Lords’ Amendments Give Firms Hope

29th October 2025

Reacting to the news that the House of Lords has re-inserted key amendments to the Employment Rights Bill, Patrick Milnes, Head of People and Work Policy, said:

“We are fast reaching the end of the road for crucial changes, that businesses desperately want to see, to be made to the Employment Rights Bill. 

“There are some elements of the government’s proposals, as they stand, which place unnecessary burdens on businesses and could stifle recruitment, productivity and investment. 

 “Several of tonight’s amendments to the Bill, agreed by the Lords, represent critical interventions that will reduce the risk of unintended consequences for firms from this legislation. 

“The government now has an opportunity to address businesses’ key concerns and demonstrate that they are willing to listen and recognise where changes are needed by accepting these amendments.” 

The key Lords amendments supported by the BCC are: 

• A six-month qualification period for unfair dismissal rather than from day one. This will mean no threat of employment tribunals if employers have genuine reasons to dismiss someone in those six months for reasons such as underperformance or failure to pass a probationary period. 
• Reducing the burden on businesses by removing the need to repeatedly offer guaranteed hours contracts to those who would prefer the flexibility of zero hours. 
• Including a definition of seasonal work, so that this is reflected when employers have to determine regular hours.
• Retaining a turnout threshold of 50% for industrial action ballots to be valid, so action is representative of the wishes of the membership as a whole.