Employment Rights Bill: updates from the fourth sitting of House of Lords report stage

House of Lords report Stage: fourth sitting completed

The Employment Rights Bill (ERB) continues its passage through Parliament, with the House of Lords now having completed the Report Stage. The fourth sitting on 23 July 2025 saw further amendments agreed and updates provided by the government on related employment matters. This follows the second and third sittings earlier in July, which we covered in last week’s article. 

Latest developments in the Employment Rights Bill

During the fourth sitting, the key changes agreed by the Lords included non-government amendments to retain the 50% turnout threshold required in a ballot for industrial action and removing clause 59, which would have repealed the current requirement for trade unions to opt out members from political fund contributions unless they have expressly opted in.

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.
• Appointment of a “freelance champion” to represent creative freelancers within government.
• 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.
• Three recruitment exercises in 2025 and 2026 to increase the number of employment tribunal judges.
• The Health and Safety Executive (HSE) is reviewing the Workplace (Health, Safety and Welfare) Regulations 1992, and bring forward proposals on workplace temperature.

Learning points for employers

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

At all stages of Lords Report Stage, significant non-government amendments were agreed. We therefore anticipate further back and forth between the Houses as the ERB progresses towards Royal Assent. Given the common understanding under the Salisbury Convention that the House of Lords will not block government bills that implement manifesto commitments, the Lords may ultimately give way on these amendments. We will continue to monitor the progress of the ERB.

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 Eleanor Searle in our Employment team.