Skip to main content

News story

October 29, 2025

Employment Rights Bill: Lords amendments send legislation back to Commons for further debate

The Employment Rights Bill, a flagship piece of legislation aimed at overhauling UK employment law, continues its journey through Parliament as the House of Lords insisted on several key amendments in its latest debate on the bill, which occurred on the 28th of October 2025.

The Employment Rights Bill, a flagship piece of legislation aimed at overhauling UK employment law, continues its journey through Parliament as the House of Lords insisted on several key amendments in its latest debate on the bill, which occurred on the 28th of October 2025. These changes have triggered parliamentary “ping pong,” with the Bill now returning to the House of Commons for further consideration.

Unfair dismissal: Lords stand firm on six-month qualifying period

One of the most contentious issues remains the right to protection from unfair dismissal. While the government has proposed “day one” rights for employees, the House of Lords has maintained its position that a six-month qualifying period should apply, defeating the Government’s proposal with a majority of 148. Peers argue this strikes a better balance between worker protection and employer flexibility, particularly for small businesses. The Commons previously rejected this amendment, but the Lords have sent it back for renewed debate.

Guaranteed hours: Opt-out amendment gains ground

In a significant shift, the Lords have revised their own amendment concerning guaranteed hours for zero-hours and low-hours workers. Under the new proposal, after the initial reference period and offer of guaranteed hours, employees would have the right to opt out of future reviews and offers. Importantly, they could opt back in at any time. This change, designed to preserve flexibility for workers who prefer variable hours, was passed by the Lords and has been sent back to the Commons to be considered by MPs.

Seasonal work: Special consideration proposed

Recognising the unique nature of seasonal employment, the Lords have also approved an amendment requiring the Secretary of State to give special regard to seasonal work when drafting regulations related to guaranteed hours. This aims to ensure that industries reliant on seasonal labour, such as agriculture and hospitality, are not unduly burdened by rigid contractual obligations.

Trade union political funds: Opt-in debate continues

Another area of disagreement involves trade union political funds. The Lords have stood by their amendment requiring new union members to actively opt in to contribute to political funds, rather than being automatically enrolled. This measure, originally introduced in the Trade Union Act 2016, is seen by some as a safeguard against involuntary political contributions. The government’s proposal to reverse this and return to an opt-out system has sparked criticism and will be revisited in the Commons.

Industrial action: Lords resist changes to ballot turnout rules

Finally, the Lords disagreed with the government’s plan to abolish the requirement for at least 50% turnout in ballots for industrial action. This threshold, introduced to ensure legitimacy in strike mandates, remains a point of contention. The Lords’ decision to retain it reflects concerns about the potential for industrial action to proceed without broad member support. The Commons will now reconsider this provision.

What’s next?

The Bill’s passage remains uncertain as both Houses continue to negotiate its final form. The Bill will continue to “ping pong” between the two Houses until an agreement is reached. Whilst there is no time limit for this process, the Bill could fail if it runs out of time during this parliamentary session. The Bill cannot receive Royal Assent and become an Act of Parliament until agreement is reached, unless the Government chooses to operate the powers granted to it by the Parliament Acts to pass the bill in the following parliamentary session. The debate continues.

About the author

Karen Cole is a Partner and Head of the Employment team at RIAA Barker Gillette. She has a range of expertise based on her employment law, dispute resolution, and litigation background. Karen provides employment law advice to businesses and individuals, whether contentious or not. She is a member of the Employment Lawyers Association (ELA) and the Association of Regulatory and Disciplinary Lawyers (ARDL).

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • The Employment Rights Act is a call to action for employers 
    A new year, a new employment framework: what employers need to know about the Employment Rights Act passed by parliament in December 2025.


    Read more
  • Dilapidations explained: What commercial tenants and landlords need to know
    Dilapidations are a common source of dispute at the end of a commercial lease. They can involve significant sums of money and often come as an unwelcome surprise to tenants who believed they had left a property in reasonable condition. Understanding


    Read more
  • The role of due diligence in corporate transactions
    In corporate transactions, due diligence is a key stage that usually follows agreement of Heads of Terms, allowing the Buyer to investigate the target company or its assets before committing to the deal.


    Read more
  • Love in later life and the inheritance tax trap
    Increasingly, lawyers are seeing couples who have chosen to live together rather than marry, sometimes for many years, without fully appreciating how differently the law treats them, particularly when it comes to inheritance tax and financial protect


    Read more
  • Understanding Heads of Terms in corporate transactions
    Heads of terms are a crucial first step in corporate transactions. Learn what they include, why they matter, and how they shape successful deals.


    Read more

What they say...

  • Amish Bristol, January 2026
    Absolutely brilliant, fast, professional, clear and delivered a robust service “Recent mortgage oversight from Ben Marks and Anne was superbly dealt with, and I intend on moving all my business to them. For a big firm, they really do pay attent

  • Client, January 2026
    Excellent experience “The process of my work was quick and effective.”

  • Vicky, January 2026
    Clear, friendly, helpful “Very efficient and helpful with arrangements for my will.”

  • R Cook, December 2025
    Settlement Sorted “Grayson Stuckey was great. Efficient and friendly with all aspects of the support provided. We worked well together and achieved a positive outcome. Recommended.”

  • Ivan Naisbitt, December 2025
    More than just a service “Michael Davies has been representing me for about 35 years, and I cannot recommend him or RIAA Barker Gillette (UK) highly enough. Aside from the normal conveyancing, he is always on hand to advise and guide you throug

Read more
Send this to a friend