What is the current state of the Employment Rights Bill?

What is the current state of the Employment Rights Bill?

As we start the new academic year, lets have a look at where the status of the Employment Rights Bill currently is.

Parliamentary Status

On 3^rd September 2025 the Employment Rights Bill passed its 3rd reading in the House of Lords.

What will happen now is the Bill will go back to the House of Commons which will discuss and vote on the various amendments made by the House of Lords. It can accept them, in which case they become law or reject them.  If the proposed amendments are rejected then the Bill will go back to the House of Lords, and there could potentially be a period of ‘tooing and froing’ between the 2 houses, although there is every chance the House of Lords will back down if the amendments have a substantial majority. Ultimately, it will be pretty much up to the Government whether to accept the amendments or not.

Some of these latest amendments proposed by the House of Lords include;

Unfair Dismissal Rights: Rejecting the day-one protection option in favour of reducing the qualifying period to 6 months instead

The obligation to offer guaranteed hours to zero-hour workers: the House of Lords amended this to an obligation to give guaranteed hours to zero hour workers only if they ask for it, rather than irrespective of whether they ask for it.

Ban on dismissal and re-engagement:  the House of Lords watered down this proposal significantly.  Rather than making (almost) all ‘fire and rehire’ dismissals unlawful, the amended Bill bans ‘fire and rehire’ dismissals where the proposed contract changes relate to pay, pension, hours of work, or holiday entitlement (and some other minor things).  But where the proposed changes relate to something else, any dismissal for refusing to agree to the changes can still be fair as long as the employer follows a six point checklist which includes things like extensive consultation.

Expected Royal Assent and Next Steps

As we know, many of the measures under the Bill will be enacted in phases with key implementation timelines having now been established.

In light of this, it's useful to take a refresh as to what is expected to still receive Royal Assent (becoming law) in Autumn 2025.

• repeal of the strikes (minimum service levers) Act 2023
• repeal of most provisions in the Trade Union Act 2016
• The removal of the 10 year ballot requirement for union political funds
• simplification of industrial action notices and ballots
• protections against dismissal for participating in industrial action

April 2026

It is proposed the following will become law:

• Day one rights for paternity and unpaid parental leave
• Removal of the written waiting period and lower earnings limit for statutory sick pay
• Collective redundancy protective award.
• Whistleblower protections, including for sexual harassment disclosure
• Establishment of the Fair Work Agency
• Simplification of union recognition and introduction of electronic voting.

October 2026

It is proposed the following will become law:

• Ban on fire and rehire practices
• Strengthened prevention of sexual harassment. (duty to take all reasonable steps)
• New 2 tier code for public sector outsourcing
• High enhanced union rights (right of access, time off, duty to inform)
• Fair pay agreement
• Adult social care

2027 and beyond

The following are proposed to come into law:

• Full day one right not to be unfairly dismissed (elimination of two year qualifying period)
• Flexible working rights, bereavement leave extensions
• Right for pregnant workers
• Regulation on zero hour contracts and umbrella companies
• Blacklisting protections
• Industrial relations reforms.

Please look out for further updates from HR Connect and Legal Connect as the Employment Rights Bills moves forward.