United Kingdom: Employment Rights Bill – the final hurdle?

In brief

On 10 December 2025 the House of Lords (narrowly) voted against the government on the last remaining issue in dispute in the Employment Rights Bill between the Houses: whether the cap on unfair dismissal should be removed. For more information, see our previous update Cap on unfair dismissal compensation - proposed removal.

The Bill is returning to the House of Commons on Monday 15 December. However, the government is not proposing to make any concessions. Given the Christmas recess begins on 18 December 2025, it is looking less likely that we will get an Employment Rights Act 2025.