After a protracted battle in the House of Lords, the Labour government's flagship employment rights bill is set to receive royal assent, paving the way for what trade unions are calling a 'generational shift' in UK workplace protections.
Key Reforms and Last-Minute Concessions
The legislation, which faced significant opposition from Conservative peers and business groups, will introduce a suite of new rights for workers. To secure its passage before Christmas, the government made several concessions. The most notable was the removal of a day-one right to claim unfair dismissal, a key union demand. This has been replaced with a shortened qualifying period of six months, down from the current two years.
In return, the cap on compensation for unfair dismissal claims was lifted. The bill's core reforms remain intact, including new rights to guaranteed hours for those on zero-hours contracts and payment for shifts cancelled at short notice. It also bars 'fire-and-rehire' practices in most circumstances and grants paternity and parental leave rights from the first day of employment.
A Historic Win and Political Backlash
Business Secretary Peter Kyle stated the law would 'drag Britain's outdated employment laws into the 21st century'. Paul Nowak, TUC General Secretary, celebrated an 'early Christmas present for working people', marking a break from decades of workplace insecurity.
However, the bill's journey has inflamed tensions with the House of Lords. Conservative Shadow Business Secretary Andrew Griffith criticised the legislation, claiming it would 'pile costs on to small businesses' and increase unemployment, pledging to scrap its 'most disastrous elements' if the Conservatives return to power.
Implementation and Future Impact
The new rights are expected to come into force in 2026, with the government aiming to start implementing some changes from April next year. Experts warn that the detail of secondary legislation and codes of practice will be crucial to prevent loopholes.
Ben Harrison of Lancaster University's Work Foundation noted that women, disabled people, ethnic minorities, and young people stand to gain the most from the changes to unfair dismissal and zero-hours contracts. The focus now shifts to ensuring the reforms deliver on their promise of greater security and dignity at work for millions.
