Employment Rights Bill
Monday 21st October 2024
(1 month ago)
Commons ChamberRead Full debate Employment Rights Bill 2024-26 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
21:59 - The House divided: - Ayes: 105 / Noes: 386 - Question accordingly negatived.
22:15 - The House divided: - Ayes: 386 / Noes: 105 - Question accordingly agreed to.
Mr Speaker
The reasoned amendment in the name of Kevin Hollinrake has been selected.
The Deputy Prime Minister (Angela Rayner)
I beg to move, That the Bill be now read a Second time.
I declare that I am a lifelong proud trade union member—[Hon. Members: “Hear, hear.] When the Government took office and I took this job, we promised the biggest upgrade to workers’ rights in a generation, nothing less than a new deal for working people. We said that we would introduce a Bill to deliver that within 100 days, and we have fulfilled the promise we made to the British public. Let us be clear: too many working people have had to wait too long for change.
Over decades, the good, secure jobs that our parents and grandparents could build a life on were replaced by low-paid and insecure work. Wages flatlined, in-work poverty grew, growth was strangled and the Tories left behind a battered economy that served no one. Today, this Labour Government, led by working people for working people, will start to turn the tide.
First, I want to note the reasoned amendment. Our reforms are ambitious—they have to be to bring real change. But we have engaged extensively and will continue to do so. Today we are publishing a package of consultations on strengthening statutory sick pay, zero-hours contracts, industrial relations, collective redundancy and fire and rehire. As the impact assessment we have published today shows, the Bill is a pro-growth Bill.
This landmark Bill—pro-growth, pro-business and pro-worker—will extend the employment protections given by the best British companies to millions more workers.
James Wild (North West Norfolk) (Con)
In a discourtesy to the House, the very extensive impact assessment to which the Deputy Prime Minister has referred was published only a couple of hours before the debate, but one thing that it says is that the estimated cost of the measures could be £4.5 billion a year. How does loading costs on to employers help to boost growth and job creation?
Angela Rayner
The impact assessment also makes it clear that the Bill will have a positive impact on growth. More than 10 million workers, in every corner of this country, will benefit from Labour’s plan, and the money in their pockets will go back into the economy and support businesses, in particular those on high streets.
Across the business spectrum, from giants like Sainsbury’s and Octopus Energy to small and medium-sized companies like Richer Sounds, successful firms already know that strong employee rights mean strong growth opportunities. The Secretary of State for Business and Trade and I have just been to the Co-op in County Durham to see how it retains valuable talent, boosts profits, and powers ahead with enlightened policies that support good working lives for its staff. The Bill will bring all businesses on board.
Graham Stuart (Beverley and Holderness) (Con)
The Government’s own impact assessment states that
“the impact on growth could”—
only could—
“be positive”,
and that any such impact
“would be small in magnitude.”
The negative impacts, not least on small businesses, will be very serious in magnitude, as my hon. Friend the Member for North West Norfolk (James Wild) laid out. Will the Deputy Prime Minister please explain how she will minimise the negative impacts?
Angela Rayner
We have already been working with businesses while bringing forward the Bill, and we will continue to do that through the consultations. We have recognised probation periods, for example, but we do not think that people should not have rights two years into their employment.
We are listening, but I say to Conservative Members, who promised employment Bill after employment Bill and then never delivered them, that the people of this country deserve secure fairness at work, and this Labour Government will deliver it. Almost 9 million employees will benefit from protection against unfair dismissal from day one, 1.7 million will benefit from new policies on flexible working, and up to 2 million will receive a right to bereavement leave. Thousands of pregnant women and mothers will benefit from new maternity protections, and tens of thousands of fathers and partners will be brought into the scope of paternity leave. We will deliver a genuine living wage that matches the cost of living.
In total, more than 10 million people will benefit from Labour’s plan in every corner of this country, so if you are in casual work, unable to rely on guaranteed hours, this Labour Government are delivering for you. If you are working hard on low pay and struggling to make ends meet, this Government are delivering for you. This is a Government back in the service of working people.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Can the Deputy Prime Minister define “working people”?
Angela Rayner
The Conservatives had 14 years to support the working people of this—[Interruption.]
Angela Rayner
Will the hon. Member listen to my response? I gave way to him. For 14 years, the Tories promised employment Bills and an industrial strategy, and in 14 years they delivered the highest cost of living for the working people of this country. It will be this Labour Government who deliver for them.
This is a Government back in the service of working people, building an economy fit for the future and making work pay. For the first time ever, we have instructed the Low Pay Commission to take account of the cost of living when setting the minimum wage, because everyone deserves a proper living wage for a proper day’s work. We have already moved to protect 4 million self-employed workers from late payments with the new fair payment code, and we have already encouraged employers not to use the ineffective and failed minimum service laws, which did not stop a single day of industrial action while in force, before we repeal them for good. That is a bold start, but we are going further. The UK labour market is not delivering for workers or businesses, and it holds back the UK economy. We know that things have to change. The Bill marks a momentous opportunity to chart a new route to growth—one built from the bottom up and the middle out—alongside the £63 billion of investment into the UK that was announced last week. Higher growth, higher wages and higher productivity—a new partnership between workers and business.
Graham Stuart
I believe it is. The Deputy Prime Minister just talked about the amount of money coming into the economy as a result of the measures. Is it appropriate for her and other Members across the House to speak in the debate without mentioning what they have received in donations from trade unions, given how central the law around trade unions is to the Bill?
Mr Speaker
You are correct: it is not a point of order, even if the right hon. Gentleman thought that it was.
Wera Hobhouse
Sexual harassment in the workplace is absolutely horrendous and has been terrible in demotivating people from staying in their workplaces. Following my Worker Protection Act 2024 becoming law, the Government proposals go even further on third-party harassment in the workplace. Does the Deputy Prime Minister agree that the Bill will encourage people by making our workplaces safer?
Angela Rayner
I agree with the hon. Member and thank her for her work in that area. We must ensure that workplaces have a good culture that does not tolerate any form of harassment, including sexual harassment, because that is bad for business as well.
The major achievement of parts 1 and 2 of the Bill will be to strengthen rights for working people. That is personal for me: I started my working life as a carer on casual terms, not knowing if there would be a pay cheque next month. The fear of not being able to provide for my young family, and of losing everything, stuck with me. Now that I am at the Cabinet table, I am determined to deliver for the millions of people in the position that I was once in, and to bring all companies up to the standard of the best when it comes to workers’ rights. The Bill is a recognition and celebration of the many employers that are already implementing such measures and, in many cases, go much further.
Rosie Wrighting (Kettering) (Lab)
I welcome the new Labour Government’s approach to ensuring that my constituents feel the benefit of economic growth. As my right hon. Friend will know, more than 1 million people on zero-hours contracts will benefit from her guaranteed hours policy. Does she agree that the Bill will raise living standards across the country?
Angela Rayner
I agree, and can confirm to the House that the Bill will finally end the exploitative zero-hours contract. Up to 2.4 million workers will finally have the right to a contract that reflects the number of hours that they work.
For too long, working people have been subject to the shocking practice of fire and rehire. Often, even the threat of fire and rehire means that people voluntarily agree to lower pay and reduced terms and conditions. Our Bill will end those bullying tactics for good, putting an end to fire and rehire and to fire and replace, unless employers can prove that they face financial difficulties that threaten the survival of their business and that changing the employee’s contract was unavoidable. After years of campaigning, working people finally have a Government who listen. No longer will working people face the scourge of fire and rehire.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
A number of our constituents were threatened with fire and rehire during the covid pandemic—shameful acts by their employers. People were fearing for their livelihoods while that crisis was going on. Does my right hon. Friend agree that we have waited far too long and cannot end the scourge of fire and rehire soon enough in order to give workers the protection that they need and deserve?
Angela Rayner
I agree with my hon. Friend. The previous Government promised to do something about the practice but failed to do anything.
Dr Andrew Murrison (South West Wiltshire) (Con)
Does the Deputy Prime Minister agree that growth, if it comes, will come from small and medium-sized enterprises, which are the bedrock of industry in this country? Does she accept that although the measures may be capable of being accommodated by large businesses with big human resources departments, they certainly will not be by small and medium-sized enterprises, so the Bill is likely to damage the growth that she insists will come under a Labour Government?
Angela Rayner
I agree with the right hon. Gentleman on the importance of small and medium-sized businesses, which do a fantastic job and contribute widely to our economy. That is why we have engaged with small and medium-sized enterprises. Many of them understand that if there is clarity around what we are doing and if we consult like we did with probation periods, then we are working with them. But many of them also recognise that the scourge of insecure, low-paid work in this country at the moment is holding Britain’s economy back. That is what we are going to change.
Paul Waugh (Rochdale) (Lab/Co-op)
The Deputy Prime Minister referenced the extra help for working parents that the Bill will introduce. Does she agree that that stands in stark contrast to the suggestion of some on the Conservative Benches that maternity pay has “gone too far”?
Angela Rayner
I agree with my hon. Friend. When the previous Labour Government brought in the national minimum wage they had the same sort of arguments made at them, but what we actually saw was that the minimum wage lifted millions of people out of poverty. It will be this Labour Government who can stand proudly and say that we stood up for the workers, and for those good employers in our country that are doing the right thing by protecting and looking after their employees.
David Baines (St Helens North) (Lab)
We are clearly going to hear a lot of the same arguments that we heard years ago, when Labour introduced the minimum wage. Does the Deputy Prime Minister agree that good employers have nothing to fear from the Bill, and working people have a lot to celebrate?
Angela Rayner
I agree with my hon. Friend. The Bill is pro-worker and pro-business; that is the context in which the Bill has come to fruition. We have been consulting wide and long on the measures, and we believe they strike the right balance to get our economy working across the board, so that people can contribute and feel that their contribution is valued as part of the UK economy.
The Bill also delivers a once-in-a-generation upgrade of the rights of our proud seafarers. Never again will any company be able to get away scot-free with exploiting a loophole to sack employees without notice. No longer will our seas be the byword for a race to the bottom on standards.
The next step in our package to transform the rights of working people is on unfair dismissal. At present, employees must wait two years for basic protections against unfair dismissal, so it is not surprising that they can be loath to change jobs and restart the clock. That is not right. It deprives people of promotion opportunities and pay rises, and it limits businesses’ ability to recruit. Under the Bill, employees will not have to wait years for protection from unfair dismissal. Instead, they will receive it from day one. Those measures alone will benefit close to 9 million people.
Saqib Bhatti (Meriden and Solihull East) (Con)
The Deputy Prime Minister talks about seafarers not being abused, but did she apologise to DP World last week?
Angela Rayner
I do not know what the hon. Member is getting at. Maybe he is getting at the former Conservative Transport Secretary, who referred to them as pirates of the high seas or weasels—I do not know. I have just said clearly to all businesses in the UK that I want to work with them to ensure that we value their employees. Many of them are onboard: they recognise that it is good for business, good for growth and good for their employees.
Kit Malthouse (North West Hampshire) (Con)
I draw attention to my entry in the Register of Members’ Financial Interests.
In relation to the point raised by my right hon. Friend the Member for South West Wiltshire (Dr Murrison), I understand that the right hon. Lady believes she is fulfilling a manifesto commitment, and we have to respect that. However, I hope she recognises that while these regulations will apply across the whole of the economy, the dynamics within small businesses and—in particular—microbusinesses are very different from those within large businesses. For example, if a business only has four employees and all four apply for flexible working, as the Bill provides for, it becomes not just a logistical and administrative nightmare but a personal nightmare for the person who is trying to run that business. I hope that as the Bill progresses, the right hon. Lady will look at what has been a customary carve-out for small businesses and consider whether that might be appropriate for specific measures.
Angela Rayner
Some of the measures in the Bill do recognise the difference between large employers and smaller ones, but we also have to ensure fairness and clarity of purpose in this country, and I think this Bill strikes the right balance. As I have said to other hon. Members who have raised issues regarding small and medium businesses, we are working with those businesses. We have already listened regarding probation periods: the Bill now creates a new statutory probation period so that employers and employees can check whether a job is a good fit. If it turns out not to be right, the Bill allows for a new lighter-touch standard of fairness for employers to meet when they dismiss someone, so I think we are striking the right balance. We have worked very hard on this piece of legislation. If workers are dismissed unfairly, everyone deserves the right to protection, however long they have been in post. With Labour, they will have that right.
Turning to statutory sick pay, no one should feel forced to struggle through work when they are not well. Our view is simple: everyone should be entitled to sick pay from the first day that they are sick, regardless of their earnings, yet 1.3 million employees are currently excluded because they do not earn enough. That means that lower earners, including carers, go to work when ill because they cannot afford not to do so, risking infecting the vulnerable, the elderly, and others with whom they come into contact. No one should want that. Under this Bill, all employees will be entitled to sick pay however much they earn, and that sick pay will be paid from their first day of being ill.
Angela Rayner
I have already given way to the right hon. Member, and there are so many other Members who want to speak.
This Government know that the current system does not support working families. We said that we would make flexible working the default, and the Bill will do just that. Flexible working makes workers happier, and we know that businesses that offer it benefit from bigger, better and more diverse recruitment pools. At the same time, we recognise that not all workplaces can accommodate all flexible working requests, so businesses will be able to negotiate or reject unworkable requests as long as that rejection is reasonable.
Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)
Who would decide whether a rejection is reasonable or unreasonable?
Angela Rayner
There will be statutory guidance, but of course, it would depend on the various different circumstances. We saw during the covid pandemic that people were able to be incredibly flexible in their work. It is with that mindset that I ask employees and employers to look at how they deliver services, because far too much talent goes out of our economy because of inflexibility. Employers should think about how much talent they can retain in their business by keeping people in work; many of the good employers already know that, and offer way more flexibility than we are suggesting in our Bill.
The current parental leave system is also outdated, which is not right. Under the Bill, fathers and partners will be able to give notice of their intention to take paternity leave and unpaid parental leave from their first day in a new job. New mums also lack the protection they deserve. We know that the Conservative party’s solution is to go back to the dark ages and scrap maternity pay altogether; if the Conservatives had their way, as a single mum, I would have been left with nothing. It was a Labour Government who introduced the maternity allowance as the number of mothers in the workforce grew, and while the Conservative party—out of step with modern Britain—cannot wait to get rid of it, I say that we will never, ever stop defending it.
Rachael Maskell (York Central) (Lab/Co-op)
I am grateful to my right hon. Friend for giving way—what an incredible legacy she is setting down today!
Adoptive parents clearly need time with their children as they bring them into their family, but self-employed adopters do not have the same privileges. Will my right hon. Friend look at how we can ensure that those parents also have proper statutory rights to take leave and receive pay?
Angela Rayner
I thank my hon. Friend for making that really important point. This is the start of a process. There are a number of consultations, such as for the self-employed and on a single category of worker, and they will continue, because some of these things are more complex than what we can deliver in this Bill. But I say to my hon. Friend and to other Members: please come to this in the spirit of what we want, which is to improve working people’s lives. As I have said, many employers already go above and beyond what we are saying in this Bill. I hope we can start to celebrate those employers who do so and to spread that across the economy.
Ms Stella Creasy (Walthamstow) (Lab/Co-op)
May I join others in celebrating this Bill and what it represents? My right hon. Friend talks about employers who are already going above and beyond. Frankly, they get it that, out there in the real world, supporting families is good for the economy and good for growth; that includes dads, who we all recognise have responsibilities. What more can she tell us about that spirit of openness in the Bill and the opportunities to look at parental leave, particularly paternity leave? What more can we do to help more families to take it up and get longer?
Angela Rayner
I thank my hon. Friend for making that important point. We all agree across the House that families play an important role, that businesses can help to support families, whatever size or shape they are, and that we must go much further to make that happen.
The Bill goes further by making it unlawful to dismiss pregnant women, mothers on maternity leave and mothers who return to work during a six-month period after they return, except in certain specific circumstances. For women in work, we will not stop there. Eight out of 10 menopausal women are in work. For most, there is no support. When workplaces fail to support women, we fail in our moral duty to treat people equally, and employers lose out on talent and skills. On pay, too, we are failing women. The national gender pay gap still stands at over 14% and is not narrowing fast enough, so we will be requiring action plans for large employers to address the pay gap and support women during the menopause.
It is a sad reality that women often find the workplace uncomfortable and unsafe. Sexual harassment at work can destroy confidence and ruin careers. We will do everything in our power to tackle it. The Bill will strengthen the duty on employers to prevent sexual harassment of employees, and it will strengthen protections for whistleblowers by making it explicit that if they do the right thing and speak up about sexual harassment, the law will protect them.
Through this Bill, the party of maternity pay and of the Equal Pay Act 1970 will introduce the next generation of rights for working women. Central to all these reforms is our belief that all employers should always support their employees. The best ones already do.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
In early September, over 500 Oscar Mayer workers, organised by Unite the Union, launched strikes against the company’s appalling use of fire and rehire. Many of these workers are my constituents and are facing serious threats to their pay and working conditions, with potential losses of up to £3,000 annually. I hugely support this legislation, but immediate action is crucial to protect my constituents and workers across the UK from such exploitative practices. Will my right hon. Friend provide clarity on the timescales for reforms to unfair dismissal?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Before the Deputy Prime Minister responds, may I say that if there are declarations of interest to be made, even in interventions, they should be made on the Floor of the House?
Angela Rayner
I thank my hon. Friend for his intervention. That is why we have moved at pace. The previous Government promised an employment Bill to protect workers and they did not deliver. Within our first 100 days, we are delivering this employment Bill.
Losing a loved one is among the hardest things for any of us. That is why in this Bill we are setting a clear standard for businesses, giving employees the right to bereavement leave. Taken together, these new rights for working people—sick pay when they need it, an end to exploitative zero-hours contracts and to fire and rehire, bereavement leave, expanded entitlements, paternity leave and new protections for women in work—represent the biggest upgrade for working people in a generation, but we are not stopping there.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Does my right hon. Friend agree that the Bill not only represents the biggest uplift in workers’ rights in a generation, but strengthens their enforcement through new enforcement measures? That stands in stark contrast to the Conservatives, who brought in unlawful employment tribunal fees.
Angela Rayner
My hon. Friend makes a very important point. We want the culture to change as well. We have had a race to the bottom where workers have not been protected, and we have seen the biggest wave of strike action because of the previous Government.
We want employers and trade unions to come together to grow our economy. The employers and the unions are up for that challenge, because we know that the world of work is fairer and more productive when working people can come together to negotiate fair pay and decent conditions. That is why we are reinstating the school support staff negotiating body in recognition of the vital role that support staff play in the workforce and in young people’s education.
As a former carer, I have said from day one that in this place I will champion carers and the complex, high-quality and professional work that they do. I am so proud to say that after 14 years, their extraordinary, life-saving contribution to our community will no longer be devalued by low pay and lack of career progression. For the first time, thanks to this Labour Government, there will be a historic fair pay agreement process in the adult social care sector, with a new body empowered to negotiate pay and conditions and ensure that training and a career structure are in place. At last, care will be rightly regarded as a multi-skilled profession and carers will be confident that they have the respect and income that they deserve for looking after our vulnerable loved ones and helping to manage the pressures on the NHS and in social care.
Paula Barker (Liverpool Wavertree) (Lab)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. Does my right hon. Friend agree that care workers are often the Cinderella service? They are low paid, but certainly not low skilled. It is time we got to grips with hostile employers who do not pay travel time.
Angela Rayner
My hon. Friend makes a very important point. The disparity in the terms and conditions for care workers actually impedes recruitment: we are seeing huge numbers of vacancies in the care sector. Through the fair pay agreement, I want to see carers being treated with fairness for the valuable contribution they make. They are also key to tackling the challenges we face in our NHS.
Alison Bennett (Mid Sussex) (LD)
I thank the right hon. Lady for raising the issue of care workers and the great contribution that they make by looking after those who need care. Does she agree that the minimum wage for a carer should be increased by £2 an hour, in line with Liberal Democrat policy?
Angela Rayner
We have already written to the Low Pay Commission, as I have set out, and we want to go further through the fair pay agreement to make sure that carers are recognised for the valuable role they play. Care workers are not just people who do the shopping or call in for 15 minutes; they handle complex needs in the community and look after some of our most vulnerable loved ones. They should get the recognition they deserve, and that is why we are taking these measures.
We know the valuable contribution that trade unions make. That is why we are resetting industrial relations. The Conservatives presided over strike Britain with their scorched earth approach to strikes. First, we are repealing the Strikes (Minimum Service Levels) Act 2023. Anyone with a brain could see that that legislation would do two things: increase tensions and fail to prevent a single day of industrial action. We said so at the time, and what happened? The rail dispute cost our economy over £1 billion. The law has failed and has no reason to stay on the statute book.
We are also repealing nearly every part of the flawed Trade Union Act 2016, which tried to smother trade unions in form filling and red tape and prevent them from doing their job. We will go further by strengthening the voice of working people by making it easier for trade unions to get recognised, giving them the right of access to workplaces and making sure that they have enough time to represent their members. When the rights of working people are flouted, a new fair work agency will be empowered to investigate. Today we are also launching a consultation on modernising trade union laws so that they are fit for the modern workplace and our modern economy.
In under 100 days, we have put together a transformative package that marks a new era for working people. We know that the Conservatives will oppose this every step of the way. We know because they have history, just as they opposed Labour’s minimum wage and now, shamefully, want to take us back to the dark ages when women were denied maternity pay. It is clear that they are out of step with modern Britain.
Our plans mark a new way forward—a new deal for working people, making jobs more secure and family friendly, banning exploitative zero-hours contracts, supporting women in work at every stage in their life, a genuine living wage and sick pay for the lowest earners, further and faster action to close the gender pay gap, ensuring that rights are enforced and that trade unions are strengthened, repealing the anti-worker, anti-union laws, turning the page on industrial relations and ending fire and rehire, while giving working people the basic rights that they deserve from day one in the job. This is a landmark moment, delivered in under 100 days. This is a pro-business, pro-worker, pro-growth Bill and a pro-business, pro-worker, pro-growth Government. Today, after 14 years of failure, we are starting a new chapter and decisively delivering a better Britain for working people.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Kevin Hollinrake (Thirsk and Malton) (Con)
I beg to move an amendment, to leave out from “That” to the end of the Question and add:
“this House notes the balanced reforms made by previous Conservative governments to improve workers’ rights, including the National Living Wage, the prohibition of the use of exclusivity clauses or terms in zero hours contracts and the introduction of shared parental leave and pay, and declines to give a Second Reading to the Employment Rights Bill because it has been rushed into Parliament without full consultation to meet an arbitrary 100-day deadline and Monday 21 October 2024 Business Today: Chamber 19 has not been accompanied by an Impact Assessment considering the impact on the Employment Tribunal, especially as a result of the removal of the qualifying period for the right to claim unfair dismissal or the impact of the extra red tape on SMEs or the impact of establishing the Fair Work Agency; because the repeal of trade union laws will lead to more strikes and intimidation in the workplace, and will force taxpayers to foot the bill for inflation-busting pay hikes without public service reform; because the Bill undermines choice for workers about whether they want to fund political campaigning and forces firms and public bodies to bankroll more trade union facility time, including trade union diversity jobs; and because the Bill is contrary to the Government’s stated goals of improving productivity and economic growth and will increase costs for businesses and consumers.”
The Conservative party will always be the party of business, but we are pro-business and pro-worker, not least because many Conservative Members have been both workers and people who have started and grown their own businesses. Those who have done so are the first to appreciate the symbiotic relationship between the two. We acted during our time in office to improve workers’ rights in several areas: flexible working, parental leave, redundancy protections, ensuring that workers keep the tips left for them by their customers, and significant increases to the national living wage.
I started my first significant business back in 1992. Over three decades, we grew to become a national business employing hundreds of people. We valued every one of those people. We were one of The Sunday Times’s best 100 companies to work for and were certified by Investors in People. I believe that business is a force for good and that businesspeople do great service to our communities and the wider economy. As Winston Churchill put it, they are the strong horse that pulls the whole cart.
The question I now ask myself is whether I would start that small business again today if the Bill were in place. Sadly, the answer is probably no—certainly not a business that employed any people. The very high cost of these measures will be borne by all companies and passed on in the form of higher prices, reduced wages and lost jobs. The measures will fall most heavily on small businesses, for which they could be existential.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Does the hon. Member remember 1997 and 1998, when the Conservative party said that the social chapter and the national minimum wage would cost half a million jobs? In the late 1990s, half a million jobs were actually created.
Kevin Hollinrake
I was not here at the time, but it is clear nevertheless that the minimum wage and the national living wage have had a positive effect on prosperity in this country, and I would be the first to admit it. I want the hon. Lady, and other Government Members, to understand that those measures fell equally on all businesses across the UK. The measures in this Bill fall disproportionately hard on small businesses.
What the right hon. Member for Ashton-under-Lyne (Angela Rayner) fails to understand is that the implication of these measures, such as a day one right to an employment tribunal, is that even a spurious case of unfair dismissal costs time and money. It is potentially tens of thousands of pounds to defend that case. As one business organisation put it, “You lose when you are accused.” Most small businesses saddled with such a cost would be sunk without trace. It is not just that, but the deterrent effect, which it would have had on me, and which will be felt right across the economy and by every existing and aspirant business person across this entire nation. When the Deputy Prime Minister reflects on what she is hearing from people who have actually run a business, will she at the very least consider exempting small and medium enterprises from this catastrophic Bill?
Graham Stuart
Like my hon. Friend, I started a business—I started mine a little earlier than him, but that is how much older I am. I followed the Deputy Prime Minister’s speech as carefully as I could. From what I could understand, because of the changes in the Bill, someone can fail to turn up to work on day one claiming that they are sick and then, because they will now have rights against unfair dismissal, they will be able, without ever doing a day’s work, to hold a small business to ransom and put that business at risk.
Kevin Hollinrake
As drafted, that is certainly the case. My right hon. Friend is absolutely right. Members may not know that small businesses stand the cost of statutory sick pay. It is not reimbursed by the Government, so the Bill would have a significant cost for businesses.
