Employment Rights Bill: what happens next?
The Employment Rights Bill was published on 10 October 2024 and what everyone wants to know is what happens next and when will it be in force? There is a long way to go still and currently there is speculation about the date of Royal Assent.
When a Bill has completed all the parliamentary stages in the House of Commons and House of Lords, Royal Assent is given. This means that the Bill becomes an Act of Parliament and sometimes the Act comes into effect immediately. That won’t be the case with the Employment Rights Bill and hardly any of its provisions will come into force when Royal Assent is given. This is because many of the changes in the Bill still require consultation and further regulations before they are implemented. Indeed, at the time the Bill was published, the Government announced that most of the changes would be effective in 2026 and the high-profile changes to unfair dismissal not before autumn 2026.
So, where are we now regarding the parliamentary stages and what developments have there been since our last update on the Bill? Employment Rights Bill six months on.
Parliamentary process
There were eleven House of Lords debates during the Committee Stage of the Bill (29 April to 24 June 2025). Various amendments were proposed and an updated version of the Bill has been published. The Committee Stage has now ended and is followed by the House of Lords Report Stage on 14 and 16 July 2025. There will then be a Third Reading of the Bill in the House of Lords, final consideration of amendments and Royal Assent.
There was some speculation that Royal Assent might be given before the summer recess of Parliament on 22 July 2025. That seems very unlikely now especially as have not yet had the House of Lords Report Stage. Parliament returns on 1 September 2025 and many commentators think that Royal Assent will be given towards the end of September or beginning of October.
Concerns about the Bill
The business concerns about the Bill have been well-publicised by organisations including the Institute of Directors and CBI. Recent research published by the IoD revealed that 72% of business leaders believe that the Bill will impact negatively on economic growth and the CBI’s view is that the Government is not listening to businesses’ concerns. The CIPD says that rising costs, forthcoming legislation and global uncertainty are all factors in a fall in staffing levels. It has called for an implementation plan for the Bill “as a matter of urgency”. Meanwhile, a British Retail Consortium survey of HR directors found that 52% thought that the Bill would mean a reduction in staff and there was particular concern about the impact of the new right to guaranteed hours.
But it’s not just business organisations. The Institute of Employment Rights is concerned that there are missed opportunities in the Bill and that some of the proposals, for instance in relation to zero hours contracts, will still leave workers vulnerable. Its view is that strong enforcement measures and meaningful penalties are essential.
Interestingly, on 26 June 2025, the Conservative party announced that if elected as a future Government, it would repeal parts of the Bill relating to trade union reforms and look for guidance from business leaders on dismantling other parts of the Bill.
Employment Tribunals
The impact of the Bill on Employment Tribunals and the backlog of claims has been high-profile recently.
On 12 June 2025, updated quarterly statistics were published and in 2024/25, the Employment Tribunal received 42,000 single claim receipts, an increase of 23%. Unfair dismissal makes up the biggest group of claims at 22%. With unfair dismissal becoming a day-one right under the Bill, there are concerns that there will be a significant increase in claims. The Employment Lawyers Association has asked the Government to allocate resources to Employment Tribunals. Specifically, for more judges to sit on more days and for increased funding for resources and staff.
In our previous article Employment Rights Bill six months on we referred to the Fair Work Agency. The Bill enables the Secretary of State to bring Employment Tribunal proceedings where an individual has decided not to bring proceedings. There are no further details at this stage but it is possible that this measure will also impact on the number of Employment Tribunal claims as well as the removal of the qualifying period for unfair dismissal.
Timeline
As mentioned above, the CIPD have called for an implementation plan for the Bill. On 11 June 2025, Justin Madders, Minister for Employment Rights announced that the Government will be issuing a “road map” for implementing the Bill. There is no date for this yet although it is reported to be imminent. The “road map” will clarify the steps to be taken and the various implementation dates. Justin Madders confirmed that the Bill’s measures will not all be implemented at the same time.
One thing we do know though is that the controversial Strikes (Minimum Service Levels) Act 2023 will be repealed the day the Bill receives Royal Assent. This was confirmed when the Bill was published back in October 2024.
We have written extensively about the Bill since it was published and we have created an Employment Rights Bill Hub on our website which can be accessed here.
We will keep you updated about the Bill’s progress and developments.
Tags: Employment Rights
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