Employment Rights Bill update - 17 December 2025: the end of the beginning

The Employment Rights Bill has completed its journey through Parliament, successfully passing its last hurdle in the House of Lords on Tuesday 16 December 2025, after four rounds of parliamentary ping pong. This landmark legislation, described by the Government as the “biggest upgrade to rights at work for a generation”, is set to become law before Christmas.

The Bill passed its final passage when Conservative peer Lord Sharpe withdrew an amendment he had tabled. There was much debate in the House of Lords but ultimately the promise of an enactment impact assessment to be widely published before commencement, and a commitment to consult all stakeholders about the key sticking point: the removal of the employment tribunal limit cap, was enough to get the Bill passed. The next step is Royal Assent – this may well happen before Christmas.

The Bill introduces key reforms, including giving workers access to sick pay and paternity leave from the first day on the job, new protections for pregnant women and new mothers, and the ability to claim unfair dismissal after six months of employment.

Business Secretary Peter Kyle was “delighted”, stating that the legislation will "drag Britain's outdated employment laws into the 21st century and offer dignity and respect to millions more in the workplace”. This sentiment was echoed by the Trades Union Congress (TUC) General Secretary Paul Nowak, who called it a “historic day”. However, the legislation has faced criticism; the Conservatives called it "ironic" that the Bill passed the same day figures confirmed rising unemployment, warning that the Bill “will pile costs onto small businesses, freeze hiring”. Furthermore, the Unite union noted that the Bill had been “watered far too much”, particularly failing to ban fire and rehire and zero hours contracts.

Navigating the new legislation

After the intensity of four rounds of ping pong, and having cleared its final block, this passage may feel like the end, but in reality, we are just getting started. As Winston Churchill famously said:

“Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”  While the Bill is set to become law, most of its measures will require secondary legislation before coming into force – there will be many consultations in this regard.

Stone King’s experienced lawyers and HR consultants are ready to help you navigate through the complexity of the Employment Rights Act. We will be back in touch in the new year with news of developments and consultations.

For regular updates and information, including details about upcoming webinars, please check our Employment Rights Hub.