Briefing | How is the Employment Rights Bill progressing in the House of Lords?

As at previous stages of the bill, the CIPD’s Chief Executive, Peter Cheese, attended the government’s tripartite meeting with Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds. At the meeting, Employment Rights Minister Justin Madders outlined the government’s proposed reforms to the tribunal system that are seeking to head off potential issues from any rise in tribunal cases coming from the bill. Once the committee stage is completed it leaves only the report stage and Third Reading before the bill enters the final ‘ping pong’ stage between the House of Lords and House of Commons and ultimately receives Royal Assent to become law.

Amendments already proposed

The UK Government had proposed a wide-ranging set of amendments to the Employment Rights Bill in the House of Commons earlier in 2025 following consultations in 2024. There have since been more technical amendments on areas like zero-hours contracts and once the bill is passed there will still be a lot left to be determined under secondary legislation. 

Covering 28 areas of employment law, the legislation presents the biggest change in employment rights in a generation. With many of the most complex details still set to be confirmed through secondary legislation, for the CIPD and others keen to know what key elements will look like, there is a trade-off created by the government’s approach. 

The details of the new probation period, how reforms to zero- and short-hours contracts will work, and elements of the trade union reforms will be done through secondary legislation, which means the government can consult with employers and others before the details are finalised. But this also means those details won’t be clear until the consultations are concluded, so there will be a longer period of uncertainty for employers on what the final proposals look like.

The CIPD’s engagement

For this stage of the bill, the CIPD has also been able to offer briefings to several peers on our remaining questions and concerns about the legislation, to ensure feedback is not just going to government directly but also supporting the broader scrutiny of the bill. This has allowed the CIPD to again raise questions about areas such as the proposed new probation period and zero-hours contracts, in advance of further government consultation.

At the same time, the CIPD has been working with Labour peer Lord Pitkeathley, supporting his proposed amendment to allow CIPD-qualified HR consultants to sign off settlement agreements. The amendment seeks to expand the list of professionals who are legally permitted to advise employees on settlement agreements.

At present, only qualified solicitors, certified trade union officials, or authorised advisers from recognised advice centres can fulfil this role. The proposed change would allow independent HR consultants, who are recognised by the CIPD and have undergone dedicated training and ongoing professional development, to also provide this service. 

Reflecting concerns of members

With the bill likely to become law in the next few months, the CIPD’s Labour Market Outlook - Spring 2025 found that 79% of employers expected increased costs due to measures in the Employment Rights Bill. Common responses to the expected costs include reducing staff, automating processes, and cutting training budgets. 

At the CIPD we are urging a clear implementation plan and a phased rollout to help employers manage any costs that arise, alongside more support for employers to manage these reforms as they come in. 

We know that members and the profession are concerned about elements of the bill and are keen to be kept updated. We’ll continue to work hard to ensure the voice of the HR profession is heard in parliament and in government over the coming months and will be responding to the next round of consultations once they begin.

Key next steps

As this bill is scrutinised further, the following is a guide to what will happen next and key milestones to look out for: 

• the House of Lords is likely to take longer than planned to scrutinise the bill at the committee stage and this could delay it passing into law by anything from a day to a few weeks
• the government wants the bill to be passed before parliament’s summer recess, which begins on 22 July, and, even with the potential for delays, July still seems the most likely time for it to pass into law
• when the bill is passed and it receives Royal Assent there will still be a lot that is not fully known. Details of the new probation period, zero-hours contracts reforms and other elements will be finalised following further consultation
• the government has promised an implementation plan and to phase in the measures in the bill but it is not clear what that will look like. The CIPD is pushing for more detail as well as guidance and support for employers.