Tory-supported proposal for altered employment rights on day one passes in House of Lords vote
In a significant development, the House of Lords has voted in favour of a Conservative-led amendment regarding 'day-one' rights provisions in the Employment Rights Bill. The amendment, proposed by Lord Sharpe, aims to reduce the qualifying period for unfair dismissal from the current two years to six months.
The amendment received support from Conservative, Liberal Democrat, and crossbench members. Dan Chapman, employment partner at Leathes Prior Solicitors, called the vote "very important" as it could potentially deliver more effective rights to workers sooner, aligning with the government's commitment to day-one rights, as outlined in their manifesto.
However, the proposal has raised concerns among businesses and lawyers. They warn that this change could put pressure on employers and further strain the Employment Tribunal due to an increase in lawsuits from staff. Chapman, in contrast, views the proposal as a "common-sense one" that has significant support within the employment lawyer community.
The Employment Rights Bill is currently at the Report stage in the House of Lords. After this stage, it will return to the House of Commons for consideration of amendments made in the Lords. The Bill has undergone amendments, with the most recent ones being proposed on July 7, 2025, but not specifically a six-month qualifying period for unfair dismissal.
The government has published a roadmap for implementing the Bill's measures, with key changes expected to take effect in April and October 2026, and some in 2027. One of the changes includes an extension of the time limit for bringing tribunal claims from three to six months, which will apply to most types of claims except breach of contract. This change is planned for October 2026.
Lord Sharpe, in his argument for the amendment, stated that giving businesses flexibility to manage their workforce pragmatically is when they are more likely to take on new staff. He also highlighted that hiring is a risk, and the Bill, according to him, creates disincentives to hire, particularly at the margins of the labor market, where the stakes are highest.
Meanwhile, figures from last month show that the Tribunal's open caseloads increased by 32% from January to March 2024/25 compared to the same quarter the previous year. This increase has further fuelled the debate about the potential impact of changes in the Employment Rights Bill on the Employment Tribunal.
As the Bill continues its legislative process, it remains to be seen if the Lords will back down on their amendment or not, given its potential alignment with the spirit of the manifesto. The outcome of this decision could significantly shape the employment landscape in the UK.
The controversial amendment, concerning the reduction of the qualifying period for unfair dismissal from two years to six months, has garnered attention in the realm of policy-and-legislation within the wider context of UK politics. Businesses and lawyers express concerns that this change could exacerbate pressure on employers and the Employment Tribunal due to an anticipated surge in lawsuits, while employment lawyers, such as Dan Chapman, view it as a "common-sense" measure aligning with the general-news of day-one rights as promised in the government's manifesto.
