Employment Rights Act Finally Passed

This morning the Employment Rights Bill received Royal Assent, having finally been passed by the House of Lords on 16 December when the Conservatives withdrew their amendment on the unfair dismissal compensation cap removal.

The addition of this provision (as a sweetener for unions' agreement to retaining a six month qualifying period rather than day one unfair dismissal rights) caused controversy in both Houses, both over the circumstances of its introduction so late in the day (and in seeming contradiction of what had been agreed by business groups), and over its potential impact for employers and the stretched employment tribunal system (see our blog post here).

Their Lordships finally agreed the provision, on the basis that the government has committed to carry out and publish an enactment impact assessment, including on the implications of the removal of the cap on compensation, "as soon as the Bill achieves Royal Assent" and prior to commencement regulations