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November 2025 – The Employment Rights Bill

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Employment Update for Small Businesses
November 2025
Dear Subscriber

As I mentioned last month, we now have a new name – Etherington HR Ltd. I am also pleased to announce that we are looking for a seriously good employment law and HR specialist to join our team. Please pass this on to anyone who you think may fit the bill.

The topic for this month’s update is the Employment Rights Bill as it makes its slow passage through Parliament.  It has been ping ponging between the Lords and the Commons, with the Lords trying to make quite a few significant changes, most of which have to date been rejected by the Commons. The last few proposed amendments from the Lords will be considered by the Commons today.  There have also been a number of public consultations launched with respect to some elements of the Bill.
Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.
Regards
Peter Etherington
Tel: 01664 668164www.etherington.co.uk

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Peter Etherington
Employment Rights Bill
Lords Amendments
The House of Lords has repeatedly tried to limit or water down the introduction of day one rights to not be unfairly dismissed. The latest amendment it has proposed is to include a six-month qualifying period for unfair dismissal.

Regarding those on zero-hours contracts, and the Bill’s aim to compel employers to offer guaranteed hours to those who work some hours regularly, the Lords proposes that employees should be given the option to opt-out of guaranteed hours after an initial period.

On the same subject, the Lords has put forward an amendment for consideration to be given to seasonal workers when it comes to guaranteed hours.

There are further proposed amendments to the parts of the Bill that aim to strengthen trade union powers.

It is likely that some or all of these proposed amendments will be rejected by the Commons. As soon as we have clarity on any of the new laws, we will let you know. For our retained clients, we will update their contracts and policies as appropriate.
Employment Rights Bill
Government Consultations
The Government has launched several consultations relating to certain parts of the new Bill:

Leave for bereavement including pregnancy loss
There will be a new statutory right to unpaid bereavement leave from day one of employment. This would include pregnancy loss before 24 weeks (after 24 weeks, statutory maternity leave is provided). The consultation relates to which relationships should qualify (e.g. family, friends, etc), whether it should apply to both parents in pregnancy loss situations, the duration and timing, and any notice and evidence requirements.

Enhanced dismissal protection for pregnant women and new mothers
The Bill will make it unlawful to dismiss pregnant women, those on maternity leave and those returning to work for at least six months, except in specific circumstances. The consultation seeks views on the practicalities, what exceptions should apply and whether other parents should be covered.

Trade Union matters
Consultations have also been launched covering the new statutory duty under the Bill to inform workers of their legal right to join a trade union and to allow trade unions to access employers’ workplaces in some circumstances.

These new laws are currently scheduled to come into force from October 2026, and some of them will be in 2027, including the day one right not to be unfairly dismissed.
National Minimum and Living Wage
The current National Living Wage and National Minimum Wage rates are:

  • £12.21 per hour for workers aged 21 and over
  • £10.00 per hour for workers aged 18 to 20
  • £7.55 per hour for workers aged 16 and 17; and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.
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