bill.
But in recent weeks the House of Lords has twice voted in favour of a six-month period, slowing the legislation’s passage through Parliament.