Several hon. Members rose—
Richard Burgon (Leeds East) (Ind)
I have listened with interest to what the shadow Minister is saying about people being entitled to go all the way to an employment tribunal hearing from the moment they take up employment. Has he ever heard of pre-hearing reviews for employment tribunals?
Kevin Hollinrake
The point I was making is that the case may go all the way to an employment tribunal, as the hon. Gentleman knows, but there would also be the cost of defending the case even if it does not. That small business will have to bring consultants in and will have to speak to lawyers. That itself costs money, and in many cases that will be thousands of pounds. That is what the hon. Member fails to understand: when you are accused, you lose.
Several hon. Members rose—
Kevin Hollinrake
No, I will make a little progress. The cost of all these measures—in individual opportunities and to the wider economy—is huge. The Government may try to deny that, despite their clear lack of experience of the real world of business. It is extremely alarming that not one of those on the Front Bench today have ever started or run a business that employed anyone. Even worse than that, only one member of the Cabinet has ever done so, and that is the Secretary of State for Scotland.
Shamefully, given what is at stake, the Government cannot deny our case that the Bill will have a huge economic cost, because today—finally, two hours before this debate—they have actually produced the impact assessments. The cost of the Bill is on the very first page: up to £5 billion per annum. The word “uncertain” appears 302 times in those impact assessments, and the word “risk” is used 432 times, so the cost is likely to be much more.
Paula Barker
The shadow Minister has just said that shamefully there is only one person on our Front Bench who has run a business. How many of his Front-Bench team are trade union members?
Kevin Hollinrake
I am not a trade union member, and I would not know about my colleagues, but I started a business, as did my hon. Friend the Member for South Suffolk (James Cartlidge), as did the shadow Chancellor and as did many others in our party. We are proud of that fact.
This morning I met business representatives covering all parts of the British economy. Like us, they have serious reservations about this Bill. The Institute of Directors highlighted the fact that 57% of its members will be less likely to hire staff, with only 2% saying that would be more likely. The Confederation of British Industry said that the costs associated with this Bill cannot be afforded by 54% of businesses.
Jim Shannon (Strangford) (DUP)
This legislation applies to England and not Northern Ireland, but I echo the hon. Gentleman’s concerns. I am concerned about small and medium businesses that employ a small workforce. If one or two of them have a long-term illness, they may be off for a while, come back to work and then go off for a while. Is there not a need—I look to the Deputy Prime Minister—for a methodology whereby small businesses can employ someone in the short term for those positions, otherwise they will go to the wall?
Kevin Hollinrake
I agree. I was interested that the Deputy Prime Minister said that her menopause measures would be exclusive to large businesses. I welcome that, and I ask her to look at attaching the same conditions, ideally, to the entire Bill, but if not to certain parts of it. The risks for small businesses are simply catastrophic. Even one or two cases could completely sink a business.
Dr Luke Evans
When it comes to risk, is my hon. Friend concerned about the timing of this legislation if, as reported, the Budget raises national insurance for those businesses? Is that yet another risk in addition to this legislation?
Kevin Hollinrake
My hon. Friend is right. This morning we met representatives from UKHospitality, who said exactly that: the Bill is coming on the back of a number of changes and some difficult times during covid for industries that employ a lot of people, which will be particularly badly affected by this legislation. The Government should think twice about implementing it at this moment in time.
Sir Edward Leigh (Gainsborough) (Con)
My hon. Friend mentioned the 302 mentions of uncertainty. It is hard to know how that can foster growth. Let us be honest: businesses are already more highly taxed and regulated than ever before. We all know the reason—the pandemic— and we have to take responsibility for that. Will he assure me that, as a party, we will use this period of opposition to once again proclaim our values as a low-tax, deregulated economy? Otherwise, how will we foster growth in an increasingly competitive world? If we tax businesses more, we simply lay the foundation of a future Labour Government.
Kevin Hollinrake
I agree. We should be low tax and low regulation. One of the saving graces of this legislation is the detail, although the Bill itself is light on detail: many of the measures will be brought in through secondary legislation, therefore making it easier for a future Government to reverse some of the catastrophic changes.
Several hon. Members rose—
Kevin Hollinrake
I will make some progress. The Government’s own impact assessment acknowledges that the measures will mean price rises for consumers and job losses. In it, 40% of firms surveyed said that prices would go up, and 17% said that they will reduce the number of employees. That is hundreds of thousands of jobs at risk.
The criticism of the Bill does not stop there. The Institute for Fiscal Studies has warned that it risks lower employment rates and lower wages for employees. The Local Government Chronicle has warned that the Bill will place financial pressure on councils. The Recruitment and Employment Confederation has said that the Bill will fuel long and complex litigation. The Financial Times has warned that the Bill is causing deep unease among business leaders. In short, jobs down, wages down and prices up.
In their failed attempt to allays concerns about the Bill, the Deputy Prime Minister and the shadow Business Secretary have stated that they have consulted businesses—
The Secretary of State for Business and Trade (Jonathan Reynolds)
You are the shadow Business Secretary.
Kevin Hollinrake
Sorry, though I think the Prime Minister is guilty of similar; I do apologise. The Deputy Prime Minister and the Business Secretary have stated that they have consulted businesses. Really? The Federation of Small Businesses said not only that the Bill will
“inevitably deter small employers from taking on new people”,
but that it is a
“rushed job, clumsy, chaotic and poorly planned”
and that the Government are guilty of shallow engagement. So much for the “strong horse”. Several representatives at this morning’s meeting said that they have been talked to but not listened to—including those representing the hospitality and retails sectors some of the most labour-intensive in our economy, which is acknowledged in the impact assessment.
Kit Malthouse
Alongside the many negatives relating to the Bill that my hon. Friend has laid out, does he recognise the strong possibility that, particularly in small and micro businesses, the legislation could inject quite significant resentment among the staff body itself? For example, just to amplify my previous point, if you have six members of staff and three of them apply for flexible working, that has an immediate impact on those who do not have flexible working. The ability of the business to offer flexible working to future workers is also reduced, which turns the whole thing into a massive negotiation between six or seven people. That could have a significant impact on morale and sense of fair play within businesses themselves.
Kevin Hollinrake
My right hon. Friend is absolutely right. There speaks somebody who has actually run a business and understands the impact on a small employer. That is why we say there should be a carve-out, certainly for small and micro businesses.
We have to ask ourselves this: if the Government are not listening to businesses who “pull the whole cart”, who are they listening to? I think we all know the answer to that. A consultation is not five minutes inside No. 10 and a photo opportunity. Proper consultation is working with business, listening, taking your time and not rushing things—the exact opposite of what the Government have done. We know why that is. The Deputy Prime Minister made a misguided promise to Labour’s trade union paymasters that legislation would be introduced within 100 days. Despite 100 days of gloom and doom, talking the economy down and wrecking business confidence, they managed it—just.
The Government are not even listening to their own legal experts. Only last week the Attorney General said:
“excessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation, upsets the proper balance between Parliament and the executive.”
Because the Bill is such a rushed job, it takes swathes of delegated powers, including Henry VIII powers, meaning the final policy will be decided later at the Secretary of State’s whim—not now by Parliament. Legislating that way is causing real concerns for businesses today. The Deputy Prime Minister and her colleagues preach stability, yet in the same breath they are causing instability, uncertainty and falling confidence at a cost of jobs and investment today. There are already 58,000 fewer payroll jobs than when Labour took office. Confidence levels at the Institute of Directors on future investment intentions have dropped from plus 30 in June to minus six today. The Government are planning 30 consultations on the measures in the Bill. They should have taken place before the Bill was introduced, so the legislation could be precise about what it will do.
Saqib Bhatti
I thank the shadow Secretary of State for giving way. He talks about trade unions. I have just seen a news update on the Unite union’s Birmingham hotel and conference centre being investigated by the Serious Fraud Office. The total cost was £112 million, but it has now been valued at £29 million. Who will hold the trade unions to account in the Bill?
Kevin Hollinrake
My hon. Friend makes a strong point. That certainly needs looking at very carefully.
As the Government’s attempt at business consultation has clearly failed, and as no one on their Front Bench has any business experience, I will draw the right hon. Lady a picture of what the Bill actually means for businesses.
Mr Richard Quigley (Isle of Wight West) (Lab)
As the owner of two successful small businesses—[Interruption.] I know Opposition Members like to do that—it’s pantomime—but they can listen. As the owner of two successful small businesses and an employer of 25 people in the hospitality sector, I welcome the Bill. Do Opposition Members agree that the main reason they are against this groundbreaking employment Bill is because they are embarrassed about their own record over the past 14 years?
Kevin Hollinrake
I welcome the fact that there is at least some business experience on the Government Benches. Perhaps the hon. Gentleman joined the wrong party.
The hon. Gentleman will recognise the picture of what the Bill means for businesses. They will be terrified to take new people on for fear of huge compliance costs and legal action. They will be tied up in red tape, something that the Prime Minister said he was taking an axe to. They will have to cope with measures such as the need to frequently recalculate all workers’ hours for each reference period for each separate employee, each of which will have a unique date as they will be required to proactively offer guaranteed hours. This is not even restricted to those on zero-hours contracts. It will be for anyone on low hours—a bureaucratic nightmare. They will have to deal with a new right to demand flexible working, such as a four-day week. The right hon. Member for Islington North (Jeremy Corbyn) must be proud. Businesses will have to become the free speech police to prevent any of their customers offending their staff. They will have to deal with a new regulator, the fair work agency, which will have the power to enter any business premises, confiscate documents and levy fines—all backed up by new criminal offences with penalties of up to two years in jail.
Emily Darlington (Milton Keynes Central) (Lab)
As someone who has started and run a business, I should like to know the hon. Gentleman’s opinion of the views of the former Business Secretary, the right hon. Member for North West Essex (Mrs Badenoch), that the minimum wage is a burden, that statutory maternity pay is excessive, and that equal pay protection in respect of race and disability is akin to segregation policies in South Africa—or does he want to distance his party from her comments?
Kevin Hollinrake
That is not what my right hon. Friend said at all. I worked with her when she was Business Secretary, and at no point did she ever say that about maternity pay. She was talking about regulation costs. She was simply pointing out that for many businesses, particularly in retail and hospitality, the rise in the national living wage has been very difficult to cope with. She was not talking about abolishing it. Businesses will have to deal with new union powers to gain access to any business premises and contact its staff—wonderful!—in order to recruit and organise members and make it much, much easier for a union to gain recognition. As the impact assessments state—this is great news; this will really cheer everyone up—there will be “increased industrial action” and tax rises to pay for increased pay demands. [Interruption.] That is what the Government’s impact assessments say. Labour Members should check their impact assessments. 1970s, here we come! There is much more, but in short, it all means that the tail will be wagging the dog.
Nigel Huddleston (Droitwich and Evesham) (Con)
I am sure that my hon. Friend will be aware of the history of Labour Governments since the second world war. Every single one of them has left office with employment higher than it was when they started. Is he concerned about the possibility that this Government will repeat the same mistakes, especially given their lack of business awareness and understanding of the private sector?
Kevin Hollinrake
I am very concerned about that. Today there are 4 million more jobs in our economy than there were in 2010, and 1.2 million fewer people are unemployed. I am very worried about the things that my hon. Friend is very worried about.
Making work pay is a laudable aim, but as one stakeholder put it this morning,
“work doesn’t pay if there’s no work”.
Most people recognise that one of the reasons why the UK is the third most popular destination in the world for inward investment, which creates hundreds of thousands of jobs throughout the economy, is the flexible labour market that the Government are now seeking to eliminate. Do the Deputy Prime Minister and her Cabinet colleagues realise that? Perhaps they secretly do, given that nine out of 10 of those Cabinet colleagues recruit on terms that are at odds with these new regulations. Sixteen Cabinet Ministers, including the Chancellor, the Foreign Secretary, the Home Secretary and the Energy Secretary, have hired people for roles that involve working outside regular hours and at weekends; six Cabinet Ministers have hired people to roles with extended probation periods; and seven Cabinet Ministers, including the Chief Secretary to the Treasury and the Deputy Prime Minister, have hired on “insecure” fixed-term contracts. Why would they introduce legislation that they do not understand or even comply with themselves? The answer is, of course, their union paymasters.
Much like the more than 200 Labour MPs who have taken trade union cash, the Deputy Prime Minister has her donations to think of. She declared her interests as a union member, but she did not declare her interests as someone who had taken £13,000 from unions in donations. The question of what is orderly is up to your judgment, Madam Deputy Speaker, but it seems to me that that should be declared at the start of any Member’s contribution.
This is not an Employment Rights Bill, but a trade union charter—a charter that will bring about no-knock warrants that allow unions to access all business premises, from the local takeaway to the local pub. Clearly, shutting the beer gardens is not enough for this Government; they are now relying on strike action to stop you getting a pint. Under this trade union charter, trade unions will revert to requiring people to opt out of donating to unions’ political funds. That will line Labour’s pockets with default donations from working people. This trade union charter will abolish the thresholds for strike action, unleashing waves of low-threshold strikes, and crippling public services by putting power in the hands of militant trade unions. This trade union charter will force employers to inform their staff that they can join a union at every turn. This trade union charter will reduce notice periods for strike action, meaning that businesses will be plagued by zero-warning strike action, which will unleash misery on the public at the last minute.
Tom Hayes (Bournemouth East) (Lab)
We have just had a general election. The Labour party won a historic majority on the basis of a manifesto that was pro-business, pro-worker and pro-growth. Through the Bill, we are bringing forward provisions that were sketched out in our manifesto. Why is the hon. Member choosing not to listen to the result of the election? In choosing to reject the provisions in the Bill, he is not learning from the result of the general election.
Kevin Hollinrake
We deserved to lose the election fair and square, but the hon. Gentleman should look at that result, because it was not a popular vote for Labour. The party’s popularity is dropping by the day, and the business confidence that we need to protect in this country is dropping by the day.
The Bill is a trade union charter. By repealing the Trade Union Act 2016, it will increase the number of strikes by 53%. It is a charter that will take Britain back to the 1970s—a stated goal of the Deputy Prime Minister. The public will pay the price not just through uncollected waste, dysfunctional local government and picket lines outside hospitals, as in the 1970s; they will be forced to pay through higher taxes—a fact that the Government have now admitted in the impact assessment, despite pledging not to increase taxes on working people.
At a time when the Government claim to be scrambling for cash and are taking the winter fuel payment from 9.5 million pensioners, they have the gall to drive up taxes to reward their trade union paymasters. That will be done not just through higher national insurance, a hike in fuel duty or whatever other punishing measures the Government choose, but through council tax. Because of the Government’s Corbyn-style collective bargaining for social care, councils will be required to stump up an additional £4.2 billion, or £150 per household.
The path that we took in government was pro-worker and pro-business. Whereas this Government put party first and country second, we worked in partnership with businesses and workers to deliver improvements without risking investment, unemployment and businesses going bust.
Sonia Kumar (Dudley) (Lab)
I just want to double-check: have you actually read the Bill? It talks about a consultation period with businesses, and the provisions will not be rolled out until 2026. There will be a probation period for certain businesses. We are pro-business, and maybe the shadow Minister should read the Bill properly.
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. We should not refer to other colleagues in the Chamber as “you”. It is quite simple.
Kevin Hollinrake
I wish the hon. Member for Dudley (Sonia Kumar) was with me for the hour I spent with the representatives of organisations this morning. They do not feel as she does—that there is nothing to see here and nothing to worry about. They are very concerned, and we should all be worried about that.
Through our approach, we doubled the minimum wage, boosted employment by 4 million, cut taxes on working people by £900, cut youth unemployment, slashed the employment rate and rolled out the biggest ever expansion of free childcare. Our approach recognised that by harming business, which is the strong horse that pulls the whole cart, we are harming workers—a fact that this Government have clearly failed to grasp. This Bill puts the cart firmly before the horse. For small businesses particularly, it creates an existential crisis of a magnitude not seen since the pandemic. The future of hundreds of thousands of business people and millions of jobs is in the Deputy Prime Minister’s hands. I urge her to think again, withdraw this legislation and listen carefully, not just to the unions but to the voice of business, before it is too late.
Several hon. Members rose—
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Over 80 Members wish to contribute. To try to accommodate most of them, I will limit Back-Bench speeches to three minutes and maiden speeches to five minutes. The first Back-Bench contribution is from Mike Amesbury, and I know that he will not want me to cut him off.
Mike Amesbury (Runcorn and Helsby) (Lab)
I stand here not only as the Labour MP for Runcorn and Helsby, but as a former trade union convener and shop steward for the wonderful trade union Unison. I am also a GMB member and a member of the Union of Shop, Distributive and Allied Workers. I am proud to have the opportunity to speak in this Parliament with a trade union voice, coming from a working-class background, and as part of a Labour Government. How fantastic is that? I also proudly refer the House to my entry in the Register of Members’ Financial Interests. Have a look: it is very clean money—trade union money.
This is an important day for the history of the labour movement and for industrial relations in this country. This Employment Rights Bill is pro-business, pro-worker and pro-growth. This is exactly the change that we were elected to make, just a few weeks ago. The Bill works in partnership with business and trade unions. It is not the work of fiction—I say this respectfully—that the shadow Minister described in his response to my right hon. Friend the Deputy Prime Minister. Labour Members are pro-jobs, but pro good jobs. We are pro-business, but pro good business. The Bill is also good for Britain. We want to turn the page on an economy that has been blighted by insecurity, poor productivity and low pay, and we want growth that leaves nobody behind in our communities.
I pay homage to the architects of this landmark legislation: the trade unions, of course; the former shadow Minister, my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald); my good friend the Deputy Prime Minister; and my neighbouring MP and good friend the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). We were elected on a manifesto for change, and today that change begins—delivered within 100 days, as the Deputy Prime Minister said.
The Bill brings forward 31 employment reforms to help young and not-so-young workers alike. It marks the end of exploitative zero-hours contracts and fire and rehire practices, establishes day one rights to paternity, parental and bereavement leave for millions of workers, improves statutory sickness pay and collective bargaining, and provides for fair pay agreements. It means that 9 million people will have protection from unfair dismissal from day one, and that over 1 million people on zero-hours contracts will benefit from a guaranteed hours policy. This will help many in all our constituencies. An additional 1.5 million parents taking unpaid parental leave will be brought into scope of employment rights from day one. This Bill is a game changer. It is a manifesto commitment that I and everyone on the Labour Benches were proud to be elected on, and I look forward to our labour coming to fruition over the next few months and years.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson, Sarah Gibson.
Sarah Gibson (Chippenham) (LD)
Broadly speaking, the Liberal Democrats support the Government’s desire to modernise employment rights and make them fit for the modern working world. I hope the Government will appreciate our constructive scrutiny of the Bill today, to ensure that it is as helpful as it can be, for workers and small businesses. In the interests of transparency, I would like to mention that I have been a small business owner for most of my adult life, but I have also been an employee. I will start by outlining the improvements that the Government should make to better support carers, parents and those who fall ill. I will then move on to what adjustments must be made so that small businesses receive adequate support.
Members across this House will know that fixing our social care system and adequately supporting carers is a key issue for the Liberal Democrats. The Bill makes no clear statutory commitment to introducing paid carer’s leave. That omission strikes us as a missed opportunity for the Government to adequately support carers’ ability to juggle employment with their caring responsibilities. The Government’s “Next Steps to Make Work Pay” paper, which accompanies this Bill, commits to reviewing the implementation of paid carer’s leave. However, the Liberal Democrats believe that the Government should go a step further. We will be looking to strengthen the legislation in this area, and we hope that the Government will not waste the opportunity to make genuine progress on carer’s leave. As ever, I am happy to meet Ministers at any time to discuss this in greater depth.
The Bill could do more to support parents. We welcome the Government’s proposal that parents should be able to benefit from support, irrespective of how long they have worked for their employer. We also support the proposal to introduce new rights to bereavement leave, which will allow employees to take much-needed leave from work to grieve the loss of a loved one. This will be especially important to those who lose a close relative or who experience a miscarriage.
The Liberal Democrats have called for measures to support parents through unemployment, and to extend parental pay and leave to self-employed parents, as has been mentioned. We have also called for measures to increase statutory maternity leave and shared parental leave to £350 a week, and to increase pay for paternity leave, with an income cap for high earners.
In addition to improving the Bill’s support for carers and parents, we also believe it could do more to support people when they fall ill. At £116.75 a week, statutory sick pay remains far below the minimum wage and is effectively a disincentive to take time off. This has a severe impact on public health, productivity and, ultimately, economic growth. A higher rate of sick pay would enable people to take time to recover without having to worry about making ends meet. Of course, any such measures should go hand in hand with appropriate financial support for small businesses.
That brings me to how this Bill can be improved for the benefit of small business owners, and I have already stated my interest. It is vital that small businesses are actively consulted on how to support them with any additional costs that the Bill may bring. Having spoken to many SMEs in my constituency, I would like to know what consideration the Government have given to the Bill’s proposals on changes to unfair dismissal during probationary periods. How will small businesses, which do not have the resources of HR professionals, be supported through these changes? Unfortunately, much of the crucial detail that would help such businesses to prepare for the impact of the Bill has been left to secondary legislation and further consultation. Although we support as much consultation as possible, the lack of detail in the Bill does not facilitate certainty and stability for businesses or workers.
The Liberal Democrats urge Ministers to ensure that new measures to support workers go hand in hand with support for small businesses, starting with the reform of our broken business rates system. The current system effectively taxes business premises and machinery, which discourages investment and heavily burdens key sectors in my constituency, from retail and manufacturing to renewable energy production. Again, if Ministers are open to meeting me and my Liberal Democrat colleagues, we would be happy to discuss our proposal for reforming this broken system and bolstering our SMEs.
This Bill has the potential to mark a new chapter in how we deliver fairness for both business owners and employees. We believe it will modernise our legislation to reflect the needs of today’s workforce.
Mr Will Forster (Woking) (LD)
My hon. Friend has said that the Bill does not go far enough to support families. In my Woking constituency, 350 children are unable to join the Scouts because of a lack of volunteers. Does she agree that the Government should consider adding to the Bill a right to ask for statutory volunteer leave?
Sarah Gibson
My hon. Friend makes an important point about volunteering across the country.
But the Government must go further. We must do more to support carers, parents and those who fall sick. The Bill must do more to provide small businesses with certainty, stability and transparency. We on the Liberal Democrat Benches look forward to the Bill’s passage and will work with colleagues to ensure it delivers on its full promise, but we hope that our proposals to improve the legislation are fully considered.
Ms Stella Creasy (Walthamstow) (Lab/Co-op)
As a proud member of the Community and USDAW trade unions, I am delighted with the legislation. In the short time available to me, I will focus on the particular issue of whether we work to live, or we live to work, because so far the debate in this place, particularly in the remarks made by Conservative Members, has sounded like something from the mesozoic era and the dying era of the dinosaurs.
Let us get something straight: tackling sexual harassment in the workforce is not about free speech, but about stopping a crime; flexible working does not mean people work less, just that they work flexibly; and rights do not make people irresponsible employees, any more than it is noticeable that our competitors internationally are ahead of us on this work. The measures in the Bill are about entrenching good practice, so that we have a race to the top, not a flounder to the bottom, as we did under the previous Government.
That is why I and others hope to push the Government to go further on maternity and paternity rights. It vital that the Bill contains protections for mothers around maternity discrimination, but such measures will only work if we include the other 50% and bring dads into the equation. We do not really have a gender pay gap in this country any more: we have a motherhood pay gap and a motherhood penalty. Women face the discrimination of being made unemployed not only when they have children but because they might have children, and women who have kids find that when they go back to work, they are considered to be less committed, capable and competent. Women who are childless are six times more likely to be recommended for a job and eight times more likely to be recommended for a promotion.
The issue cuts the other way too, because there is a fatherhood premium as fathers are considered to be more reliable employees. We must not entrench these inequalities but overturn them, so that dads can be part of their kids’ lives and mums can get a fair crack at being in the workforce. A third of dads in this country take no paternity leave at all; half of them say that is because they feel pressured financially to go back to work early. Modern employers get the problem and are offering more than the statutory minimum. Some 92% of fathers who are job hunting say flexibility makes all the difference when they choose which job to take. After the pandemic, the number of stay-at-home dads increased by a third. Frankly, dads want to step up to the plate, whatever Members on the Conservative Benches may think, and mothers want them to be there too.
Making such changes matters to the economy. The loss of productivity that comes from women caring for their parents or their children means that millions are being cut out of our economy. We have some of the longest working hours for dads in Europe, and some of the shortest working opportunities for mums. Putting in measures to support paternity leave will be good for both sides of the equation. Let us not be the generation in which dads say they never got the chance to know their teenage kids, and mums say they never got the opportunities they wanted. Let us amend the Bill to ensure paternity leave matches maternity—
Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)
I will speak to the amendment, especially about the Bill being rushed through without full consultation.
On 13 May 2014, I tabled a ten-minute rule Bill on the Prohibition of Unpaid Internships, as Members will see in volume 580 of Hansard, column 593. On 14 November 2016, I tabled a private Member’s Bill, the National Minimum Wage (Workplace Internships)—volume 616 of Hansard, column 1156. On 27 October 2017, Lord Holmes of Richmond tabled the Unpaid Work Experience (Prohibition). And on 5 February 2020, I co-sponsored the Unpaid Work Experience (Prohibition) Bill introduced by Alex Cunningham, the former Member for Stockton North, now retired.
Despite unpaid internships being mentioned in the Government’s policy documents on work, they are not in the Bill. The Government have said that they will tighten up the ban, but there is no ban on unpaid internships—they exist, as they did in the last Parliament, not least with many a Member on the opposite side of the House. If there were such a ban, it would not have to be mentioned in policy documents.
A ban should have been brought in alongside the Bill. There will be a lot of hubris on the Government Benches about bringing forward a landmark employment Bill, with Labour Members saying the Conservatives did nothing, despite all the evidence laid out by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) in his excellent opening speech. [Interruption.] It is all very well burying one’s head in the sand, but every one of the Bills I brought forward got kicked into the long grass, not least my private Member’s Bill, when the only Labour Member present was the shadow Minister. If Labour MPs had turned up, we might have been able to get a closure motion, but they decided not to. That has been the story throughout. If the Deputy Prime Minister does want the Bill to go through, she needs to fight off whatever it was that stopped it each time; I always started out with the commitment that it would happen, and then somehow people were convinced not to do it. I say that in a constructive way to the Deputy Prime Minister, who I know very well.
