Fri 08 Aug 2025

Employment Law Round-Up - August 2025

House of Lords amendments to Employment Rights Bill

The House of Lords has agreed various amendments to the Employment Rights Bill. All of these amendments were proposed by peers in opposition parties. On return to the House of Commons (following a Third Reading in the House of Lords), it is likely that these amendments will not be accepted given the UK Government majority. That potentially sets up the possibility of "ping-pong" between the Houses, and a potential delay to the Bill receiving Royal Assent. The House of Lords amendments are as follows:

  • Changing the qualifying period for unfair dismissal rights to 6 months, rather than the removal of the qualifying period altogether.
  • A requirement of the UK Government to make regulations that would (1) extend the circumstances in which an employee is considered unfairly dismissed after making a protected disclosure; and (2) require certain employers to take "reasonable steps" to investigate any protected disclosure made to them. This would be required to be done within 6 months of the Bill passing.
  • An extension of neonatal care and leave to parents of children up to 16 years of age.
  • Amending the right to be accompanied to disciplinary and grievance hearings to include a "certified professional companion". This is based on an argument that current rules create a "two tier" workforce where those who are in a union are better supported than those who are not.
  • A requirement on the UK Government to consult with at least 500 small and medium-sized enterprises (SMEs) on the effects of Part One of the Bill (provisions relating to zero hours work, flexible working, sick pay, tips, parental leave, harassment and unfair dismissal rights).

2023/24 National Minimum Wage enforcement and compliance report published

The UK Government has published the National Living Wage and National Minimum Wage: government evidence on enforcement and compliance in 2023 to 2024 report. The report confirmed that the Naming Scheme remains a key deterrent for employers breaking minimum wage law. During the 2023 to 2024 financial year, 524 employers were named for £15.8 million in arrears to 172,000 workers. Up to and including May 2025, around 3,700 employers have been named and repaid over £49 million in arrears to over 520,000 workers. 723 civil penalties were issued to non-compliant employers in 2023 to 2024 totalling £5.2 million.

Inquiry to address disability employment gap launched

With the disability employment gap persistently at nearly 30%, the Commons Work and Pensions Committee has launched an inquiry exploring the reasons behind it. According to the DWP, there are currently 700,000 disabled people who do not have a job but want to work. A Call for Evidence has opened, seeking the views of disabled people, employers and experts, and will close on 29 September 2025.

"WorkWell" pilot launched to help people with health conditions and disabilities return to work

In May 2024, the then Conservative government announced "WorkWell" pilots which were to be introduced in 15 areas across England. The general election then intervened. On 11 July, the launch of a new scheme, understood to be a continuation of the previous initiative, was announced. The pilot scheme aims to support people with health conditions back into employment, while reducing pressure on GPs. Last year 93% of the 11 million fit notes issued electronically in primary care across England simply declared people not fit for work, with no constructive alternative or support pathway. According to the UK Government the scheme will transform how fit notes are used. WorkWell sites will connect patients to local supporting services, with patients receiving "targeted and timely support". It is hoped that this will enable people to manage their health conditions while exploring options for staying in or returning to work.

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