UK: Employment Reforms: Update

Authors: Stephen Miller and Corinna Harris

The Employment Rights Bill continues to progress through Parliament.

The Bill is still at the Committee stage in the House of Lords and this stage is now expected to be completed on 18 June 2025.

The government has published its response to recommendations made by the Business and Trade Committee, which include:

• Guaranteed hours contracts: There will be a consultation on the low hours threshold to address the concern that defining a low hours threshold could be exploited.
• Trade unions: The government will consult on changes to the trade union recognition process after the Bill comes into force and will introduce a revised Code of Practice on access and unfair practices during the recognition period.
• Modern slavery: The government is considering how to strengthen the statutory regime relating to modern slavery statements and will set out next steps to address demands for more reporting and penalties for non-compliance in due course.
• Support for employers: The Government will consult on the detail of the implementation of the new employment rights and has said it will ensure that sufficient time and support is provided to adapt to the changes ahead of their commencement.

Key Action Points for Human Resources and In-house Counsel

The Bill will go to the Report stage next, where members of the House of Lords will continue to examine and make changes to the Bill.

The Equality (Race and Disability) Bill is expected to be published by 22 July 2025.

Provisions in this Bill will include extending pay gap reporting to ethnicity and disability for larger employers and extending equal pay rights to workers suffering discrimination on the basis of race or disability.