An intern should be defined as a worker. We were talking about an amendment to the National Minimum Wage Act 1998 that says that work experience is important, but after 20 days or four weeks in work, an intern should be treated as an employee. Work should always pay, and if someone is contributing after that period of time, they are adding something to the business.
Bradley Thomas (Bromsgrove) (Con)
Does my right hon. Friend agree that the fundamental approach behind the Bill should be one of pragmatism rather than tribal ideology?
Sir Alec Shelbrooke
I am grateful to my hon. Friend; pragmatism is important when we talk about business. In that spirit, there is a pragmatic reason why the Bill should not be given its Second Reading today—perhaps at some point it should, but I fear it has been rushed through to meet the spin about the first 100 days.
I would wager that few Labour Members today had plans to talk about unpaid internships, which is a very important issue. I could talk for a very long time about unpaid internships, as I have for hours in this Chamber previously. To ensure equal opportunities for young people, the issue of internships is vital, but it is one that is sadly lacking from the Bill. That speaks to the amendment tabled by my hon. Friend the Member for Thirsk and Malton: the Bill has to some extent been rushed.
Ruth Cadbury (Brentford and Isleworth) (Lab)
I draw attention to my membership of the GMB. I support this landmark employment Bill, the biggest expansion of workers’ rights for a generation. Today we see the difference that a Labour Government can make for people up and down the country.
Although I support all aspects of the Bill, I will focus specifically on the transport sector. During and following the covid pandemic, transport workers faced the short end of the stick of poor employment practice. I welcome the end of fire and rehire. That unfair practice was used as a sledgehammer against workers, particularly during the pandemic, by companies such as British Airways, which tried it on more than 35,000 staff members, including many of my constituents in Hounslow. BA staff who had worked for decades faced the prospect of being sacked and rehired on poorer pay and weaker terms and conditions.
After huge pressure from trade unions, Labour MPs and the Transport Committee, BA dropped its plans, but other firms such as P&O have also exploited the weakness in UK employment law that the Bill is intended to address. Those practices are still happening, as my hon. Friend the Member for Montgomeryshire and Glyndŵr (Steve Witherden) highlighted in his intervention on the Deputy Prime Minister. When workers were facing fire and rehire, Labour was clear that a Labour Government would ban that practice, and I am pleased the Government are doing that. I welcome clause 22.
On minimum service levels, the Bill will also repeal and scrap the previous Government’s Strikes (Minimum Service Levels) Act 2023—a farcical bit of legislation designed to limit strike action. In Committee, when I pushed the rail operators on the proposed legislation, it was clear that they had not sought it and they appeared to have no plans to use it. The fact that so few rail operators chose to use the powers once they were enacted showed that the companies themselves doubted their value and use.
This Bill also brings in much-needed modernisation of our maritime laws. In the last Parliament, the then Chairs of the Transport Committee and the Business and Trade Committee—one Conservative, one Labour—jointly wrote to the then Government about the need to update our laws to protect maritime workers. I welcome the Bill’s closure of the loophole whereby ships registered overseas previously did not have to inform the UK Government of collective redundancies, and the fact that this Government have committed to further strengthen workers’ rights at sea.
In conclusion—
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. I call Shivani Raja to make her maiden speech.
Shivani Raja (Leicester East) (Con)
It is with great privilege and a deep sense of responsibility that I stand before you today, Madam Deputy Speaker. As I take my place in this historic Chamber, I am acutely aware of the profound trust placed in us by the constituents of our great nation. I wish to express my heartfelt gratitude to the people of Leicester East for electing me to represent them in Parliament.
My story, like that of many in Leicester, is one of heritage, resilience and opportunity. My parents arrived in Leicester from Kenya and India in the late 1970s, bringing with them cultural and faith traditions and a remarkable work ethic. They made Rushey Mead their home, and I was born and raised there. From Herrick primary school to Soar Valley college and De Montfort University, Leicester has nurtured me every step of the way and for that I am deeply thankful.
As is customary, I pay tribute to Claudia Webbe, my immediate predecessor, who served the constituency to the very best of her ability. Claudia followed in the footsteps of Keith Vaz who, alongside Paul Boateng and Bernie Grant, broke new ground in the representation of people of colour in Parliament. In the election, I had the unique experience of standing against both Claudia and Keith—a testament to the vibrant political landscape of Leicester East.
Leicester is a city of remarkable history and diversity. Leicester hosts the largest Diwali festival outside India. It is home to the UK’s longest running comedy festival. It is one of England’s oldest cities, so much so that we found a king under one of our carparks; for those who do not know, one of our earliest kings, King Richard III, was found under a carpark in Leicester. The University of Leicester is the birthplace of DNA fingerprinting. Leicester is also home to the National Space Centre and we are proud of our contributions to the arts, sciences and sports.
We have got it all going on in Leicester, but if Members remain unconvinced that Leicester has influenced their life, because perhaps they are not a former monarch or a scientist in their spare time, Leicester has also given Britain icons like the late Lord Richard Attenborough and—very much living—Sir David Attenborough, Gary Lineker and Peter Shilton. Our city is where Walkers crisps were born and where fashion guru Gok Wan grew up. Leicester’s influence even extends to music, with entertainers like Engelbert Humperdinck and Showaddywaddy. So whether you have tucked into a bag of ready salted, gone to the cinema to watch “Jurassic Park” or boogied on down to “Hey Rock and Roll”, you’ve got Leicester to thank.
This is what true diversity looks like. In fact, in 2013 Leicester was described as the most multicultural city in the UK. Today, 59% of people living in Leicester are from ethnic minority groups, and 41% were born outside the UK. But most relevant to today’s debate is employment and businesses in my constituency. Leicester is located at the heart of England, and local businesses are the lifeblood of our city. Leicester was recognised as the UK’s most entrepreneurial city—a title that reflects the resilience, creativity and determination of its people. Our entrepreneurial scene is not just about numbers; it is about stories, of those who dared to dream big, hustled harder, and turned their ideas into reality.
The Employment Rights Bill threatens to undermine that spirit before those entrepreneurs have even made their first £1. The additional costs and regulations proposed will act as a barrier to entry, discouraging the very innovation and hard work that has earned Leicester that title. We must be cautious not to stifle the ambition of small business owners, who are the backbone of our economy. Our journey is one of innovation and community—a story of people coming together across different sectors and backgrounds to build something truly remarkable.
In a city as diverse as Leicester, many rely on flexible work to balance family commitments, faith observances or second jobs. By imposing blanket regulations that do not consider the unique needs of our communities, the Bill risks alienating the very workforce it aims to protect. We must ensure that employment regulations support businesses and workers alike. Imposing regulations that add costs without first offering support will harm the very people Labour claims to champion. For our small businesses in Leicester, many of which work with razor-thin margins, the burdens imposed by the Bill will be overwhelming. It is one thing to champion workers’ rights, but quite another to do so in a way that risks the survival of the very businesses that provide the jobs.
Let us not forget that successful businesses are the best way to secure meaningful long-term employment. Our decisions in this House will shape the future of our country for generations to come. It is imperative that we approach these challenges in a spirit of collaboration, transcending partisan divides to serve the best interests of all our constituents. With our nation facing economic challenges, the Bill risks raising costs for consumers and worsening the cost of living crisis, particularly in communities like Leicester East, where many are already struggling to make ends meet. We must find solutions that protect workers without penalising local businesses and their customers.
I am honoured to stand before the House as the Member for Leicester East, and I warmly invite you, Madam Deputy Speaker, and all hon. Members to visit our great city. You can join us for our glorious Diwali celebrations, our annual Pride parade or our vibrant Caribbean carnival. Come and experience the city where fish and chips are just as popular as samosas and kebabs, and where Stilton and Red Leicester cheeses sit alongside Italian pizza and French patisserie. The road ahead may be challenging, but it is also filled with possibilities. I firmly believe that not only Leicester’s but our country’s greatest days are ahead of us, and I am grateful to be able to play my part, championing my constituents in that endeavour.
Madam Deputy Speaker (Ms Nusrat Ghani)
I had to let that speech run over; I was waiting for my invitation to have samosas.
Mark Ferguson (Gateshead Central and Whickham) (Lab)
I pay tribute to the maiden speech of the hon. Member for Leicester East (Shivani Raja). I enjoyed her reminiscences about her community, and hearing about some of the more lively figures from the recent history of the Labour party. I proudly draw attention to my declarations in the Register of Members’ Financial Interests, which include my former role working for Unison, my membership of Unison, my donation from Unison, and being co-chair of its parliamentary group. Unison is Britain’s largest union, representing public service workers and in particular the low-paid women who will benefit so much from the Bill.
I pay tribute to all those who have worked tirelessly for years to build consensus around these changes—the biggest changes to rights at work in a generation. In particular, I thank those within Labour’s affiliated trade unions, on the Front Bench, and in Labour’s policy team for their hard work and dedication. Hon. Friends, including my hon. Friends the Members for Worsley and Eccles (Michael Wheeler), for Halifax (Kate Dearden), for Birmingham Northfield (Laurence Turner), for Tipton and Wednesbury (Antonia Bance) and for Knowsley (Anneliese Midgley), have been engaged in this work throughout. That is not an exhaustive list; many others on the Government Benches have worked tirelessly to help us to reach this day, and deserve immense credit.
This is the kind of Bill that is at the heart of why we are here. The Labour party was founded upon the idea that working people deserved representation in this place, that we were fit to govern, and that those who put in the bulk of the graft deserved to reap the rewards of their labours. Today is a landmark day in our party’s history, and in the history of employment rights in this country. The Bill is crammed full of improvements that are each worthy of a lengthy speech; however, I am down to my last minute and twenty seconds, so I will not do that. Let me say this instead: if you work, the Bill will change your working life for the better. We know why these changes are necessary. One in five of us is suffering from the effects of insecure work, with low pay, exploitative zero-hours contracts, and little or no sick pay.
Ms Polly Billington (East Thanet) (Lab)
My hon. Friend mentions that the measures in the Bill will be good for employees. Does he agree that they will also be good for business? My constituency’s economy is based on the entrepreneurialism of lots of small businesses and individuals creating work for themselves and for others. Does he agree that the Bill will support good employment policies in small businesses, helping with productivity and the retention of staff?
Mark Ferguson
I could not agree more. The people who will benefit from the Bill the most are not those who will buy stocks and shares but those who will spend their money on our thriving high streets, which this Government will build.
The care workers and teaching assistants I was proud to represent while working for Unison deserve pay and conditions that match the task of looking after us when we grow up and grow old. Stronger rights to collective bargaining through the school support staff and adult social care negotiating bodies are essential for recruitment and retention in those overlooked sectors. Could the legislation go further in those areas and in others? Of course—that is the nature of any Bill. The work of change is never done, but we should be in no doubt that this is the biggest, boldest and most welcome set of employment rights changes that all but the most experienced of us in this Chamber have considered. I know that the Government are committed to consulting widely with unions and businesses alike to ensure that.
This is what having a Labour Government means—rights from day one: banning exploitative zero-hours contracts; ending fire and rehire to lift employees from the insecurity felt by those working in the foundations of our economy; taking action on sick pay, and maternity and paternity rights; and holding unscrupulous employers to account through a genuine and comprehensive enforcement body. The Bill is pro-business, pro-worker, and focused on the challenges that millions of us face every day. It is one of the greatest honours in my life to have been involved with it, to speak on its behalf, and to vote for it this evening, mostly because I know the impact that it will have on my community in Gateshead Central and Whickham. The task of rebuilding Britain after 14 years of Tory rule is great, but our ambition for this country is greater still.
Graham Stuart (Beverley and Holderness) (Con)
I refer the House to my entry in the Register of Members’ Financial Interests, and the contribution from small businesses to my election campaign earlier this year.
History is repeating itself. Labour’s antipathy and lack of understanding for business, and small business in particular, is rearing its ugly head again. This legislation will have ruinous results for those who desperately need a job and hope. The Federation of Small Businesses says:
“This legislation is a rushed job, clumsy, chaotic and poorly planned.”
The federation goes on to say that the Bill will increase economic inactivity. That is a rather sanitised way of referring to the ruined lives, dashed hopes and huge waste of human potential that the Bill will bring about. At the end of the debate, we need to hear from a Minister how the Bill will be changed so that it supports rather than undermines the 4 million additional jobs created since 2010 under the Conservatives.
The economic impact assessment, so rudely provided so late in the day, shows that the costs of the Bill will fall disproportionately on small businesses—something that we have heard no acknowledgment of from Government Members. Five out of nine measures will have that effect. Do Ministers have any plans to change that?
Joe Robertson (Isle of Wight East) (Con)
Does my right hon. Friend agree that provisions that are bad for small business are also bad for workers, bad for taxpayers, and bad for those who rely on welfare payments?
Graham Stuart
I entirely agree, and places like the Isle of Wight, with so many hospitality businesses, will pay a particularly high price. We should celebrate and support our wealth creators, not burden them with excessive taxes and regulations that kill the drive to work, invest and create wealth. Yet that is the destructive path that Labour is taking, with a jobs tax planned for every worker’s national insurance contributions in the Budget in a couple of weeks, and this Bill to deter SME employment.
Antonia Bance (Tipton and Wednesbury) (Lab)
The impact assessment published earlier was 900 pages long, which compares pretty well with some of the impact assessments published under the last Government, a number of which I had the misfortune to read. It confirms that the cost to business will represent less than 0.4% of total employment costs across the economy, and the majority of that will be transferred directly into the pockets of workers, helping to raise living standards and offset the last 14 years of standstill wages. Has the right hon. Gentleman managed to read the impact assessment yet?
Graham Stuart
Well, the impact assessment was provided rather late, but it is always good to have a spontaneous contribution to any debate.
Removing the lower earnings limit and the waiting period will also disproportionately hurt small businesses and microbusinesses. That is set out in black and white in the economic assessment, so will Ministers make changes? It is with dark comedy that the Government say that their top priority is economic growth. Labour inherited the fastest growing economy in the G7, with 4 million more people in work than in 2010—4 million. In 2010, by comparison, we inherited a note that said that the money was all gone.
Darren Paffey (Southampton Itchen) (Lab)
Will the right hon. Gentleman give way?
Graham Stuart
I will not.
History tells us that Labour Governments always end with unemployment higher than when they began. They do not do it because they are evil. As has been said, no one in the Cabinet comes from a business background; they simply do not understand the realities. This Government seem bent on destroying employment even faster than their predecessors.
Small businesses are the lifeblood of our economy. They do enormous social good. As the FSB says, smaller employers are
“the ones most likely to give opportunities to people furthest from the labour market, such as those returning after long-term health issues or caring responsibilities.”
Yet under these proposals, the
“Plans to give day one unfair dismissal rights to new employees will add to the risks associated with hiring people.”
That increased risk will inevitably deter small employers from taking on new people for fear of facing an employment tribunal simply because a new recruit turns out to be unsuited to the role. How will Ministers ensure that a company selling food at summer festivals is not bankrupted by having to offer a contract to someone who is not needed after that period is over?
The Government have had a disastrous start. It is no wonder that the legislation is chaotic and poorly planned, given that Labour Cabinet Ministers are never early for work but always early for the free buffet at the Emirates or at Taylor Swift concerts. The Deputy Prime Minister is selling out the country’s interests in favour of trade union interests—selling out the people who vote Labour for the people who fund Labour. The Bill is a catastrophe, and I hope the House opposes it today.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I am proud to refer the House to my membership of Unite and my declarations in the Register of Members’ Financial Interests, and to advise Members that I have run several of my own businesses.
This is a great day, and I wholeheartedly congratulate my right hon. Friend the Deputy Prime Minister and colleagues for introducing this landmark legislation, which will transform the lives of millions of workers for the better. We know why it is needed: just look at the fire and replace at P&O, the fire and rehire of British Gas workers, and the denial of rights at Deliveroo and Hermes. The legislation has long been in development, and I was honoured, when I was shadow Secretary of State for Employment Rights, to work with our trade unions and other stakeholders on the new deal for working people. I place on record my thanks to the Institute of Employment Rights—particularly Lord Hendy KC and Professor Keith Ewing—and to my staff Karl Hansen and Eli Machover for their work on that paper.
I am delighted that Labour will give all workers day one rights on the job, ban zero-hours contracts and outlaw fire and rehire. In the Bill, we establish the day one rights to claim unfair dismissal and to paternity, parental and bereavement leave, we create a right to a guaranteed-hours contract and we tighten unfair dismissal protections. Labour will modernise union balloting, simplify union recognition and improve the right of entry to workplaces. The Bill removes unfair balloting laws on recognition and industrial action, and creates new duties on employers to facilitate unions’ access.
I am proud that that is being done, but much of the Bill is about setting up a framework, and there will be significant further steps, consultations and work to craft the detail. In particular, we cannot finally consign insecure work to history until we have resolved a defined single status of worker. I recognise the Government’s commitment to consulting on that. On zero hours, I trust that Ministers will provide reassurance that employers will not be able to exploit new rights to guaranteed hours by issuing short-hours contracts. There are many other issues arising from that, but I ask Ministers to consider in particular a statutory right to paid kinship leave on a par with adoption leave.
This is truly a landmark Bill, and it is crucial that we make these changes as soon as possible. This historic Bill will help to deliver the well-paid, secure, dignified, skilled and productive jobs and the prosperous economy that we all wish to see. I am delighted to support it this evening.
Saqib Bhatti (Meriden and Solihull East) (Con)
Many small business in Meriden and Solihull East are rightly concerned about the Bill for a number of reasons. Since the election, I have spoken a number of times demanding that the Government be more ambitious for growth, for our entrepreneurs and for our small businesses. Indeed, it is the moral duty of every Government to unleash the full potential of our businesses and, where possible, to create an environment to embolden entrepreneurs and encourage economic growth.
Instead, the Bill will kill off any ambition and any focus on growth. If we want to focus on inclusive growth, we must nurture our start-ups, scale-ups and small businesses, and let them be nimble in how they operate, rather than shackling them. That is how economic magic will start to happen. The businesses to which I have spoken are worried about the insufficient consultation. The Government’s impact assessment, which we received late, shows that small businesses are likely to be hit hardest. The costs, according to the Government’s own analysis, will be in the low billions—up to £5 billion. For a Government who keep talking about the alleged black hole, those low billions seem rather reckless. It proves that this is nothing more than an ideological Bill that does not ensure growth.
Andrew Griffith (Arundel and South Downs) (Con)
Does my hon. Friend agree that, with just nine days until Halloween, the impact assessment we have seen today is an early horror show?
Saqib Bhatti
My hon. Friend makes a valid point. A lot of people are in a holding pattern for business decisions on investment and employment.
All the Bill will do is leave our businesses at the mercy of the trade unions and take us back to the 1970s. It will merely align us with the growth-gobbling guidelines set by bureaucrats in Brussels and hold our businesses back. It is not just me who thinks this; I am going by the Government’s impact assessment. The CBI claims that employers expect Britain to become the worst place to invest and do business over the next five years—a damning indictment of the Government.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Will the hon. Gentleman give way?
Saqib Bhatti
I will not.
What businesses want is less government, less regulation and more freedom. When making employment decisions, they require certainty and flexibility so that they can hire more people, but the Bill threatens to undermine the agility of businesses in ensuring that their workers maximise productivity. It does not encourage businesses to take risk, hire a budding new employee and reap the rewards; in fact, it does the complete opposite. The Federation of Small Businesses calls this legislation “clumsy and chaotic” and suggests that it will “increase economic inactivity.”
Let us be clear: the Bill is not really about employment rights or better conditions. Its focus is on repealing the 10-year ballot requirement on political funds, removing the opt-in default for trade union political funds, removing the need for proper consent to form a trade union, and so on. It is not the Employment Rights Bill; it is the trade union appeasement Bill. The Government are not prepared to stand up to the unions. We have seen them cave in to train drivers and give sweetheart deals without any savings for the taxpayer.
Saqib Bhatti
I will not.
We have seen the unions hold the Government to ransom at the expense of hard-working taxpayers. That is why the Bill is bad for small and medium-sized businesses—those arguments have been made already. Our SMEs cannot afford dozens of French-style regulations that bolster the power of the trade unions and threaten to increase the cost of employment by over £1,000. I am speaking to raise the concerns of many small and medium-sized businesses in Meriden and Solihull East about this legislation. It is rushed—businesses have not been properly consulted—and it gives more power to the trade unions. It will fail to maximise productivity and will severely weaken the case for businesses to hire new employees. It is a flawed Bill serving a flawed ideology.
Imran Hussain (Bradford East) (Ind)
I refer Members to my entry in the Register of Members’ Financial Interests.
I support and welcome this transformative Bill. I place on the record my thanks to my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), and the Deputy Prime Minister, with whom I have had the pleasure of working to play a small part in bringing this transformative legislation to the House.
In reality, the balance of power in our workplaces has been fundamentally set against employees for too long, meaning that the UK has some of the weakest labour protections in Europe, with legislation curbing the rights of working people to organise in defence of their rights, and insecure contracts and poor wage growth leaving one in five people struggling in poverty.
Under the last Tory Government, we saw an explosion in the growth of exploitative zero-hours contracts, unscrupulous fire and rehire practices, and the unforgiving and abusive gig economy. Ordinary working people across the country have experienced the most sustained period of wage stagnation for hundreds of years compared with our counterparts across Europe. Despite that exploitation of working people by bad bosses, the Tories never strayed from their mission of dismantling the power of trade unions to secure better jobs, pay and conditions for the ordinary people they represent, even in the middle of a cost of living crisis.
The Bill that we are discussing today, however, sets us on the road to implementing the transformative new deal for working people and to repealing the last Tory Government’s draconian anti-trade union legislation, which restricts people from organising in defence of their pay, terms and conditions. Spanning over 30 different measures, the Bill could give any of us a lot to talk about. However, as time does not permit that, I will concentrate on two or three areas.
With the establishment of a framework for fair pay agreements in the adult social care sector, the Government have acknowledged the immense benefits that collective sectoral bargaining can play. Social care workers are among the most crucial yet worst paid and badly treated groups of workers in our economy. I very much hope that the Government will introduce that framework for further sectors, and I encourage them to do so. Secondly, by ensuring that workplaces offer a guaranteed-hours policy to end the exploitation trap of zero-hours contracts that millions of workers find themselves in, the Bill ensures that we can provide the eight in 10 workers who desire greater stability more certainty over their contracted hours.
Thirdly, the Bill takes an important step towards widening access to statutory sick pay by removing the requirement to earn the lower earnings limit, and by making SSP payable from the first day of sickness. My sincere request to the Government is that, with the rate currently at £116.75 per week, we need in the consultation process—
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
I refer Members to my entry in the Register of Members’ Financial Interests. I rise today to express my concerns about the impact of the Employment Rights Bill on one of the most vulnerable groups in our workforce: seasonal workers. Those individuals form the backbone of key sectors such as tourism, agriculture and retail, particularly in my constituency of Bognor Regis and Littlehampton, where many depend on seasonal jobs for their livelihoods. I fear that the Bill will put their livelihoods at risk, as well as the viability of the businesses that employ them.
The devil is in the detail, and detail is what the legislation lacks. Labour claims that the Bill will protect workers, but for seasonal employees the increased regulation will likely have the opposite effect. Small and medium-sized businesses that rely on flexible, short-term contracts to meet seasonal demand will face rising costs and greater bureaucracy when trying to bring on staff. Clause 1 on the right to guaranteed hours is so laissez-faire about how that will be implemented in a real-world business environment that it leaves significant ambiguity and doubt in employers’ minds.
Graham Stuart
Does my hon. Friend agree that we need more detail from the Minister tonight on that specific provision, before the House can in good conscience give the Bill a Second Reading?
Alison Griffiths
I absolutely agree with my right hon. Friend that detail is precisely what is needed for the Bill to be implemented effectively.
In my constituency, seasonal employers such as theme parks are at the mercy of the British weather and a short season. On a rainy day takings will be minimal, and managing costs accordingly is vital to remain viable. Moreover, the student and retired populations in my constituency value the flexibility that those contracts offer. The Bill will disincentivise employers from offering short-term opportunities and reduce employment options for those who depend on temporary work.
Rebecca Harris (Castle Point) (Con)
My constituency also has a lot of seasonal workers and a seaside economy. Does my hon. Friend agree that young people often get their first step on the job ladder through those jobs? They may well not get that opportunity if the legislation is passed.
Alison Griffiths
I thank my hon. Friend for a stellar point. I think most of us, certainly on this side of the Chamber, started our working careers in those jobs—I certainly did. Disincentivising employers from offering short-term opportunities will reduce those employment options.
About 1 million people aged 16 and over reported being employed on a zero-hours contract between April and June 2024. On average, those workers worked fewer hours per week than others, and 60% said that they did not even want more hours. In the hospitality sector, 90% say that it is their desired contract.
In conclusion, we must ensure that protecting workers’ rights does not come at the cost of the jobs they rely on. I urge the House to carefully consider the consequences and to amend the Bill to safeguard opportunities for seasonal workers.
Lola McEvoy (Darlington) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests—I am a proud trade union member. It is with great pride that I rise to speak on the Bill today. I have spent my career championing a better deal for working people at the Living Wage Foundation, the organisation that works tirelessly to champion the plethora of business benefits of being a good employer, as well as at the GMB union, where I was proud to work alongside an army of volunteer trade union reps who have great courage in standing up for their colleagues, day in, day out.
The Bill has been warmly received by business because it is not radical. The Bill is reasonable, and it is illustrative of the way that Labour will govern for the time we are given that privilege. It is reasonable that people can earn a minimum wage that meets the cost of living. It is reasonable that people cannot be forced to sign away their current terms and conditions or lose their job. It is reasonable that people are not sexually harassed at work. It is reasonable that people working the same shift pattern, week in, week out, are given contracts that protect and reflect that. The Bill will do all that and more. The Bill will right some of the wrongs that have been pushing working people into wholly unacceptable hardship over the last 14 years.
