Employment Rights Bill Update – Further Amendments Published

March 17, 2025

Employment Rights Bill Update – Further Amendments Published

On Thursday, 6th March 2025, the UK government published a further amendment paper on the Employment Rights Bill 2024. The Paper contains all proposed amendments to the Bill to date, including new changes that result from the government’s recently published responses to the four statutory consultations that were commenced in October 2024.

Some of the key new developments include:

The stricter regulation of zero-hour contracts, aiming to provide workers with more predictable and stable working hours will also apply to agency workers, that is agency workers will have to be offered a contract guaranteeing a minimum number of working hours per week;
The provisions also include agency workers receiving better notice of shift changes and proportionate pay for shifts that are cancelled or moved at short notice;
The maximum period of the protective award for an employer’s failure to comply with collective consultation requirements will double from 90 to 180 days’ full pay; and
All employees remain eligible for Statutory Sick Pay (“SSP”) under the Bill, although under the new amendments, lower-wage employees, including those earning below the lower earnings limit of £123, will be entitled to sick pay of 80% of their wages.
The ‘waiting days’ for SSP, will also become payable from day one of absence
Significant changes to the proposed Fair Work Agency have also been announced. The Fair Work Agency will have expanded powers to take strong action against employers who exploit their workers. This includes applying penalties for any underpayments including underpayment of holiday pay and even taking action in the employment tribunal on behalf of workers if they do not raise a claim themselves.

The Amendment Paper also includes some further amendments proposed by the Government outside of the specific consultation areas.

Whilst the Bill remains a work in progress and is likely to be subject to some further amendments, on the evening of 12th March the Bill completed its third reading in the House of Commons, and it will now move to the House of Lords for debate. If the House of Lords proposes further amendments, they will be sent back to the Commons for approval.

If it progresses at normal speed, there is the possibility the Bill could receive Royal Assent before Parliament breaks for its summer recess in July, and which could mean some parts of the Employment Rights Act 2025 may come into force towards the later part of this year.

Following our webinar in November 2024 – What does the Employment Rights Bill mean for you? Hayley Titchner, Senior Legal Advisor for Legal Connect, HR Connect’s very own legal division will be hosting a further free webinar on 14^th May 2025 updating you as to further amendments.