The ERB - an update
- Constantine Law
- Jun 18
- 3 min read
On 18 June 2025, the House of Lords is considering the Employment Rights Bill, in the last of 10 Committee Stage readings of the Bill.
The Bill was introduced on 10 October 2024 and is seen as the biggest shake up to Employment laws for a generation - it covers 28 areas of employment law.
The Bill was introduced at breakneck speed by the Labour Government and has subsequently been amended by the House of Commons. The amendments are extensive and wide ranging (all 200 pages of them) and are summarised here. Once the Committee stage is complete, the Bill moves then to report stage, before a third reading. We are some way off from the Bill receiving Royal Assent, although we are told that the Government wants the Bill to be passed before parliament’s summer recess, which begins on 22 July 2025.
On 11 June 2025, Employment Rights Minister Justin Madders MP reportedly told recruiters at the Recruitment & Employment Confederation LIVE conference that the Government plans to issue a “road map” setting out the ERB implementation process.
The road map will clarify when the provisions of the Bill will come into force, which is currently unclear.
Mr Madders acknowledged: “We’ve got to give you guys as much certainty and a clear ‘heads-up’ when things are likely to come in and hopefully, when that [the road map] comes out. It should be very shortly you’ll get a sense that there is going to be a bit of time to prepare, and things aren’t all going to come at you at once – which I think will give you all opportunities to plan ahead a bit better.”
The Bill will need to be implemented in stages - additional consultation with business will be required, plus payroll software updates will need to be factored in. Further the Bill requires secondary legislation to implement certain changes. For example, the specifics of the new “alternative threshold” for collective consultation purposes and zero-hours contracts reforms will be defined in regulations.
New rights could lead to increased claims at the Employment Tribunal. The latest Tribunal statistics showed the Employment Tribunals are creaking under the weight of increased tribunal claims – the number of claims received in the last year increased by 23% and the number of cases which take over a year to resolve increased by 32% compared to the year before.
Mr Madders recognised the challenges faced by the ET system and explained that the new Fair Work Agency, which will have new enforcement powers in respect of wages, sick pay and holiday, will be a “game changer”. He foresees that the role of Acas will also be vital. As yet, we are unsure when the new Fair Work Agency will be created and the true extent of its powers.
It is still a case of watch this space.
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