Agenda item 5: Employment Rights Bill update

1. The Welsh Government strongly supports the Employment Rights Bill in enhancing employment rights, strengthening their enforcement, and removing unnecessary restrictions on trade unions. We are working closely with the UK Government to ensure the Bill delivers for Wales. 
    
2. The Welsh Government has provided the Social Partnership Council (SPC) with previous update papers on the Employment Rights Bill.  Specifically, a paper was provided to the SPC meeting in December 2024, which gave a comprehensive overview of the Bill and its key provisions and an explanation of the Welsh Government’s support of the Bill. 
    
3. Another update paper was provided to the March 2025 meeting of the SPC, covering developments from December through to the end of February. This included Committee Stage in the House of Commons, the publication of UK Government consultations on aspects of the Bill, and the laying by the Welsh Government of Legislative Consent Memorandum (LCM) and Supplementary Legislative Consent Memorandums (SLCM). 
    
4. The UK Government has published and recently updated an extensive selection of factsheets on the Bill as a whole and individual factsheets on some of its key provisions. These are available at Employment Rights Bill: factsheets - GOV.UK and SPC members should refer to those factsheets for information about the content of the Bill.   
    
5. This update paper focusses on developments since the March update paper to SPC. Specifically, it covers:

• The UK Government’s responses to the consultations it launched in the autumn.
• An overview of the House of Commons Report Stage and Third Reading.
• An overview of the House of Lords First and Second Reading, and Committee Stage so far (Committee Stage is ongoing at the time of writing).   
• Latest developments in relation to the Senedd Legislative Consent process.
• The anticipated timeline leading to Royal Assent. 

6. The previous paper to SPC outlined the consultations the UK Government had launched on specific aspects of the Bill. The UK Government has since published its response to those consultations and made significant amendments to the Bill as a result. 
    
7. These amendments included:

• Employees having the right to Statutory Sick Pay (SSP) from the first day of sickness absence and receiving either 80% of their normal weekly earnings or the current rate of SSP whichever is lower.
• Increasing the maximum period of the protective award for failure to collectively consult from 90 days to 180 days.
• Ensuring that the new rights to guaranteed hours and security of income for zero hours workers extend to agency workers.
• Simplifying industrial action notices, extending the expiry of a trade union’s mandate for industrial action and improving the process and transparency around trade union recognition.

8. The UK Government responses to the consultations are available at:

• Government response: Making Work Pay: Strengthening Statutory Sick Pay - GOV.UK
• Government Response to the consultation on strengthening remedies against abuse of rules on collective redundancy and fire and rehire
• Government response to the consultation on the application of zero hours contracts measures to agency workers
• Government response to the consultation on creating a modern framework for industrial relations

9. Report Stage in the House of Commons took place on 11 and 12 March, and Third Reading on 13 March. The Bill was extensively debated, and hundreds of amendments were tabled. 
    
10. Almost 300 amendments were tabled by the UK Government alone.  A full list is available at Employment Rights Bill, As Amended (Amendment Paper).  All the Government amendments were agreed, including on matters referenced in paragraph 7 of this paper. The Bill passed third reading by 333 votes to 100 and was sent to the House of Lords. 

11. The Bill had its First Reading in the House of Lords on 14 March and its Second Reading on 27 March. Committee Stage in the Lords began on 29 April. Further sessions have either taken place or are scheduled for 8 May, 13 May, 19 May, 21 May, 3 June, and 5 June. 
     
12. Hundreds of Committee Stage amendments have been tabled, including a number from the UK Government. A list is available at HL Bill 81—I (the UK Government amendments are tabled under the name of Baroness Jones of Whitchurch). 
     
13. Topics debated to date in Lords Committee Stage include the Bill’s provisions in respect of guaranteed hours contracts, unfair dismissal, and definition of reasonable notice periods. Future sessions are expected to debate matters covered in the Bill including, fire and rehire, flexible working, and enforcement mechanisms. Given Committee Stage proceedings are ongoing at the time of writing this paper, it is not possible to provide a further update on Lords proceedings. 

14. The previous update paper to SPC explained that the Welsh Government had laid a Legislative Consent Memorandum (LCM) and Supplementary Legislative Consent Memorandum (SLCM) because certain clauses in the Employment Rights Bill affect devolved matters. 
     
15. On 26 and 28 March, Senedd Committees produced their reports and recommendations in relation to the LCM and SLCM. These are available at:

• Legislation, Justice and Constitution Committee Report
• Economy, Trade and Rural Affairs Committee Report
• Equality and Social Justice Committee Report

16. The Welsh Government issued its response on 30 April. The response to the Legislation, Constitution and Justice Committee has been published here. The response to the Equality and Social Justice Committee is here and the letter to the Economy, Trade and Rural Affairs Committee is here . 
     
17. The Welsh Government laid a further supplementary Legislative Consent Memorandum on 1 April. This is in relation to the provisions on Fair Pay Agreements in social care and the establishment of a Fair Pay Agreement Negotiating Body. The supplementary LCM setting out the Welsh Government’s position is available here. 
     
18. This supplementary LCM has been referred to the Senedd Economy and Rural Affairs Committee, the Equality and Social Justice Committee, and the Legislation and Constitution Committee, with a reporting deadline of 13 June. 
     
19. The LCM plenary debate is scheduled to take place in the Senedd on 24 June. At the time of writing this paper, it’s possible the debate could be moved to a slightly later date, if matters in the Lords encounter unexpected delays. It is also possible that further SLCMs will be laid if, at Lords Report Stage, the UK Government tables further substantive amendments which affect devolved matters.

20. The UK Government’s stated position is for the Bill to complete all its Parliamentary stages and receive Royal Assent before the summer recess (which for the UK Parliament begins on 22 July). 
     
21. Committee Stage in the Lords will continue through to 5 June. Future dates beyond this are uncertain. Following its Committee Stage, the Bill will proceed to Lords Report Stage and Third Reading. It is anticipated that Report Stage may begin in late June or early July. 
     
22. Additionally, following Third Reading in the Lords, there is expected to be a period of so-called parliamentary ‘ping-pong’ - the process where the Bill is sent back and forth between the House of Commons and the House of Lords to resolve disagreements about the final text. 
     
23. Completing all parliamentary stages in time for the Bill to receive Royal Assent prior to the summer recess could potentially prove challenging. It is possible, and perhaps probable, that Royal Assent may not take place before the autumn.

NB:  This Bill is evolving rapidly, with lots of complex elements.  While this paper accurately reflects the position as of 15 May 2025 (to meet the deadline for submitting papers for the June SPC meeting), it cannot account for developments between 15 May and the SPC meeting on 4 June.