The Employment Rights Bill (ERB) had originally been expected to gain royal assent in late September or early October. However, that timetable has slipped somewhat and royal assent is now anticipated in early November. Several consultations were also expected to be launched, but we have so far seen only one (on the establishment of the Adult Social Care Negotiating Body). Below, we provide an update on the progress of the ERB.
Parliamentary ping pong process
The ERB had its third reading in the House of Lords in September when Parliament resumed after the summer recess. At that stage, the Lords agreed various amendments. However, on 15 September the House of Commons rejected all of the non-government amendments. These are the amendments that sought to:
- Provide for a six month qualifying service requirement for protection from unfair dismissal
- Change the requirement for employers to offer guaranteed hours to zero and low hours workers into a right for such workers to request guaranteed hours
- Define "reasonable notice" as a 48 hour period for the purposes of the provisions on notice of shifts
- Require the government to legislate for additional whistleblowing protection
- Retain the 50% turnout requirement in industrial action ballots
- Add special police constables to the list of public duties for which employees have a right to time off (although the government has added an amendment committing to review the list of duties that attract the right to time off)
The ERB is now due to return to the House of Lords on 28 October. Liberal Democrat peers are expected to introduce further amendments intended to soften the impact on employers of the requirement for employers to offer guaranteed hours to zero and low hours workers.
If those amendments are agreed in the House of Lords, then the ERB will return to the House of Commons for further consideration. However, the government is likely to reject any attempt to dilute the proposed protections for these workers. In that case, the parliamentary ping pong process between the houses will continue, as royal assent can only be granted once the final text of the ERB has been agreed by both houses of Parliament. Depending on how long this takes to achieve, royal assent is anticipated in early November. See our ERB tracker for further details of the ERB's provisions.
Consultation on establishment of Adult Social Care Negotiating Body
On 30 September, the government launched a consultation on the establishment of the Adult Social Care Negotiating Body. Once established, this body will conduct collective bargaining on a sectoral level, to establish legally binding fair pay agreements that will be applicable across the adult social care sector.
The consultation seeks views on how the body should be established, the negotiation process, the body's coverage and remit, dispute resolution mechanisms, the implementation of fair pay agreements, and how compliance will be enforced. It is open until 16 January 2026.
The government anticipates producing regulations to establish the body in 2026, with negotiations to take place during 2027 and the first fair pay agreements to be implemented in 2028.
What does this mean for employers?
The ERB is a hugely ambitious piece of legislation and the slippage in the timetable that we have seen so far suggests that some of the planned implementation dates put forward in the government's roadmap back in July may not be met. However, the government is determined to progress the ERB's measures and we anticipate a raft of consultations in the concluding months of this year. We will continue to keep clients updated on important developments, and employers who wish to contribute to any of the consultations can speak to their usual DAC Beachcroft contact.
