10/09/2025

The Employment Rights Bill 2024-25 had its fourth sitting in the House of Lords Report Stage on 23 July 2025. Several amendments to the bill were proposed for debate. The Bill will now go to the House of Commons to discuss and vote on the amendments. If they are accepted, they will become law, while those that are rejected will return to the Lords.

It remains to be seen whether the cabinet reshuffle, which resulted in the departures of the Bill’s key architects – Angela Rayner and former Employment Rights Minister Justin Madders – will lead to further changes to the Bill, with some commentators expressing concern that this might open the door for the legislation to be watered down.

Here’s a summary of the latest position (Sept 2025) with the key reforms contained in the Bill:

Unfair Dismissal Day One Right Reduced To After Six Months’ Service

The House of Lords passed an amendment to the planned Day One Unfair Dismissal right, that Labour wants to impose. The amendment was to provide a six-month period of service before unfair dismissal can be claimed and then an 18 month ‘probation period’. If this proceeds, it would be a block to the government’s plan which was a key manifesto commitment. The House of Lords explained it was seen as much more practical for all, to have a reduced period rather than to create a whole new right and statutory procedure for probationary periods. It will be interesting to see if this succeeds as it is rare for a government to be blocked like this, but it does seem to be a good proposal. To have six months’ service rather than no minimum service will help both employees and employers. It will also save time and expense for everyone who has to learn a new process and may avoid opening the floodgates for tribunals.

Industrial Action Ballot Turnout Threshold

The 50% turnout threshold was agreed to remain for industrial ballots. The Bill was intending to remove the threshold to widen the chances of action being agreed.

Fair Work Agency- Power to bring employment tribunal proceedings

The new agency will have the power to issue employment tribunal proceedings on behalf of a worker. This was strongly disputed by several peers who wanted it removed. However, it was confirmed that the government will provide guidance on how the FWA will exercise this in practice. It was also confirmed that workers will not be liable for the costs of the claim. The new power was not removed after the debate.

Early Conciliation Period

There was a request to amend the period from six weeks to three months, to bring it more inline with the extended time limits for claims. This was discussed but it was confirmed that any changes to the period could be completed via secondary legislation. So, for now, the six-week period remains the same.

Guaranteed Hours For Zero-Hour Workers

The Lords have agreed to change the obligation from offering guaranteed hours whether or not they are requested, to only being given when a worker asks for them. This will help reduce the burden on employers especially when they may not know what hours they can offer.

Workplace Temperatures

It was debated whether employers should do more about ensuring safety of workers, given the increasing temperatures caused by climate change. It was promised to look into updated health and safety guidance on working in extreme temperatures. It is planned for the Health and Safety Executive to bring forward their proposals for workplace temperatures and the Environment Agency also has guidance for employers preparing their workplaces for the impact of climate change. It is often an issue for staff when their workplace is either too cold or too hot to work comfortably. While there isn’t a maximum or a minimum temperature for working (save, for example, in refrigerated storage), we know that employers regularly have the debate with staff about whether it is too hot or cold to keep working. Hopefully the new guidance will clear up the position.

 

Employment Rights Bill – Implementation Roadmap

In summer the government published a policy paper setting out the implementation roadmap for the Employment Rights Bill.

Autumn will see a large number of consultations on points including bereavement leave and ending the exploitative use of zero-hour contracts.

Some of the more impactive changes are planned to be consulted on in early 2026 but from April 2026 the government plans to bring into force various changes which include:

• Increasing the collective redundancy protective award
• Day one paternity leave and unpaid parental leave rights
• Removal of waiting days and minimum earnings limit for SSP
• Establishment of the Fair Work Agency

From October 2026, if all goes to plan the following will become law:

• Ban on dismissal and re-engagement
• Increased duty to prevent sexual harassment
• Requirement to prevent third party harassment of employees
• Extension of tribunal time limits to six months

The day one right of protection from unfair dismissal, (the biggest change) has now been pushed back to 2027. So, employers have a little more time to prepare for this and to understand the implications.

For advice about how the Employment Rights Bill will affect your business or on any employment law issue, contact our Stoke-on-Trent solicitors on 01782 205000 or our Altrincham solicitors on 0161 929 8494. Alternatively, you can email enquiry@beswicks.com.