Where are we now with the Employment Rights Bill?

Lords' amendments

Before the summer recess, the House of Lords made a number of amendments to the Bill. Many were government amendments, including technical changes to the guaranteed hours provisions and revisions to the proposed ban on “fire and rehire”. These are expected to be approved by the Commons without controversy.

Several non-government amendments were also agreed, including proposals to introduce a six-month qualifying period for unfair dismissal and to make the right to a guaranteed hours contract a right to request, rather than a right to be offered. While these changes generated debate in the Lords, they are not aligned with the Government’s manifesto commitments and are unlikely to be accepted by the Commons. Nonetheless, their rejection could delay the Bill’s Royal Assent by a short period if the Lords press the issue.

Impact of the reshuffle

The Bill is now at a very advanced stage and its passage is not in doubt. However, the recent cabinet reshuffle, which saw Angela Rayner and Justin Madders, two of the Bill’s most visible advocates, leave government, has raised questions about how implementation will be managed.

Some provisions, such as the repeal of the Trade Union Act 2016, will take effect automatically two months after Royal Assent. But much of the Bill requires detailed consultation and secondary legislation before it can be implemented. The government’s roadmap currently envisages consultations this autumn on issues ranging from electronic industrial action ballots to fair pay agreements in adult social care.

Whether the reshuffle will affect the pace or emphasis of this programme remains to be seen. A new minister for employment rights may take a different approach to prioritisation, which could influence the order and timing of consultations. For employers, the key point is that the direction of travel is set, but the timetable for individual measures could shift.

What this means for employers

For now, employers should assume that the Bill will pass broadly in its current form. While the detail of implementation may evolve, the headline reforms, including day one unfair dismissal rights, new protections for zero hours workers, and changes to collective rights, are likely to become part of the employment law framework over the next two years. Now is the time to ensure leadership teams are fully briefed on the forthcoming changes. Organisations should also consider taking tailored advice on which aspects of the Bill are most likely to affect them, and how best to plan ahead.

We will continue to report on the Bill’s progress through Parliament and on the consultations and regulations that follow, keeping you updated on the implications for employers as further detail emerges.

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