In a significant victory for the government, Labour's flagship Employment Rights Bill is set to become law after a protracted battle in the House of Lords. The legislation, which promises a major overhaul of UK workplace protections, is expected to receive Royal Assent by Thursday, paving the way for new rights to come into force from 2026.
A Generational Shift for Workers' Rights
Trade unions have hailed the bill's passage as a "generational shift" for workers' rights. The breakthrough came after Conservative peers conceded at the eleventh hour, allowing the government to meet its pledge of passing the law by Christmas. The bill introduces a suite of new protections, including rights to guaranteed hours, payment for short-notice shift cancellations, and a ban on "fire-and-rehire" practices in most circumstances.
Business Secretary Peter Kyle stated the landmark legislation would "drag Britain's outdated employment laws into the 21st century", offering greater dignity and respect to millions. Key reforms include granting paternity and parental leave from day one of employment and strengthening workplace trade union rights.
Concessions and Controversy
The journey to pass the bill was fraught with opposition from the Conservatives and business groups, forcing the government to make concessions. Most notably, the day-one right to protection against unfair dismissal was removed from the final package. In its place, the qualifying period will be shortened to six months, down from the current two years. This compromise was agreed with unions in exchange for lifting the cap on compensation for unfair dismissal.
The process has reignited tensions between MPs and the House of Lords, with ministers angered by repeated obstructions from Conservative and crossbench peers. Meanwhile, the Conservative opposition criticised the bill, with Shadow Business Secretary Andrew Griffith warning it would "pile costs on to small businesses" and freeze hiring, ultimately harming jobseekers.
Implementation and Impact
Experts warn that the real work begins now. Ben Harrison of Lancaster University's Work Foundation noted that while women, disabled people, ethnic minorities, and young people stand to gain the most, obstacles remain in devising detailed codes of practice and secondary legislation. He urged the government to ensure the reforms deliver on the bill's original spirit.
TUC General Secretary Paul Nowak called it an "early Christmas present for working people" but stressed the need for swift, watertight implementation to prevent bad-faith employers from exploiting loopholes. The government aims to start implementing the first new rights from April next year, with the full suite of changes expected to be in force by 2026.
