Government's Workers' Rights Bill Hits Fresh Roadblock in Lords Defeat

Labour's Employment Rights Bill faces a continued standoff in Parliament after the House of Lords inflicted another defeat on the government. The setback comes just two weeks after ministers said they had reached a compromise between businesses and unions on the right to claim unfair dismissal. The government had argued the agreement would unblock the passage of the Employment Rights Bill and allow it to become law. The House of Lords backed a Conservative proposal to force a review of a Labour plan to abolish a cap on compensation in unfair dismissal cases. The proposal to abolish the cap, which emerged from talks between unions and business groups two weeks ago, did not feature in Labour's manifesto and is being added to the bill at an unusually late stage. According to a Labour spokesperson, the party is "disappointed" by the latest defeat, which they claim is a "delay tactic" by the Conservative peers. "This is a clear attempt to defy the will of the British public, who overwhelmingly support stronger workers' rights," the spokesperson said. However, Conservative peers argue that the review is necessary to ensure that the proposed changes to the unfair dismissal cap are "fair and reasonable." A Conservative peer, who wished to remain anonymous, stated that "the current cap is a necessary safeguard against frivolous claims, and we need to make sure that any changes do not have unintended consequences." The Employment Rights Bill has been a contentious issue, with both sides of the debate presenting different perspectives on the proposed changes. The government has argued that the bill is necessary to strengthen workers' rights and protect employees from unfair dismissal. However, business groups have expressed concerns that the proposed changes could lead to increased costs and bureaucratic red tape. The bill is now due to return to the Commons on Monday, as the parliamentary process known as "ping-pong" continues until the two Houses agree. Downing Street has insisted that the government remains committed to passing the bill before Christmas, despite the latest setback.