'A deal's a deal' | Fresh Employment Rights Bill setback puts Ministers in showdown with Lords

The government has insisted it will make no further compromises on its Employment Rights Bill after peers inflicted another defeat in the House of Lords, with ministers now preparing to send the legislation back to the upper chamber as early as next week.

Conservative and cross-bench peers voted on Wednesday night to block key elements of the bill, once again targeting plans to lift the compensation cap for unfair dismissal. The move prompted anger from ministers and trade unions, who accused opponents of deliberately obstructing legislation that was part of Labour’s election mandate.

The bill is expected to return to the Commons on Monday before being sent back to the Lords on Tuesday. A government source told The Guardian that ministers could schedule further sittings in an effort to force the legislation through before Christmas.

Peers’ objections centre on the removal of the compensation cap for unfair dismissal, a measure that formed part of a broader compromise between the government, trade unions and business groups.