Latest amendments to the Employment Rights Bill
04 August 2025
On 7 July 2025 a running list of all amendments to the Employment Rights Bill was published.
The list of amendments in its current draft extends to 63 pages; and includes important changes to the Bill which were not previously set out.
Some amendments have not received Government support, which decreases the likelihood of their inclusion in the final legislation. The Bill will now return to the House of Commons for consideration of these amendments. As such, the changes listed below may not be adopted; however, we will continue to provide updates on any amendments that are either accepted or rejected.
The most significant amendments for businesses are:
- a ban on Non-Disclosure Agreements relating to harassment and discrimination at work
- relaxing of the proposed ban on ‘fire and rehire’
- significant changes to whistleblowing rules
- changes to zero-hour rules
Non-disclosure and settlement agreements
Amendments to the Bill have added a new clause (22A) which voids any provision in a contract between an employer and a worker, including a settlement agreement, that attempts to prevent the worker from making allegations or disclosures about harassment or discrimination – including how the employer responded to such allegation(s). The amendment intends to cover any agreement, not just employment contracts.
The clause is set to apply whether the alleged discrimination is by the employer or by a colleague or another worker. The idea is to end exploitation of non-disclosure agreements and create safer working environments. This may mean, however, that employers are less disposed to settle discrimination and harassment claims if they cannot rely on confidentiality.
The Government acknowledges this in an impact assessment on the potential costs of this ban, saying that it will increase costs for ACAS and the Employment Tribunal due to employers being less willing to settle claims in the infancy of litigation. However, the Government has set out that the benefits from “reduced harassment and discrimination, and from individuals being able to disclose allegations of wrongdoing, are likely to exceed the costs faced by businesses from implementing the policy.”
Fire and re-hire and redundancy
Initially the Employment Rights Bill sought to make any dismissal automatically unfair, if it was related to any employee refusing to agree to a variation of their contract unless (i) the change was essential to prevent serious financial consequences; and (ii) the employer had followed a consultation checklist.
The amendments to the bill seek to soften the ban which was initially imposed on fire and re-hire.
There are a number of proposed amendments that look to water down the ban on fire and re-hire in various ways. One proposed amendment means that the ban on fire and rehire will only cover ‘restricted variations,’ i.e. changes to pay, pension, hours of work, holiday entitlement, and anything else contained in the eventual regulations. It includes adding an actual variation clause also.
Another amendment removes the checklist part of the process; meaning once an employer establishes the ‘serious financial distress’ defence, the reasonableness test for unfair dismissal is then brought into play. Dismissal is still high risk as it will be automatically unfair, unless the employer can establish that the changes are needed to avoid imminent business collapse.
Changes to the whistleblowing regime
The list of what might amount to a qualifying disclosure is (a) simplified; and (b) extended to cover mismanagement of public funds, abuse of authority, or anything else to be set out in Regulations.
To be protected, the disclosure must actually be in the public interest as opposed to the current criteria that the worker reasonably believes it to be in the public interest. Certain employers (e.g. 50+ staff, £10 mi+ turnover) will have to take reasonable steps to investigate any protected disclosure (to be defined in Regulations).
The amendment creates what appears to be a ‘criminal offence’ to intentionally or recklessly subject any whistleblower to a detriment. Despite the criminal nature, claims of detriment would be brought to an employment tribunal, and be subject to considerable fines (up to 10% of turnover).
Finally, an ‘Office of the Whistleblower’ would be created within one year of the Employment Rights Bill gaining Royal Assent, setting minimum standards for whistleblowing policies, providing an independent reporting line, and issuing enforcement and redress orders.
Zero-hours contracts
The Bill in its original draft made it an obligation for employers to offer guaranteed hours to eligible workers. The amendments seek to amend the requirement for an employer to offer guaranteed hours to a right to request guaranteed hours by an employee working irregular shifts. This would work in a very similar way to the flexible working regime.
An average of at least eight hours a week over a rolling 26-week reference period would be needed in order to exercise the right to request. So very low hour workers are excluded from the right to request guaranteed hours.
Schedule 1 amendments also build a strict test into any guaranteed hours offer: the offer must match either the most favourable pay the agency worker actually received in the reference period or, in limited circumstances, the lowest rate that is still objectively justified as a “proportionate means of achieving a legitimate aim”.
Statutory Sick Pay
The amendments to the Bill propose a qualifying threshold of two days, rather than introducing a day-one entitlement to Statutory Sick Pay as the original draft of the Bill sought to impose.
The amendments set out that the weekly rate of Statutory Sick Pay would be the lower of £118.75 (in line with new National Minimum Wage changes) and 80% of an employee’s weekly earnings.
The Employment Rights Bill is evolving rapidly, and these amendments could significantly impact your business. Contact us today for expert advice and tailored support on navigating these legislative changes effectively.
This article was written by Gabrielle Scriven,
