Employment Rights Bill: Lords’ rejections and what happens next
The House of Lords has reinserted a number of amendments previously rejected by the Commons, meaning the Employment Rights Bill will return for further consideration.
The Employment Rights Bill, which some had thought would complete its passage on 28 October 2025, has been sent back to the House of Commons after the Lords approved several amendments opposed by the Government. The debate extended into the evening and saw peers vote through a number of key changes.
What are the issues in dispute?
The Lords have stood firm on several contentious issues, including:
- Day-One unfair dismissal rights: the Lords again rejected day-one protection, voting instead for a six-month qualifying period as a compromise. The Government confirmed its commitment to day-one rights, proposing a statutory nine-month probationary period to be defined through regulations.
- Guaranteed hours opt-out: peers backed Lord Fox’s revised amendment allowing employees, after the initial reference period and offer of guaranteed hours, to opt out of further reviews and offers, with the flexibility to opt back in at any time. The Government opposed the change but indicated a willingness to continue discussions.
- Seasonal work and guaranteed hours: the Lords supported an amendment requiring the Secretary of State to have regard to the specific characteristics of seasonal work when making regulations under the guaranteed hours provisions.
- Trade union political funds: the Lords backed a return to the post-2016 opt-in model for union political funds, reversing the Government’s proposal to reintroduce automatic enrolment.
Industrial action ballot thresholds: peers voted to retain the current requirement for at least 50 per cent turnout in strike ballots, rejecting the Government’s plan to remove it.
The Lords had also sought to expand the statutory right to be accompanied at disciplinary and grievance hearings to include “certified professional companions”. The Commons rejected that proposal on grounds of cost and complexity, but during the 28 October debate the Government confirmed it will review the operation of the right to be accompanied, including who may act as a companion, and publish its findings in Parliament.
Issues and implications
The Lords’ amendments reflect ongoing concern about the potential impact of the Bill’s measures on both employers and workers. While the Government has insisted it will not “water down” its manifesto commitments, peers and business groups warned that some provisions could increase administrative and cost pressures, particularly for smaller employers.
For example, the automatic requirement to offer guaranteed hours after the reference period may challenge organisations reliant on flexible or zero-hours arrangements, including those in seasonal sectors.
Peers also cautioned that day-one unfair dismissal rights could discourage employers from hiring individuals perceived as higher-risk - such as young or inexperienced workers, or ex-offenders seeking rehabilitation. Many argued that reducing, rather than abolishing, the qualifying period offers a better balance between job security and employer confidence.
What happens next?
The Bill has now returned to the Commons with the Lords’ amendments and reasons for further debate. The parliamentary “ping-pong” process will continue until both Houses agree the final text. There is no formal time limit, but the Bill will fall if agreement is not reached before the end of the current parliamentary session, expected in spring 2026.
Once agreement is reached, the Bill will receive Royal Assent and become law. Many provisions will then depend on secondary legislation and guidance to clarify their practical effect, including:
- The criteria for guaranteed hours.
- The operation of day-one unfair dismissal rights and the new statutory probationary period.
- How the new rules interact with existing employment law frameworks.
Preparing for change
We will continue to report on the Bill’s progress through Parliament and on the consultations and regulations that follow, 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.