Thu, 11 Dec 2025

Thu, 11 Dec 2025 Workers' rights bill standoff continues after Lords defeat

It comes after ministers struck a deal between businesses and unions aimed at allowing the bill to progress.

* The House of Lords has inflicted another defeat on the government over Labour's Employment Rights Bill, which aims to give workers greater rights.
* Peers have backed a Conservative proposal to force a review of plans to abolish a cap on compensation in unfair dismissal cases, despite the government saying it had reached a compromise between businesses and unions two weeks ago.
* The bill includes measures such as giving workers the right to sick pay and parental leave from their first day in a job, banning "exploitative" zero-hour contracts, and strengthening the right to request flexible working.
* Some businesses have expressed concerns over the plans, warning they will increase costs for employers.
* The government had dropped a commitment to offer all workers the right to claim unfair dismissal from their first day in a job, after business groups said this would discourage firms from hiring.
* Peers argued that uncapped compensation would benefit higher-paid workers and could lead to increased tribunal claims, while Business Minister Baroness Lloyd said the current system incentivised claimants to allege discrimination.
* The bill is due to return to the Commons on Monday as the parliamentary process known as "ping-pong" continues until the two Houses agree.
* Unions have accused peers of "defying the will of the British public" by holding up the bill, while Downing Street has insisted the government is still committed to passing it before Christmas.
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