Employment Rights Bill Set to Become Law Before Christmas

Major employment legislation has cleared its final parliamentary hurdle and is expected to receive royal assent this week, marking significant changes for the licensed trade and wider industry.

The Employment Rights Bill successfully navigated its final stage in Parliament after weeks of negotiations between the House of Commons and House of Lords over disputed provisions regarding employee protections.

A key compromise saw the government modify its original proposal for immediate employment protections. Instead, enhanced safeguards against unfair dismissal will now commence after a six-month qualifying period, rather than on an employee’s first day of work.

The legislative breakthrough followed intervention from six business organisations, who sent correspondence to Business Secretary Peter Kyle supporting the amended version of the bill. These groups included the British Chambers of Commerce and the Federation of Small Businesses.

Conservative peer Lord Sharpe withdrew a blocking amendment during recent House of Lords proceedings, effectively removing the final obstacle to the bill’s progression.

Key Provisions for Hospitality Employers

The new legislation introduces several measures relevant to hospitality and licensed trade businesses:

• Statutory sick pay will be available from day one of employment
• Paternity leave entitlements begin immediately upon starting work
• Enhanced protections for pregnant employees and new mothers
• Unfair dismissal protections starting at six months of service

The bill covers England, Scotland and Wales, though Northern Ireland falls outside its scope. Most provisions require additional secondary legislation before implementation.

Industry and Union Response

Trade union leaders welcomed the legislative progress. Unite general secretary Sharon Graham called for swift implementation without further modifications, though she expressed disappointment that the bill does not prohibit fire-and-rehire practices or zero-hours contracts.

Paul Nowak of the Trades Union Congress described the development as bringing improved job security and workplace dignity for employees across Britain.

However, business representatives maintained concerns about the legislation’s impact. Despite supporting passage of the amended bill, organisations including the British Chambers of Commerce and Federation of Small Businesses highlighted ongoing worries about regulatory changes.

Conservative shadow business secretary Andrew Griffith criticised the reforms, arguing they would increase costs for small businesses and potentially discourage recruitment. His comments referenced recent Office for National Statistics data showing unemployment rising to 5.1% in the three months to October, up from 4.3% a year previously.

Implications for Licensed Trade

For hospitality operators, the legislation represents the most substantial revision of employment law in decades. Businesses will need to review their HR policies and procedures to ensure compliance once secondary legislation clarifies implementation details.

Industry bodies have previously expressed particular concern about the cumulative impact of regulatory changes on the sector, which relies heavily on flexible staffing arrangements and employs significant numbers of casual workers.

The government maintains the reforms will deliver better conditions for working people whilst supporting economic growth. Prime Minister Sir Keir Starmer characterised the bill as providing the most significant upgrade to workers’ rights in a generation.

With royal assent anticipated before Christmas, hospitality businesses should prepare for detailed guidance on implementation timescales and specific requirements in the coming months.