EMPLOYMENT RIGHTS BILL: BACK TO THE HOUSE OF LORDS

On 15 September 2025, the Employment Rights Bill (ERB) hit a key milestone – and a bit of a speed bump. The House of Commons reviewed and rejected significant non-government amendments passed by the House of Lords at Report Stage.

This means the ERB now heads back to the House of Lords, with the House of Commons explaining why it’s chosen to stick with the government’s original proposals. Peter Kyle MP, the Secretary of State for Business and Trade, chaired the Commons Committee that laid out the reasons behind the rejections. 

So, what were these rejected amendments all about? Here's a quick round-up:

• Unfair Dismissal from Day One?
  The Lords had suggested keeping a six-month qualifying period for unfair dismissal rights. The Commons disagreed – the government wants protection to kick in from day one of employment. A big shift, if it sticks.

• Guaranteed Hours Contracts
  The Lords preferred giving workers the right to request a guaranteed hours contract, rather than placing a duty on employers to offer one. Again, the Commons said no – workers who meet the criteria should get a guaranteed hours offer without having to ask.

• What Counts as "Short Notice"?
  Defining "short notice" for the purposes of compensation for cancelled shifts to be 48 hours was rejected because this would pre-empt consultation and limit the government's discretion.

• Who Can You Bring to a Hearing?
  Another amendment would have let employees bring a “certified professional companion” along to disciplinary or grievance hearings. The Commons wasn’t keen – citing concerns about the length of such hearings, extra cost and complexity.

• Industrial Action Ballots – Turnout Thresholds
  Retaining the requirement that at least 50% of eligible members must vote in a ballot for industrial action to go ahead was rejected because it is considered appropriate to remove the provision that industrial action is regarded as having the support of a ballot only if at least 50% of those eligible to vote in the ballot did so.

• Whistleblowing Protections
  Requiring the government to regulate to extend unfair dismissal protection for whistleblowers (and require employers to investigate protected disclosures) was rejected because these measures were considered inappropriate.

What’s Next?

Expect more debate (and potentially more amendments). But in the meantime, there’s some movement on non-disclosure agreements (NDAs).

Peter Kyle MP confirmed that the government is keen to press ahead with the NDA provisions in the Bill – and quickly. We can also expect consultation on secondary legislation covering exactly who these NDA rules will apply to, and what exceptions might exist. For instance, even where an NDA is requested by a victim, they’d still be able to speak to a lawyer or medical professional about what happened.

Watch This Space

The ERB is shaping up to be one of the most significant employment law reforms in recent years – but it’s not over yet. The back-and-forth between the Commons and Lords could continue for a while longer.

We’ll keep you posted.