UK businesses are entering another period of uncertainty as the Employment Rights Bill (ERB) returns to the House of Lords, with new research showing confidence in a smooth passage is extremely low.
A survey by compliance firm VinciWorks, which polled 190 senior HR professionals, compliance officers, CEOs, and in-house counsels, found that only 3 per cent believe the Lords will yield on key provisions, including day-one employment rights and changes to trade union rules.
The findings highlight deep concern among UK companies. One in five respondents expects the bill to fail entirely, while 12 per cent believe the government may invoke the Parliament Act, a move that would delay implementation until next year. A further 40 per cent anticipate a compromise between the Lords and Commons, although ministers have so far resisted such negotiations.
Nick Henderson-Mayo, head of compliance at VinciWorks, warned that the government’s inflexibility could prolong instability for employers. “The Employment Rights Bill is the biggest change to workers’ rights in decades,” he said. “Employers deserve to have their voices heard over proposals that will be very difficult to implement.”
The Lords’ opposition focuses largely on the government’s plan to extend unfair dismissal protections from day one of employment. Additional contested provisions include expanded rights for zero-hours workers and new rules governing political donations to trade unions. Large majorities in the Lords are expected to vote against the government again, leaving many employers in regulatory limbo.
The survey also revealed widespread concerns over the bill’s broader implications. Nearly 60 per cent of respondents said they would need to strengthen workplace sexual harassment policies, and two-thirds expect to introduce new staff training programs. Many employers, however, report being unable to take action while the dispute over unfair dismissal rules continues.
Henderson-Mayo noted that even previous Labour governments maintained qualifying periods 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,” he said.
The government has already held consultations on elements of the ERB, including rights for pregnant employees, new mothers, and requirements for menopause action plans. Despite this, nearly one in five business leaders fear the bill could fail, raising concerns that time and resources invested in preparation may be wasted.
“Staff and bosses want confidence in the employment system,” Henderson-Mayo said. “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.”
The ERB, which proposes sweeping reforms to employment law, continues to divide opinion in Parliament, leaving UK businesses uncertain about the future landscape of workers’ rights.
