Employment Rights Bill – current status and what lies ahead

The Employment Rights Bill, introduced in October 2024 by the Labour Government, is now in the final stages of the UK parliamentary process. It has been lauded as the biggest overhaul of employment law in a generation, aiming to strengthen workers’ rights, modernise industrial relations, and improve workplace protections across the UK. We will be keeping a watchful eye on parliament over the next few weeks and will keep you updated. 

Where the Bill stands now 

• The Bill has passed all stages in the House of Commons and the third and final reading in the House of Lords took place on 3 September 2025.
• The House of Lords approved some significant non-Government backed amendments including:     
  • Introducing a six-month qualifying period for unfair dismissal claims, rather than making unfair dismissal a day one right.
  • Substituting the right to be offered guaranteed hours with the right to request guaranteed hours.
• On 15 September 2025 the Bill will return to the House of Commons to consider the Lords’ amendments. The above amendments are not in line with the position set out in the Labour Manifesto and are unlikely to be accepted by the House of Commons.
• Should the Commons reject any of the Lords’ amendments, a period of parliamentary ‘ping-pong’ will commence between the two Houses in order to finalise outstanding points.
• It is anticipated that the Government will aim to secure Royal Assent by the end of this month (albeit the majority of reforms will not take effect immediately and the government has committed to consulting on key reforms, before they are implemented). 

 As you will have seen reported, instability within the Labour Government, with the resignation of Deputy Prime Minister Angela Rayner and a reshuffle of other key personnel, has raised questions about the Government’s ability to maintain momentum on the Employment Rights Bill.  Union leaders have urged the Government to hold their nerve and not water down the reforms. The Prime Minister has responded to this, telling Labour MPs "Let me be crystal clear with you, all these commitments continue under this Labour Government. The Employment Rights Bill will continue with the same substance and timetable as before." 

The Employment Rights Bill remains on track to become law, but its final shape and timing are still subject to political and legislative forces. The House of Lords’ amendments and Angela Rayner’s resignation have introduced uncertainty but not derailed the process.