Employment Rights Bill: proposed amendments at House of Lords Committee Stage

Background

The Employment Rights Bill (ERB) was introduced into Parliament on 10 October 2024. Having completed its House of Commons stages on 12 March 2025, it is now progressing through the House of Lords, with the Committee Stage having started on 29 April 2025.

Ahead of the Committee Stage, an amendment paper dated 23 April 2025 has been published, containing proposed changes submitted up to and including 22 April 2025. Notably, several government-backed amendments seek to strengthen protections for zero-hours and low-hours workers, clarifying dismissal rights, detriment claims, and payment obligations relating to shift changes.

Employers operating flexible or irregular work arrangements should monitor these developments closely, as the amendments, if approved, will significantly impact how zero-hours and low-hours arrangements must be managed.

Key proposed amendments

The amendment paper includes several notable proposals:

• Automatic unfair dismissal: Expanding the list of automatically unfair dismissal scenarios to include dismissals linked to the incorrect withdrawal of a guaranteed hours offer.
• Detriment claims: Clarifying that for detriment claims, it is immaterial whether any proceedings brought or allegations made by a worker were ultimately well-founded, provided the worker acted in good faith. Workers will not need to expressly refer to the possibility of proceedings.
• Guaranteed hours calculation: Setting out how employers must calculate the number of hours they are required to offer workers, including where reference periods vary.
• Shift changes and payments: Broadening the meaning of 'movement of a shift' to capture partial changes and the division of a shift into two parts. Adjustments are also proposed to deadlines for making payments after shifts are cancelled, curtailed or amended.
• Financial penalties: Extending the financial penalties regime under the Employment Tribunals Act 1996 to hirers, work-finding agencies and other relevant persons in specified circumstances.
• Insolvency protections: Safeguarding payments owed to workers for cancelled, moved or curtailed shifts in the event of an employer's insolvency.

These proposals form part of the government's ongoing focus on strengthening protections for individuals engaged in insecure or unpredictable work.

Learning points for employers

Employers using zero-hours or low-hours contracts should review their current practices in anticipation of these changes. In particular, employers should prepare for more prescriptive obligations around shift notification, payment arrangements, and guaranteed hours offers. Policies, procedures and template contracts may need updating to ensure compliance once the Employment Rights Bill passes into law.

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

For more information or advice, please contact Jessica Scott-Dye in our Employment team on 0117 314 5652, or complete the form below.