Latest Update to the Employment Rights Bill

By Gary Smith

Partner

On 28 October the House of Lords held further debates about the Employment Rights Bill. 

Having previously had most of their amendments rejected by the House of Commons it was anticipated that the House of Lords would accept those rejections and allow the Bill to move through to receive Royal Assent.  However the House of Lords sent a number of matters back to the House of Commons for further debate including;

  1. Unfair dismissal rights – Replacing the current ‘day one’ right to protection from unfair dismissal with a six-month qualifying period.
  2. Zero-hours contracts – Allowing zero-hours staff who are offered guaranteed hours to opt out of receiving further offers if they do not want them. This may be particularly relevant to students who vary their working hours to fit around studies or to retired individuals who value flexibility in their work arrangements.
  3. Industrial action ballots – The Government’s proposal to remove the requirement for a 50% turnout in a ballot for industrial action, which the House of Lords considered a suitable threshold. The Government had previously indicated the threshold could be reduced to as low as 2%, making this a significant point of debate.

We are now therefore in the stage of the Parliamentary process known as ‘ping pong’ where various amendments are sent back and forth between the two Houses.  Ultimately the House of Lords will give way to the House of Commons if they reach an impasse but we will have to see how long it takes to get to that stage.  The House of Commons has scheduled further discussion for 5 November 2025.

If you have any queries about the Employment Rights Bill and how it might affect you or your business please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and we will be in touch.