Latest on the Employment Rights Bill
On 10 October 2024, the landmark Employment Rights Bill was introduced into Parliament.
We have summarised the current status of the Bill and next steps, as it enters the final stages of its passage through the Houses of Parliament.
(See our previous update on the Bill from March here.)
Implementation Dates
The Bill proposes a number of changes to the employment rights landscape, some significant and some more minor. On 1 July 2025, the Government published a roadmap for the phased implementation of these changes over the next couple of years.
The majority of changes will enter into force from April 2026 to ‘some time’ in 2027. This phased implementation will provide employers with more time to prepare for various adjustments in working practices and allows the Government to consult on the proposed changes.
See our previous update for a summary of the key implementation dates and steps.
House of Lords Proposed Amendments
The House of Lords Report stage commenced on 14 July 2025, following the Bill’s passage through the House of Commons.
On 15 September 2025, the House of Commons rejected significant non-government amendments passed by the House of Lords at the ‘Report’ stage, summarised as follows:
Unfair dismissal
The House of Lords had proposed a six-month qualifying period of service for unfair dismissal. This was rejected because the Government considered that protection from unfair dismissal should be provided from day one of employment, in line with its manifesto commitment.
Duty to offer guaranteed hours
The House of Lords had proposed a change to the proposed duty for employers to offer guaranteed hours to qualifying workers to a model where employees would be required to actively request them. This was rejected because the Government considered that a ‘right-to-request’ model would create barriers, especially for ‘vulnerable workers’.
Compensation for shifts cancelled, curtailed or moved at short notice
The House of Lords proposed an amendment to provide that a short-notice cancellation payment is due only where the shift is cancelled less than 48 hours before it is due to start. This was rejected on the basis that the Government intend to set out short notice period regulations following a consultation.
Industrial action
The proposed amendment to retain the 50% turnout threshold required in a ballot for industrial action was rejected.
Disciplinary and grievance hearings
The House of Lords had proposed the inclusion of a new provision permitting employees to be accompanied at disciplinary and grievance hearings by a “certified professional companion”. This was rejected on the basis that the current law already guarantees workers the right to be accompanied by a fellow worker, a trade union representative or an official employed by a trade union. The Government’s view is that this “strikes the right balance between fairness, flexibility and practicality”.
Whistleblowing protection
The House of Lords had proposed extending protection against unfair dismissal for whistleblowers and imposing a new duty on employers to investigate protected disclosures. This was rejected on the basis that any reform of the whistleblowing framework should be considered as part of a broader assessment of that framework.
Next Steps
The Bill will now return to the House of Lords for consideration, before likely receiving Royal Assent in the coming months.
The Government is then expected to launch a range of consultations later this year and early next year, including on:
- trade union measures;
- 'fire and rehire' practices;
- umbrella companies;
- bereavement leave;
- increased rights for pregnant workers;
- ending the 'exploitative' use of zero hours contracts;
- collective redundancies; and
- flexible working.