Employment Rights Bill: Still Waiting on the Final Word

The highly anticipated debate in the House of Lords yesterday didn’t deliver the finish many were expecting. Instead of signing off the Employment Rights Bill, peers sent it straight back to the House of Commons for further debate.

It’s not often the Lords push back after the Commons has already made its position clear, but when a Bill carries big implications, especially for employment rights, it can happen. 

Unfair dismissal rights: six months or day one?

The main sticking point remains unfair dismissal rights. The Lords continue to back a six-month qualifying period, rejecting the Government’s plan to make protection available from day one of employment. This key difference is now back in the hands of MPs.

Zero-hours contracts: flexibility to opt in or out

The Lords have also reworked their earlier amendment on zero-hours contracts. Their latest proposal keeps the guaranteed hours review process but adds flexibility: after the initial review and offer of guaranteed hours, employees could opt out of future offers and opt back in whenever they wish.

This update has also been sent back to the Commons for consideration.

What this means for employers

For employers, this latest round of parliamentary ping-pong means more delay and uncertainty.

It could also be seen as an opportunity to assess how the eventual changes in the Employment Rights Bill could affect your organisation, particularly if you rely on flexible or zero-hours contracts, or if you’re planning structural changes in your workforce.

Cubed Talent will continue to follow the Bill closely and share updates on what the final legislation could mean for UK businesses.