In the spirit of that mission-led approach to Government, I ask the Minister to consider the following points that will improve physical and mental health outcomes, as well as support more people back to work. Will the Minister consider paid time off for preventive cancer screenings? I met a woman who worked in a hospital as a key worker for a private company. She could not afford to take unpaid leave to get her smear tests, so she missed them and then discovered she had stage 4 cervical cancer. Paid time off for preventive screenings, which good employers already offer, will support our health mission as well as save lives. People must not have to choose between catching cancer early and feeding their families.
On parental rights, I welcome the strengthening of maternity rights in the Bill. For too long women have been penalised for having children, and the hard truth is that mothers are being forced to leave the workforce or take low-paid part-time work to make ends meet. I appreciate that the Bill will make paternity rights a day one right, and I look forward to the review on parental leave, because we need to normalise fathers being able to support their new families and bond with their babies. Protecting fathers to enable them to take paternity leave will help level the playing field and improve men’s mental health, as fathers want to be with their babies.
Dr Zubir Ahmed (Glasgow South West) (Lab)
Sixty-one per cent of people in my constituency are in poverty despite being in work. Does my hon. Friend agree with me that it is only when work is made secure that we can truly grow our economy?
Lola McEvoy
I absolutely agree, because people want to work, and they want to work in good-quality jobs that allow them to spend a decent amount of time enjoying the things that matter in life.
The Bill will make thousands of my constituents in Darlington better off, safer and more secure at work. More than that, it will benefit businesses’ bottom lines, as they will have a happier, healthier and more productive workforce. That is essential for the growth we need to see, it is good for working people, it is good for business, and it is great for the economy.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Katie Lam to make her maiden speech.
Katie Lam (Weald of Kent) (Con)
Thank you, Madam Deputy Speaker, for letting me make not just my first contribution to this House, but the first contribution from the newly formed constituency of Weald of Kent. My predecessors are illustrious: William Hart Dyke helped invent tennis, Charles Barnett was a first-class cricketer, and Edward Percy Smith was a scriptwriter like me, penning the Hammer Horror hit “The Brides of Dracula”. We even have a Prime Minister in our history: Benjamin Disraeli began his parliamentary career representing a patch of Kent that includes the village of Linton, which is now in my constituency. However, only one of my predecessors, Ann Widdecombe, can boast Britain’s highest honour: an appearance on “Strictly Come Dancing”. [Laughter.]
Two of my most recent predecessors have left this place. Damian Green and Damian Collins both worked doggedly for the area and for the country in government—Damian Collins especially in the field of digital, culture, media and sport, the Select Committee for which he chaired for many years, and Damian Green with senior roles in government, all the way up to First Secretary of State. Both served my constituents with distinction, and on their behalf, I would like to say thank you.
I am not the first politician in my family. My grandmother came to Britain in 1937 at the age of 13 as a refugee from Germany. Her grandfather, Paul Heide, was a state senator and a fierce critic of the Nazis. When Hitler came to power, the whole family were arrested and stripped of their citizenship. After years in prison, Paul jumped out of the window of his second-floor cell and made it to Czechoslovakia despite his broken ankle. There, the family set up a resistance radio station broadcasting back over the border, until one night they were raided by the SS and one of the operators was shot dead. They managed to escape, and fled to England and freedom. My grandfather’s family were far less fortunate: Jews from Amsterdam, almost all of them were murdered in Sobibor and Auschwitz. One of them was eight years old.
My grandparents’ stories helped make me who I am, so even as a small child, I already knew the power of politics. It is an honour to take my place in Parliament, to serve my constituents and this country—the country that saved my family and saved the free world—but freedom does not come for free: it must be fought for. Every time I come into this Chamber, I see the shields that surround us and think of our country’s sacrifice. Colonel Victor Cazalet, whose shield is on the other side of the Chamber, lived in Cranbrook in my constituency. He had already served with distinction in the first world war, receiving the Military Cross for gallantry in 1917. He was killed in an air crash in world war two, as was Commander Rupert Brabner, whose shield is a few places further down. Commander Brabner was the Member for Hythe, a constituency that borders my own, and an ace Royal Navy pilot awarded the Distinguished Service Cross. We will remember them.
The weald of Kent has played its part in our nation’s sacrifices. Headcorn aerodrome operated in the second world war as RAF Lashenden, at the same time as Benenden school was converted for use as a military hospital, and Coxheath was once the British Army’s largest training ground. The constituency may be new, but the Kentish weald is anything but: Appledore was raided by the Vikings in 893, and the Archbishop of Canterbury had his palace at Charing as far back as the year 900. Enriched by ironmaking in Biddenden and clothmaking in Marden and Staplehurst, today the weald of Kent boasts hundreds of square miles of the most gorgeous countryside, surrounding two delightful towns—Tenterden and Cranbrook—as well as over 100 of Britain’s most charming villages, many 1,000 years old or more. From Aldington to Yalding, every one of the weald of Kent’s 56 civil parishes is a rural jewel. The area is awash with medieval churches, cricket clubs, intricate gardens, and a mosaic of farms growing the nation’s food—and now, vineyards growing the very finest British wine.
Do not take my word for it: the glory of the weald of Kent has been immortalised in films, books and television shows. H.E. Bates was inspired by his home, Little Chart, to write “The Darling Buds of May”, and the TV adaptation was filmed in Pluckley and neighbouring Bethersden. Godmersham Park was the inspiration for Jane Austen’s “Mansfield Park”, while Agatha Christie fans will know Chilham as the backdrop for episodes of “Poirot” and Smarden as a television stand-in for Miss Marple’s home, St Mary Mead. The steam train in the opening shot of “Downton Abbey” is the Kent and East Sussex railway, rolling from Rolvenden to Wittersham Road, and one of my favourite films, “Kind Hearts and Coronets”, shot its countryside scenes in Boughton Monchelsea.
Lastly, I should like to give a few personal thanks. First, I thank hon. Members on the Government Benches, for it was while delivering leaflets for their party that Grandma and Grandpa Lam met in the late 1940s. Had the Mill Hill Labour Club never existed, neither would this Conservative. [Laughter.] Secondly, I thank Alex, my family and my friends for all they have done for me. Thirdly, I thank the best Conservative association in the country. Finally, I thank the people of Weald of Kent who have sent me here to represent them. I will never look at the responsibility of being the Member of Parliament for Weald of Kent as merely a job; I will always treat it as an honour.
Madam Deputy Speaker (Ms Nusrat Ghani)
We now have another maiden speech. I call Sarah Smith.
Sarah Smith (Hyndburn) (Lab)
Thank you, Madam Deputy Speaker. As a proud trade union member, I refer to the House to my entry in the Register of Members’ Financial Interests, and congratulate the hon. Member for Weald of Kent (Katie Lam) on her moving maiden speech.
It is with great pride and humility that I rise today for the first time as the elected Member for Hyndburn and Haslingden. I start by paying tribute to my immediate predecessor, Sara Britcliffe, for her commitment to Hyndburn and for leading the way as the first woman to represent the constituency. I cannot make this speech without also paying tribute to the previous Labour Member, Graham Jones, whose selfless support and kindness I am privileged to have received. Graham is the most fierce champion of Lancashire: he has fought tirelessly for the people of Hyndburn, and is a man you always want in your corner. With the north-west of England being scourged with gambling-related suicides, particularly among young men, Graham led the successful campaign to reduce the maximum stake on fixed-odds betting terminals from £100 to just £2. That campaign will undoubtedly have saved and improved many lives.
It may surprise Members when I say that Hyndburn is not a real place. No one really relates to being from Hyndburn; instead, they identify proudly as a resident of Accrington, Great Harwood, Rishton, Altham, Oswaldtwistle, Clayton-le-Moors or Church. Each of those communities has its own rich history, culture and identity. My constituency is the home of the largest Tiffany glass collection in Europe, the Accrington Pals, and the Nori brick, which was used to build the Empire State Building. It is also the home of one of the 12 founder members of the football league, whose legacy is continued by Accrington Stanley football club. I am sure the House will join me in congratulating the boys on their third win on the trot against Barrow at the weekend.
Perhaps most significantly, my constituency was the engine of the industrial revolution during the 19th century. The invention of the spinning jenny, the mechanisation of calico printing, and the creation of turkey red and khaki dyes enabled the globalisation of the textile industry, but the huge wealth that the mill owners made was often at the cost of the workers, whose living and working conditions were terrible. I also represent the magnificent and diverse town of Haslingden, whose coat of arms reads “Nothing without labour”. That motto was a statement of solidarity: in 1826, amid loom-breaking riots in east Lancashire, hundreds of people in Haslingden attacked machinery in protest at pay cuts and their awful working conditions. Many perished due to poverty and hardship, but by 1850 and with the support of churches and reformers, a minimum wage was eventually introduced.
We stand in this Chamber almost 200 years later, and although things have of course improved hugely, too many of my constituents are still struggling to make ends meet with zero-hours contracts, low wages and insecure work. While in the 19th century, workers had to literally fight for basic rights, we now—thanks to trade unions and the Labour party—have representation of working people in this more civil way. That is why I welcome this Bill, which strengthens employees’ rights, stops the exploitative use of zero-hours contracts and, importantly, gives people the right to maternity and paternity pay from day one.
Hyndburn and Haslingden is a magnificent and beautiful constituency that I am proud to call home. It is where my husband James grew up and where we got married, in the beautiful church of St Peter and St Paul’s where his dad, Paul, was the vicar for 18 years. As well as showing dedication to his parish, Paul was instrumental in establishing the sixth-form provision at St Christopher’s school, which has changed the lives of countless young people. Tragically, we lost Paul within days of my election, so he is not here with us today, but I will continue to fight to break down all the barriers to opportunity that our children and young people face.
Without my family, I would not be standing here. I want to put on record how grateful I am to my parents, Rosemary and Gary, to my brother Mark, and to Margaux, James, Ellie and both the Ruths for believing in me and standing by me every step of the way. As a Christian, I also give thanks to Jesus for giving me this opportunity. As I go on this journey, I will remember always the verse in Micah and aim to carry out justice, to love mercy and to walk humbly with God throughout my time here.
I first got involved in politics because I think it is wrong that, far too often, the postcode where people are born determines so many of their life outcomes. For as long as I am privileged to represent Hyndburn and Haslingden, I will work tirelessly to ensure that children born in Clayton have the same life chances as those born in Chelsea, and I will make it my mission to represent them in the corridors of power, but I will also make it my mission to be present, transparent, and accessible as a local champion for the residents of Hyndburn and Haslingden.
Wera Hobhouse (Bath) (LD)
I congratulate the last two speakers on their powerful maiden speeches. Both of them were most moving. As we always discover in this place, there is more that unites us than divides us. What unites me with the hon. Member for Weald of Kent (Katie Lam) is clearly Jane Austen. I say to the hon. Member for Hyndburn (Sarah Smith) that I lived in east Lancashire for 15 years, and I know the area well. I was sorry to hear about the loss for her family.
I am pleased that many of the measures that we Liberal Democrats have been campaigning for over many years have been included in this Bill. I am most pleased about the reinstatement, in clauses 15 and 16, of the original wording of my Worker Protection (Amendment of Equality Act 2010) Act 2023. Introduced as a private Member’s Bill, my Act amended the Equality Act 2010 to better protect employees from workplace harassment and sexual harassment. In addition to creating a direct preventive duty, it would have created new liabilities for employers in cases of third-party harassment, unless employers took all reasonable steps to prevent it. That would have created protections similar to those that were originally in the Equality Act 2010, but were removed by the Enterprise and Regulatory Reform Act 2013. Amendments to my Bill in Committee in the Lords removed that clause, so that no such liability was created. The ridiculous argument was made that it would have prevented free speech. It therefore remains the case that employers have no liability for harassment of staff by third parties. My original Bill would also have created a new legal duty for employers to take “all reasonable steps” to prevent sexual harassment of their employees. As a result of amendments made by the Lords, that was reduced to “reasonable steps”.
Since my Bill passed into law, excellent progress has been made. A study by Culture Shift found that 66% of businesses felt that the prevention of sexual harassment is of high importance. However, according to WorkNest, three quarters of employers cited protection from harassment by third parties as a concern. There is clearly an appetite among businesses for including these protections in the Bill. Too many people suffer still from sexual harassment in the workplace. I congratulate the Government on taking further steps to remove that blight on our workplaces.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
As an MP from Cornwall, where we have seasonal workers aplenty, I should say that although the Bill talks about a suggested reference period of 12 weeks, after which average hours will be offered, employees do not have to accept that if they do not want to. They can choose to stay on zero-hours contracts.
We have a large demand for social care in Truro and Falmouth. Our population tends towards an older demographic. As many people leave friends and family to retire to Cornwall, the availability of care is especially important. Assistance for people who have disabilities, so that they can live independent lives and be supported into work if they choose that path, is crucial. Skilled care workers are chronically underpaid for what they do—they are often on the minimum wage—and good people leak out of the system, as it pays more to work in the local supermarket.
I worked as a teaching assistant at a local secondary school—I declare my interest in the register as a Unison member—and I was also an equity partner in a trade union law firm, so I have some experience of employing people, too. The pay for working in a school in a supporting role can also be very low—sometimes minimum wage. What the care and school sectors have in common, apart from poor rates of pay, is that, as others have said, they involve highly skilled jobs that are incredibly important for our society, and those who work in them are far more likely to be women. The Bill has many provisions that will help with sick pay and parental leave, and will give protection from unfair dismissal from day one. It also improves family-friendly rights, provides for flexible working, and has measures to tackle zero-hours and minimum-hours contracts. However, it also specifically gives respect and recognition to social care workers and school support staff through a fair pay agreement for adult social care, and by reinstating the school support staff negotiating body. This will be a game changer for those low-paid workers, mostly women, who work in care and in schools. It will mean that pay, terms and conditions for care workers and school support staff are negotiated nationally, and that a minimum is set across the country.
I am so pleased that the Government have chosen those two sectors as the first to have the opportunity for fair pay agreements. Women with caring responsibilities are often limited in the hours they can work. Historically, that has meant that, however skilled and important their jobs are, they have not been properly rewarded or looked after. Changing that will be transformational.
Truro and Falmouth has Cornwall’s only acute hospital and the seat of Cornwall unitary council within its boundaries. That means that we have a large number of people who work in the public sector. Many of those jobs have been contracted out, and the terms and conditions for those roles have been gradually eroded. This Bill enables Ministers to create a code to prevent the emergence of a two-tier workforce when outsourcing occurs. A new national procurement statement will make sure that the Government use their contracts to raise employment standards, not dilute them. This employment Bill is a huge step forward, and I am proud of it.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
It is a pleasure to follow several excellent maiden speeches this afternoon.
For an economy to thrive, both employers and employees must feel protected. Protections enable both parties to draw comfort. However, this Bill does not uphold that principle. In its approach and in its drafting, this Bill has fallen off its axis. It has, without doubt, landed in a place where it overwhelmingly favours the employee, to the detriment of any working balance with the employer. This should come as no great surprise. After all, given the paucity of private sector experience in the Cabinet, it was almost inevitable that this Bill would be seen through the prism of trade union bias. Having studied the Bill, one cannot fail to conclude that the Ministers who commissioned it have no understanding of the struggles faced by small and medium-sized businesses up and down the country.
While there is much to be derided in the Bill, there are two points I wish to raise for Ministers’ consideration. First, the abolition of the qualifying period for bringing an unfair dismissal claim will inevitably mean a rise in the number of claims presented to the employment tribunal. This will flood an already overwhelmed system. I ask the Minister: what true impact assessment has been made of that?
Under this Bill, bringing a claim for unfair dismissal becomes, to all intents and purposes, a day one right. There is a lack of clarity about the length of any probation period and the obligations on an employer when seeking to dismiss in that period. Inevitably, these obligations will increase the burden on SMEs, which will not have the depth of resources of their larger counterparts. The predictable consequence is that small businesses are likely to sink under the weight and cost of these additional requirements.
My second point relates to the proposed changes in respect of industrial action and trade union relations. By repealing the Strikes (Minimum Service Levels) Act 2023, lowering the ballot threshold for union action and requiring employers to direct their staff towards unions, the Government have demonstrated their willingness to bow down to their union paymasters, to the detriment of hard-working businesses and industry. The public will see this for what it is: a cheap effort to curry favour with the unions while lining the pocket of the Labour party.
It is clear from my conversations with small business owners in Solihull West and Shirley that the Government’s proposals will only hinder growth and productivity. These measures fail to strike the balance between employer and employee. They will choke our courts, cripple small businesses and stifle employment growth.
John McDonnell (Hayes and Harlington) (Ind)
I remind the hon. Member for Solihull West and Shirley (Dr Shastri-Hurst) that across those European countries with the highest union density, people have the best wages and working conditions and the greatest productivity, which somewhat undermines his last argument. I refer you to my entry in the Register of Members’ Financial Interests, Madam Deputy Speaker.
We are calling this the Employment Rights Bill, but it is not about rights as such; it is about power. When trade unions first discovered the concept of solidarity in the early industrial revolution, they discovered that, through unity, they could exert power to influence, to improve working conditions and wages, and to secure a better overall quality of life. Since 1979—I started work a few years before then—successive Conservative Governments have understood the distribution of power, and as a result they have used legislation to undermine trade union rights, so as to reduce the power of workers to defend themselves at work and improve their working conditions. All that the Bill does—I welcome it wholeheartedly—is take a small step to rebalance that power. It will not just improve wages and working conditions, but lead to a better economic situation for all concerned—employers and employees—full stop. That is what it is about.
Andy McDonald
Would my right hon. Friend agree with me that the steps outlined in this Bill will help to address insecure work, and will allow people to enjoy decent, secure wages and dignified work, as well as to plan for their future and that of their family?
John McDonnell
Yes, and as a result, people will work better, increase their productivity and improve the profitability of companies, which is beneficial to us all. It is as simple as that. However—there is a “but”—there are a few points on which I would press the Government to go a bit further. The first is sectoral collective bargaining and fair pay agreements. In the early 1970s, 86% of our workforce was covered by collective agreements, but that is now down to 20%. Where collective agreements have operated, they improve productivity, wages and conditions, and increase industrial harmony in the economy. We as a Government are starting off by introducing them for adult social care, which I thoroughly welcome, because there is such low pay and exploitation in the sector. However, I would like to see an enabling clause in the Bill, so that we can move on swiftly to other sectors in which we can get agreement across the trade union movement and engage with employers.
The second point is on single worker status, to which my hon. Friend alluded. Consultation is taking place on that, and it is absolutely critical, because we have seen some of the most exploitative practices in parts of the economy where workers have been forced into bogus self-employed status.
The third point is on insourcing. The Government have promised the biggest reform of insourcing in a generation. There is no mention in the Bill of insourcing, but there is mention of reform to procurement, and it is important that through our reforms to procurement, we bring forward insourcing as rapidly as possible. Outsourcing has produced an insecure, low-paid form of employment that is already resulting in industrial strife. Over the next couple of weeks, we could see strikes in virtually every Government Department because of what is happening on outsourcing.
On fire and rehire, the question is what a company has to do to prove that there is financial stress because of the economy. I also have two final points. One is on the seafarers’ charter; it has been mentioned that the second stage of discussions are taking place. That charter is critical if we are to provide basic protections for seafarers. Finally, prison officers have been denied the right to strike since 1994, and even Tony Blair said that he would restore that. I want to see that in this Bill, and I shall table an amendment accordingly.
Joe Robertson (Isle of Wight East) (Con)
I congratulate those who have given their maiden speeches today and spoken with such passion for and about their communities.
There is much in the Bill that I support, and I support the sentiment behind it. I am sure there is common ground in wanting to improve conditions and rights for workers, but there is a balance to be struck, and I have grave concerns about some provisions in the Bill—those that increase burden and red tape on employers and on employees, and those that are a threat to and a drag on economic productivity.
My first concern is the unnecessary introduction of a new concept of statutory probation. As the law currently stands, workers get protections against things like unfair dismissal. Those long-standing principles have survived different Governments, and indeed survive in this Bill. The debate has been about when those rights are accrued—whether it is after two years of employment or one—and there has been a fluctuation. This Bill attempts to introduce those rights from day one, but then to row back on them by introducing a statutory probation period, during which, in the Deputy Prime Minister’s own words, there is only a “light touch” approach to unfair dismissal. It creates a new concept that is vague and unclear, and it will increase the glut of litigation in the employment tribunal. Indeed, it will need to do so to create case law so that employees and employers can understand what a “light touch” approach to unfair dismissal means.
My second concern is the increased burden on smaller employers. Indeed, that is contained in the Government’s own analysis, and much has been said about that, so I will turn to my third issue: specific burdens in specific sectors, such as social care. The Government’s own analysis says that the Bill will increase costs for employers, but employers in social care cannot bear any more cost. The Government have said they will bring forward reform of social care; that must come first, before this law is brought into force.
Robbie Moore (Keighley and Ilkley) (Con)
Does my hon. Friend agree that the crux of the issue is that the Bill is lacking in detail? The issues he is discussing have been identified and indeed referenced in the Government’s own economic analysis, and we cannot get into the detail of this debate without having that level of information on the face of the Bill.
Joe Robertson
I agree that the Bill lacks detail. It also contains a lot of powers that are intended to come about through secondary legislation. For example, we do not know how long that probation period will be, because it is not set out in the legislation.
Turning to the NHS, we understand that the Chancellor will increase the money to the NHS in the Budget but, as an employer, the NHS will have increased costs through this Bill. If national insurance contributions on employers are to be raised in the Budget, it will have that cost as well. That means there will be less money available to cut waiting lists. I urge the Government to delay this Bill, get the detail right and put some detail into it, and ensure that sectors such as health and social care get the support first so that, as employers, they can deal with the increased costs from this legislation.
Becky Gittins (Clwyd East) (Lab)
Madam Deputy Speaker, I refer you to my entry in the Register of Members’ Financial Interests, where you will see that I have worked for a trade union that is not affiliated to the Labour party and that did not donate to my campaign. You will also see a number of other trade unions listed, not because of any campaign donations or vested interests —I can see why Opposition Members were led there; that is far more familiar to them—but because of the fantastic trade union representatives who have supported me and, I am sure, many Members on the Labour Benches. For me, that was Jim, my Unite rep in my very first job when training as a finance management trainee, all the way through to Laura, Trudy and Claire, the GMB reps who looked after me and supported me in my job before I was elected to this place.
I rise in support of the Bill, which is a central tenet of the Government’s policy to put working people at the heart of our economy and make work pay. As I said, I am a proud trade unionist, and I am proud to stand alongside millions of working people across the country who we depend on to drive our economy and provide the services we all need. I wish to call out some claims that I have heard from Opposition Members throughout this debate—and before; they are quite tired claims—that supporting the advancement of people’s rights at work is in some ways a vested interest. When were the working people of this country ever just a vested interest? It is in the interests of the working people of this country that we should be governing.
As a former trade union industrial officer, I know that finding a way forward in collaboration with those on both the employee and employer side is not always the easiest thing to do, but it is always the right and most productive way forward, so I am pleased that within their first 100 days, as promised, this Labour Government have presented this excellent Bill, and in doing so have ripped up many of the provisions in the Trade Union Act 2016. Rather than ameliorate industrial relations, that legislation was symptomatic of an aimlessly combative approach in that area that the previous Government drove forward. The effect, as we sadly know, was some of the worst disruption in decades. The public responded in July; they had had enough of that toxic and self-defeating approach.
I am delighted that measures in the Bill will modernise employment laws, with much of the Trade Union Act 2016 dismantled and, quite rightly, thrown in the bin. This upgrade for workers’ rights establishes day one rights for parental and bereavement leave for millions of workers, and statutory sick pay will be strengthened. The Bill is part of the platform for that approach. I welcome its content and the commitment to work with all stakeholders to ensure that it is implemented in such a way that benefits all my hard-working constituents of Clwyd East.
Chris Law (Dundee Central) (SNP)
The SNP broadly welcomes the core elements of the Bill, having long called for many of these changes. We have been clear in our opposition to zero-hours contracts, fire and rehire, and other forms of precarious employment that strip workers of job security. Indeed, former MP Gavin Newlands tried twice to introduce such measures with a private Member’s Bill. We have supported the removal of the lower earnings limit for statutory sick pay and the end of the waiting period, allowing those who are ill to access support from day one. Provisions for unpaid parental leave, paternity leave, and the right to claim unfair dismissal from day one are progressive steps towards workers’ rights that we must endorse. Similarly, scrapping anti-trade union laws such as the Strikes (Minimum Service Levels) Act 2023, is an important step in restoring the ability of unions to properly represent workers.
Johanna Baxter
Does the hon. Gentleman agree that if he is supportive of workers’ rights, those Unison members who are currently on strike in Perth and Kinross have a valid claim to a decent pay rise from his Government?
Chris Law
I think the question that the hon. Member refers to is with the Scottish Government, and of course we listen to trade unions in all cases. Indeed, a fair pay settlement was agreed with all unions, until we heard about this one recently. Our former colleague, Chris Stephens, fought tirelessly for trade unions, and spoke passionately in this House about rights for workers.
However, Labour has not gone far enough or acted swiftly enough with this Bill. Gaps remain in its plans, with around half the promised reforms being kicked into the long grass through consultation, meaning that we will not see changes implemented until next year, the year after, or perhaps even 2027. Critical elements—such as the commitment to a single status of worker, the right to switch off, and addressing pay discrimination through mandatory reporting of ethnicity and disability pay gaps—are missing entirely. The Bill was meant to be a defining piece of Labour’s first 100 days in office, but what good is meeting that deadline if the meaningful reforms are missing or will not come into effect for years? This Government are looking overly cautious and hesitant, and in the past weeks people have been writing to me, asking whether that is because the Government want to delay and find a convenient way out of implementing the measures.
The SNP Government in Scotland have taken meaningful steps to promote fair work practices, such as supporting collective bargaining, achieving real living wage employer status, and closing the gender pay gap faster than the rest of the UK, which contrasts sharply with the environment created by the previous UK Government. Devolving employment law to the Scottish Parliament would ensure that no worker in Scotland is disadvantaged by Westminster Governments. Indeed, Scottish Labour’s 2021 manifesto supported devolving employment rights—that might surprise some MPs present today. I look forward to their support to ensure that employment law is devolved to Scotland during this Parliament, so that workers in Scotland never again have to see their employment rights eroded by any future Tory-led Government.
