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Usdaw welcomes the Government’s strong stance against Peers’ attempts to water it down

Retail trade union Usdaw has welcomed the Government’s strong defence of ending unfair dismissal from day one of employment, along with establishing the right to a guaranteed-hours contract for workers who want them. Usdaw calls on Conservative and Liberal Democrat Peers to stop trying to weaken the Employment Rights Bill when it returns to the Lords.

06 November 2025

0 min read

The flagship legislation to make work more secure and better paid includes measures to protect workers from unfair dismissal from day one of employment, along with the right to have a contract that reflects the normal hours worked. Opposition Peers are seeking to undermine both these important measures. Today, MPs rejected Peers’ amendments and the Bill will return to the House of Lords for further consideration.

Speaking in the House of Commons as part of her response to the Lords amendments, referring to Peers’ attempts to water down guaranteed-hours contracts, Kate Dearden – employment minister said: “The Government is committed to ending one-sided flexibility, so workers are not left guessing about their hours or pay. These reforms reward fair employers, modernise the system and will come with clear guidance to help everyone prepare. Workers will be able to decline a guaranteed-hours offer and remain on their existing arrangement if that is best for them.”

Turning to protection from unfair dismissal from day one of employment, Kate Dearden continued: “We remain committed to delivering unfair dismissal protections from day one: not two years, not six months, day one. A clear pledge in our manifesto, which ensures that nine million employees who have worked for their employer for less than two years are protected from being arbitrarily fired. Day-one protection from unfair dismissal will not remove the right of businesses to dismiss people who cannot do their job or pass a probation, but it will tackle cases of unfair dismissal where hard-working employees are sacked without good reason.”

Joanne Thomas – Usdaw general secretary says: “Today, the Government put up a strong defence to opposition Peers trying to undermine the Employment Rights Bill. We welcome that MPs today rejected the Lords amendments and we urge Peers to end their opposition to this crucial legislation to make work more secure. It was clearly a key part of Labour’s manifesto, which was widely supported by voters in last year’s landslide general election win. It ill becomes unelected Tory and Lib Dem Peers to go against the expressed will of the people.

“I am staggered that the Tories, Lib Dems and Reform want to allow workers to be unfairly dismissed without any recourse to an employment tribunal. Labour is rightly ending the two-year service qualification for challenging an unfair dismissal and making sure that employers have to act fairly from day one. Under the Government’s proposal, employers would still be able to dismiss a worker if it is done fairly and through a proper process.

“Our members in retail and distribution are hardworking people, serving their communities, and their jobs matter - yet too often, they are treated like they don't. From one week to the next, their hours can change at the whim of their employer. Working hours that are not in the employment contract, therefore not guaranteed, count for nothing when people are trying to
secure a mortgage, rental agreement or loan. They can't plan their finances, their childcare or their lives. They are constantly worried about whether they will be able to pay their bills. That is no way to have to live. That’s why they need the Employment Rights Bill, which will deliver the right to a contract that guarantees the number of hours you regularly work.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk

Employment Rights Bill: https://bills.parliament.uk/bills/3737

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion

Summary

Retail trade union Usdaw has welcomed the Government’s strong defence of ending unfair dismissal from day one of employment, along with establishing the right to a guaranteed-hours contract for workers who want them. Usdaw calls on Conservative and Liberal Democrat Peers to stop trying to weaken the Employment Rights Bill when it returns to the Lords.