The Employment Rights Bill has now completed its third reading in the House of Lords (Wednesday 3^rd September 2025).

Now, the Bill heads back to the House of Commons, where MPs will decide whether to accept or reject the amendments made by the Lords.

With the government’s majority, the Commons will ultimately dictate which provisions remain in the final legislation.

For HR professionals and employers, this is an important moment to start preparing for what is coming.

Adrian Hoggarth, Head of Employment Law at Jurit LLP, sets out the key changes proposed by the Lords, what they mean in practice, and the likely outcome as the Bill makes its way through to law.

Dismissal and re-engagement (fire and rehire)

The original proposal to outlaw most “fire and rehire” dismissals was watered down in the Lords. The revised wording only prevents dismissal and re-engagement if the proposed contractual change relates to:

• Pay
• Pensions
• Working hours, or
• Holiday entitlement.

For other types of changes, dismissal is still possible – but employers will need to follow a strict six-step process involving enhanced consultation and, where appropriate, incentives to reach agreement.

What this means for HR professionals: The government is expected to accept this version, so employers should review their internal consultation processes and be prepared to demonstrate meaningful engagement with staff before making contractual changes.

Zero-hour contracts and guaranteed hours

The Lords softened the requirement to offer guaranteed hours to zero-hour workers. Under their amendment, the obligation only applies if the worker asks for guaranteed hours, rather than being imposed automatically.

What this means for HR professionals: This amendment makes the obligation more workable for employers. However, because the original promise was part of the government’s manifesto, there is a chance MPs may reintroduce the stricter version. Employers using zero-hour arrangements should be ready to adapt either way.

Unfair dismissal rights from day one

The most controversial amendment from the Lords relates to unfair dismissal. Their proposal was a phased approach:

• No protection (other than for automatic unfair dismissal) during the first six months.
• A lighter-touch protection for the following 18 months.
• Full unfair dismissal rights thereafter.

What this means for HR professionals: This is almost certain to be overturned by the Commons. The government has been clear that “day one” unfair dismissal is its headline reform, so employers should work on the basis that this will be implemented.

What happens next?

The Bill will return to the Commons shortly, and we expect the final wording to be settled in the coming weeks.

In the meantime, employers should not wait until the legislation is passed before acting.

Now is the time to:

• Review existing policies on dismissal, consultation, and contractual changes.
• Audit use of zero-hour contracts and consider how to respond to requests for guaranteed hours.
• Prepare for a new reality in which unfair dismissal rights apply from the first day of employment.

At Jurit LLP, we are monitoring the Bill closely and advising clients on how best to prepare for these changes.

If you would like tailored employment law advice or training for your HR team, please get in touch.