The Scottish Trades Union Congress general secretary, Roz Foyer, commented that
“the Employment Rights Bill isn’t the terminus. It’s the first stop. This can be the foundations on which we can build.”
I agree. It is imperative that workers’ rights are improved by the Bill, but it must go further and faster, and look to devolve those powers so that we can guarantee that the rights of working people in Scotland are protected and strengthened.
Madam Deputy Speaker (Caroline Nokes)
I call Dr Marie Tidball to make her maiden speech.
Dr Marie Tidball (Penistone and Stocksbridge) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests. I am a proud member of the GMB, Unison, and Community trade unions.
When I was born, the room in Barnsley hospital was filled with flowers. No one knew how long I would live for or what operations I might need. Our communities in Penistone and Stocksbridge nurtured me growing up, and world-class NHS care at Barnsley and Sheffield children’s hospitals enabled me to walk and follow my ambitions. My local state education in Penistone helped me to catch up, and to go on to study law at university and fulfil my potential. My inimitable parents taught me that there was no such word as “can’t”, as well as the values of fairness, equality and justice—values at the heart of this Bill. I will use my skills and experiences, as the MP for our constituency, to give back to the communities that gave me so much, including incredible teachers and teaching assistants who helped to make education a way to overcome people’s assumptions about my disability, and to feel free. Achieving health and education equality is a huge asset to our country and critical to the health of our economy.
I am proud to be the first Member of Parliament for Penistone and Stocksbridge in over 100 years to have grown up there. Our rich agricultural heritage has put food on the country’s table, and the grit and determination of local miners, the steelworks in Stocksbridge and ironworks in Thorncliffe powered the industrial revolution, with the latter also producing Churchill tanks, which defended our country in world war two. Those sites remain economically important today, with the specialist LIBERTY Steel now producing steel that powers our UK aerospace industry.
The landscape of our very special constituency has helped to shape our laws before. Poignantly, the day of the general election marked 186 years since the Huskar pit disaster on 4 July 1838, when flooding caused the pit to collapse, killing 26 children. That tragedy led to the Mines and Collieries Act 1842, which banned women and girls, and boys under 10, from being employed in underground work. I learned about that tragedy at school and I knew then, as I know now, that law and politics have the power to improve people’s lives. The past we inherit; the future we build. This Bill makes the biggest upgrade to workers’ rights in a generation, with the driving purpose to change the lives of people across our country and make them better off. Ensuring that the very special people of the place that made me continue to innovate to change the world will be central to the work I do here.
Like the blooming heather that sweeps down the moors past the crystal waters of our rivers and reservoirs, towards our towns and villages, talent bursts forth in our constituency out of the dramatic landscape, gruelling weather, and lives hard-worked and hard-won. People in my constituency literally shoot for the stars: Grenoside’s Helen Sharman was the first British citizen to go into space in 1991; Thurlstone-born Nicholas Saunderson was a blind 17th-century Lucasian professor of mathematics at Cambridge university; and England international footballer, John Stones, also hails from that village, and follows a long and proud history of footballers who have gone through Penistone Church FC.
This summer also saw Olympians made in our constituency. Gunthwaite’s Becky Moody won bronze in dressage with her horse Jagerbomb. Caden Cunningham, who won silver, was trained in Oxspring at Quest Taekwondo. Musicians abound, too. Alex Turner of the Arctic Monkeys makes sure that High Green is resolutely on the map. We can also boast stellar folk singers like the talented Rachael McShane of Bellowhead and Cawthorne’s award-winning Kate Rusby, whose elegiac music of home has healed many a heart and inspired the mind. Ecclesfield produced Barry Hines, the author of “A Kestrel for a Knave”, which was turned into the acclaimed film “Kes”. He documented working-class lives for more than 40 years. Local author Matt Coyne’s “Frank and Red” was the literary comedic mug of hot chocolate that kept me going through the general election.
While our beliefs start from a different place, I share my predecessor Miriam Cates’s passion for education; I hope her new role gives her the chance for leadership on changing the safety of social media for young people. Angela Smith’s legacy as a good constituency MP is something that I aspire to. Helen Jackson’s work on community building in Northern Ireland, as Parliamentary Private Secretary to Mo Mowlam, provides lessons of hope that resonate in the times of hate that we must combat today. I am also grateful for Mick Clapham’s support; I know we will see his legacy on the mineworkers’ pension scheme continue under this Government.
Love, tolerance and doing things for other people are values knitted across the place I call home like the blankets woven from the yarn of Penistone sheep. To the people across Penistone and Stocksbridge: it is the privilege of my life to serve you. As your MP, I will work hard every day to be a strong voice for our communities and ensure that people growing up and growing old in our constituency can fulfil their potential. I will do what it takes to get things right and to get things done. We are a Government who will restore hope across our communities and bring people together. I cannot wait to work with Members across this House to make that change happen.
Lewis Cocking (Broxbourne) (Con)
I thank hon. Members for making their maiden speeches. As I have said before, I am a geographer, so it is a real pleasure to hear about our great United Kingdom and the different constituencies that we all represent.
Entrepreneurs in the towns and villages I represent across Broxbourne are working hard to take risks day in, day out to get our local economy growing and to create jobs, but I fear that the Bill could put all that at risk. Security in work should be available to everyone, but above all else it is getting the job in the first place that is the first vital step. Regrettably, the Government’s plan will only make it harder for businesses to hire new employees. Small business owners in my constituency cannot call on large human resources departments to make sense of these new rules. Increasing the number of day one rights will see them hesitant in making hiring decisions. As the Federation of Small Businesses has said, plans to give unfair dismissal rights from day one
“will inevitably deter small employers from taking on new people”
by raising the chance that new recruits will take their employer to a tribunal simply because they turn out to be unsuited to the role.
The principle of qualifying periods for workplace rights is sensible and fair. The Government must recognise that, because they have chosen not to include in the Bill a reform of the qualifying period of two years for statutory redundancy pay. A balance must be struck to avoid the burden falling too heavily on either the employer or the employee—especially for small business employees, who need the security and confidence that the qualifying period provides. It is clear that the Government’s plans do not strike that balance.
One thing I agree with the Government about is that we must get our economy growing faster, but this Bill, on which the Government have not consulted, is not the right way to achieve that. In this place, we should talk more about how to encourage firms to create growth.
Joe Robertson
My hon. Friend talks about growth. Does he agree that growth for small businesses is good for workers and that what is good for small business is therefore good for workers? Small business needs better protection in this legislation.
Lewis Cocking
I absolutely agree. If we do not create the next generation of entrepreneurs in this country through the education system, which the Government should be focusing on, rather than placing burdens on them—we have yet to hear the Government’s new Budget, which could increase taxes and put more burdens on small businesses—there will be fewer jobs in the market and fewer jobs for the people we are trying to represent and protect in this place.
It is Opposition Members who are standing up for small businesses. Small businesses are the backbone of my local economy in Broxbourne and the country at large. If we do not ensure a fair balance between workers and small businesses, small businesses will close and people will lose their jobs. I do not think the Government want that, so will they please reflect on the Bill, have a proper consultation and come back with something more suitable for small and medium-sized businesses across the country?
Apsana Begum (Poplar and Limehouse) (Ind)
I rise to speak as a proud trade unionist. I draw the House’s attention to my entry in the Register of Members’ Financial Interests.
Too many people are in jobs that offer little or no security. My constituency casework has highlighted the reality of insecure work in the UK and has exposed the inadequacy of the law around worker protections. The rise of in-work poverty, workplace precarity, zero-hours contracts, bogus self-employment and contracting out puts workers at risk. We know that women and black, Asian and minority ethnic workers continue to face the disproportionate burden of working in insecure jobs with fewer rights and ongoing pay gaps.
After years of attacks on workers’ rights and hostility towards trade unions, it is a pleasure to welcome the Employment Rights Bill, which is without doubt a significant step forward for workers. I am particularly pleased to see the ballot thresholds from the Trade Union Act 2016 done away with, and to see the repeal of the Strikes (Minimum Service Levels) Act 2023, which trade unions have criticised as being undemocratic, unworkable and illegal.
I have long been concerned that current laws are already restricting the rights of workers to join and participate in trade unions and may breach international labour standards. Many of us would have liked to see the Bill completely ending fire and rehire and zero-hours contracts once and for all. I also understand that some unions are concerned about the rules allowing workers to have access to trade unions. They argue that the single best way to ensure that work pays more fairly is by expanding collective bargaining. I remain committed to strengthening trade union rights across the board.
I listened carefully to the Deputy Prime Minister, who rightly raised the plight of carers and parents in relation to employment rights. I would also like to raise the plight of survivors of domestic abuse and violence. The statutory guidance on the Domestic Abuse Act 2021 reminds us how pivotal the role and actions of an employer can be in the life of a survivor, who might only speak to managers and colleagues outside the home, as I know only too well as a survivor of ongoing abuse and harassment and having spoken to countless survivors. Employers should have a duty of care towards employees who are experiencing domestic abuse. I believe that the Bill could be further strengthened by bringing into scope the experiences of survivors of domestic abuse in the workplace. We should look at provisions such as flexible working and paid leave in that regard.
A thriving and just economy cannot be created without the full involvement and empowerment of the workforce. The Bill is an opportunity to lay the groundwork for a future in which workers can defend their pay, dignity and working conditions.
John Cooper (Dumfries and Galloway) (Con)
We have heard some electrifying and remarkable maiden speeches today. I rise to speak as a former member of a trade union. I do not miss the subs going out of my pay packet; it did little for me. This is no mere Bill, but a time machine that could take the whole country back decades. The unions are gonna party like it’s 1979. For your benefit, Madam Deputy Speaker—you were not there—1979 was the winter of discontent when the unions bit back, the rubbish piled high in the streets and a Labour PM was soon out with the bins.
With this hastily assembled Employment Rights Bill, Labour is feeding the union alligator that may yet eat it, too. That is because the Bill lacks balance, assuming that all employers are robber barons intent on exploiting workers. The Prime Minister has talked of growing the economy and cutting red tape, yet now we see the reality: proposals that will frighten firms away from taking on new staff and burden them with still more rules and regulations.
My constituent Rory, a forward-thinking dairy farmer, has written to me about Labour’s pledge
“to make Britain the best place to start and grow a business.”
Like me, he sees fine sentiments, but the Bill risks the opposite effect. There is even an expensive new layer of bureaucracy: the fair work agency, whose costs will be borne by business and passed on to the public. The people’s tape is deepest red.
The Bill makes it easier for militant unions to infiltrate workplaces, and it strips out sensible curbs on their power. Strikes will hit the public harder without Conservative safeguards such as those that guarantee minimum service levels. An impact assessment of the Trade Union Act 2016 indicated that it would cut strikes by about 35%.
John Cooper
No, I have waited 40 years for this. Much of the 2016 Act will be tossed into picket line braziers, and as ever it is the public who will suffer. The plan to make union funding of Labour opt-out, not opt-in, is another back-to-the-future move. It is naked opportunism from the Labour party.
The Bill will be hardest on small and medium-sized businesses, the backbone of the economy. We must not forget that they are run by people who are themselves workers and strivers. Napoleon disparagingly called us a nation of shopkeepers. With legislation as skewed as this, Labour risks shutting the shops and turning us into a nation of strikers and their union rep handmaidens. This skimpy Bill is so heavily skewed that it resembles the blade in Edgar Allan Poe’s “The Pit and the Pendulum”, leaving employers strapped in red tape between the ever-present pit of insolvency and the slice, slice, slice of costly, pro-union, anti-growth legislation.
Madam Deputy Speaker (Caroline Nokes)
I call Lorraine Beavers to make her maiden speech.
Lorraine Beavers (Blackpool North and Fleetwood) (Lab)
I congratulate all Members who have made their maiden speech today. I am a proud member of Unite the Union and the Communication Workers Union.
I would first like to pay tribute to my predecessor Paul Maynard. Paul worked incredibly hard for his constituents and was rightly proud to be the first person with cerebral palsy to become a Government Minister. I want to say thank you to Joan Humble, the first Labour MP to serve in my constituency, and to my hon. Friend the Member for Lancaster and Wyre (Cat Smith) for all her hard work and commitment to the people of Fleetwood. I also want to pay tribute to my mum and dad, the wonderful Ronnie and Brenda Shewan, who both sadly passed away this year. My dad saw me get selected, and my mum saw me get elected. Oh, how I miss them!
As a lifelong trade unionist and socialist, I am incredibly proud to be making my maiden speech on the Employment Rights Bill, which will be transformative for the working people I represent. The 16-year-old me began her journey in the labour movement at Larkholme high school in Fleetwood. In assembly one day, the headmaster asked if anyone’s dad was a lorry driver, and a girl called Susan raised her hand. He asked whether her dad had gone to work that day. When she said no, the head informed the school that the reason they did not get their cornflakes that morning was that Susan’s dad was refusing to go to work. I was incensed. I organised a demonstration outside the school gates that very lunchtime. The head was furious and demanded that we come back in, but we stood united and refused. Eventually we negotiated a deal, agreeing that the head would make a full apology at the next school assembly.
I understand that the Bill might not allow for picket lines inside schools, but without doubt it is the biggest upgrade to workers’ rights that we have seen for a generation. The fair pay agreement outlined in it will be transformative for the working people of my constituency, especially in social care, where low pay and poor conditions have led to a recruitment and retention crisis. With an end to fire and rehire, a clampdown on zero-hours contracts and more rights for unions to represent working people, the Bill will not just improve the lives of my constituents, but empower them.
It is an honour and a privilege to be the voice of the residents of Blackpool North and Fleetwood. I am the 15-year-old girl who brought the school out on strike. I am the Army wife. I am the mum who could not afford to buy new shoes for her girls. I am the mum who cycled an extra mile to save 50p because funds were low. I understand what it is like to be poor and struggle between paydays. Sadly, I know that some of my constituents are going through far worse poverty than I could ever imagine. I see the cost of living crisis, the massive rises in rent, food and clothing and the mortgages that young people can only dream of affording, and I want to make it better.
My constituency has the most beautiful coastline, nature reserves and communities. We speak to each other, we care for each other, we smile at each other and we look after each other. That is why so many people move to the Fylde coast. It is where I live with my husband John and where we brought up our two beautiful daughters, who have blessed us with four wonderful grandchildren. I would not live anywhere else but on the beautiful Fylde coast. It is where I am from, where I was born and where I have loved, laughed, worked, cried and grieved. It is my home and my safe space.
My constituency includes the towns, villages and hamlets of Fleetwood, Thornton, Cleveleys, Stanah, Anchorsholme, Carleton, Norcross, Norbreck, Bispham, Little Bispham and northern Blackpool. Carleton is listed in the 1086 Domesday book. Bispham is several hundred years older than Blackpool, and Fleetwood is the newest kid on the block, with the first bricks not being laid till 1836. I will serve every corner of my constituency and fight for a better future for all. I am here to fight for investment into my community, to fight for my constituents and to make sure that the funding my constituency so desperately needs is brought back home. That is the job my constituents sent me to do, and I intend to do it.
I am proud to have been elected alongside a Government who will deliver dentists for all, save our NHS and invest in our young and old alike; a Government who will invest in our communities, our armed forces, our police, our firefighters and more; a Government who care and leave no one behind; and a Government who make those with the broadest shoulders carry the heaviest load. This is my Government, this is my party, and we will deliver.
Steve Darling (Torbay) (LD)
I congratulate the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) on a powerful maiden speech. I broadly welcome the Bill before us—after all, it is clearing up the mess left by the previous Tory Government. However, I am concerned that the Government are not going far enough in certain areas, particularly on statutory sick pay. Presenteeism may mean that people are turning up to work when they should not be, both for their health and for productivity. It is important to enhance statutory sick pay, and I hope that Ministers will give it serious consideration.
As somebody who was adopted, I am delighted that the Bill talks about adoption, but I am shocked that the Government have not explored how they could support fostering. It is part of the rich tapestry of our families and our society in the United Kingdom, and it also helps our children’s services. Why are the Government choosing to be wilfully blind to foster carers in the Bill? It is shameful.
I would also like to reflect on Disability Confident employers. Disability Confident is a really important scheme. We know—I hear it on the news—that the Government are talking about trying to get people with health conditions out of benefits and into work. We applaud that, but why is the Bill silent on Disability Confident employers? This is a real opportunity to do things in a positive way, rather than blaming people with disabilities. I hope the Government will see common sense on that.
Ian Lavery (Blyth and Ashington) (Lab)
I refer the House to my declaration of interests.
The Employment Rights Bill is most welcome. It has been described by some on the Conservative Benches as a horror show. It is definitely not a horror show. It is described as a trade union Bill. I remind Opposition Members that it was the Conservative Government who introduced the Trade Union Act 2016, among many other anti-trade union pieces of legislation. One of the best things in this Bill is the repeal of much of what was in the 2016 anti-trade union legislation. This is the first time in my time as a Member of Parliament that there has been any repeal of anti-trade union legislation. I have to say that, like many other trade unionists and many other people in the workplace, I welcome that fact. Labour recognises that the relentless attacks on the trade union movement—the battering of ordinary working people from pillar to post—cannot and should not continue.
Andy McDonald
Does my hon. Friend agree that the Strikes (Minimum Service Levels) Act 2023 was a deliberate attempt to undermine people in the workplace? It was completely ignorant of the fact that the unions provide minimum service levels throughout some of the most difficult circumstances. Does that not tell us a lot about the previous Conservative Government?
Ian Lavery
Thanks for that intervention. Of course it says a lot about the previous Conservative Government. We on the Labour Benches should always remember and never forget what the Conservatives do whenever they are cornered or in difficulty: they revert to type and attack the trade union movement. That is what they do and have always done. You have seen some of the contributions here this evening. [Interruption.] Do you want to intervene? [Interruption.] Oh, so are you just going to continue to chunter? And when I give the opportunity of saying something responsible—
Madam Deputy Speaker (Caroline Nokes)
Order. The hon. Gentleman can sit. He has been here long enough to know that when he says “you”, he is referring to me. I sometimes let it pass when it is new Members who are not quite used to it, but he should know better.
Ian Lavery
My apologies, Madam Deputy Speaker. Yes, you are right, I should. I was being chuntered at by a Member on the Opposition Front Bench. My deepest apologies.
As I say, we must remember that the Conservatives revert to type.
Suella Braverman (Fareham and Waterlooville) (Con)
The hon. Gentleman is doing a very impressive impersonation of Arthur Scargill. The reality is that the Conservative Government left office with 4 million more people in work compared with the Labour inheritance, a growing economy and a smashed deficit. That is something we are proud of on this side of the House.
Ian Lavery
Thanks for the compliment.
I was saying that the Bill simply restores the balance. It seeks to reverse the injustice meted out to the trade unions and working people, and to rebuild the workplace that was ideologically destroyed by the Conservative Government. These are the first steps and they are so, so welcome. I have fought for them all my life. They are the first steps in a long journey, but look at what we have done within the first 100 days. I have only mentioned a few.
As my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) says, we are repealing the minimum service levels laws and most of the Trade Union Act 2016, and ensuring that individuals have employment rights from day one, including sickness pay, although there is an argument that sickness pay is far too low. We are looking at bereavement payments and so on from day one. We are looking to address the scourge of zero-hours contracts. We are looking to address the scourge of fire and rehire. We are looking to introduce flexible working and entitlements to paternity and parental leave. We do this because it is the right thing.
I could spend hours outlining what I think is right in the Bill and perhaps some things we need to focus on in the coming weeks, but I will not do that. The reality is that this is a historic Bill that sets a framework for fairness for generations to come. Remember, the louder the screams from the Conservative party—the screaming, shouting and chuntering—the more we on the Labour Benches know that we are winning the argument. We know we are doing the right thing, so however loud you shout, we welcome it.
Bradley Thomas (Bromsgrove) (Con)
I congratulate those hon. Members who delivered their passionate and authentic maiden speeches today.
I am proud, like so many Members, to represent a constituency that is home to so many small and medium-sized businesses, which comprise the backbone of our local economy. I am deeply concerned that the reforms in the Bill will hurt both businesses and employees, as well as damage the economic growth that the Government claim to be striving for. The previous Government introduced and raised the national living wage, ending low pay and ensuring that work always pays more than benefits. They banned exclusivity clauses in zero-hours contracts, banning businesses from stopping workers on a zero-hours contract having another job, and delivered 800 jobs a day from 2010. The Conservative Government also introduced shared parental leave, giving more choice to families. We introduced new regulations on shared parental leave to give families more choice over how they take parental leave following the birth of a child.
Changes to business regulation need to strike a careful balance, but Labour’s Bill gets it wrong and will instead make it harder for businesses, damaging job creation and economic growth in the process. The Labour party has introduced a Bill at pace that does not strike the correct balance. As a result, our economy will be less competitive and growth will be hindered. Those warnings come not just from the Conservative Benches, but from across industry. The Scottish Chambers of Commerce highlighted how
“The proposed new rights to a tribunal access from day one will inevitably lead to more settlement agreements to avoid a lengthy and costly tribunal process, placing more burdens on businesses.”
The changes to employment law risk “fuelling long, complex litigation”, according the Recruitment and Employment Confederation.
There are a few parts of the new Bill to which I would like to draw attention. The likelihood of drawn-out dismissal processes has already been referred to. There is the question of how poor performance will be proved. There is the unnecessary right that will be given to trade unions to gain access to workplaces. On zero-hours contracts, many employers and employees do not want guaranteed hours and a minimum threshold. On flexible working, there is the material change proposal, a reasonableness test that will make—
Suella Braverman
My hon. Friend is making a very good speech highlighting the fatal flaws in the Bill. Does he agree that the Government’s own impact assessment on the economic implications show that it will be a disaster for small businesses, not just in Bromsgrove but in Fareham and Waterlooville? The costs that will be borne by businesses will cripple investment, strangle job creation and further stagnate growth.
Bradley Thomas
I thank my right hon. and learned Friend for her intervention and agree wholeheartedly with her points. The Bill will inhibit economic growth and ultimately bear down very heavily on those the Government claim they are trying to protect.
The reforms will prevent businesses from hiring new people and expanding. The Institute of Directors has warned that 57% of businesses are less likely to hire due to measures in the Bill. There are concerns that the Government have not carried out a consultation on collective redundancy, and have failed to outline why they view those proposals as beneficial. Make UK, an important industry body, has warned that the regulations will “significantly increase” red tape for businesses that are forced to make redundancies, and UKHospitality, which represents thousands of businesses on which many of our constituencies rely for their economic vitality, has said that for 90% of workers on zero-hours contracts, those are the desired contracts for them.
What we see here is a generational shift in employment law that will ramp up grievances and disputes and entrench unproductivity. As my right hon. and learned Friend the Member for Fareham and Waterlooville (Suella Braverman), pointed out, it will make it easier to strike and send us back to the 1970s, supporting militant unions. It will increase the number of strike hours in public service, and, as Unite the Union has pointed out, it is like Swiss cheese: full of holes. I hope that, as the Bill progresses through Parliament, the Government will listen to both the Opposition and industry in order to limit the damage it will cause businesses and working people.
Catherine Atkinson (Derby North) (Lab)
I congratulate the Deputy Prime Minister on introducing this groundbreaking Bill within the Government’s first 100 days. It is a careful product of many years of work and thought. I proudly declare the interests set out in the Register of Members’ Financial Interests, including my position as chair of the Society of Labour Lawyers, which has considered and campaigned on these issues for years. The many measures in the Bill create the conditions for jobs around which people can build lives and families, and will prevent legitimate businesses from being undercut by those who avoid their responsibilities. I welcome the provisions to tackle exploitative hiring and employment practices, which will benefit workers and businesses.
I will confine my remarks to enforcement and the fair work agency, because a right is not worth the paper it is written on unless it can be enforced. I was a barrister for 17 years, and for part of my career I had the honour of representing working people. I saw at first hand the race to the bottom on employment that took place under the last Government. Our country is unusual in having no labour rights commissioner, or central or local regulator. Many of the rights that successive Labour Governments have established, and for which the wider Labour movement campaigned, are instead delegated to individuals required to act themselves through the employment tribunal system.
As the Low Pay Commission has found, low-paid and exploited workers can be reluctant to speak out about abuses of their rights. Regulation of the labour market in the UK is fragmented and under-resourced, with an estimated one inspector per 10,000 workers. The creation of a fair work agency will help to enable enforcement of the national minimum wage, statutory sick pay, and a wider range of rights such as holiday pay, so that everyone plays by the same rules. It will help to protect businesses that are undercut by acting as a real deterrent. The current system clearly does not do that: last year 1.1 million employees did not receive any of the paid holiday to which they were entitled, and one in five of those on the minimum wage do not receive the correct pay. It is to the Government’s credit that the fair work agency will help the most vulnerable workers, including those who are victims of human trafficking. I hope that, as the Bill progresses, we will be able to consider whether the agency will also be able to help with safety and other workplace rights.
We have seen Conservative Governments provoke conflict and disruption in industrial relations, but growth and prosperity are only served by better co-operation and work practices, and that is what the Bill will deliver.
Wendy Chamberlain (North East Fife) (LD)
I rise not to speak about the Bill as a whole, but to focus on the provisions that will have an impact on unpaid carers. I refer to my entry in the Register of Members’ Financial Interests as a trustee of the Links Trust. I am to become a member of the board of the Fife Carers Centre, which supports unpaid carers across Fife including my constituency, and that will shortly be published in the register. It should therefore be no surprise to the Government that the first issue that I want to raise is their failure to include paid carer’s leave in the Bill, or even to commit themselves to it in their “Next Steps to Make Work Pay” document. I think that that is a mistake, and also a U-turn from their previous position. I remember that during a debate on my private Member’s Bill that became the Carer’s Leave Act 2023—I double-checked this in Hansard—the hon. Member for Bradford East (Imran Hussain), who was then shadow Minister for employment rights and who is no longer in the Chamber, said:
“We of course support the Bill, but it falls short of what unpaid carers really need, which is paid carer’s leave. Under the proposals set out in our new deal for working people, the next Labour Government will legislate to introduce just that”.—[Official Report, 21 October 2022; Vol. 720, c. 1004.]
