MPs Urged to Back Key ERB Amendments

25th July 2025

The British Chambers of Commerce (BCC) is calling on MPs to support key amendments to the Employment Rights Bill, when it returns to the Commons.

Several changes to the legislation, which were proposed during this week’s Report Stage in the House of Lords, have the backing of the BCC. 

Research by the BCC shows 79% of firms don’t feel the impact of new government policies is being properly assessed and 77% think policy change is not moving at the right pace. 

The Lords’ amendments, which could make a real difference for business, are: 

• Reducing the qualifying period for unfair dismissal from two years to six months, rather than to day one, with a statutory probation period brought in after that. This will help ensure the employment relationship is right for everyone.
• Additional consultation being carried out before introducing some elements of the bill. These include zero-hours contracts, flexible working, Statutory Sick Pay and unfair dismissal.
• Retaining the turnout threshold of 50% of union members voting in a ballot for it to be valid. 
• Employees getting a right to request a guaranteed hours contract after 26 weeks. This is instead of employers having to continuously offer them to people, even if they prefer the flexibility of their current arrangements.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said:  

“Some of the amendments made to the Employment Rights Bill in the House of Lords over recent days give businesses real hope.  

“Peers have rightly recognised there needs to be a more balanced approach to this legislation. It needs to be proportionate, affordable and right for both firms and their employees. 

“These changes to some of the key measures in the Bill will help ensure employers have the agility and flexibility to respond to change, to innovate and remain competitive.  

“When parliamentarians return in September, it’s vital that these amendments are backed and delivered.   To grow the economy and create more opportunities for people across the country, the government must focus on removing costs, complexity and barriers for business.”