As we know, the Employment Rights Bill has promised to drastically shake up much of the existing employment law framework as we know it, with major reforms set to land in the coming years.
On Wednesday 3rd September 2025, the third reading in the House of Lords took place – and we’re now expecting the Bill to pass through its final stage and become law this October.
However, following the resignation of Deputy PM Angela Rayner, some Labour MPs have concerns that this could derail upcoming plans.
As our HR experts have been keeping tabs on any and all important updates regarding the new Bill, here’s what we know. Following the House of Lords’ third reading and Rayner’s departure, what are the key takeaways and what changes can we still expect this Autumn?
What are the concerns over the Employment Rights Bill?
With Angela Rayner no longer in government and plans to reshuffle the cabinet, reports say that Labour MPs and trade unionists are concerned about how this may affect the progression of the Bill.
In a BBC article, trade union leader Christina McAnea said she is “concerned the government is no longer committed to implementing the bill in full”.
She added that the proposed laws under the new Bill were a “once in a lifetime opportunity” and that the union intends to do everything they can to “make sure this is not watered down”.
What changes to the Employment Rights Bill were announced in the House of Lords?
In their third reading, The Lords announced two key changes to the original proposals, including:
Unfair dismissal protection to come after six months of employment (not from day one)
The government’s initial proposal was to remove the two-year qualifying for unfair dismissal protection. However, they did still want to allow for a “lighter touch” dismissal process by enforcing a statutory probationary period.
The Lords have amended this proposal to give all workers unfair dismissal protection after six months of service (subject to a further statutory initial period of employment).
The right to request a guaranteed hours contract (instead of the right to be offered)
Originally, the government’s proposal was to give zero hour and agency staff “the right to be offered” a guaranteed hours contract. That’s if they were found to be working regular hours consistently over a 12-week period.
Now, instead of having the right to be offered a contract, the Lords have said that these kinds of workers will have the “right to request” one if they meet the qualifying criteria.
A reminder of the key reforms expected this Autumn…
While lots of major legal changes under the Employment Rights Bill are set to land next April, certain reforms may arrive sooner.
This includes the proposals to reform trade union laws, such as:
- Repealing of the Strikes (Minimum Service Levels) Act 2023
- Repealing the great majority of the Trade Union Act 2016
- Removing the 10-year ballot requirement for trade union political funds
- Simplifying industrial action notices
- Providing dismissal protection for those involved in strike action
Read more about the upcoming Employment Rights Bill updates set to land here.
How do businesses really feel about the Employment Rights Bill?
In their debate, the Lords made reference to Peninsula’s recent global survey.
Through this survey, we set out to discover just how businesses really feel about the Employment Rights Bill. Peninsula surveyed 577 businesses to find out more about how they’re preparing and how they feel the new Bill will impact their business.
From our results, we found that 68% of respondents felt that the Employment Rights Bill would have a negative impact on UK businesses. Only 10% felt otherwise.
This tells us that there’s a lot of apprehension around the Bill and how businesses can successfully move forward with it.
Discover how UK businesses really feel about the Employment Rights Bill.
What are your next steps?
We may still be waiting for the Bill to be finalised but when major updates do take effect, you’ll need to be ready.
That means your paperwork and processes will need to change in order to reflect new rules.
With so much change promised under the Employment Rights Bill, it can feel overwhelming. That’s why your employment law experts are on hand to support you and help you stay in line with the latest laws.
Would you like to speak to an expert directly about how you can best prepare your business ahead of time? You can book a free consultation below:
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