What to Expect from the Employment Rights Bill After House of Lords Review
- lynnemartin28
- Oct 13
- 3 min read
The Employment Rights Bill has become a hot topic in the UK Parliament, especially following the amendments made by the House of Lords. After reviewing these changes on September 15th, the House of Commons sent the bill back to the House of Lords for further consideration on October 28th. This post aims to provide a clear picture of what you can expect as the Employment Rights Bill moves through this critical legislative stage.
Understanding the Employment Rights Bill
The Employment Rights Bill aims to enhance worker rights across various sectors in the UK. It addresses issues such as job security, equitable pay, and working conditions. Specifically, it acknowledges the challenges of the gig economy and short-term, temporary roles, which recent studies predict will grow by 2025. The bill also considers the realities of remote work, which increased by 75% during the pandemic and continues to be a favoured option for many.
The House of Lords' proposed amendments indicate a strong commitment to not only safeguard workers' rights but also enhance them amid changing employment conditions.
Proposed Changes by the House of Lords
In July 2025, during the report stage of the Employment Rights Bill, the House of Lords agreed to several amendments proposed by the opposition. The key changes that were approved are as follows:
Qualifying Period for Unfair Dismissal: The House of Lords proposes a 6-month qualifying period, replacing the current day-one unfair dismissal protection.
Zero-Hour Contracts and Agency Workers: The proposal includes changing the guaranteed hour requirement to a 'right to request' system rather than an automatic entitlement.
Notice of shift cancellations: "Short notice" requires payment for cancellations. Employers can avoid paying if they give at least 48 hours' notice.
50% threshold requirement for a trade union: The Lords approved an amendment to restore the 50% threshold for trade union votes on industrial action.
Accompanying employees at disciplinary and grievance hearings: The Lords voted to expand the categories of people accompanying employees to include other "professional bodies" (pending future regulations).
If any of these amendments are retained, they could substantially reshape key provisions of the Bill, influencing not only the legislative framework but also the practical implications of its implementation.
The House of Commons Review
On 15th September 2025, during the House of Commons review, MPs deliberated on the impact of the House of Lords' amendments. They highlighted the need to balance employee rights with business requirements.
The Commons rejected those amendments, preserving the Bill's original framework and confirming the government's determination to advance with its initial reforms, dismissing changes seen as weakening the Bill.
Next Steps: The House of Lords Discussion
The Bill is now sent back to the House of Lords and will undergo further consideration on 28th October 2025 as part of the usual amendment exchange process between the two Houses, commonly known as the 'ping-pong' process.
Considering the government's majority, the legislation is likely to advance with minimal alterations. After the final version is finalised, the Employment Rights Bill will obtain Royal Assent, although a significant portion of the reforms is anticipated to be implemented no earlier than 2026.
Implications for Businesses
Once passed, the Employment Rights Bill will carry significant implications for businesses throughout the UK. Companies will need to adapt their regulations, which may prompt changes in policies and operations.
Compliance Costs: Anticipate increased compliance costs as businesses adjust to new regulations concerning job security and fair pay. This may involve updating contracts, enhancing payroll systems, and training staff on new practices.
Impact on Recruitment: The bill could affect how companies recruit talent. Firms that provide competitive pay and flexible working options are likely to attract and maintain employees more easily. In a tight labour market, this advantage can be vital.
Employee Relations: An emphasis on workers' rights could lead to improved employee relations. By fostering a company culture centred on fairness and transparency, businesses can increase employee satisfaction and productivity.
Final Thoughts on the Employment Rights Bill
The Employment Rights Bill marks a significant advancement in protecting workers' rights in the UK. Business owners must stay informed and prepare for upcoming changes. By understanding the bill's implications, companies can successfully navigate this new employment landscape.
Dialogues among all stakeholders are crucial as we move forward. It is vital to ensure that the final legislation meets the needs of workers while considering the challenges faced by businesses.
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