Yesterday, opposition Peers withdrew their amendments to the Employment Rights Bill, paving the way for the Bill to quickly receive Royal Assent and become law. The Lords had previously voted in favour of an amendment calling for a review on existing compensation caps for unfair dismissal before they are scrapped, but - following assurances from government that a full impact assessment would be undertaken - the amendment was withdrawn. This also means that the previous government amendment introducing a six month qualifying period for unfair dismissal remains.
This means the Bill has now completed its parliamentary stages and will now swiftly move to Royal Assent. The government is eager for this to happen before Christmas to avoid planned implementation times slipping, particularly the introduction of Statutory Sick Pay from day one in April 2026.
In our media response (see here) we have emphasised the need for the implementation roadmap to be updated, accounting for the three months that have been lost due to the extended parliamentary process.
As we move into 2026, the focus will continue to be on upcoming consultations on secondary legislation, with further roundtables planned with government on various areas, details of which will be shared in due course. We also will continue our coordination with other employer groups such as the CBI, REC and UKHospitality, to amplify our messages on key areas such as guaranteed hours.
If you have any questions on the above or would like to discuss anything further, please do not hesitate to reach out to me.
