Insights and Analysis

Employment Rights Bill – the next legislative steps

28 March 2025

The Government introduced the Employment Bill in October 2024, meeting the Labour Party’s pre-election pledge to introduce a Bill “within 100 days” and largely delivering on the employment reform the party set out in their manifesto. The Bill, which is the most significant shift in employment law in recent years, had its Second Reading in the House of Lords on 27th March 2025.As the Lords begin their scrutiny of the Bill, Director of Legislative Affairs in our Public Law & Policy team, Nikki Da Costa, and Employment Partner, Stefan Martin, consider the latest developments and how business can engage with the Bill.

Bill Developments

Since the Bill was introduced, we have seen significant amendments, including the extension of provisions on zero hours contracts to agency workers and the toning down of proposals on collective redundancy. Significant detail in the Bill is yet to be worked out including, most prominently, how day one unfair dismissal rules will work in practice. There were over 348 government amendments during the Commons Report stage and 5 consultations launched alongside the Bill’s Second reading in the commons. Policy is still in flux and the legislation up for debate.

Implications for Employers:

With so much detail to still be worked out and such significant impacts for employers, the Lords may ask the Commons to look again at key issues. Our teams can support business to identify the issues that matter most to them and shape the engagement strategy that can influence Parliament on those priorities.