Latest amendments to the bill
The Employment Rights Bill is currently working its way through the report stage in the House of Lords, which started on 14 July. This stage allows peers to review any changes made during the committee stage and propose new amendments.
The government has tabled several new amendments at the Report stage, on top of those already made at earlier stages of the bill, including changes to fire and rehire to prevent small changes to contracts being caught by the legislation plus a further clause outlining how fire and rehire would work in the public sector.
Government has also extended its plans for bereavement leave for pregnancy loss to those suffering loss before 24 weeks, with a proposed one week of unpaid leave, though the duration will be consulted on.
There’s also a tabled change to zero-hours contracts regulations for agency workers, recognising that some workers get paid a premium for being on insecure contracts. This would allow pay in the reference period to be pegged at an equivalent role rather than locking in the pay premium to a more secure contract.
Arguably one of the more significant new amendments to understand at this stage would void non-disclosure agreements (NDAs) between employers and workers that prevent a worker from speaking out about harassment. This amendment is designed to prevent employers using NDAs to silence workers making allegations about harassment or discrimination. However, the government intends to consult stakeholders and make regulations setting out further detail before commencing this measure.
Once the report stage is complete, the bill will go to its the third reading. After that it will enter what’s known as the ‘ping pong’ stage, a back-and-forth process where the two houses of parliament debate and reconcile any outstanding amendments. As ever with a democratic process, the timeline remains subject to change but, with the delays we’ve already seen, it will almost certainly be the autumn before the bill becomes law.
Next steps for the CIPD’s proposed amendment
During the Committee Stage in the Lords, the CIPD worked with Lord Pitkeathley as he proposed an amendment that would see CIPD-verified HR consultants able to sign off settlement agreements. Although the amendment was ultimately withdrawn, its presence and discussion has helped us to continue to make the case to the government. The next opportunity to argue for this proposal will be as part of potential reforms to tribunals and the wider enforcement system as the minister looks to tackle growing backlogs in the system.
What happens after the bill gets Royal Assent?
Once the bill receives Royal Assent it will be the start of the implementation process that has been set out in the government’s roadmap.
The bill will bring in some significant changes, such as reforms to statutory sick pay, and provides the legal framework for many of the more complex provisions that will be finalised through secondary legislation and regulation. This is where the government will again seek the input of stakeholders, including the CIPD, through a series of public consultations.
Each consultation will focus on an aspect of the bill, such as zero-hours contracts or day-one rights and the new probation period. The majority of these are expected in autumn 2025 but some could come even sooner. Crucially, this is another opportunity for employers, HR practitioners and us at the CIPD to seek to shape the way these reforms will work in practice.
When will new laws come into force?
Even after Royal Assent and the consultations, not all the new laws will come in straight away. The government’s roadmap outlines a series of dates showing some of the ERB’s reforms, such as repeal of some trade union legislation from 2016 and 2023, coming into force almost immediately. Whilst more substantive changes, like statutory sick pay reforms, will start to come in from April 2026. Some of the most complex measures, such as the new probation period and changes to zero-hours contracts will come in during 2027.
The CIPD remains concerned that some direct costs, like the changes to statutory sick pay, are coming in so soon after the national insurance rise. However, this phased approach outlined in the roadmap, should at least allow time for employers to prepare for and implement the changes. This also means that HR professionals must stay alert to developments over the coming months and years as details are finalised and measures come in over time.
Key takeaways for HR
Understand the ERB implementation roadmap so you can plan for when key changes will come in.
- Watch out for consultations: Autumn 2025 in particular will be an important window for shaping how the law will be applied in practice.
- Prepare for change: Begin reviewing your policies and procedures to see what will be impacted and how.
- Stay informed: The CIPD will continue to engage with the process and keep members updated with insights and guidance.
The Employment Rights Bill marks one of the most significant overhauls of employment law in a generation. While it’s not yet fully law, its direction is clear and HR has a central role to play in making it work for people and organisations.
