New Employment Rights Bill Enters ‘Ping Pong’ Stage After Lords Reject Day-One Unfair Dismissal and Zero-Hours Reforms

When Labour won the last election, it promised to “Make Work Pay.” Part of this promise included the introduction of the new Employment Rights Bill. This represents one of the most significant enhancements to workers’ rights in many years.

Right now, though, key elements of the Bill, like day-one unfair dismissal rights and criteria around industrial action, are being heavily debated by the House of Commons and the House of Lords. While enhanced employment rights are due to take effect, the exact timing and implementation details are still unknown. Below, we examine the Bill’s current status, the rights workers may obtain, and what’s expected to happen next.

If you believe your employment rights have been breached, contact Redmans Solicitors for expert employment advice. Following a brief discussion, we will assess your case, address your questions, and explore your possible options.

It only takes a moment to discover how we can help you, simply:

• Phone us on 020 3397 3603
• Request a callback via our online form

The New Employment Rights Bill: Where are We?

Last week, the new Employment Rights Bill returned to the House of Commons after a series of defeats for the government. The House of Lords had sought to amend the proposed day-one unfair dismissal rights by introducing a six-month qualifying period. It also proposed changes to zero-hours contracts, suggesting that employers offer hours which workers could accept or decline, and recommended retaining the 50% turnout threshold for industrial action ballots among trade union members.

In the most recent parliamentary debate, however, the House of Commons rejected all of the House of Lords’ amendments. While this may seem like good news for employees, some concerns remain. Namely, there is a real risk of delay; until the two Houses reach an agreement, key reforms remain uncertain, and could do so for an indefinite period. Therefore, while strengthened rights are anticipated, all concerned parties must stay patient as we await said agreement.

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What is the New Employment Law in the UK?

The new Employment Rights Bill forms a crucial part of Labour’s “Make Work Pay” plan. Introduced shortly after the new government was formed, the Bill aims to strike a balance between worker protections and flexibility for employers. Some of the key reforms proposed under the Bill include:

• Day-one unfair dismissal rights, removing the current two-year service length requirement to enjoy this protection
• Guaranteed hours for workers on zero-hours contracts, providing more predictability and stability for individuals in such circumstances
• Removing the current turnout threshold for industrial action, making it easier for trade union members to take collective action when disputes arise
• The creation of a Fair Work Agency, a new single enforcement body bringing together existing regulators to ensure workers’ rights are upheld
• Enhanced rights for pregnant workers and new mothers, protecting them against unfair dismissal and discrimination

Notably, the above isn’t an exhaustive list of all the new rights proposed under the Bill. Furthermore, the timescale for the Bill’s entitlements is very much staggered, with the latest, including the zero-hours contracts and day-one unfair dismissal rights, expected to come into force in 2027.

What Happens Next for the New Employment Rights Bill?

With the House of Commons rejecting the proposed amendments to the new Employment Rights Bill, it will now return to the House of Lords for further consideration. Although significant changes are now unlikely before the Bill receives Royal Assent, a period of parliamentary “ping pong” is expected, as both Houses debate to reach a final agreement on the Bill’s wording.

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Once consensus is achieved, the Bill can proceed to receive Royal Assent and become law, marking one of the most substantial updates to UK employment rights in over a decade. Therefore, while the implementation of the Bill and its accompanying rights may be delayed, employees can expect enhanced entitlements.

Employment Rights Breached? Get Help with Redmans

Although the new Employment Rights Bill has yet to take effect, it’s worth emphasising that people retain employment rights. Individuals are protected against discrimination, harassment and victimisation, due to their protected characteristics, including their age, sex and race.

Furthermore, if an employee has two or more years of continuous service with their employer, they gain unfair dismissal protection. That being said, if one’s dismissal is considered “automatically unfair,” they would still be protected, even if they didn’t meet the service length requirement. Then there are the rights concerning pay, reasonable adjustments for individuals with disabilities, and notice periods, among others.

If you believe your employment rights have been breached, contact us without delay. Redmans Solicitors are experts in the employment sector. Following a brief consultation, we will provide the answers you’re looking for and discuss your possible next steps. Should you wish to bring a claim, we can also assess your eligibility and guide those eligible through the process.

Begin your journey with us now by:

• Phoning us directly on 020 3397 3603
• Filling out our online form with your details to request a callback