Indeed, he committed himself to doing that at all subsequent stages.
I acknowledge that the “Next Steps” document does make some promises in relation to carer’s leave—both to review the operation of the 2023 Act that I was proud to pass, and to look at the benefits of making that leave paid—but that is it. I looked with excitement at today’s written statement—I do not know what that says about me—only to find four consultations, none of which referred to unpaid carers. My Liberal Democrat colleagues and I are calling on the Government to give certainty to unpaid carers: certainty about when that review will take place, certainty about what it will entail, and certainty that the Government are keeping their pre-election pledges to move forward with paid leave.
Will the Government provide an update on what is being done to inform businesses about carer’s leave as it stands, namely unpaid? It concerns me that there is not enough information out there for employers or workers. What are the Government doing to ensure that companies are passing the information to their employees, and that it is being recorded correctly in systems? That last point is important. If the Government want to review the operation of the current Carer’s Leave Act, presumably they will want to know about take-up, but I am hearing worrying stories that carer’s leave cannot be properly recorded in HR systems, and is therefore recorded as general unpaid leave or something similar. We do not need to wait for a review to ensure that the new leave continues to be rolled out properly and effectively.
There are other elements of the Bill that I welcome, especially those relating to flexible working. We know that for unpaid carers, flexible working can be one of the most important tools for staying in work. My request of the Government is that during the passage of the Bill, they flesh out a bit more what they mean by a reasonable or not reasonable rejection of a request for flexible working. I urge the Minister to use his time today to reassure unpaid carers that the Government are not turning their back on them, now that he is in a position to help them.
Paul Davies (Colne Valley) (Lab)
Let me begin by proudly declaring my membership of Unite, the GMB and the Community trade union, and at some time in the past, a member of the National Union of Mineworkers, like my hon. Friend the Member for Blyth and Ashington (Ian Lavery).
The Bill will transform the lives of workers across the United Kingdom. It is not just a set of reforms; it is a commitment to the hard-working people of this nation, a promise to ensure that their rights are protected and their voices are heard. For far too long, many workers in this country have endured poor working conditions, low pay, and a lack of job security. The previous Conservative Government failed to address these critical issues, leaving millions of workers vulnerable and undervalued. The Bill is the Government’s response to these injustices. It is a comprehensive package of reforms designed to upgrade workers’ rights, tackle poor working conditions, and benefit both businesses and workers. It is part of the Government’s broader effort to deliver economic security and growth to businesses, workers and communities.
One of the key aspects of the Bill is the improvement of pay and productivity. We recognise that fair wages are essential to the wellbeing of workers and their families. The Conservative Government’s policies led to stagnating wages and widening income inequality. The Bill aims to rectify that by ensuring that all workers in the UK are paid fairly for their hard work, and that businesses are incentivised to invest in their workforce. From my conversations with businesses and employees in my constituency, it is clear that fostering sustainable businesses and promoting growth are crucial. I have observed numerous businesses forming partnerships with their workforces, grounded in fair treatment that acknowledges employees’ dedication and hard work. The Bill supports and strengthens that approach. It also represents a new approach, a pro-business, pro-worker strategy that recognises the connection between economic growth and workers’ rights. By addressing issues such as poor working conditions and low pay, this Government aim to create a more balanced and sustainable economy.
The Bill is a testament to the Government’s commitment to creating a fairer and more equitable society. I am proud to support it, and to stand up for the rights of workers in my constituency and beyond.
Ellie Chowns (North Herefordshire) (Green)
I begin by welcoming this Bill on behalf of my Green colleagues. I would like to gently comment on the tone of some of this debate. I find myself on the Opposition Benches, but that is not to say that I share the sentiments expressed by Conservative Members. In particular, it is a shame that we have seen some very polarised debate today. I want to challenge the rhetoric of, “It’s workers versus employers and unions versus small businesses.” That is both ahistorical and economically illiterate, frankly. It is ahistorical because if we did not have workers organising together to improve their conditions, we would still have children up chimneys and women being paid a small fraction of what men are paid for doing the same work.
Such rhetoric is economically illiterate because inequality is bad for growth. It is not just me and Labour Members who say that; the International Monetary Fund has specified that inequality is bad for growth. Let us try to look for the common ground together, and to welcome measures that will improve work and the security of people who work. Let us recognise that, frankly, this Bill is long overdue, because we have seen the erosion of workers’ rights over decades. We are now in a position where work does not pay well enough for far too many people in our country, which is why we have so many people on in-work benefits.
I really welcome the sentiments expressed by the right hon. Member for Hayes and Harlington (John McDonnell), who pointed out that there are much better labour relations in countries where there is a positive recognition that workers’ rights go along with improved economic growth. As a country, let us try to move towards that point.
I want to briefly mention a few areas where I would like the Government to go further. The Bill’s failure to fully ban fire and rehire practices is inexplicable. It leaves a loophole or get-out clause that effectively condones this practice, and I do not think there can be any grounds for treating workers in purely transactional terms.
Zero-hours contracts are a complex area. I know that some people welcome the opportunity to have zero-hours contracts, but this flies in the face of what the majority of the public wants. The current model leaves far too much power in the hands of employers.
I want to briefly mention other aspects of equality. It is disappointing that this Bill does not uphold previous Labour pledges on mandatory disability and ethnicity pay gap reporting. It will lead to increased inequality between migrant workers and others, because it does not address the risks that migrant workers face when their visas are dependent on employers, and they may exit the country before they have had a chance to pursue their employment claims.
I would like to see kinship care treated in the same way as adoption leave. The hon. Member for Torbay (Steve Darling) talked about foster carers, too.
In summary, I welcome this bill, but there are areas where I would like to see the Government go further to protect workers’ rights.
Mike Tapp (Dover and Deal) (Lab)
It is an immense privilege to be here today as the Member of Parliament for Dover and Deal. I refer the House to my entry in the Register of Members’ Financial Interests: I am a proud small business owner and a union member, and it is fantastic to see so many Labour Members who are small business owners speaking in support of the Bill.
Over the past two years, I have knocked on thousands of doors, spoken to families, business owners and workers, and listened to their hopes and concerns. Today, I bring their voice to this House, but first I pay tribute to my predecessor, who was and still is an ardent champion on housing issues. Before the general election, she sent a clear message to the country when she crossed the Floor of the House to join the Labour party.
Dover and Deal is the gateway to Britain, with our port bringing £144 billion of trade into the country, but it is also a place rich in history, resilience and community spirit. From the iconic white cliffs to the finest castle in Britain, and from the newly reopened Roman painted house to the proud former mining communities in Aylesham, Snowdon and Betteshanger, we represent the very best of what it means to be British. We also have beautiful coastal paths with some truly great pub stops along the way, as Members have probably seen from my social media; they include the King’s Head and the Forresters in Deal, the Zetland Arms in Kingsdown and Cullins Yard in Dover. We have castles in Dover, Walmer and Deal. I wonder whether my constituency has the most castles in the country, but I am open to challenge on that.
My commitment to public service and hard work stems well and truly from my upbringing. One grandad flew the Catalina flying boats that took out Nazi submarines, and then went on to sell Colman’s mustard from Cambridge. The other grandad was a lifelong, distinguished Royal Mail worker, and that generation’s unwavering spirit of hard work runs through my family. My father, a dedicated police officer, and my mother, a social worker, showed me that real service is about standing strong for others. Their steadfast dedication to helping those in need taught me that strength is found not in titles, but in the service we provide to those around us. That lesson has guided me in my own life—in the Army, in a counter-terror role at the National Crime Agency, and now as the proud Member of Parliament for Dover and Deal.
But I do not stand here alone. I pay tribute to my wife—my hero—who came from Estonia at just 18 years of age, 16 years ago. She has always been and will always be my rock, having supported me through a very difficult and long campaign. Linda has shown remarkable resilience and dedication in turning her passion for dogs into her own thriving small business, which will continue to thrive and grow under this new Bill. We have two dogs of our own. Some of you will know Scooby from the campaign trail. He has become so famous that my Wikipedia page simply states:
“Personal life: He has a dog called Scooby.”
I assure you that I have more of a personal life than that—and a second dog, a puggle called Monki.
It is no secret that I am just a little bit patriotic. When you represent Dover and Deal, how could you not be? For centuries, we have stood strong against invaders and threats, from Napoleon to the Nazis. Dover and Deal has always been at the heart of Britain’s story, and I am committed to ensuring that we remain a proud and prosperous part of the country’s future. Dover and Deal is where national challenges meet local reality. We are a community on the frontline of issues such as border security, immigration and trade. We face these challenges with the strength and sense of duty that has always defined us. Under this Government, Dover and Deal will be treated with the respect it deserves. My vision is for a Dover and Deal where our community can thrive, with improved infrastructure, stronger public services and more opportunities for young people to build their futures there. We are more than a point of transit; we are a community of hard-working people who keep our port running, our businesses thriving and our public services going.
As we debate the future of workers’ rights, I want to say on record that the P&O Ferries scandal, which affected so many of my constituents, must never be repeated. That is why I fully support this Bill.
Nick Timothy (West Suffolk) (Con)
I congratulate the hon. Member for Dover and Deal (Mike Tapp) on his maiden speech. I look forward to the best dog in the world, Monty, taking on Scooby in the Westminster dog of the year competition.
Everybody in the House knows that every Labour Government in history have ended with unemployment higher than when they started. Bills like this are part of the reason why, whatever the intention. If the purpose of this Bill really is to improve workers’ rights, and it is not just about paying back £40 million of union donations made over the past few years, why is there no provision addressing one of the worst labour market abuses in our country: substitution clauses, which allow delivery drivers to lend their identities to others? These clauses are in contracts from huge firms such as Amazon and Deliveroo, and they fuel worker exploitation and immigration crime. We know that hundreds of thousands of people, many of whom cannot work here legally, trade identities. By undercutting British workers and exploiting those with no right to be here, these companies are privatising profits and socialising the costs that they cause, so why is that issue missing from the Bill?
Why will the Government do nothing about the international trading system? Countries aiming to run trade surpluses, such as China, hold down their labour costs and destroy industry in deficit countries such as ours. Trade wars, as two authors like to say, are class wars, and the Labour party usually likes to fight a class war, yet this Government want to flood Britain with cheap Chinese electric cars because of the Energy Secretary’s obsession with net zero. That is just one way in which our economic model needs to change, because while the Government’s characterisation of their inheritance is, I am afraid, cynical and wrong, there is a case for economic change, if only the Government were prepared to undertake it. I think the Business Secretary might be one of those capable of doing that, but I am not sure that some of his colleagues are. Today, Ministers could be launching a plan for reindustrialisation, for competitive energy prices, for domestic steel manufacturing and for a strategy taking in better infrastructure, skills and training, planning, regulatory reform and more—[Interruption.] Would the hon. Lady like to intervene?
Nick Timothy
The Government could be doing something about the fact that nearly 22% of the workforce is economically inactive and a record number of men is leaving the labour market. They could be backing British business.
Robbie Moore
This again highlights the point that there is so much detail yet to be released into the public domain about this Bill. I highlighted this before. Does my hon. Friend agree that if we had that detail, we could provide more reassurance to the small and larger businesses dealing with the challenges he has mentioned?
Nick Timothy
My hon. Friend is exactly right; I agree.
The Government could be backing British business, not burdening it with all these new regulations. Instead, we have an Energy Secretary driving up energy prices, a Chancellor planning a jobs tax, increases to capital gains tax and the imposition of inheritance tax on small family businesses, and a Deputy Prime Minister reregulating the labour market at a cost to business of £5 billion, to pay back the unions who fund the Labour party. The Prime Minister promised us that his priority was “growth, growth, growth”, but like everything else he said before the election, he did not mean it, because the only three things that this Bill will bring are more costs, less investment and fewer jobs.
Peter Swallow (Bracknell) (Lab)
Let me start by proudly declaring that, like 1.3 million working Brits, I am a member of Unison. Bracknell is a fantastic place to do business, and since my election I have spoken to plenty of businesses in my community, from SMEs to international businesses. In speaking with them, two things have come out time and again. First, there is relief that they finally have a Government who will put economic stability at the heart of everything they do, instead of chaos. Secondly, there is recognition that the Bill will be good not only for their workers but for businesses, because well supported staff who have more control over their lives and more reliable hours will work harder and for longer.
Workers who can adjust their terms, who are free from the threat of dismissal right after starting a family, who are entitled to leave after a loved one’s death, who are given the time to recover when they are sick, who no longer face exploitative zero-hours contracts or fire and rehire, and who are free from harassment are obviously happier and more committed. Indeed, many Bracknell businesses already offer many of the rights in this Bill, because they recognise that doing so makes them more attractive to good, skilled workers.
This Government are pro-business, pro-growth and pro-worker, and this Bill demonstrates that commitment. I note that the chief executive officer of the CBI, Rain Newton-Smith, has said:
“The government deserves credit for its willingness to engage with businesses and unions”.
There is a body of economic research that substantiates what we all feel to be true: workers’ rights are the foundations of a resilient, growing economy.
Nick Timothy
The hon. Gentleman just quoted the CBI approvingly. Can he name the chief executive of a real business who approves of this Bill?
Peter Swallow
I have spoken to many chief executives in my constituency who approve of this Bill. I will not go into private conversations, because I have not warned them that I was about to quote them in the House, but I am sure that we will hear many such examples in contributions from other Members.
This Bill will bring in historic new rights for working people. It will make work pay, and it will be good for boosting our national productivity and supporting businesses and growth in this country, because we all know that when workers feel that the jobs that they do are valued, they contribute more to the economy. That is why this Bill is good not only for workers but for businesses.
Alison Bennett (Mid Sussex) (LD)
I associate myself with the comments of my hon. Friend the Member for North East Fife (Wendy Chamberlain), and commend her for all her work on the Carer’s Leave Act 2023, which came into play in the previous Parliament. I want to build on that, and to emphasise the importance of the interplay of paid and unpaid care in ensuring that we look after the people in society who need our care. The comments of a constituent of mine in Mid Sussex come to mind. She was an unpaid carer for her mother, and told me that having paid carers come in helped her to sustain a normal mother-daughter relationship for that little bit longer.
The care workforce, and looking after the care workforce, are extremely important, and the Liberal Democrats welcome the fair pay proposals in this Bill, but we would like the Bill to go further. As I mentioned when I intervened on the Deputy Prime Minister, we would like the minimum wage for care workers to be £2 higher than the normal minimum wage. We would also like to build the esteem and career path of people who work in paid care—for example, by establishing a royal college of carers. Without that, we have a blocker to our workforce productivity. Caring and working must go hand in hand, but because regulations do not enable unpaid carers to look after their loved ones adequately, 600 people a day give up work to care for a loved one.
One of those people is Amanda, who used to live in Mid Sussex. She and her husband Nick look after their 21-year-old son Archie, who is autistic and learning disabled. Amanda is a modern foreign languages teacher, and there is a shortage of such teachers. As Archie was approaching adulthood, they realised that West Sussex county council would not be able to provide enough care for him, so the best thing that she could do was take her teacher’s pension early and claim the carer’s allowance. Because of the £151 a week limit on earnings for those on the carer’s allowance, Amanda is now excluded from the workforce. She cannot take up offers of supply teaching or exam invigilating that would boost the family income and be good for her mental health. We need to ensure that people can give care while being in the workforce, because this situation is not good for the nation’s productivity, or for the Government’s ambition to deliver growth.
Madam Deputy Speaker (Caroline Nokes)
I call Kenneth Stevenson to make his maiden speech.
Kenneth Stevenson (Airdrie and Shotts) (Lab)
It is a great pleasure to follow the maiden speech of my hon. Friend the Member for Dover and Deal (Mike Tapp), and the excellent maiden speeches of the hon. Members for Leicester East (Shivani Raja) and for Weald of Kent (Katie Lam), and my hon. Friends the Members for Hyndburn (Sarah Smith), for Penistone and Stocksbridge (Dr Tidball) and for Blackpool North and Fleetwood (Lorraine Beavers).
I make my maiden speech with a great deal of pride. Serving the people of Airdrie and Shotts is an immense privilege, and one that I will never take for granted. I hope that my dad, Howard, will be pleased as he watches at home, and that he knows that it is the value of hard work that he and my mum, Millie, instilled in me—along with the assistance of many others, including my wife, Julie, who is watching here today—that has brought me to this place.
The opportunity for me to make my maiden speech today is all the more special because we are debating the Employment Rights Bill. As we chapped doors across the constituency for over a year, our key commitment was to deliver an upgrade to workers’ rights the like of which has not been seen for a generation. I am delighted that we are making such rapid progress, and I thank the Minister and the Government for putting this at the forefront of our efforts to give Britain back its future. I look forward to seeing the impact of this Bill on workers in my constituency of Airdrie and Shotts, and across the country.
I pay tribute to my immediate predecessor, Anum Qaisar. I never questioned her commitment to the job she was elected to do, nor to the causes for which she fought so passionately. I wish her well in the future.
Looking back a bit further into the history of the Airdrie and Shotts constituency, and of the seats that came before it, I have to mention some of the giants who have served these communities. From Jennie Lee, a key figure in the creation of the Open University, where I obtained my qualification, to Peggy Herbison, a Shotts woman to her core, who led the way for women in politics and whose impact is still felt in Shotts to this day; and from John Reid, a pivotal figure in the last UK Labour Government, to John Smith, a truly excellent leader of my party, taken before his time, who put the Labour party firmly back on the path towards Government. Although, on reflection, I may be making a rod for my own back by mentioning such influential and consequential figures, it is only right that I recognise their contributions to this place, to the communities I now represent, to the Labour movement and, indeed, to this country.
Members will be surprised to hear this, but I am going to make a comparison between Airdrie and the ancient city of Rome—before Members ask, it is not the weather. Like Airdrie, Rome is also built on seven hills. A popular Airdrie pub quiz question is to name them, but I will not attempt to do so today, because of the risk of missing one out—what a start that would be!
The communities of Airdrie and Shotts, along with the many surrounding villages, are steeped in industrial history. These towns and villages, including Harthill, Eastfield, Salsburgh, Allanton, Bonkle, Hareshaw, Hartwood, Morningside, Cleland, Holytown, Newarthill, Newmains, Plains, Chapelhall, Gartness, Calderbank, Glenmavis, Caldercruix, Upperton, Longriggend, Wattston and Greengairs, are of great importance to the history of Scotland and the wider UK.
In coalmining, manufacturing, textiles, engineering and pharmaceuticals, the communities of Airdrie and Shotts have been home to skilled employment, and they have been at the centre of the various advances we have witnessed in previous decades. In fact, I completed my apprenticeship at a modern manufacturing facility in Shotts that was sadly closed during the times of rapid deindustrialisation. It was there that I learned my trade as an engineer and grew as a person. The advice of ex-miners, steel workers and foundry workers was invaluable. My second career as a lecturer at Anniesland college was informed by the people of Glasgow. I learned so much from my fellow lecturers and from the area’s students.
The Shotts factory humour is not generally something I would repeat in this Chamber, but I can share the first piece of advice I got as an apprentice: “Never argue with anybody stupider than yersel, son.” Oscar Wilde, it was not, and having listened to the discourse in this place, I am sure I will not need that advice here. Regardless, I will forever be indebted to the people of the area I was born, raised and worked in. I hope that legislation such as the Bill we are debating today will reignite the industrial and technological potential that exists within these communities.
There are two things I could not go without mentioning in my maiden speech. The first is the groups and organisations at the heart of my constituency. My Scottish colleagues will be well aware of the work and impact of St Andrew’s hospice in Airdrie. Many, if not most, people in Lanarkshire will have a relative or a family friend who was cared for by the hospice, and will therefore know its incredible value.
It is an immense honour and privilege to serve these people and communities. In me, they have a Member of Parliament who has lived in the constituency throughout my life, who values its potential and who is determined to overcome the challenges it faces. I will do my best to abide by my Stane primary school motto, “Persevere”, and by my Calderhead high school motto, “Facta non verba”—deeds, not words.
Today’s debate on the Employment Rights Bill is a critical step towards delivering a long-overdue new deal for working people, and it will be the working people of Airdrie and Shotts who I have in mind throughout my time in this Parliament.
Robbie Moore (Keighley and Ilkley) (Con)
I congratulate the hon. Member for Airdrie and Shotts (Kenneth Stevenson) on his maiden speech. Knowing his constituency a little, I can guarantee that the weather is not the link between Airdrie and Rome. I congratulate him on taking his place in this House.
Today’s debate is deeply important, and it will have huge ramifications for businesses of all sizes across the country. Hiring new staff is a big moment for small businesses, like many in Keighley and Ilkley, and it comes with huge potential but also risk. That is why many businesses in my constituency have contacted me in advance of the introduction of this Bill to express their concerns about the proposals before us today.
At a time when we need to grow the economy, we do not need a Bill that the Federation of Small Businesses has described as
“rushed…clumsy, chaotic and poorly planned.”
It has to be noted that this Bill will have a disproportionately negative impact on smaller businesses compared with larger companies that have their own HR departments.
Simply put, Labour’s day one rights and other similar measures are worrying for many small businesses across the country. The Government have made this situation worse by adding clause after clause of clarification, exception, regulation and definition, in an attempt to micromanage every possible situation for businesses across the country. This has created a quagmire of regulatory jargon that small businesses will simply have to cope with, and they will not be able to cope. The fear of falling foul of these regulations has been made clear to me by many businesses in Keighley and Ilkley.
The Bill will also prevent the backbone of our economy from hiring staff, expanding and growing our economy. Even the Government’s own economic analysis stipulates that the risks are highest for workers with the weakest attachment to the labour market, such as low-paid workers, disabled workers and the youngest workers, who are still gaining the experience and skills they require.
Rebecca Harris
An SME in my constituency once found someone sleeping rough on its premises and offered them a job. Does my hon. Friend agree that, when this Bill is enacted, it is very unlikely that a business will go to such lengths to give someone that kind of break in future?
Robbie Moore
I absolutely agree. My hon. Friend highlights that this Bill will not give businesses the certainty and confidence to recruit individuals who need that little bit more experience to get into the job market. Indeed, the Government’s own analysis points to an unintended consequence:
“Where businesses cannot absorb the increase in labour costs, they may look to pass them onto workers by reducing expenditures that benefit workers (e.g. staff training) or scaling back future improvements to T&CS (e.g. wage growth).”
This is not a pro-growth Bill, and it is not even a pro-work Bill; it is a pro-union Bill. The Government have even said this themselves. Their plan to make work pay has referred to this Bill as an “Employment Rights Union Bill”. Perhaps that is because the Bill is chock full of changes to union regulation made by our previous Conservative Government—changes that were specifically designed to protect the public from the unscrupulous practices of the unions and their more militant members.
Minimum service provisions were introduced by the last Government specifically to protect the public from being caught in the crossfire between the unions and the Government—yet, by lifting those restrictions with this Bill, Labour is showing that it is more interested in appeasing its union bosses than in ensuring that minimum service is guaranteed throughout any dispute between the public sector and the Government.
Nick Timothy
Earlier, I asked the hon. Member for Bracknell (Peter Swallow) whether there are any business leaders who actually support the Bill. Is my hon. Friend aware of any?
Robbie Moore
I have spoken to and received correspondence from many businesses, both small and large, in my constituency, but not one gave the Bill their full backing. In fact, they raised concerns about the relationship between the employer and employee being tampered with by the Government.
One of the most unsurprising parts of the Bill is clause 48, in which the Government want to force union members to pay into the political fund of the union, unless they explicitly decide to opt out. No matter what views hon. Members may have about unions, this clause is simply not right; working people should not be paying into political funds without giving their prior consent, especially when that money ends up in the pockets of a political party. Having received over £29 million in donations from the unions, we know which political party that money will end up going to—the party in government; and all this from a self-proclaimed Government of supposed transparency. Every employment is different, every job is different and every circumstance is different, but this Bill fails to recognise that.
Mr James Frith (Bury North) (Lab)
I will start by offering some home truths to Opposition Members: someone can be both a member of a union and an employer. I am a proud member of GMB, which donated to my campaign, but I am also proud to have started my own business. I have been an employer, taken risk, and understand the balance of risk and reward. Throughout the debate, Conservative Members, who claim to represent the party of business, have made false representations that are out of date and out of kilter with the debate that we are leading, having been elected with the majority that we have. They are keen to talk among themselves, with their plans to end maternity rights and all the progress the Labour party has made sacrosanct in British law and the experience of work in our economy, but I urge them to look at the result of the election and understand the direction of travel: the Labour party is once again making progress in this country.
Today’s leap forward for workers’ rights sits alongside the Government’s No. 1 mission of economic growth—that is, done with the workers not to them. We will be more productive, protective and prosperous, pro-business and pro-worker. The Bill rejects the idea that justice and fairness in the workplace need to come with an arbitrary waiting period. Day one rights will capture headlines, but will not cause alarm for most employers. The hon. Member for West Suffolk (Nick Timothy) asked which chief executives support this provision. I met chief executives on Friday who told me that as leaders in their field, they already do much of what we are advocating—so I say to those on the Opposition Benches: get with the programme.
Labour has a proud record to recall again today, as we advance these new rights. We have a record of raising the floor and the horizon for workers’ rights, whether through securing maternity, paternity or foster care leave, introducing the minimum wage or ensuring bank holidays. Through a principled link with our trade unions, the Labour party has fought for and delivered rights that once seemed radical but are now woven into our national life and experiences of work. These very advances, initially opposed by the Tories, have now come to be seen as the very standard of how working life in this country should be, and I am all for it, Madam Deputy Speaker—with time to spare.
Jim Shannon (Strangford) (DUP)
As hon. Members may be aware, I am not a career politician. I worked as a pork delivery driver with Henry Denny’s, until I opened my own small business as a pork retailer. I worked from early morning, before I did my work for the council and then for the Northern Ireland Assembly. I employed staff members. I did the books as well as I could, then handed them to my accountant. I delivered to local businesses and shopped local. I understand what it is to be a part of small business; indeed, it was a microbusiness. I say respectfully to the Minister that I know I would have struggled to implement some of the things currently under discussion, so I remind hon. Members of the implications of the Bill on small and microbusinesses. The Northern Ireland statistics will show why I hold those concerns.
