UK businesses are preparing for renewed uncertainty as the Employment Rights Bill (ERB) returns to the House of Lords today, with new research suggesting confidence in a swift resolution is almost non-existent.
A survey by compliance firm VinciWorks has found that just 3 per cent of senior HR, compliance and business leaders believe the Lords will retreat from their opposition to key provisions in the legislation, including day-one employment rights and proposed changes to trade union rules.
The poll, which gathered responses from 190 HR and compliance professionals, CEOs and in-house counsels, reveals deep concern across UK industry. One in five respondents expects the legislation to fail entirely, while 12 per cent believe the government will resort to using the Parliament Act, a move that would delay implementation until at least next year. A further 40 per cent anticipate a compromise between the Lords and Commons — an outcome ministers have so far been unwilling to entertain.
Nick Henderson-Mayo, head of compliance at VinciWorks, warned that the government’s stance risks prolonging instability for employers. He said ministers were “backing themselves into a corner” by refusing to negotiate, despite the sweeping scale of the reforms. “The Employment Rights Bill is the biggest change to workers’ rights in decades,” he noted. “Employers deserve to have their voices heard over proposals that will be very difficult to implement.”
Opposition in the Lords is focused primarily on the government’s push to extend unfair dismissal protection to day one of employment, along with wide-ranging provisions for zero-hours workers and rules governing political donations to trade unions. With large majorities expected to vote against the government again, many employers say they remain stuck in regulatory limbo.
VinciWorks’ findings show widespread concern about the bill’s wider implications. Almost 60 per cent of respondents believe they will need to strengthen their workplace sexual harassment policies, while two-thirds say they will have to introduce new staff training programmes to prepare for the sweeping changes contained in the ERB. However, many say they cannot progress these plans while the dispute over unfair dismissal rules continues.
Henderson-Mayo pointed out that even previous Labour governments accepted the need for a qualifying period for unfair dismissal. “The Employment Protection Act of 1975 reduced the qualifying period to six months. Today it stands at two years. Clearly, there is space to compromise and allow businesses time to prepare.”
The government has already launched multiple consultations on elements of the bill, including proposals affecting the rights of pregnant women and new mothers, as well as requirements for menopause action plans. But with nearly one in five business leaders believing the bill may fail altogether, many fear they are investing time and money preparing for reforms that could ultimately be abandoned.
“Staff and bosses want confidence in the employment system,” Henderson-Mayo added. “If the government and parliament cannot compromise, it increases the likelihood of the rules being rewritten again in a few years. The ERB is important — but perhaps it’s time for some grown-up government.”