The recent ministerial reshuffle, which saw the departure of three key supporters of the Employment Rights Bill (Angela Rayner, Justin Madders and Baroness Jones), left many wondering how this would affect the Bill’s progress. Questions were raised about whether the Government might water down or backtrack on some of the more contentious reforms, particularly the day-one right to unfair dismissal and new duties on employers regarding zero- and low-hours workers.
However, on 15 September 2025, the Employment Rights Bill entered its final parliamentary stages. The House of Commons rejected several significant non-government amendments proposed by the House of Lords, signalling the Government’s determination to press ahead with its core commitments.
Key developments in the Employment Rights Bill
Many of the proposed reforms raise questions about how they will operate in practice. While the Lords suggested several sensible amendments that could have simplified implementation, these were largely rejected, given their conflict with key Labour manifesto pledges.
Below is a summary of the main points:
Day-one unfair dismissal rights
The Bill abolishes the current qualifying period for unfair dismissal, introducing protection from day one of employment. This change adds complexity, particularly regarding the initial employment period and the scope of the proposed “light touch procedures.”
The Lords had proposed reducing the qualifying period to six months to simplify the system; a suggestion that was ultimately rejected.
Guaranteed hours contracts
The Commons reinstated the original duty on employers to proactively offer guaranteed hours contracts. The Lords had proposed a less stringent “right to request” model, but this amendment was not accepted.
Whistleblowing reforms dropped
Plans to extend unfair dismissal protection for whistleblowers and introduce new duties for employers to investigate disclosures have been removed from the Bill.
Right to be accompanied unchanged
Employees will continue to be entitled to be accompanied only by a trade union representative or colleague during disciplinary or grievance meetings. The Lords’ proposal to expand this to include a “certified professional companion” was rejected.
Ballot thresholds abolished
The requirement for a 50% turnout in industrial action ballots will be removed, despite efforts by the Lords to retain it.
Non-disclosure agreements (NDAs)
A ban on NDAs relating to complaints of discrimination and harassment was added to the Bill in July 2025. The Government has confirmed it will consult “as quickly as possible” on the secondary legislation required to implement this measure.
Next steps for the Employment Rights Bill
The Bill now returns to the House of Lords for consideration of the Commons’ position; a stage commonly referred to as “ping pong”, as both Houses must reach agreement before the Bill can receive Royal Assent.
Given that both Houses are in recess until 12 October 2025, Royal Assent is expected later in October. However, most major provisions, including reforms on fire and rehire, day-one unfair dismissal, and zero-hours contracts, are not expected to take effect until Autumn 2026 or 2027. Therefore, a short delay is unlikely to have any material impact.
What employers should do now
Although these significant reforms are a step closer to becoming law, much of the practical detail employers need will come through secondary legislation. The Government is expected to consult this autumn on key areas of change.
With so many reforms and ongoing uncertainty, it can be challenging for employers to stay up to date. We recommend:
- Monitoring developments as the Bill progresses through Parliament
- Preparing for upcoming consultations and future compliance obligations
- Reviewing internal policies and procedures to identify potential areas of impact
We will continue to track progress and provide timely updates as new information emerges.
If you would like to discuss what the Employment Rights Bill 2025 means for your organisation, or how we can support you with tailored training, practical advice, or implementation planning, please get in touch at lreynolds@refreshinglawltd.co.uk.
Lousha Reynolds
Refreshing Law
