Employment Rights Bill: latest developments following commons debate

Background

The Employment Rights Bill is a major piece of legislation designed to strengthen workplace protections. It covers a wide range of issues, including dismissal rights, zero-hour contracts, family leave, and trade union reforms. Yesterday, 15 September, MPs in the House of Commons debated the Bill, focusing on amendments proposed by the House of Lords that would have narrowed its scope. The Common rejected most of these amendments, signalling a firm commitment to maintaining stronger rights for workers.

Among the issues discussed were unfair dismissal rights, where the Lords had sought to reintroduce a six-month qualifying period. This was rejected, meaning the Bill continues to provide protection from day-one of employment, with some limited exceptions for very early dismissals. Proposals to limit to reach of protections for employees on zero-hours contracts were also dismissed, leaving the Bill's tougher approach intact. Other amendments relating to grievance and disciplinary procedures, whistleblowing, and trade unions reforms were largely rejected as well. Following this debate, the Bill will return to the House of Lords, which may result in further exchanges between the two Houses before it reaches Royal Assent. 
Implications of the debate

The Commons' decision confirms the government's intention to preserve stronger protections rather than dilute them. Business and Trade Secretary emphasised that the Bill is designed to be both "pro-worker and pro-business." For employers the confirmation of day-one unfair dismissal protection is particularly significant. This change will require a review of probationary periods and dismissal processes, as claims may now be brought from the start of employment. 

Previously, the government amendment to the Bill was framed to void NDAs where they sought to prevent staff speaking about harassment or discrimination. In the Commons debate, the scope of that provision was broadened further, with the government putting forward further amendments to also void NDAs if they attempt to silence staff about a failure to make reasonable adjustments under the Equality Act. 

The Bill is currently in its final stages in Parliament and is expected to receive Royal Assent this Autumn, likely to be in October.

Learning points for employers

Employers should begin for the Bill's changes. This includes reviewing dismissal and probationary procedures to reflect day-one rights and auditing zero-hours and casual working arrangements in advance of the new protections. Keeping a close watch on forthcoming secondary legislation and official guidance will be essential. Early preparation will help employers stay compliant and reduce the risk of disputes once the Bill comes into force. 

For more information or advice, please contact Jessica Scott-Dye in our Employment team.