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Usdaw calls on the Government to reverse the Lords’ change

Retail trade union leader Paddy Lilis is staggered that Peers have defeated the Government on a proposal to protect workers from unfair dismissal from day one of their employment. Today’s vote took place in the House of Lords during the report stage of the flagship Employment Rights Bill. Usdaw is calling on MPs to reverse this change when the Bill comes back to the House of Commons.

16 July 2025

0 min read

Paddy Lillis – Usdaw general secretary says: “It is staggering that opposition Peers have decided that it is ok to unfairly dismiss a worker, without any recourse to an employment tribunal. Labour had rightly proposed to end the two-year service qualification to challenge an unfair dismissal and make sure that employers have to act fairly from day one. Employers would still be able to dismiss a worker if it is done fairly and through a proper process. Today’s vote is deeply disappointing and will be a boost for rogue employers, we believe the Government must overturn it.

“Today’s defeat adds to Monday’s when Tory and Lib Dem Peers changed a legal requirement on an employer to offer a guaranteed hours contract, turning it into an employee’s ‘right to request’ the arrangement, a key measure to end exploitative zero and short-hours contracts and provide security of income. Peers also exempted employers from having to make a payment to a worker if a shift was cancelled with less than 48 hours’ notice.

“We urge the Government to defend the Bill from these unwarranted attacks by rejecting the amendments when it comes back to the House of Commons. Making work more secure was clearly a key part of Labour’s manifesto, which was overwhelmingly supported by voters in last year’s landslide general election win. It ill becomes unelected Tories and Lib Dems to go against the expressed will of the people."

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 leader Paddy Lilis is staggered that Peers have defeated the Government on a proposal to protect workers from unfair dismissal from day one of their employment. Today’s vote took place in the House of Lords during the report stage of the flagship Employment Rights Bill. Usdaw is calling on MPs to reverse this change when the Bill comes back to the House of Commons.