After months of unexpected delays, the Bill completed its passage through Parliament on 16 December, clearing the way for the first stages in the government’s implementation plans. The formality of Royal Assent (expected in the next few days) is now the only remaining step before it becomes an Act of Parliament.
The Bill was last before the Lords on 10 December, when they accepted all the final Commons’ amendments to the Bill, except the removal of the limit on the compensatory award for unfair dismissal. Instead, it narrowly voted for an amendment which would have reinstated the cap in its present form.
Unsurprisingly, on 15 December the Commons voted against this amendment and in effect asked the Lords to back down. The following day, when the Bill returned to the Lords, they did just that. However, opposition peers did secure a commitment from the government to conduct an impact assessment before implementing the removal of the cap.
These latest developments mean that the government’s implementation plans remain on track. The repeal of most of the previous government’s union legislation will take effect two months after Royal Assent. This will be followed in April 2026 by the first phase of changes to employment rights. These include widening the scope of statutory sick pay and removing the qualifying periods for paternity leave and unpaid parental leave.
Changes to unfair dismissal rights – i.e. the reduction of the qualifying period to six months and the removal of the cap on the compensatory award – will not take effect until 2027.
More details of the government’s implementation plans can be found here, although some details are likely to change.
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