EMPLOYMENT RIGHTS BILL UPDATE: THE LORDS PUSH BACK, AND THINGS (SOMEHOW) BECOME LESS CLEAR

The Employment Rights Bill 2025 has hit a standstill after the House of Lords introduced several major amendments,

One of the Lords’ most significant proposals is a six-month qualifying period before employees can bring an unfair dismissal claim, a direct challenge to the bill’s promise of a day-one right.

The Lords are also pressing for more clarity on zero-hours and minimum-hours contracts. They want workers on such contracts to retain the option to opt out of guaranteed-hours arrangements and are calling for a statutory definition of “seasonal work” to reflect fluctuating staffing needs.

Union measures DON’t PASS THE BALLOT

Trade union reforms are another area of dispute. The Lords oppose automatically enrolling union members into political funds, warning that an opt-out model could lead to contributions being made without explicitly choosing to participate.

They are also resisting plans to remove the rule that at least 50% of eligible union members must vote in strike ballots, a shift the Lords firmly reject.

They’re simply not keen on this direction of travel and there is growing divide between the two chambers.

A vote on 17 November had been expected to move the bill closer to completion. Instead, Parliament is now facing a rare scenario where a majority of the House of Commons support a proposed piece of legislation, but the Lords are holding firm on their stipulations for change.

With the bill at risk of extended parliamentary “ping-pong”, there is a real possibility that the bill may not get passed. In that case, the Commons could invoke the Parliament Acts to push the bill through without the Lords, though historically some bills have been dropped entirely when deadlock persists.

Employers left in uncertainty

The delay is particularly challenging for employers. Many of the bill’s provisions are due to take effect in April 2026, but will still require consultation after Royal Assent.

This means that the time between Royal Assent and April 2026 is fast slipping away and there are questions whether this could lead to shortened consultation periods that overlook employers’ perspectives or leave organisations with too little time to adapt.