The House of Lords has been considering the Employment Rights Bill (the Bill) after the Commons completed its review. We analyse the status of the Bill and the key developments to watch.
Progress of the Bill so far
The government introduced the Bill in October 2024, proposing significant reforms to employment law, including changes to statutory sick pay, family leave entitlements, the practice of “fire and rehire”, unfair dismissal rights and zero hour worker protections. Since then, lawmakers have published numerous amendment papers. Recently, the government also released consultation responses on industrial relations, agency worker rights and non-compliance in the umbrella company market.
Third reading and committee stage
The Bill completed its passage through the House of Commons in March and moved to the House of Lords for further scrutiny. During the third reading in the Commons, the government confirmed which proposed amendments it would take forward and offered insights into future plans, suggesting that further employment law reforms may follow beyond the Bill itself.
Bereavement leave and pay for pre-24-week pregnancy loss
Currently, statutory parental bereavement leave applies only to stillbirths (after 24 weeks of pregnancy) or the death of a child under 18. Cross-party support has grown for extending this entitlement to cover pregnancy loss before 24 weeks. While the government did not accept an amendment to introduce statutory bereavement leave for pre-24-week pregnancy loss at this stage, it recognised the issue’s significance and committed to exploring reform options as the Bill moves through the House of Lords. You can read our blog for more information.
Family leave and pay
The Bill introduces day-one rights for paternity leave and unpaid parental leave, but the government has indicated it plans to consider broader reforms to the parental leave system, with a government-led review set to begin in the next few months.
The review will focus on several key areas:
- Paternity leave: The government did not support an amendment requiring it to consult on introducing a statutory right to a period of paid, protected and non-transferable paternity or parental partner leave for all employees.
- Kinship care: Although the government rejected amendments to introduce a formal kinship care leave entitlement, it has pledged to define kinship care in a separate bill on Children’s Wellbeing and Schools. It will trial a new kinship allowance to support this type of care.
- Carer’s leave: Given the fact that unpaid carer’s leave only came into force in April 2024, the government did not support an amendment that would introduce pay for carer’s leave. It has indicated that it will review the new right in due course and assess further support needs.
Next steps
The government published various amendments in April, primarily to the Bill’s provisions on zero hours and low hours workers. The House of Lords Committee will consider the Bill and these recent amendments over the coming weeks.
