Employment Rights Bill: Government stands firm on Lords’ challenges
The Bill will return to the House of Lords again before Royal Assent.
The House of Commons debated the Employment Rights Bill on Wednesday, following the Lords' opposition last week to key government proposals. Despite a lengthy and animated debate, MPs supported the government's position and voted to reject all Lords' amendments. The Bill will therefore return to the Lords once again for further consideration.
What was debated?
MPs considered the following key issues:
- Day-one unfair dismissal rights: the Lords had proposed a six-month qualifying period. In response, the government reaffirmed its manifesto commitment to day-one right unfair dismissal rights. It confirmed that the initial period of employment (IPE) will be used to determine the suitability of a new recruit for a role. The length of the IPE will be set out in regulations after consultation.
- Guaranteed hours opt-out: the Lords suggested allowing employees, after receiving an offer of guaranteed hours, to opt out of further reviews and offers, with the right to opt back in later. The government opposed this, arguing it would undermine the Bill's aim of ending exploitative contracts and improving job security.
- Seasonal work and guaranteed hours: the Lords proposed requiring the Secretary of State to consider the specific characteristics of seasonal work when making regulations under the guaranteed hours provisions. The government acknowledged seasonal fluctuations but said the Bill already makes adequate provision for this, such as by allowing the employer to offer a limited term contract where it is reasonable to do so.
- Trade union political funds: the Lords sought to retain the post-2016 "opt-in" model for union political funds. The government’s reinstated the previous “opt-out” model, arguing that it created unnecessary bureaucracy.
- Industrial action ballot thresholds: the Lords wanted to retain the existing 50% turnout requirement for strike ballots. The Commons supported the government's proposal to remove the threshold, coupled with a duty on the Secretary of State to consider the impact of electronic balloting on participation rates. The government will also consult on an e-balloting code of practice.
The government also announced that it will set up a task force to address challenges in the employment disputes systems. The taskforce will be made up of balanced representation from businesses, unions and other experts.
What happens next?
The Bill will now return to the House of Lords for further consideration of the Commons' amendments. Under the Salisbury Convention, the Lords are expected to defer to the Commons on manifesto commitments. Given the government's firm stance, significant changes to the Bill are now unlikely before Royal Assent.
Preparing for change
Employers should take proactive steps to prepare for the anticipated changes. We will continue to report on the Bill’s progress through Parliament, keeping you updated as further detail emerges.
You can follow the progress of the Employment Rights Bill and related consultations through our Employment Rights Bill tracker.
For more information or advice, please contact Elizabeth McTeigue in our Employment team.