Employment Rights Bill nears final stages

An update for employers on parliamentary progress and next steps for the ERB

The Employment Rights Bill (ERB) continues its journey through Parliament, having passed the House of Lords report stage and is now in the “ping-pong” process between the Lords and Commons. In this article we take a look at the most recent developments in key areas of the ERB.

For further detail, please see our previous articles on the progress of the ERB and the Government’s implementation roadmap:

Employment Rights Bill: Update following House of Commons approval on 12 March 2025

Government publishes timetable for implementing the Employment Rights Bill

Employment Rights Bill – Headline of changes following House of Lords Report Stage

Parliamentary progress of the Employment Rights Bill

In July several non-government amendments were passed in the House of Lords. But these have not survived, being rejected on 15 September 2025 by the House of Commons.

The Bill has now returned to the Lords for further consideration on 28 October (progress being delayed by the parliamentary conference season). Although further amendments may “ping-pong” between the Lords and the Commons, parliamentary convention and the Government’s majority suggests that Labour’s manifesto commitments will ultimately be accepted and passed into law.

Impact of cabinet reshuffle on progress of the ERB

There has been speculation following the major cabinet reshuffle on 7 September 2025 that some aspects of the ERB would be watered down. The reshuffle was triggered by the resignation of Angela Rayner as Deputy Prime Minister who is known to have championed the improvements to workers’ rights included in the ERB. Two key ministers responsible for steering the ERB, one in the House of Commons and another in the House of Lords were also removed from their posts.

On 15 September 2025, the Secretary of State for Business & Trade, Peter Kyle MP set out in a letter to the Chair of the Business and Trade Committee the government's continuing commitment to delivering the ERB in line with the published implementation roadmap. The letter is available here. It states that:

“The Government is fully committed to delivering the Bill, and the measures within it, which will benefit workers in insecure and low-paid jobs, as well as workers in unionised sectors, and those unable to find work that fits around their non-work responsibilities. We published an Implementation Roadmap in July which shows in detail when we expect to implement all of the measures in the Bill.”

Key Lords amendments rejected by the Commons

We set out below a brief summary of the relevant provisions of the ERB along with an update on the latest Lords’ proposals and Common’s responses.

1.     Guaranteed hours contracts

The ERB sets out a duty for employers to offer guaranteed hours contracts to zero hours and low hours workers where they have in fact worked regular hours or more hours than are set out in their contract over a reference period (proposed to be 12 weeks).

• The Lords proposed to change the duty for employers to offer a guaranteed hours contract into a right for workers to request one, seeking to cut the administrative burden on employers.

• The Commons rejected this proposal, sticking with the duty to make an offer to qualifying workers. This was based on concerns that some workers would be unaware of their right and putting the onus on workers to request a contract would not have the required impact.

• The Lords have now proposed that, rather than being required to automatically offer a guaranteed hours contract, employers should be required to notify qualifying workers of their right to a guaranteed hours offer after each reference period, along with an opt-out/opt-in mechanism for workers.

2.     Short notice cancellation of shifts

The ERB requires employers to pay compensation to zero hours workers where their shifts are cancelled, curtailed or moved at short notice. There is no definition of “short notice” in the ERB, save for the stipulation that it will be not more than seven days. The Government intends to consult on this, along with other details, before passing regulations.

• The Lords’ proposed that “short notice” for shift cancellations should be defined as 48 hours.

• The Commons rejected this, arguing this would pre-empt consultation and limit government discretion.

3.     Unfair Dismissal qualifying period

The ERB provides that the qualifying period for the right not to be unfairly dismissed is abolished so that employees can bring an ordinary unfair dismissal claim from day one of their employment. For most dismissal reasons (but not redundancy) there is proposed to be a “light-touch” dismissal process where an employee is dismissed within the “initial period of employment”. This is expected to be the first nine months of employment.

• The Lords proposed that the qualifying period for unfair dismissal should be set at six months’ service.

• The Commons rejected this, pointing out that day-one rights for unfair dismissal protection were a key feature of the Government's election manifesto in 2024.

4.     Right to be accompanied

The statutory right to be accompanied at disciplinary and grievance hearings is currently limited to companions who are trade union representatives or colleagues.

• The Lords proposed to extend the current statutory right to be accompanied at disciplinary and grievance hearings by a “certified professional companion”.

• This was rejected in the Commons due to concerns about the increased costs and complexity this would entail.

• The Lords have now proposed that the Government prepare a report on expanding the statutory right to be accompanied which would have to be laid before Parliament within six months of the ERB passing.

5.     Industrial action ballot turnout threshold

The current rules for industrial action ballots require a majority of union members to vote in favour and at least 50% of all eligible members to have voted. This is known as the “turnout threshold”. The ERB will remove the turnout threshold, and this was intended to take effect two months after the ERB receives Royal Assent. However, this will now be delayed to align as closely as possible with the introduction of e-balloting. E-balloting rules are intended to come into force in April 2026.

• The Lords proposed retaining the 50% turnout threshold.

• This was rejected in the Commons.

 6.     School Support Staff Negotiating Body (SSSNB)

Currently there is no statutory national pay body for school support staff, although many support staff are employed on terms and conditions set by the National Joint Council for Local Government Services (the Green Book). Green Book terms and conditions are supplemented and varied by a plethora of local agreements.  The ERB will reinstate the SSSNB which is intended to negotiate on pay, terms and conditions and to advise on suitable training and career progression routes for school support staff.

• The Lords proposed that these provisions must not restrict school employers from introducing innovative or improved terms and conditions beyond the national framework, as long as they meet or exceed any minimum standards set by the SSSNB.

• This was rejected by the Commons on the basis that the ERB already permits employers to offer more favourable terms than those agreed by the SSSNB.

What should employers do to prepare for the Employment Rights Bill?

There remains some uncertainty over the provisions of the ERB which will finally be passed into law. However, it seems likely that no substantial changes will be made and that Royal Assent will be granted within the next two months.

Many of the details which will impact significantly on employers are yet to be worked out and require consultation and regulations to be passed. These details include the practicalities of the “light-touch” dismissal process for those in the initial period of employment, and the technicalities of the rules on zero hours and low hours contracts.

Employers should become familiar with the proposed timeline set out in the Implementation Roadmap. This includes the intended timeline for consultations, to which employers are encouraged to contribute to ensure that their views and concerns are heard.

Employers should review current policies and contracts to flag where revision is likely to be needed as the provisions of the ERB come gradually into effect over the next two years.

Readers should also continue to look out for updates from the Wrigleys’ employment team.

If you would like to discuss any aspect of this article further, please contact our Employment team on 0113 244 6100. 

You can also keep up to date by following Wrigleys Solicitors on LinkedIn.

The information in this article is necessarily of a general nature. The law stated is correct at the date (stated above) this article was first posted to our website.

Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors.