Employment Rights Bill: Government amendments progress at Lords Committee stage

Background

The Employment Rights Bill continues to progress through Parliament, having completed its House of Commons stages in March 2025. On 29 April, the House of Lords held the first sitting of the Committee stage to consider proposed amendments.

The Government tabled 27 amendments, all focused on the Bill’s new guaranteed hours regime. These are described as technical and clarificatory changes designed to ensure that the legislation reflects the policy objectives in Labour’s Plan to Make Work Pay. As government amendments, they are almost certain to pass.

What’s changing?

One amendment was agreed during the debate. It introduces a method for calculating guaranteed hours for workers on annualised contracts, ensuring they fall within the scope of the new protections where hours are guaranteed over a longer period.

The other proposed amendments include:

• Protection from dismissal: Extending the list of automatic unfair dismissal grounds to cover any claim linked to the right to guaranteed hours.
• Redefining shift movement: Expanding the meaning of a shift being 'moved' to include splitting a shift into two parts or moving part of it later in the day.
• Short notice payments in insolvency: Ensuring that workers owed short notice payments are protected in the same way as for unpaid wages when an employer becomes insolvent.
• Taking over claims: Enabling personal representatives to continue claims in the event of the death of a worker, employer, or respondent.
• Avoiding double recovery: Allowing regulations to be made so that where compensation is awarded for cancelled, moved or curtailed shifts, certain state benefits can be recouped to avoid duplication.

The Government confirmed that detailed guidance will be published on GOV.UK in due course.

Learning points for employers

Employers using zero-hours, low-hours or annualised hours contracts should prepare for increased regulation and scrutiny. Key areas likely to require review include:

• how shifts are scheduled, cancelled, or changed
• payment arrangements where shifts are altered at short notice
• the handling of guaranteed hours offers

Policies, processes and contract templates may need updating once the final wording of the legislation is confirmed. Employers should continue to monitor developments and be ready to respond quickly once the Bill receives Royal Assent.

We will continue to monitor the Bill's progress and provide updates. Bookmark our Employment Rights Bill tracker to keep up with the latest updates.

For more information or advice, please contact Ella Straker in our Employment team on 07584 220 286, or complete the form below.