Employment Rights Bill

Debate between Kate Dearden and Nusrat Ghani

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I beg to move,

That this House insists on its disagreement with the Lords in their amendment 1B but proposes amendments (a) and (b) to the Bill in lieu of that amendment.

[Madam Deputy Speaker]

With this it will be convenient to consider the following:

That this House insists on its disagreement with the Lords in their amendments 23 and 106 to 120, does not insist on its amendments 120C, 120D and 120E, and proposes amendments (a) to (f) to the Bill in lieu of Lords amendments 23 and 106 to 120.

That this House insists on its disagreement with the Lords in their amendments 23 and 106 to 120.

That this House insists on its disagreement with the Lords in their amendment 48B but proposes amendments (a) and (b) to the Bill in lieu of that amendment.

That this House does not insist on its amendment 72C in lieu of Lords amendments 61 and 72, but disagrees with the Lords in their amendments 72D to 72H in lieu and proposes further amendments (a) and (b) in lieu of the Lords amendments.

That this House insists on its disagreement with the Lords in their amendment 62, but does not insist on its amendment 62C in lieu and proposes further amendment (a) to the Bill in lieu of the Lords amendment.

[Kate Dearden]

I am pleased to return to the Employment Rights Bill for the consideration of Lords amendments for a third time.

The Government’s plan to make work pay, on which we were elected and in which we committed to deliver the Employment Rights Bill, will bring employment rights legislation into the 21st century, extending the protections that many British companies already offer to their staff to all. By doing so, we will endeavour to end the unfair market competition in which some firms seek to beat their competitors not by better quality or increased value, but by cutting the pay and conditions of their workforce. That is why this Bill is truly pro-business and pro-worker, pro-growth and pro-competition, and contributes to the creation of a fair and flexible labour market.

This Bill is a win-win for employers, employees and a more competitive British economy. By delivering this change together, we will back businesses that do the right thing while giving hard-working people the job security and opportunities that they deserve. That is why we must press ahead with delivery. Too many workers are waiting too long to feel the benefits of these reforms, and too many businesses face the uncertainty of when this Bill will become law and want clarity on its implementation. The Government are seeking the support of this House so that we can secure Royal Assent and finally be able to move towards implementing change.

First, I will speak to the Government amendments in lieu, which relate to unfair dismissal. In late November, I convened a series of constructive conversations between trade unions and business representatives, and I am extremely grateful for the positive and productive contribution of both sides of industry to that dialogue. It is a testimony to their leadership, and I thank them for it.

I am pleased to report that we have come to a workable agreement with trade unions and business representatives on the unfair dismissal provisions. The Government’s amendments in lieu will reduce the qualifying period for unfair dismissal from 24 months to six months, while maintaining existing day one protections against discrimination and automatically unfair grounds for dismissal. The implementation road map sets out that the changes related to unfair dismissal will come into force in 2027. That is the timeline that businesses have been working towards.

It is also important to limit the time that employees must wait for their rights to be strengthened while implementing changes in a way that is manageable for business. That is why I am pleased to tell the House that the six-month qualifying period for unfair dismissal protections will be brought in from 1 January 2027.