Microbusinesses in Northern Ireland are no different from those in the United Kingdom mainland. Employment law is mostly devolved, but much of the law in Northern Ireland follows the direction of what is passed in the House of Commons, which is why I want to make my comments in a constructive fashion. The fact is that most employers are not skilled at making changes. The changes made by the Bill and additional obligations on employers must be made clear, be cost-effective and not mean that they need to hire an HR consultant, which is simply out of the question.
For example, I recently heard about a case of a small business that had worked out holiday pay using the online Government calculator. An employee moved to another job and queried the holiday pay. The Labour Relations Agency has said, according to the employees’ representation, that the owner owes approximately £800 per annum to each staff member. The owner has told me that they will need to close the business. I gave that example because I want to show what can go wrong—and, my goodness, it can go wrong at an absolute volume—with regulations that the Government put in place. The business is viable, but does not have the capacity to pay £10,000 in back pay to its staff. It used online tools to get it right, and yet has been left in an untenable situation. That makes it clear that when changes are made to employment practices, the advice for employers must be accurate and easy to understand. This is clearly not currently the case.
With great respect to colleagues on the Government Front Bench, the Bill is a curate’s egg—it is good in part, but not in every part. I welcome some of the measures, such as the end of zero-hours contracts and the enhanced protections, and look forward to seeing the minutiae of the detail.
Gavin Robinson (Belfast East) (DUP)
On Friday, I attended an event hosted by the Northern Ireland Chamber of Commerce and Industry. It offers the Government no ill will and wants to engage positively and pragmatically on the issues, but it is concerned. Does my hon. Friend agree that it would be useful if, instead of continual hubris and politics from one side to the other throughout this debate, there were a willingness on the part of Front-Bench Members to engage thoughtfully with businesses?
Jim Shannon
My right hon. Friend makes exactly the point that I want to make. Through the Bill, the Government are pushing forward legislation that is necessary and welcome, but they need to work better and more closely alongside small businesses and microbusinesses of the kind I worked with many moons ago, whenever I had hair—that is a thing of the past. We cannot expect almost 80% of small businesses to behave as if they have an HR department, a payroll department and a board when most of them are simply retailers as I was, hiring local people and trying to be a good boss in a world with changing obligations.
Support must be central to any change in legislation. Like my right hon. Friend the Member for Belfast East (Gavin Robinson), I ask the Secretary of State to take that point on board. If he is able to do so, I believe we can move forward constructively and help our businesses to maintain their status as employers.
Madam Deputy Speaker (Caroline Nokes)
I call Imogen Walker to make her maiden speech.
Imogen Walker (Hamilton and Clyde Valley) (Lab)
It is an honour to speak for the first time as the MP for Hamilton and Clyde Valley. I am delighted to have the opportunity to declare that I am a proud member of GMB, which does so much for so many.
My constituency has played an important part in the progress of employment rights, for reasons that I will come to shortly, so it is fitting that it is acknowledged here today. First, I pay tribute to Angela Crawley, who represented a large part of the area that I now cover and who has been so helpful in ensuring a handover; she was a dedicated MP and I am grateful to her. I also pay tribute to my hon. Friend the Member for Rutherglen (Michael Shanks), who is always a source of good advice and good humour. His historic win in Rutherglen and Hamilton West was the first sign in Scotland that people were prepared to put their trust in us again. We will remember that.
Hamilton and Clyde Valley is an extraordinary place. The ancient woods of the Clyde Valley are the oldest in Scotland. Entering them is like stepping into another world: you are as likely to meet a rabbit or a red deer as another human. You might see glimpses in the undergrowth of walls, buildings or just piles of stones. It is impossible to say how long they have been there, but they serve as a reminder that so many people have made their lives here before us. Most are long forgotten, but not all. The great Roman general Agrippa is thought to have set up camp just outside Lanark, but he did not stay. Opinions vary on how the Romans were ousted from Scotland: some that believe the Caledonians were just too much for them, while others say that the tribes were nowhere near as bloodthirsty as the midges.
Either way, Lanark is a very welcoming place now. People come from around the world to see New Lanark, Robert Owen’s vision of decent working and living conditions. He believed that people deserve more than just the means to survive, that men and women are equal and that how we treat our children matters. Most importantly, he put his principles into practice. That is what we must do here, because the progress we have made is hard won. It takes courage as well as compassion, and it must never be taken for granted.
In South Lanarkshire alone, nearly 5,500 people are paid at or below the national minimum wage. Many more have working conditions that can and will be improved by this Government. Across Hamilton and Clyde Valley, people need a Government who are back in the service of working people—from Hamilton, the fourth largest town in Scotland and home to 55,000 people, to Larkhall, Lesmahagow, ancient Lanark and our many villages, which all have their own character and close-knit communities. From the deep forests to farms, villages and towns, we truly have everything.
From there to Westminster is quite a journey in so many ways. I will not forget that I made that journey to serve and to protect the things that people care about: their homes, their families and their jobs. I have been given the chance to do that because of the support of so many people, starting with my dearly missed mother Isobel. She would have been so happy to see me here. She, too, believed in the power of education, hard work and opportunity to transform lives. Every evening, the television would go off so we could do our homework in peace. I can tell you from the bottom of my heart, Madam Deputy Speaker, that that was incredibly annoying when I could have been watching “Dallas”, but of course she was right.
On my father Jamieson’s side, generations across South Lanarkshire were shopkeepers and metalworkers, the kind of people who keep our country going and whose lives are changed by the decisions we make here—knocked back if we get it wrong and raised up when we get it right. I am the product of generations who sometimes thrived, often struggled and were ultimately given the opportunity to fulfil their potential through hard-won rights. I want that for everyone: the chance to make a good life for themselves and their loved ones. That is why I am here, and that is what this Government will do.
Graeme Downie (Dunfermline and Dollar) (Lab)
It is a privilege to follow the maiden speech of my hon. Friend the Member for Hamilton and Clyde Valley (Imogen Walker). I visited New Lanark on a school trip when I was younger, as many people in Scotland did, and it was a fantastic portrait of a beautiful part of the country. I pay tribute to other Members who have made a maiden speech today, including my hon. Friend the Member for Airdrie and Shotts (Kenneth Stevenson). I, too, know some of the language to which he was referring.
I draw attention to my declaration of interests, including my proud membership of Unison. I will use my short time to emphasise two elements of the Bill. Not only is it the greatest increase in workers’ rights in a generation, but it will ensure that the UK economy adapts to the changed landscape in which we find ourselves and to the businesses that will contribute to it and make us a success.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I draw attention to my entry in the Register of Members’ Financial Interests and to my proud membership of Community and Unison. My hon. Friend and I are both proud to represent Fife, but in some areas of Fife as many as one child in four still lives in poverty. Does he agree that by giving over 8,000 more workers more money in their pocket, the Bill will mean that more families have more money to spend and will help to make an important contribution to tackling child poverty in Fife?
Graeme Downie
Absolutely. At the core of the Bill is the need to raise wages for people across Fife, across Scotland and across the UK. That will be a key achievement of this Bill, which has been undertaken by this Labour Government within the 100 days that we promised the electorate.
The change in the landscape has been caused by a rapid advancement of technology in our economy, a shift in working patterns, the evolution of the largest contributors to the economy and welcome changes to the nature of family life, with an increase in shared parenting, as we have heard from so many Members across the Chamber. It is nothing but shameful that the previous Government took no action to adapt to those changes or help them to drive forward our economy. As ever, it has fallen to the Labour party to make the radical changes that we need to see. A look at the Opposition Benches tells us how much the Conservatives care not only about workers’ rights, but about the economy for the future.
I welcome clause 7, which will apply the objective test for an employer to refuse a reasonable request for flexible working. Like hon. Friends who have spoken today, I ran and owned a small business for 10 years. I know the benefits that businesses get from welcoming and embracing flexible working patterns. They assist with staff retention and improve and facilitate communication between employers and employees. They lead to more constructive relationships at work and—as I saw at first hand—to more productive teams and a business that is better for everyone involved. A shift to a clear objective test will further aid the process and will help both businesses and employees.
I also welcome clauses 20 and 21, which will provide additional protection for working parents. Along with my hon. Friend the Member for Makerfield (Josh Simons), I am delighted to support the Dad Shift campaign, which has been campaigning for better statutory paternity leave to help mums, dads, children and our economy. The benefits of modern and flexible paternity leave would help families to raise their children in the way they see fit, so they can still progress their own careers and contribute to the economy and to society. I would like to see more progress on those issues during the passage of the Bill, as hon. Friends have highlighted, but none the less it is an important first step in making sure that new parents have the right protections.
This is a long overdue Bill that would only ever be brought forward by a Labour Government—a Government who understand the changing nature of business, of society and of our workforce and who realise that only by bringing the three together can we push forward and grow our economy together, creating a more prosperous and fairer society across the UK.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
Order. I will give an advisory notice: a lot of Members still want to get in, and interventions are cutting into other speakers’ times. The only people who suffer will be you. I am leaving the time limit at three minutes, which could just about get everyone in.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
Thank you, Madam Deputy Speaker. I will keep an eye on the time.
Like many other hon. Members, I refer the House to my declaration in the Register of Members’ Financial Interests as a proud member of GMB and Unison. We have all just fought a general election; the reality is that general elections can be expensive, so I make no apology for receiving support from the CWU, ASLEF and GMB unions. Without that support, I would not have been re-elected. It is important that we recognise that it is clean money from our hard-working trade union members. We should not be ashamed of that at all.
For many people in my constituency, the nature of the workforce has changed since 2010, yet over the past few years successive Governments have almost rolled back the hard-fought employment rights that we and many trade unions before us have fought for. During the covid pandemic, as I mentioned in an intervention earlier, a number of household-name organisations—multinational business making profits in the multimillions —thought it was okay to fire and rehire their staff. I stood up in this Chamber and raised concerns about constituents who faced the threat of sacking, including many BA workers and many GMB workers who worked for British Gas/Centrica. At a time when we wanted those workers to go out and do their vital jobs, the fact that those jobs could be taken away and they could be re-employed on worse contracts was just wrong.
We should welcome this legislation, which will be a big game-changer for many people across the workforce. In the short time I have, I want to highlight two areas in which we will see a big shift.
Vauxhall and Camberwell Green is home to many young people. TUC stats show that many people in their 30s have been with the employer for less than two years. Young people should be able to go to work, be proud of their work, put their roots down and start a family. Instead, they have insecure work with the threat of dismissal over their head and a lack of security. If young people are planning to start a family or purchase a house, they can be discriminated against by their boss. We want to see rights that will protect the very people we want to contribute to UK plc.
I ask Conservative Members to get with the times and help us to support growth for this country and its workers, including the many workers who are trade union members and who contribute to society. It is about time we supported workers and passed this legislation so that its pro-business and pro-worker measures can support UK plc.
Richard Burgon (Leeds East) (Ind)
I draw Members’ attention to my entry in the Register of Members’ Financial Interests. I have to start with reflections on some of the speeches from Conservative Members, although their Benches are now deserted. Those speeches brought back memories from when I was younger of watching my favourite actor, Rik Mayall, in his role as Alan B’Stard MP. Many Conservative Members seemed to be trying to reprise that role today. It was incredible and left me wondering what planet they are living on. It also took me back to Conservative Members objecting to the last Labour Government introducing the national minimum wage. They said it would have a cataclysmic effect on jobs across the country, when in fact it helped to move people towards getting a decent wage. Conservative Members do not seem to understand that many good employers follow such standards already, and we are enabling those good employers to operate on a level playing field with bad, rogue bosses who seek to undercut good employers left, right and centre.
Before I was first elected back in 2015, I was a trade union lawyer for 10 years, and I saw day in, day out how working people are held back by weak protections and anti-trade union laws. I am really proud to be here today to welcome and vote for this significant step forward in employment rights by a Labour Government. There is so much in the Bill to improve workers’ rights in a range of areas—parental leave, paternity leave, unfair dismissal, statutory sick pay, collective redundancies, tips, the duty to prevent sexual harassment and the requirement for firms of more than 250 employees to make equality plans. The Conservatives think this is bad news for business, for workers and for our country, but that could not be further from the truth.
As this important Bill makes progress, I hope that the Government will find ways to clarify and strengthen a small number of points. Some loopholes on fire and rehire need to be closed, and it would be great if we could further strengthen the rights of union access to workplaces. I would also welcome improvements in a host of other areas. For example, it is 30 years since the Tories took away prison officers’ right to strike, and I would like to see that returned. If people succeed in proving unfair dismissal at an employment tribunal and get a reinstatement order, I would like to see it made much more likely that they will, in fact, be reinstated.
I welcome the Bill, I am proud to vote for it and I think it is shameful that the Tories will vote against it.
Olivia Blake (Sheffield Hallam) (Lab)
I wish to make Members aware that I am a member of the GMB, as many Members on this side of the House seem to be.
It is great to take part in the debate. It is important to recognise the great history of women on these Benches and in our movement, such as Eleanor Marx’s role in setting up the GMB, Barbara Castle’s in passing the Equal Pay Act 1970 and, today, that of our very own Deputy Prime Minister in setting out another game-changing piece of legislation.
I want to focus on gender, because since the introduction of gender pay reporting in 2017, we have made some progress in making people aware of pay disparities in some of our workplaces, but the facts are still stark. The gender pay gap is stubbornly stuck at 14%. That is horrific enough, but in certain sectors, including care, the gap is even higher. Pay inequality compounds over the course of a woman’s life, meaning that she is more likely to live in poverty as a pensioner, and unable to gain opportunities that her male counterparts have had through their lives.
According to the TUC, the pay gap means that, on average, women effectively work for free for nearly two months of the year compared to men. At the current rate of progress, it could take another 20 years to close the gap. That is 20 years too long. While reporting has become an accepted part of employment practice, we must do much more than just raise awareness of the issue. We need concrete action, which is why I am proud that the Bill introduces much-needed regulations to require employees with more than 250 staff to publish a plan to address their gender pay gap. That will ensure that organisations are not only transparent about pay inequalities, but actively work to close them.
Another critical part of the Bill is the provision to support women experiencing menopause. Women between the ages of 45 and 54 make up 11% of our workforce and 23% of all women in the workforce—around 3.5 million women. Despite the growing number of women in the labour market of that age, the challenges they face from the menopause are often overlooked, leading to discriminatory practices and a lack of adequate workplace support. BUPA estimates that nearly 1 million women have been forced out of the labour market by menopausal symptoms. That is simply not good enough, which is why I am proud that the Bill takes steps to address it. Employers will be required to publish how they will better support women going through the menopause.
Sonia Kumar (Dudley) (Lab)
I declare my interests as a member of the GMB, Unison and the Chartered Society of Physiotherapy.
Dudley is home to thousands of small businesses and gig economy workers. Some 89% of those businesses are microbusinesses, and they will be watching closely to see that the Bill strikes the right balance between being pro-business and pro-worker. I believe that it does so. Alongside the “Next Steps to Make Work Pay” policy, the Bill offers a consultation period for businesses and a probation period, allowing them to shape practical and beneficial reforms, giving a voice to businesses and time to adjust, as it will not be rolled out until 2026. I dismiss the claim from Conservative Members that the Bill is rushed, and I hope that the Business Secretary will reaffirm that and reassure Conservative Members that specific guidance and support will be provided to smaller businesses in places such as Dudley so that they can implement the reforms effectively, without excessive costs.
The Bill includes welcome provisions that will strengthen statutory sick pay and provide financial stability for workers. Currently, 10 million people are not able to access basic health support at work, including up to 12,600 people in Dudley. The changes will ensure that no one is forced out of work due to ill health, helping to create workplaces that protect and promote the health of all employees.
For too long, workers have had to wait months for basic protections such as unfair dismissal rights. The Bill will change that by making them day one rights, so that workers are protected from the start of their employment.
Under successive Conservative Governments, access to justice for workers was weakened. Tribunal fees made it harder for workers to hold bad employers to account. Although those fees were eventually scrapped, the damage remains, and the Bill corrects those failures by giving workers the protection that they deserve from day one.
The Bill is also a significant step forward on gender equality. It makes parental leave a right from day one, allowing parents to access leave as soon as they start their job. That is particularly important in Dudley in sectors such as healthcare, education and the beauty industry, and will ensure that being a parent does not undermine a person’s job security.
At university, I was on a zero-hours contract in one of the biggest industries in Dudley. I remember when my colleagues and I would wait for the supervisors to produce a rota, and the uncertainty of not knowing who would be on the shift next. We were not alone; more than 1 million workers in the UK are stuck on these contracts, with more than 80% of them seeking predictable hours. The Bill reflects the values that we stand for of fairness, equality and dignity.
Tom Hayes (Bournemouth East) (Lab)
I proudly refer the House to my entry in the Register of Members’ Financial Interests. Bournemouth is blighted by insecurity, and Britain is paralysed by low pay. As somebody who grew up in very significant financial hardship, caring for two disabled parents, work for me was a route out of poverty. By working on several shop floors in Salford, I was able to earn enough money to go to university. Were it not for that opportunity, I would not be here today. Things were hard then, but they are so much harder today, so I welcome the Bill.
The Bill gives workers in Bournemouth the rights that they need, employers in Bournemouth the security that they need, and our economy in Bournemouth the tools that it needs to grow sustainably. I thank people across Bournemouth East, the constituency that I am so proud to represent, who have shared their thoughts and insights, and met with me about the Bill. I have represented their views and been a voice for their arguments, and I believe that the legislation is stronger as a result.
Across Britain, more than 1 million people on zero-hours contracts will benefit from the new guaranteed-hours policy; 1.5 million parents will benefit from unpaid parental leave as a day one right; and 9 million people who have been with their employer for less than two years will benefit from the new day one unfair dismissal policy. An estimated one in 25 employees did not get any of the paid holiday that they were entitled to last year. The new fair work agency will enforce holiday pay for the first time.
The Bill is a crucial, long-overdue step that directly benefits women at work. It will increase protection from sexual harassment. One in two women have been sexually harassed in the workplace, and four out of five do not report it to their employers. The legislation will empower tribunals to raise compensation in cases of sexual harassment where the employer failed to take reasonable steps to prevent it. An estimated 4,000 pregnant women and mothers returning from maternity leave a year will benefit from new protections. The Bill will also introduce gender pay gap action plans, and strengthen protection for workers through the menopause.
The Labour party made a promise to level the playing field at work by introducing the Bill early in the life of this Government. Promise made, promise kept. I am so proud and excited to be voting for this pro-worker, pro-business, pro-growth, pro-economy measure, and I commend the Deputy Prime Minister for bringing it forward. Bournemouth and Britain have been held back for too long. Together, we take a big step forward, with a measure that has been agreed and negotiated with businesses, trade unions and workers. We are fixing the foundations, and together we are shortening the journey towards the fairer society that so many people elected a Labour Government to bring forward.
Yuan Yang (Earley and Woodley) (Lab)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests, in particular the perhaps interesting fact that, like the majority of journalists at the Financial Times, I am a proud member of the National Union of Journalists. I am able to enjoy that right to membership of a trade union, and the right to assembly and discussion that follows from it, because I am fortunate enough, unlike many of my aunts, cousins and uncles, to be a British citizen living in the UK who enjoys protection of not only my right to vote but my right to collective bargaining and representation in the workplace.
It is fitting that, in this historic debate on this advance in workers’ rights, we in the mother of Parliaments defend not just the right to representation in Parliament through our electoral system, but the right to representation in the workplace through collective bargaining and union access, because strong unions are a workplace form of democracy. I have seen what happens when people are denied that right. I have reported on labour abuses and wildcat strikes—the desperate measures that workers across the international supply chains of Amazon and Apple have gone to when their ability to form a union and advocate for their rights has not been protected by the state. That simply pushes problems underground.
Labour Members know that when workers have issues, there needs to be mediation and they need to be represented properly, through legal means. If that does not happen, it stores up long-term structural challenges for the economy. In the British economy, the wage share of our economic output has fallen since the 1980s. Union representation and density has also fallen throughout that time. It is no coincidence that the two things go together, in the UK and many economies across the OECD. There is a correlation between the strength of unions, and union density, and strong wage growth and worker protections in the workplace.
Beyond the costs to the economy, there are costs to individual households. When I vote for the Bill, I will be thinking of residents and households in my constituency of Earley and Woodley. I will be thinking of the parents I have delivered food parcels to with Woodley Lunch Bunch, who, despite working multiple jobs, are still unable to make ends meet and must resort to using food banks. I will be thinking of the supermarket workers in the Lower Earley Asda, who are—like many of their colleagues across the country—concerned about the threat of fire and rehire.
Above all, I will be thinking of frontline NHS workers in the Royal Berkshire hospital in the centre of Reading, who went to work day after day during the pandemic to clean up after people, suffering the threat of contagion. Many of them—especially those outsourced from private companies—were not afforded statutory sick pay because they were below the lower earnings limit. During the pandemic, the sick pay of many outsourced workers in the NHS was less than a quarter of the national living wage. That is a tragedy. Presenteeism caused by the lack of sick pay costs our economy by reducing productivity and increasing the likelihood of chronic health conditions. I am very proud to support the Bill.
Laurence Turner (Birmingham Northfield) (Lab)
I am glad to draw the House’s attention to my declaration in the Register of Members’ Financial Interests and to my membership of the GMB and Unite trade unions.
The Bill is at the start of its parliamentary stages, but today is also the culmination of years of hard work and consultation. It is important to recognise the accomplishment that the Bill’s introduction represents, and the Ministers, civil servants and special advisers involved deserve great credit. The Bill was born out of the undermining of the dignity and protection of work over many years, which falls heaviest on those in working-class occupations. We all know the effects that 15 years of wage stagnation has brought, the shameful limits that in-work poverty places on the potential of the people we represent, and the unfairness shouldered by those who are trapped on insecure contracts, including in the security and retail sectors in Birmingham Northfield. The Bill will make a real positive difference to their lives.
In the short time available to me I will focus on three measures. First, the 3,000 school support staff and care workers in my constituency are some of the lowest-paid people in public services. They are predominantly women who work under inadequate and outmoded terms and conditions, and their professionalism has gone unrecognised for far too long. I hope that the creation of a school support staff negotiating body and an adult social care negotiating body will have cross-party support.
Secondly, the condition of outsourced workers in public services has also been neglected. They are the invisible workforce who keep our hospitals running and our nation secure. For more than 100 years, under the fair wages resolution and the initial version of the two-tier code, Governments of all colours recognised the principle that outsourced workers should not be placed at detriment. The reinstatement of that principle is of critical importance.
Finally, I welcome the proposed reforms to trade union recognition and access arrangements. When the system has been shown to be open to abuse, it must be changed. In that sense, there is a direct line of continuity between the Grunwick dispute of the ’70s—in which the late Member for Birmingham Erdington, Jack Dromey, played such a prominent role—and the creation of a statutory recognition regime 20 years later. I have heard directly from GMB members about the disgraceful anti-union tactics that they have faced, which were not anticipated when the current law was drafted. They must not wait 20 years for remedy. This Bill is important and necessary, and I am proud to vote for it tonight.
Josh Simons (Makerfield) (Lab)
When Sam Woods, one of my predecessors as the MP for Makerfield, started his working life at just seven years old, he accompanied his father in the pit. By the time he died in 1915, he had become a strong representative for his fellow miners. He played an instrumental part in the formation of the Labour party and championed the legal limit of eight hours for a single mining shift in the Coal Mines Regulation Act 1908. He was, like me—as my entry in the Register of Members’ Financial Interests will attest—a proud trade union member.
Sam Woods’s story is partly about the Labour party’s moral purpose: to improve through Parliament the conditions, security and pay of working people in the United Kingdom. But his story is also about the transformative power of work itself. At its best, work is how we contribute to our family, our community and the trajectory of our nation. Coalmining powered Britain’s industrial revolution, providing industry, warmth and energy. It bound the work of ordinary men and women to the path of our nation. That spirit of production instilled the values of respect and hard work in the communities I represent—values I continue to hold dear. By contrast, the Conservative Benches—sadly, once again so sparsely populated—always sought to resist the change that makes work more secure and better paid. They pit the interests of businesses against workers, of finance against industry, and even sometimes the interests of men against women.
In Sam Woods’s time, Conservative Members said that regulations would bankrupt businesses and even increase unemployment. They said that they would harm communities such as mine. That is why I am particularly pleased the Bill introduces day one protections for pregnant women and rights to paternity leave. The impact assessment clearly anticipates the reforms will have a positive economic impact, which is good for mums, for dads and for growth. I look forward to the upcoming review of shared parental leave, which will cover maternity and paternity leave.
Through work, women organise their power to advocate for equality at work and at home. Through work, we build social bonds, relationships and our sense of purpose. Now, Britain once again has a Government who recognise that work is at the heart of how we participate in, and contribute to, our families, community and country. The industry and ingenuity of working people up and down this country is what makes us who we are. A century ago my predecessor Sam Woods changed the law because he understood that. Now, I am proud that this Government are once again restoring respect and dignity to work, as well as ensuring that all work is secure and well paid. That is why it is an honour to support the Bill tonight.
Darren Paffey (Southampton Itchen) (Lab)
As a proud member of Unison, I am delighted to refer to my entry in the Register of Members’ Financial Interests. It is such a pleasure to be here on the Government Benches and rise to back this pro-growth Bill. I do that proudly on behalf of the people of Southampton Itchen, because I know that it will change my constituents’ lives for the better. It is the largest overhaul of working people’s rights in decades, and it will truly make work pay. That is what this Government are about.
As things stand, unfortunately too many employers put their profits before their staff, and for 14 years the Tory Government were happy to just sit back and do nothing about that. One of my constituents shared with me their experience of having their contract changed to zero hours behind their back, leaving them without shifts and unable to make ends meet. That has to stop. The Bill rebalances that relationship and puts an end to the underhanded moves used by some employers. Instead it gives over 1 million people on zero-hours contracts those guaranteed hours, and provides all workers with the protections they deserve.
