Since our last update on the Employment Rights Bill, the Bill returned to the House of Lords on 28th October for review of the Commons’ reasons and amendments. Whilst the Lords consented to some amendments, others were rejected, initiating parliamentary ‘ping pong’ and sending the Bill back to the Commons. The Bill will continue to move back and forth between the two Houses until agreement can be reached, before it can move on to Royal Assent (the last stage before becoming an Act of Parliament).
Here are the proposals that are still up for debate:
Unfair dismissal
- Lords proposed a 6-month qualifying period
- Commons restored this to the original day-one protection
- Lords rejected this (voting 301 to 153), citing the recent “Day One Frights” report and stating that this proposal would discourage employers from “taking a risk” on young workers.
Zero-hours contracts
- Lords amended to a “right to request” guaranteed hours
- Commons reverted this to employers having a duty to proactively offer guaranteed hours based on workers’ actual working patterns
- Lords rejected this (voting 302 to 159), with Lord Fox proposing that employers write to workers at the end of each reference period for guaranteed hours and give them the option to accept or decline, providing a meaningful offer of guaranteed hours but maintaining flexibility to opt in or out.
Trade union ballots
- Lords reverted to the current 50% turnout threshold for strike ballots
- Commons abolished it again, making industrial action easier
- Lords rejected this (voting 267 to 153).
Trade union - political funding
- A proposal to automatically sign up trade union members to pay a political levy (requiring members to ‘opt-out’) was rejected by the Lords (voting 249 to 142).
Don’t let it be you! 491 Employers named (and shamed) for failing to pay NMW
There are still expectations that the Bill will achieve Royal Assent in October, but this will depend on the two Houses reaching agreement on the Bill and its amendments. We’ll continue to update you of any further changes.
The 17th October saw the Government publish the latest list of employers who have failed to pay employees the National Minimum Wage (NMW). The list aims to increase awareness of NMW legislation as well as deterring those employers who would be tempted to deliberately underpay their workers. However this list also includes those who may have unknowingly, rather than intentionally, underpaid their workers. The most common reasons for underpayment include failure to pay:
- The uprated minimum wage
- The correct apprentice rate
- For all a worker’s time.
The last point is particularly important this month as the clocks went back on 26th October, with late- or overnight workers potentially working an hour extra. This tends to be straight forward in cases of hourly workers, but it is also important to check the hours worked and paid for your salaried workers, ensuring their pay doesn’t dip below the NMW for the pay period for the hours that they actually work (not necessarily contracted to).
In case you missed it – 4th November 2025
We’ll be hosting an in-person seminar covering the Employment Rights Bill in greater detail and accepting your questions at the Magna Science Adventure Centre in Rotherham on Tuesday 4th November morning (refreshments included).
Have your say – four new consultations on the Employment Rights Bill
The Government have opened four new consultations relating to the Employment Rights Bill and their plan to “Make Work Pay”. They are inviting views from employers, workers trade unions an members of the public who are likely to be affected by the new framework.
If you would like to get involved in any of the topics below, you can follow the links and submit your views by the closing dates shown:
- Duty to inform workers of right to join a union. Closes: 18th December 2025, link here.
- Trade union right of access. Closes: 18th December 2025, link here.
- Enhanced dismissal protections for pregnant women and new mothers. Closes: 15th January 2026, link here.
- Leave for bereavement including pregnancy loss. Closes: 15th January 2026, link here.
