Published: 9-Dec-25 | By Trowers & Hamlins LLP
Partner Content

Employment Rights Bill – the latest!

The government has announced that the day one right to bring an unfair dismissal claim will be dropped  in favour of a six-month qualifying period. This had been a major sticking point with the government seeking to stick to its manifesto promise in the face of stiff opposition from the Lords

 

The current understanding is that the power in the Bill to make regulations governing the "initial period of employment" is also likely to be dropped, though we'll have to wait and see. This would mean that an Act would be required for further future changes.

The compensatory award for unfair dismissal is based on a statutory cap (currently £188,233) or 52 weeks' salary, whichever is lower. It's looking like the cap of 52-weeks' pay will be removed, but that the statutory cap will be retained. Watch this space for more!

The Bill was due to go back to the Commons on Monday 8th December, with the Lords considering amendments on Wednesday 10th December. It remains to be seen what will happen to the other points of contention which include the duty on employers to offer a guaranteed hours contract (the Lords has suggested an effective opt out of this once a worker has informed the employer that they are not interested in a guaranteed hours contract) and the turnout for industrial action ballots (the Lords wants to retain the current 50% turnout requirement).


All of the above means that the timeframes in the government's implementation roadmap are shifting. We will keep you updated as things develop. 

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  • Employment Rights Bill – the latest!

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