Part 2: Introduction and Transition of the Employment Rights Bill Through Parliament

(This article is part of a three-part series exploring Labour’s Employment Rights Bill. This is Part 2, focusing on the bill’s introduction to Parliament and its transition through the legislative process.)

The bill is expected to be introduced to Parliament within Labour’s first 100 days in government, and with party conference season in full swing and that 100-day period already ticking by, the bill is expected imminently.

As it stands, the Employment Rights Bill is one of Labour’s main priorities in government and could, with such a large majority, pass relatively quickly. Deputy PM Angela Rayner is also eager to push the bill through and is cited as the driver behind introducing it within 100 days. However, once the detail of the bill has been published, it is likely to undergo a large amount of scrutiny from Parliament and outside stakeholders so there is a possibility of some measures being dropped as a result. Starmer and Rayner believe that many of these measures are key to unlocking productivity in the workplace and thus growth, the Labour Government’s “defining mission”. While this means it is unlikely to undergo severe changes, there is also increasing pressure from the Civil Service to put the measures out to extensive consultation due to the widespread impact they will have on society. The resulting potential amendments and the prospect of consultations elongate the timeline set out below:

The Bill’s likely Parliamentary Journey

House of Commons First Reading – early October

• The bill is announced in the House of Commons Chamber to begin the legislative process. No debate takes place at this stage.

House of Commons Second Reading – October

• The main principles of the bill are debated in the Commons Chamber by MPs. The opening statement is made by the MP or Minister responsible for the bill, followed by general discussion by MPs. The bill is then put to a vote, and if successful it passes to the Committee Stage.

House of Commons Committee Stage – November

• The bill is scrutinised line by line by a Public Bill Committee. MPs may propose amendments to the bill which are then selected by the Chair of the Public Bill Committee and voted on by those on the committee. Once any changes have been made, the bill returns to the floor of the House of Commons.

House of Commons Report Stage – December/January

• The Report Stage gives MPs an opportunity to debate any changes to the bill which has been examined in committee and propose new amendments to the legislation.

House of Commons Third Reading – December/January

• The Third Reading is a typically shorter debate by MPs on the content of the bill which usually takes place immediately after the Report Stage. Amendments cannot be made at this stage.

House of Lords – January/February

• The bill will then pass to the House of Lords for consideration by Peers, undergoing the same process.

Royal Assent – March/April 2025

• Once both Houses agree on the bill’s final form, it is sent to the Monarch for Royal Assent, at which point it becomes law.

Conclusion

The Employment Rights Bill’s passage through Parliament will be closely watched by employers, insurers and workers alike. Each legislative stage presents an opportunity for debate and amendment, potentially altering the bill’s final form. The next and final article in this series will explore the potential impact of the bill on employers and insurers, particularly in terms of risk and claims management.

(Stay tuned for Part 3 of this series, where we discuss the potential impact of the bill on insurers and employers.)

For more information, please contact Natalie Larnder - Head of Market Affairs or Vanessa Latham - Partner