The Employment Rights Bill has passed the House of Lords, clearing its final parliamentary hurdle at the fourth attempt. It will now become law as the Employment Rights Act 2025, receiving Royal Assent in the coming days.
The Employment Rights Bill will return to the House of Commons again, after peers narrowly voted to amend the government's proposed abolition of the caps on compensation for unfair dismissal - now the only outstanding issue still blocking the legislation's passage.
MPs have voted in favour of the government's amendments to the Employment Rights Bill, confirming that the new six-month qualifying period for protection against unfair dismissal would come into force with a retrospective start date of 1 January 2027.
The new six-month qualifying period for protection from unfair dismissal looks set to commence on 1 January 2027, meaning it will apply to anyone starting employment from 1 July 2026.
A week is a long time when it comes to the Employment Rights Bill. Rob Moss rounds up 'What just happened?' - after the government tabled an amendment to scrap the compensation limits for unfair dismissal.
Tax thresholds will remain frozen and pension salary sacrifice will no longer be exempt from National Insurance, the Chancellor has confirmed in today's Budget.
The Parliamentary ping-pong over the Employment Rights Bill continued this week, with various provisions being sent back from the House of Lords for further review and debate in the Commons.
Parliamentary ping-pong resumed yesterday when the Employment Rights Bill returned to the House of Commons and MPs voted to reject peers' amendments on day-one unfair dismissal rights, zero-hours contracts and trade union ballot thresholds.
The government will not 'water down' day-one rights for unfair dismissal in the Employment Rights Bill and will reject an amendment from peers calling for a six-month qualifying period.