MPs have voted to reject several key amendments to the Employment Rights Bill put forward by the House of Lords. The government argued these proposed changes would have weakened the Bill — including diluting the “day one” right to protection from unfair dismissal and restricting who can benefit from the ban on ‘exploitative’ zero-hours contracts.
The Bill returned to the House of Commons this week, where MPs spent four hours debating and two hours voting on the Lords’ proposals. Ultimately, only technical and government-backed amendments were approved.
A Push for Stronger Worker Protections
Opening the debate, new Business and Trade Secretary Peter Kyle highlighted the government’s ambition to modernise employment law.
“This government’s task is formidable: to update employment law to reflect the age we live in; to reward good employers; and to extend the best employment protections to millions more workers,” he told MPs.
Kyle reassured businesses that responsible employers have nothing to fear — and much to gain — from the new legislation. He also confirmed that businesses will have the chance to participate in formal consultations as the measures are rolled out.
Opposition Voices Concerns
Shadow Business Secretary Andrew Griffith criticised the Bill, calling it “the wrong Bill at the wrong moment.” He argued the reforms could dampen employment and growth and accused the government of failing to provide the leadership required during a challenging economic period.
Lords’ Amendments Rejected
In a series of votes, MPs rejected most of the Lords’ proposed changes, including:
-
Replacing the day one right to claim unfair dismissal with a six-month qualifying period.
-
Reducing employer obligations on zero-hours and agency work, making guaranteed hours a request rather than a right.
-
Defining ‘short notice’ for shift changes as under 48 hours.
-
Broadening representation in grievance and disciplinary hearings to include “certified professional companions.”
-
Extending whistleblowing protections and placing a duty on large employers to investigate disclosures.
-
Relaxing trade union reforms on industrial action ballots and political fund contributions.
Kyle closed the debate by quoting Winston Churchill, reminding MPs that employment protections safeguard both workers and fair-dealing employers from being undercut by those who operate at the expense of rights at work.
The Bill will now return to the House of Lords, potentially triggering a “ping-pong” process as both Houses seek agreement.
Ongoing Uncertainty for Employers
While the Bill edges closer to becoming law, employers are still grappling with a lack of clarity.
Kate Palmer, Employment Services Director at Peninsula, said:
“Understandably, this continued lack of clarity is frustrating for many employers who just want to know what changes are coming, and when. With some reforms expected shortly after Royal Assent, it’s concerning that major details remain unclear. Employers need time to plan and adapt their policies — and right now, many simply don’t feel ready.”
Recent research from Peninsula revealed:
-
Almost 50% of businesses have not yet started preparing for the Bill’s implementation.
-
Only 12% feel ‘very prepared’ for the changes ahead.
Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, added:
“A combination of policy changes — from the Employment Rights Bill to increases in the National Living Wage and National Insurance — is creating real pressure on businesses. Many feel their concerns are being overlooked.”
What This Means for Employers
The rejection of the Lords’ amendments signals the government’s intent to maintain a robust, worker-focused Bill. While the legislation is designed to protect workers and level the playing field for responsible employers, many practical details remain unresolved.
Employers should:
-
Monitor developments closely as the Bill moves through Parliament.
-
Begin reviewing policies and contracts to prepare for potential changes, particularly around unfair dismissal rights and zero-hours arrangements.
-
Engage with consultations where possible to have their voice heard.
-
Seek early legal or HR guidance to avoid last-minute compliance challenges.
To ensure your workplace remains legally compliant and prepared for upcoming amendments to the Employment Rights Bill, it is essential for employers to proactively review policies, update procedures, and communicate any changes clearly to staff. Taking these steps can help reduce the risk of costly employment tribunal claims. For expert guidance on implementing these measures and protecting your business, please contact Supportis at 0161 603 2156 or [email protected].
