The Employment Rights Bill – further amendments (part 1)

We recently reported that as the Employment Rights Bill (ERB) nears its final stages, the Government has released a roadmap, outlining the schedule for consultation and implementation of its measures. Although the roadmap does not specify an exact date, Royal Assent now appears likely in the Autumn.

While the Bill has nearly completed its Parliamentary journey, on 7 July 2025 the UK government published several significant amendments. While not all of the proposed revisions will survive the legislative process, those backed by Labour peers, such as the introduction of new restrictions on non-disclosure agreements (NDAs) and the easing of the “fire and rehire” provisions, are more likely to be included in the final Bill. The proposed new “fire and rehire” regime will be considered in next week’s blog. In the meantime we look at some of the other potential changes.

Non-disclosure agreements (NDAs)

One of the most significant amendments proposed by the government concerns adding a new section to the Employment Rights Act 1996 that restricts the use of non-disclosure agreements. This aims to bring an end to the widespread misuse of NDAs, encourage transparency, and help create safer workplaces.

Under the new section, any provision in a contract between an employer and a worker that attempts to restrict a worker from disclosing or making allegations of workplace harassment or discrimination, will be void. This will also extend to disclosures about how the employer responded to such matters.

This will apply to any agreement, including settlement agreements and contracts of employment. It applies to both current and former workers and could be extended by future regulations to include, in addition to workers, others such as contractors, trainees and those on work experience.

The new protection will apply regardless of whether the alleged discrimination is committed by the employer or by another worker, and whether the worker is the victim or a witness.

At present, clauses that aim to restrict individuals from reporting a crime to the police, or from making protected disclosures about wrongdoing at work under whistleblowing legislation, are void. The proposed change to the ERB broadens this protection so that any clause seeking to block disclosure of such information, even if it does not meet the criteria for whistleblowing, will also be unenforceable.

The amendment makes it clear that using standard NDAs (including settlement agreements) aimed at silencing discrimination or harassment claims will be legally unenforceable. However, this shift could have unintended repercussions as employers may become more hesitant to resolve such disputes through settlement if confidentiality cannot be assured. The inability to “gag” the employee from repeating allegations of discrimination may make settlement less attractive.

Employers should consider whether any confidentiality wording included in contracts, template settlement agreements and policies will need updating, should this amendment ultimately make its way into the final version of the Bill.

No timeline has been provided for when the proposed restrictions on NDAs would take effect.

Zero Hour Contracts

The ERB creates a framework for a right to a guaranteed hours offer for qualifying workers on zero hours contracts and qualifying agency workers.

A number of amendments to the Bill have been proposed in an attempt to soften these provisions. They include:

• Giving workers a right to request guaranteed hours removing the automatic employer duty to offer guaranteed hours. This requires the employee to take the initiative. Employers only have to consider requests, mirroring the flexible working regime.
• The right to request only existing where the worker works an average of at least eight hours a week over a rolling 26 week reference period. This therefore excludes very low hour workers from the right to request guaranteed hours.
• “Short notice” cancellation payments falling away if the employer withdraws a shift at least 48 hours before it starts.

However, these amendments are not backed by the government so are unlikely to pass. The proposed new rules on zero hours contracts are hugely complex and any business using zero hours workers will need to take specialist legal advice before they come into force.

Bereavement leave

The Bill also seeks to broaden the current entitlement to parental bereavement leave (following the death of a child under 18 or a stillbirth) into a more general right to bereavement leave. Eligibility criteria will be set out in future regulations.

Notably, the amendment also extends this leave to individuals experiencing pregnancy loss before 24 weeks.

Implementation is scheduled for 2027, with consultation planned for this Autumn.

Whistleblowing

Amendments have been proposed by non-Labour peers meaning that these changes are unlikely to become law at this time, but they give a good insight into the types of issues being discussed, and possible future changes. The proposed amendments include:

“Qualifying disclosure” expanded to cover not just the current areas of concern but also the mismanagement of public funds, abuse of authority, or anything else set out in new Regulations

It is also proposed that to qualify for protection, the disclosure must actually be in the public interest (not just that the worker reasonably believes it to be in the public interest). This would be a huge undermining of whistleblower protection and is highly unlikely to ever be passed.

It would be an “offence” to intentionally or recklessly subject any whistleblower to a detriment, with substantial fines (up to 10% of global turnover).

Next steps

The amendments were sent back to the House of Lords on 14 July and will return to the House of Commons for a final vote following Parliament’s summer recess.

To keep up to date on the forthcoming changes, please follow us on LinkedIn and other social media channels, and look out for part 2 of this update next week.

This update contains general information only and does not constitute legal or other professional advice.