Employment Rights Bill Update – Where are we now?

The recent ministerial reshuffle which saw the loss of three of the Employment Rights Bill’s biggest supporters (Angela Rayner, Justin Madders and Baroness Jones) left many of us wondering what it would mean for the Bill and whether there would be a watering down or some back pedalling on some of the more contentious reforms- particularly related to making unfair dismissal a day one right and employers duties towards zero/low hours workers.

However, on 15 September 2025, the Bill entered its final parliamentary stages where the House of Commons rejected significant non-government amendments proposed by the House of Lords.

When looking at many of the changes set out in the Bill, it is difficult to envisage how the proposed changes will work in practice. The Lords came up with some sensible amendments that in my view, would have simplified the changes and made them more “workable” for employers. However, as the amendments related to some of the Labour Government’s key manifesto commitments, it is largely unsurprising that they were rejected.

A summary of the detail is outlined below

• Day-one unfair dismissal rights: A complete abolition of the qualifying period brings some complexity in practice, particularly related to the initial period of employment and what the “light touch procedures” will entail. Sensibly (in my view), the Lords suggested a reduction in the qualifying period to 6 months, which would have made for a much simpler regime. This was rejected and the Bill is continuing on the basis that there will be unfair dismissal rights from day one.
• Guaranteed hours contracts: The Commons restored the original duty on employers to proactively offer guaranteed hours contracts. The Lords had proposed a simple “right to request” guaranteed hours, rather than an obligation on the employer to offer this – but this was rejected.
• Whistleblowing reforms dropped: Proposals to extend unfair dismissal protection for whistleblowers and impose new duties on employers to investigate disclosures will not go forward.
• Right to be accompanied unchanged: Employees will still only be entitled to be accompanied by a trade union representative or a colleague; proposals to allow a “certified professional companion” were rejected.
• Ballot thresholds abolished: The 50% turnout requirement for industrial action ballots will be removed, despite the Lords’ attempt to retain it.

Non-Disclosure Agreements (NDAs)

The ban on NDA’s where complaints of discrimination and/or harassment have been raised was a part of the Bill that was introduced more recently, in July 2025. The Government has confirmed that it will consult “as quickly as possible” on secondary legislation relating to NDAs. 

Next Steps

The Bill will now return to the House of Lords for consideration of the Commons’ position. This is known as the “ping pong” stage as agreement between both Houses is required before the Bill can receive Royal Assent, which finalises the legislation and sets a commencement date.

Given both Houses are in recess until 12 October 2025, Royal Assent may not be granted until late October. However, most substantive provision, including reforms to “fire and rehire,” day-one unfair dismissal rights, and zero-hours contract are not expected to take effect until Autumn 2026 or 2027. Any short delay to Royal Assent is therefore unlikely to have a material impact.

What Employers Should Do

Whilst it is clear that the significant changes are one step closer to becoming law, much of the detail to enable employers to understand their obligations is still required. This will need to be set out in secondary legislation and we know that the Government has planned consultation commencing this autumn for lots of the key areas of change.

We understand that with all the to’ing and fro’ing and the lack of clarity on what the changes look like, not to mention the huge raft of changes – it can be difficult to keep on top of exactly what is happening, when.  

We will continue to track progress and provide further updates but if you would like to discuss the Bill’s implications or how we can support your organisation in preparing, whether by offering tailored training or practical advice and guidance, please do not hesitate to get in touch (lreynolds@refreshinglawltd.co.uk).

Lousha Reynolds
Refreshing Law
29 September 2025