Employment Rights Bill: Latest Update Following House of Commons Decision
Posted on in Employment Law
Employment Rights Bill: Latest Update Following House of Commons Decision
On 3 September 2025, the Employment Rights Bill completed its third reading in the House of Lords, where several amendments were agreed. These sought to alter how some of the government’s key proposals would work in practice before the Bill returned to the House of Commons. On 15 September 2025, the Commons rejected those amendments, confirming the Bill will remain largely in its original form.
The table below provides an overview of the government’s key proposals, the amendments made by the House of Lords on 3 September, and the outcome following the Commons’ consideration on 15 September 2025.
| Government original proposal | House of Lords Amendment on 3 September | Commons Decision on 15 September | |
| Fire and re-hire | Ban dismissals used to force contractual changes across a broad range of terms | The scope has been narrowed. Dismissals used to force changes to pay, pension, hours or holiday entitlement will be banned. For other terms, dismissals are allowed if the employers follow a six-point checklist (consultation, alternatives, inducements etc) | Rejected. The broader restrictions remain. |
| Zero-hour contracts and predictable hours | Employers required to offer guaranteed hours proactively to zero-hours staff, reflecting the actual hours worked over a reference period | Workers instead given a right to request predictable hours, reducing burden on employers (no requirement to proactively offer guaranteed hours) | Rejected. The ban on exploitative zero-hour contracts remains. |
| Unfair dismissal | Introduce a day-one-right to claim unfair dismissal, with lighter procedures and capped compensation during an ‘initial period’. | Allowing for a six-month qualifying period with no unfair dismissal rights (except for automatic reasons), followed by an 18-month initial period with light touch unfair dismissal rules. | Rejected. The day-one right remains. |
| Reasonable notice of shifts | Qualifying workers will be entitled to reasonable notice of shifts and will receive compensation for shifts cancelled, curtailed or moved at short notice. | Defining ‘short notice’ cancellations to those made less than 48 hours before the start of the shift. | Rejected. |
House of Commons decision and next stage
The Commons’ decision confirms the government’s intention to press ahead with its original reforms, rejecting changes it viewed as weakening the Bill.
The Bill now returns to the House of Lords for further consideration under the normal process of amendments passing between the two Houses (often referred to as the ‘ping-pong’ process). Given the government’s majority, the legislation is expected to proceed substantially unchanged. Once the final version is agreed, the Employment Rights Bill will receive Royal Assent, although many of the reforms are not expected to take effect until at least 2026.
What employers should do now?
Although the details are still being finalised, employers should begin preparing for the changes. Key steps include:
- Reviewing dismissal procedures to ensure fairness and clear documentation from day one of employment.
- Assessing current use of zero-hour contracts, given the move to ban unpredictable hours.
- Keeping contractual processes under review to ensure any changes are managed in line with good practice and legal requirements.
As soon as further details are confirmed, we will post relevant insights here. If you are subscribed to our newsletter, you will receive notification via email.