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Commons rejects Lords’ ERB amendments
The House of Commons has rejected the House of Lords proposed amendments to the Employment Rights Bill which lacked government backing. The government led the Commons in voting down changes it believed would weaken employment protections. ‘Day one’ unfair dismissal rights have been reinstated, with the Lords’ proposal of a six-month qualifying period rejected. Similarly, the Lords’ amendment to shift the obligation on employers to offer guaranteed minimum hours to one where the zero-hours workers were required to request minimum hours has also been rejected. Employers will be required to monitor hours worked and proactively offer minimum guaranteed hours if the mechanism is triggered. Parliament will now schedule a date for the ERB to return to the Lords, where peers will consider the Commons’ rejection of their amendments.
Growing ET claim volumes stretch resources
Pinsent Masons’ Employment team has observed a notable rise in the number of ET claims our clients are receiving across multiple sectors. An analysis of our comprehensive claims data has not revealed any consistent theme behind the increase, though there has been a noticeable rise in claims from employees who claim to be neurodivergent. Unrepresented employees also appear to be using generative AI tools to identify and pursue legal claims (as well as internal grievances), which may also be contributing to the increase. Our observations align with a report from earlier this year, in which the Law Society of England and Wales noted that open ET cases rose to 491,000 by March 2025, up from 444,000 in March 2023. This steady growth has already strained the ET system. In response, the government committed to recruiting 1,000 new judges, including employment judges. We’ve also heard anecdotal reports recently that Acas’ early conciliation service faces similar pressures. In some cases, backlogs have caused early conciliation periods to expire before Acas could begin the process. We expect the ERB to further increase ET claim volumes by introducing new rights, extending existing ones, lengthening claim timeframes, and reintroducing legal aid. Employers may want to assess whether their current ET management strategies will remain resilient post-ERB.
Welsh Government proposes new outsourcing and workforce code
The Welsh Government has launched a consultation on a draft public services outsourcing and workforce code. This new code will replace the 2014 Welsh Code of Practice on Workforce Matters, commonly known as the “Two-Tier Workforce Code”, which aims to prevent a divide between ex-public sector and private sector employees working under different terms and conditions. New legislation requires Welsh Ministers to publish both the new Public Services Outsourcing and Workforce Code and Social Public Workforce Clauses. Contracting authorities within the scope of the legislation must consider the new Welsh Workforce Code when outsourcing existing services. If they choose not to include the clauses in a relevant procurement, they must notify Welsh Ministers or establish a process to ensure implementation. The proposed Workforce Code addresses employment and pensions issues related to services outsourcing in Wales and closely resembles the 2014 code. The consultation will remain open until 3 December 2025.
This page is updated weekly with News and Views from that week’s employment weekly briefing email. For previous articles, please contact us: Employment Law Plus.
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Employment law horizon watching | Upcoming employment law changes