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Employment Rights Bill: key amendments and future consultations as Report Stage nears conclusion

14 Aug 2025

The Employment Rights Bill (ERB) continues to progress through Parliament, with the House of Lords recently concluding the second, third and fourth sittings of the Report Stage on 16, 21 and 23 July 2025. 


Key developments and amendments

Several government amendments were agreed, including changes to the 'fire and rehire' provisions and the establishment of national negotiating bodies for school support staff. However, a number of significant non-government amendments were also agreed. These included:

  • Blocking the government's proposal to introduce day-one unfair dismissal rights by retaining a six-month qualifying period of service for unfair dismissal.
  • Requiring new regulations to strengthen protections for whistleblowers and place a duty on employers to investigate protected disclosures.
  • Allowing employees to be accompanied to disciplinary or grievance hearings by a 'certified professional companion'.
  • Introducing a definition of 'seasonal work' for use in future regulations under the ERB (which may assist schools in managing the contracts of exam invigilators and other seasonal staff).
  • Retaining the 50% turnout threshold required in a ballot for industrial action.

The Lords also approved amendments to prevent the newly proposed School Support Staff Negotiating Body from blocking employers' ability to offer improved employment terms.  

During the debate, the government also confirmed a range of planned actions:

  • A consultation on employment status will be published before the end of 2025.
  • Guidance will be published on how the Fair Work Agency will exercise its power to bring tribunal proceedings.
  • Possible amendments to the early conciliation period, following extended limitation period for tribunal claims.

Further consultations announced on AI and trade union recognition

In addition to debating the ERB's contents, the government used the Lord's sittings to signal a number of forthcoming consultations and evidence calls. A full consultation on workplace support for parents of critically ill children is expected in 2026.

Further consultations are also planned on the future of AI in the workplace, and broader 'Plan to Make Work Pay' proposals. These will include issues such as algorithmic bias, workplace surveillance, and employee consultation rights around the use of new technologies. The government also clarified its rationale for setting a 2% - 10% membership threshold for the Central Arbitration Committee (CAC) to accept a trade union application for statutory recognition, while confirming it will consult before finalising any changes.

Next steps

Following the completion of the Report Stage, the ERB will move to its Third Reading in the House of Lords scheduled for 3 September 2025, following Parliament’s return after the summer recess.

Looking for more detail on how the Employment Rights Bill could affect your organisation? Explore our Employment Rights Bill hub, where you'll find practical updates, expert commentary and tools designed to support confident decision-making.


For more information or advice, please contact Nick Murrell in our Employment team.

 

Looking for more detail on how the Employment Rights Bill could affect your organisation? Explore our Employment Rights Bill hub, where you’ll find practical updates, expert commentary and tools designed to support confident decision-making.

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