Employment Rights Bill is basically “done” — now it’s about what changes, and when

Labour’s big workplace reform package has cleared its final obstacle in Parliament, meaning it’s now on track to become law before Christmas.

The last snag came in the House of Lords, where Conservative peer Lord Sharpe tried to push through a late amendment during the final round of back-and-forth between the Commons and Lords. After a brief debate, he dropped it—so the bill’s path is now clear.

Keir Starmer called it a major win for workers, saying it amounts to the biggest overhaul of workers’ rights in a generation. In political terms, Labour is treating this as a headline moment: a flagship promise delivered early.

But in practical terms, it won’t all change overnight.

A lot of what’s in the bill still needs “secondary legislation”—the detailed follow-up rules that decide exactly how and when each measure kicks in. So while the bill may become law within days (it’s expected to get royal assent this week), many of the real-world effects will come later.

What the bill actually does

For most employees across Great Britain (England, Scotland and Wales—but not Northern Ireland), the bill includes:

• Sick pay from day one
• Paternity leave from day one
• Extra protections for pregnant women and new mothers

The biggest—and most argued-over—piece is unfair dismissal. Labour had originally wanted day-one unfair dismissal rights, but it retreated from that plan. Instead, the bill sets up stronger protections after six months in a job, which is now the central compromise point.

Unions say: “Good—now don’t water it down”

Unions are pleased it’s passed, but they’re also clearly frustrated about what didn’t make it in.

Unite’s Sharon Graham wants Labour to stop hesitating and deliver quickly, arguing the bill has already been softened too much—especially because it doesn’t go as far as banning “fire and rehire” and zero-hours contracts.

The TUC struck a more celebratory tone, calling it a “historic day” and an early Christmas gift, but it also echoed the point that the changes need to be rolled out fast.

Conservatives and business groups say: “This will hit jobs”

The Conservatives are attacking the bill as costly and risky for hiring—especially for small businesses. They’re linking it directly to the latest unemployment figures, which show joblessness rising to 5.1% (up from 4.3% a year earlier).

Business groups haven’t rejected the bill outright, but they’ve flagged concerns. Interestingly, they seem to have landed on the six-month unfair dismissal threshold as a key “line in the sand”—saying that keeping it makes the package more workable, and that the bill should now go through.

The big takeaway

Politically, Labour gets a clean “win” and a major headline before Christmas. For workers, the direction of travel is clear—more day-one basics and stronger protections. For employers, the argument now shifts to the fine print: how the follow-up rules are written, how quickly they arrive, and whether they create uncertainty around hiring.