We know that a secure job is about more than just a salary; it is about someone having the peace of mind that they can put food on the table for themselves and their family. The Bill enshrines such basic rights in law. With over 16,000 unfair dismissal cases a year brought to tribunals, and over 200 cases every month in the south-east alone, workers are clearly facing unjust treatment. Removing the qualifying period for unfair dismissal will offer people greater security from day one and promote a fairer workplace.
I want my constituents to have better pay, a better life at work and better parental leave. They are already telling me about their optimism for the Bill. It is a Bill that will benefit employers too, by helping to keep people in work, increasing staff retention and reducing recruitment costs for employers. That is happening because this Labour Government are pro-business and pro-worker. By increasing those protections, levelling the playing field and modernising our working practices, today a new dawn is breaking for working people. I am proud that it is a transformational Labour Government bringing forward the crucial Employment Rights Bill within our first 100 days.
Kirith Entwistle (Bolton North East) (Lab)
I declare that I am a proud member of GMB, Community and the Union of Shop, Distributive and Allied Workers. I point Members to my entry in the Register of Members’ Financial Interests, where I declared donations from those unions. I stress that without that money, as a young mum with a small baby, fresh off maternity leave, I would not be standing in this place today. That is a privilege that I believe many Members on the Opposition Benches, which I note are largely empty, take for granted.
I welcome what is the biggest uplift in workers’ rights in a generation, building on the legacy of previous Labour Governments. Bolton North East has over 50% more youth unemployment than the national average. Those workers deserve dignity, stability and to know that their Government are on their side, and for the young people in my constituency, it is about knowing that they have a future. That is why I am incredibly proud to stand in this Chamber today, and I commend the Deputy Prime Minister and my right hon. and hon. Friends on the Front Benches on bringing this legislation before the House.
Improving the lives of working people is one of the things I came to this place to do, as I am sure many of my colleagues did too. With the Government’s “Next Steps” document already published, I sincerely hope Ministers will continue that close collaboration to finalise the practicalities of the Bill with our trade union movement—the fine details that will make all the difference to families in my constituency. Extending workers’ rights and protections is a crucial step towards making work pay, and I look forward to seeing further measures to make work pay, such as extending rights and protections for self-employed people so that all working people can benefit from these widespread changes.
This Bill marks a turning point for working families, not just in Bolton but across the UK. As a member of the Women and Equalities Select Committee, I am particularly pleased that among the Bill’s 30-plus reforms are increased protection from sexual harassment, the introduction of equality action plans, and strengthened rights for pregnant workers. I commend the Deputy Prime Minister and her ministerial team on bringing this Bill before the House, and I look forward to seeing its progression.
Mrs Sarah Russell (Congleton) (Lab)
I refer the House to my entry in the Register of Members’ Financial Interests and my membership of the Employment Lawyers Association, the Industrial Law Society, Unite the Union, Community and the Union of Shop, Distributive and Allied Workers.
The treatment of women in Harvey Weinstein’s companies, UKFast, and plenty of other organisations across the UK is notoriously horrific. A significant number of women work in workplaces that are basically run like medieval fiefdoms. Corporate governance in the UK appears to largely serve to cover up sexual harassment, and to do very little to prevent it.
As someone who has negotiated settlement agreements for a lot of women who have suffered sexual harassment or maternity discrimination, I do not recognise the descriptions of UK employees that I hear from Conservative Members. They appear to regard employees as desperate to bring employment tribunals at any possible opportunity, but my experience of representing women in those situations is that they are desperate to avoid bringing employment tribunal claims. They think that if they talk about what has happened to them, it will cause them significant reputational damage—that they will be blamed for their experiences, and that they will never work again.
As such, they sign settlement agreements meaning that they cannot talk about what has happened to them. They do so knowingly, and often for really quite small sums of money, because they are terrified of the amount it will cost them in legal fees if they try to pursue a claim to tribunal. That is one of the reasons why I am proud to be a member of trade unions and to have given advice to trade union members, because that enables those women to get the support they need to assert their basic workplace rights.
A 2016 TUC report talked about the fact that young women in particular, as well as women on zero-hours contracts, seem to be reporting higher levels of sexual harassment at work than other, older women. In short, those of us who get to a certain age like to hope that things have got better because we stop personally experiencing sexual harassment at work. Unfortunately, the reality is that younger workers, who have less access to advice and support and are more economically vulnerable, continue to receive that harassment year after year. Things are not getting better. Employment rights are fantastic, and it is great that we are improving access to them through this Bill, but when Conservative Members oppose our moves to restrict the use of zero-hours contracts, they do not understand—so far as I can tell—that those contracts, which keep women in precarious employment, are one of the mechanisms by which sexual harassment occurs. As such, I commend the Bill to the House.
Jon Pearce (High Peak) (Lab)
I, too, am a proud member of the GMB. I refer the House to my entry in the Register of Members’ Financial Interests.
This Bill delivers on a key Labour manifesto commitment. It provides a framework for the biggest change in workers’ rights in 50 years. We have heard in this debate that it will ban exploitative zero-hours contracts, abolish the scourge of fire and rehire, and modernise trade union laws. I would like to focus my comments, though, on the vital reforms that this Bill will deliver for young families, and particularly women, in my constituency of High Peak and across the country.
As the Conservative leadership debate is shamefully focusing on whether women should have less maternity pay, and whether a woman can be a mother and a leader, let me tell Opposition Members that they can—and they are, in businesses up and down this country. If the Conservatives joined us from wherever they are—perhaps somewhere in the 1950s—they might understand that far better.
Before I entered this House, I was an employment lawyer advising businesses small, medium and large. One of the occupational hazards was friends and families wanting advice about workplace rights. The most depressing aspect of those chats was that new mums wanted and needed those conversations most. The story was always basically the same: they had just returned to work from maternity leave, and their employer had informed them that they were no longer needed, their job no longer existed, or that they were at risk of redundancy. The joys of that first year to 18 months with a new baby were all but tarnished because of worries about the security of the mother’s job.
An estimated 4,000 pregnant women and mothers returning from maternity leave are dismissed each year. We have to do better if we are to improve productivity and grow our economy. We have to show young families and young mums that they matter, and that their contribution to society and our economy is valued. This Bill will do that. It will create the power to ban the dismissal of women who are pregnant, on maternity leave, or in the six months following their return from maternity leave.
It is depressing that the Opposition wish to portray protecting mums from dismissal as red tape and a burden on businesses, when good businesses know that this is the right thing to do. When I vote for the Bill, I will do it to show every working family in High Peak and in Britain that we are on their side. We are the party that values families.
Douglas McAllister (West Dunbartonshire) (Lab)
Thank you, Madam Speaker, for allowing me the privilege of speaking in this debate on the Government’s historic legislation. This really is the moment that all Labour Members fought so hard for. This is what I promised my community, the people of West Dunbartonshire, that my Labour Government and our Prime Minister would deliver. Some whom I spoke to on the doorstep had given up hope that anyone could change their life for the better. We promised them that we would deliver change—that we would make work pay, and make work fair.
This Bill will bring an end to years of low-paid, insecure employment, which not only failed our people but failed the economy. As a solicitor in private practice, I grew tired and demoralised from regularly having to advise my clients that there was nothing they could do to save their job or improve their working conditions because they had not worked for their employer for two years or more. We will establish day one rights, but please let us also take on board the Law Society’s advice. We must properly resource employment tribunals and fully fund legal aid to allow access to this justice that we seek to introduce.
I received a thank-you card from my constituent Sharon from Clydebank. She said to me:
“I wanted to tell you how the New Deal for Working People will make a difference to me. I am employed in social work. My wages have not increased in line with inflation, meaning a loss of income. I do a difficult, stressful job in public service and all staff are at breaking point. From banning exploitative zero hour contracts to ensuring we have access to workers’ rights from day one—thank you for supporting a New Deal for Working People.”
That is the change we promised.
This Bill signals the largest rights upgrade for workers in my constituency of West Dunbartonshire in a generation by ending exploitative zero-hours contracts and fire and rehire, and by establishing day one rights. Some 7% of the overall workforce in West Dunbartonshire is paid at or below national minimum wage rates. This Labour Government will make work pay for the lowest-paid in West Dunbartonshire, and assist employers in my constituency by helping them to retain their hard-working staff.
In Scotland, we had two bad Governments, and our job in Scotland is only half complete, because it has taken the SNP 15 years just to attach conditions to the Scottish Government’s grants on living wages—
Antonia Bance (Tipton and Wednesbury) (Lab)
As a proud member of Unite and a former TUC staffer, I draw the House’s attention to my entry in the Register of Members’ Financial Interests. In addition, I think ASLEF and the GMB for their kind support of my election campaign.
During the election, I met a young man in Great Bridge in my constituency who was living in a caravan on his parents’ drive, working in a warehouse on a zero-hours contract and not knowing what his pay packet would be from one week to the next. I say to him, to the one in eight black and Asian workers trapped in insecure jobs, and to the 1 million fellow citizens denied the security and the dignity of secure work: “We get it. We know you didn’t choose a zero-hours contract.” Eight in 10 workers on zero-hours contracts want regular hours. We will ban those disgraceful contracts and—listen up, colleagues —we will do so with the support of reputable businesses, such as Julian Richer’s Richer Sounds.
Raising the amount of collective bargaining is indispensable if we want to drive down poverty and inequality, and that is what this Bill will do. This Bill will allow unions to get into more workplaces and tell more workers why they should join a union. No employer needs to fear unions if they are confident that they act fairly towards their workers, and that their sites are safe, so we will legislate to make sure that unions can get into every workplace. After all, do we really think that ambulances would have been at those Sports Direct warehouses 76 times in two years, including for a woman who gave birth in the toilets, if there had been unions checking safety on that site? That is why unions need the right to go into workplaces. As a side note, the rules on access have to be practical, so I gently say to my right hon. Friends that the access agreements as drafted in the Bill give rogue employers just a few too many ways to keep unions out, and I hope we can sort that. This is not just about getting unions into workplaces; it is about getting unions recognised, and having the right to negotiate as equals at the table with the boss on wages, conditions and more. The changes on recognition are fantastic, and are to be celebrated. I hope we can go just a little further and end the three-year lockout, following a failed recognition ballot, that has kept unions out of the workplace, just as GMB workers are kept out of Amazon.
The working class are the backbone of this country. Contrary to what Opposition Front Benchers say, workers are the dog, not the tail. We all deserve security at work and a decent wage. I will be so proud to vote for this Bill—
Steve Yemm (Mansfield) (Lab)
I, too, draw the House’s attention to my entry in the Register of Members’ Financial Interests, and my membership of Unite and the GMB.
I welcome the Bill, and I know that my constituents in Mansfield will, too. There are two key aspects of it that they will be particularly keen to see. First, it offers the right to collective bargaining on pay for those in social care. People in that sector do incredible work, with long shifts and unsociable hours. I am sure that the whole House will join me in thanking the more than 1.5 million people who work in social care across the UK. It is a scandal that, despite the importance of their work, many are paid the minimum wage and struggle to provide for their family. I recall a particularly striking encounter on the doorstep in Mansfield during the recent general election campaign; I spoke to a former adult care worker, who told me that they had become a dog walker because the pay was better. We are a nation of dog lovers, but that is not acceptable to me.
The second aspect relates to sick pay. Millions of workers in the UK are entitled to minimum statutory sick pay only, which stands at £116 a week, and they are not eligible for any sick pay for the first three days of sickness. Opposition Members clearly feel that that is perfectly acceptable, because they took no action on it over the past 14 years, but I wonder how many of them could feed their family and pay their bills on £116 a week. Only recently, almost 300 workers in my constituency have been on strike, including porters, cleaners and cooks employed by Medirest, a private contractor in my local NHS trust in Mansfield. Supported by my union, the GMB, they took a stand, because Medirest company bosses refused to keep their terms and conditions, including on sickness pay, in line with those of colleagues employed directly by the NHS. All those workers wanted was the right to reasonable sick pay. The Bill will help to strengthen statutory sick pay, and for that reason my constituents and I support it, and I commend it to the House.
Nadia Whittome (Nottingham East) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests. I am a proud GMB member; I am told that there are now more of us here than there are Conservative MPs.
Our economy is fundamentally rigged against millions of workers. How else could we describe an economy where many people’s pay does not cover the essentials, where there are people in work who are reliant on food banks, and where the state has to top up poverty wages through universal credit? Nottingham has some of the lowest average incomes in the country, and my constituents are tired. They are tired of living from pay cheque to pay cheque, tired of being unable to save, and tired of having to choose between going to work sick or falling into debt. People’s mental health is suffering as they work multiple jobs to make ends meet, or worry that they will not be given enough hours to pay the bills. That cannot go on, which is why the Bill is so important.
The Bill is about making work pay and creating a better work-life balance, and a more family-friendly economy. It is about fixing the problems that previous Conservative Governments allowed to fester, or even encouraged. The 1 million people on zero-hours contracts deserve security, and the Bill will give them the option of guaranteed hours. Those who miss work because they are sick deserve to be paid, and the Bill will entitle them to statutory sick pay from day one. Every worker deserves to earn enough to afford the essentials, and the Bill will mean that the cost of living is accounted for when setting the minimum wage, and remove discriminatory age bands.
The Bill is an investment in our future. Making work pay will give people more money to spend in the local economy, and improve people’s health, easing the pressure on public services. We have heard scare stories from Conservative Members before. They told us that the minimum wage would cause an unemployment crisis; it was not true. They want the public to fear trade unions, but trade unionists are not the bogeymen that the Conservative party presents them as. They are our postmen, our child’s teacher, and the nurse who cared for our sick parents. Trade unions are the combined power of millions of ordinary working people. From health and safety improvements to holding bad bosses to account and advancing gender equality, trade unions are a force for good in all our lives. I welcome their strengthening through the Bill, but I would like us to go further and scrap every anti-union law introduced since the Thatcher Government came to power. We must not stop here. The Bill is a vital first step to delivering the new deal for working people and resetting our rigged economy, but it is just that—a first step. We must also close all fire and rehire loopholes, create a single status of worker, and extend collective bargaining.
Andrew Cooper (Mid Cheshire) (Lab)
Like many of us today, I proudly say that I am a member of the GMB and of USDAW. Alas, I cannot declare any donations from either of those organisations, but we do still have a good stock of USDAW carrier bags, which everybody knows are the cornerstone of any Labour campaign centre. I was also recently the director of a mid-sized technology firm. The attitude from those on the shadow Front Bench towards flexible working is frankly out of date and divorced from where the labour market is currently in that sector and many others. Perhaps they might like to reflect on that.
I welcome the Employment Rights Bill and its potential to reshape the landscape of employment in our country to help deliver economic growth and to make work pay. For too long, British workers have endured the burdens of insecure contracts, low pay and inadequate protection in the workplace. That cannot and must not continue, and it is exactly what the Bill will fix. It will enhance the rights and wellbeing of workers and restore dignity, fairness and respect to the workplace, while fostering a robust environment for businesses and contributing to the overall health of the economy. Whether it is ending exploitative zero-hours contracts and fire and rehire practices, establishing day one rights for paternity, parental and bereavement leave for millions of workers, or strengthening statutory sick pay, this Bill is a pivotal step towards achieving fairer and more equitable workplaces.
In the limited time I have, I want to consider the Bill’s provisions on collective bargaining in two sectors. The return of the school support staff negotiating body is an important and welcome first step in improving the pay and conditions of teaching assistants, technicians and others who do vital work keeping our schools running. Their work often requires specialist technical knowledge. They are providing essential support for children with special educational needs, and they are also disproportionately women, and their pay has not kept pace with teachers because of wider pay freezes in local government. I hope that this step will precipitate a broader reassessment of the value of school support staff and ultimately bring about the demise of unfair “term-time only” contracts that see staff lose around £4,000 a year.
The Bill’s provision to establish an adult social care negotiating body is also incredibly welcome, but I urge the Minister to go further and provide a framework to provide for a negotiating body in any sector, with the sectoral specific definitions implemented in secondary legislation. That would the allow the Secretary of State to roll out collective bargaining more quickly and easily to other similar sectors. I urge Ministers to give that consideration, as the Department brings amendments to the Bill in its passage through the House.
Taken as a whole, the measures in this Bill, along with our wider plan to make work pay, promise to create a future where every worker can thrive, businesses can flourish and our economy can prosper. That is why I am proud to support it.
Alex McIntyre (Gloucester) (Lab)
I must declare that I am a proud member of the Community and GMB unions, and—this may be of interest to the Opposition— in my previous role I was an employment lawyer to organisations from FTSE 100 companies to our NHS. The shadow Minister, the hon. Member for Thirsk and Malton (Kevin Hollinrake) might like to reflect on and apologise for his patronising comments to Government Members.
The Bill will provide the most substantial upgrade to workers’ rights in a generation and greatly benefit many in my constituency of Gloucester. Secure, well-paid work for all my constituents is the best way to tackle the legacy of the Tory cost of living crisis. The Bill will take action on zero-hours contracts, which leave workers vulnerable to financial instability and uncertainty. I support the Government in ending that exploitative practice, so that my constituents can benefit from guaranteed hours.
The Bill will strengthen the right to flexible working, which is essential not only for enhancing work-life balance, but for reducing pay gaps in our workplaces. I support measures by the Government to support people in Gloucester to enter back into work in an inclusive and supportive way. The Conservatives doubled the qualifying period for unfair dismissal, leaving 8.5 million workers without protection. The Government will establish an unfair dismissal policy from day one, which will directly support many of my constituents, particularly those on lower incomes.
The Bill will strengthen paternity leave and champion the rights of women in the workplace through enhanced menopause support and protection from sexual harassment. It will improve the pay and conditions of school support staff and social care workers. We all rely on those vital services, and I am pleased to support the Government in valuing the vital work of our social care workers, particularly those in my constituency.
Let us not forget the consequences of Conservative policies, which have led to chaotic industrial relations, leaving many of my constituents worse off amid a cost of living crisis. After 14 years of stagnating wages, millions of lives has been disrupted and our economy has suffered immensely. Industrial action in the NHS alone cost taxpayers £1.7 billion—a staggering sum that could have been invested in the public services that we all rely on. The Conservatives have consistently opposed workers’ rights, but we will always champion them. I have been shocked by the vitriol from the Opposition towards hard-working people getting basic rights like not being sexually harassed at work; they are out of touch.
This Government will deliver a stronger, fairer and brighter future by making work pay, growing the economy, raising living standards and creating opportunities for all. The Bill marks the beginning of a new deal for working people and a brighter future for Gloucester.
Lee Barron (Corby and East Northamptonshire) (Lab)
I declare my proud membership of the Communication Workers Union and that, by virtue of my last name, I am the only legitimate union Barron in this House—I am proud of that fact.
The Bill is a step change and a new deal for working people. It is transformational for so many in my constituency of Corby and East Northants because, for too long, the world of work has not paid. Let’s make no bones about it: this is about growth. We do not believe that the economy can grow based on insecure jobs, zero-hours contracts and bogus self-employment. People need more than that to feed their families. That is why the Bill is so essential. This legislation will give working people a sense of fairness in the world of work, where they can play their part in building our economy and be treated as they should be in our society—with the security, dignity and respect that a job should bring. Our values should not stop at the front door of our workplace; they are an essential part of it.
In this debate, Opposition Members have turned around and said that we are doing this to them: “Businesses don’t want this; no one wants it apart from you lot.” Well, if they had a look at the poll conducted by the Institute for Public Policy Research along with the TUC, they would see that 60% of employers said that employees should have more security at work; 74% believed that strengthening employment rights would improve workforce retention; 73% said that strengthening employment rights would boost productivity; 61% thought that stronger employment rights would have a positive impact on business profitability; and 73% said that they would be prepared to support giving employees protection from unfair dismissal from the first day. This is not being done to anybody. It is being done with them, and we should be proud of that.
Here is my final point: we pay millions to people who look after our money, but we pay peanuts to those who look after our people. That needs to change. That is why I am so pleased to support the improvements to pay and conditions through fair pay agreements, starting in the care sector. They are the ones who need it. We need to deal with the recruitment and retention of the people who look after our loved ones, so that they know from one day to the next who will be coming around and washing their bodies. It needs to be done; it cannot stay as it is. That is why we should support the Bill.
Mr Jonathan Brash (Hartlepool) (Lab)
As many Members have done, I proudly register my membership of the GMB and Unison, and that I am a co-owner of a small business.
One of the consequences of the last 14 years is insecurity in every part of British life. Hartlepool people, who I represent, are insecure in their communities, in their homes and in their jobs. That is why I welcome the Bill, which has security at its heart, banning exploitative zero-hours contracts, ending fire and rehire, and providing day one rights. Listening to Opposition Members—maybe the shadow Minister could reflect on this in his wind-up speech—I would like to know on what day the Conservative party believes it suddenly becomes not okay to unfairly dismiss somebody. What is that time? If it is anything other than day one, then quite frankly they are abandoning the workers of this country.
The Bill does more than give security to workers. It gives people dignity: the dignity to grieve without having to ask permission; the dignity to choose to become a parent without having to worry if it will affect their opportunities in the workplace; the dignity of knowing that they can afford to be ill; and the dignity of knowing that they can turn up to work and be safe. Security and dignity are what British workers, including in Hartlepool, deserve. When people have security and dignity in the workplace, they get opportunity: the opportunity to grow, to develop, to train, to become better at what they do and to become more productive.
In recent days, I have heard people on the right of politics suggest that the Bill is somehow an attack on the “wealth creators” of our country. What nonsense. Let us be absolutely clear: the wealth of this country is created by its workers. Through the dignity, security and opportunity that the Bill provides, we will grow our economy and give respect to every worker in my constituency and beyond.
Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
I draw the attention of the House to my entry in the Register of Members’ Financial Interests.
As a GMB member, it is a great pleasure to speak in this debate. I feel, and my hon. Friends feel, that a substantial uplift to employment rights is long overdue. For far too long, it has been too difficult to get ahead, and too many working people—people who have worked hard—have seen their finances deteriorate, pushing them into hardship. They have done the right thing that society expects of them and they are getting very little in return: they have cut back on the essentials; they have sought extra hours at work; they have had to find second jobs; they have sold furnishings and accessed food pantries just to keep their heads above water—and they find that there is still too much month at the end of their money.
In 2022, the Low Pay Commission estimated that 20% of minimum wage workers and 20% of living wage workers did not receive what they had earnt in wages, sick pay and holiday. The great pay robbery will not be left to continue anymore. That is why it is crucial that the Bill establishes the fair work agency, making sure that everyone is playing by the same rules—and those rules are simple: dignity in work and fair pay. The Bill is long overdue and far too many are missing out on what they are owed.
In the groundbreaking first days of this Labour Government, they mandated that the minimum wage must reflect the cost of living not just this year but every year, matching the earnings of hard-working people to the bills they face for food, energy and transport. Across Scotland, that means a direct pay boost to over 100,000 people, including to over 2,500 people in the West Lothian area and 3,000 people in the Falkirk area. I am proud that this Labour Government are leading business and trade unions to work together to get the economy fired up and to make sure that the people of this country are paid fairly.
The Bill is starting where we left off, with a plan to make work pay, and with fair sick pay, real holiday pay, a clampdown on precarious employment, an end to fire and rehire, and proper hours of work and proper earnings to match. The Bill makes it clear that it is time to go for growth: a stronger, fairer, brighter future for work in the UK.
Brian Leishman (Alloa and Grangemouth) (Lab)
Let me declare first that I am a proud member of both Unite the Union and the Community trade union, and secondly that I am even prouder that the Bill will positively transform thousands of lives across the Clackmannanshire and Falkirk council areas that I serve in this place.
I thank my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and my hon. Friend the Member for Leeds East (Richard Burgon) for their comments about prison officers. Under section 127 of the Criminal Justice and Public Order Act 1994, prison officers were banned from taking industrial action. Correctly, the Scottish Parliament restored the right to strike in 2015, but today prison officers in the rest of the United Kingdom find themselves in a poorer position than their Scottish counterparts, in that they are not allowed to withdraw their labour.
Section 127 has also limited trade unions’ ability to protect prison officers from wage stagnation and attacks on their terms and conditions, which has led to a recruitment and retention crisis and, naturally, to low morale. As in professions such as nursing, the police, the fire brigades and teaching, it is often the camaraderie of colleagues on the shift that keeps things going in a job that provides a vital public service that has been disgracefully underfunded.
The state of our prisons is well documented. Ruthless Conservative austerity has hammered the service. More than a quarter of prison officers have left since 2012. Prison officers were not exempted from the Conservative Government’s raising of the public sector pension age to 68, which, given the physical nature of the day-to-day work, is obviously unfair, unrealistic and, of course, incredibly dangerous. Since that wealth of experience has left, violence directed at both officers and prisoners has escalated.
The prison system is another mess that this Government have inherited and must now sort. Prison officers should have the right to retire at 60 or after 30 years’ service: it is just the right thing to do for employees. No one should feel like a disposable commodity that is there to be exploited and then discarded when every last ounce of work has been wrung out of them. It is also right that prison officers in the rest of the UK achieve parity with Scottish prison officers: they too should have a fundamental right to withdraw their labour.
Several hon. Members rose—
Madam Deputy Speaker (Judith Cummins)
Order. There will now be an immediate two-minute speaking limit.
Mary Kelly Foy (City of Durham) (Lab)
I declare my interest as a member of Unison and Unite. In May last year, I condemned the Strikes (Minimum Service Levels) Act 2023 for the consequences that it would have for trade unions. I welcome the fact that this Bill will repeal that Act, and I pay tribute to trade unions and their members for their tireless campaigning. I am keen to hear from the Minister whether the protections for pregnant workers, specifically the right to maternity pay, will be a day one right, and whether there is scope to circumscribe redundancy during pregnancy and maternity leave. If so, will he consider adding those changes to the Bill at a later stage?
There is no doubt that the Bill is hugely positive. However, like my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman), I want to say something about prison officers, who cannot strike because of section 127 of the Criminal Justice and Public Order Act, that Tory-era legislation. There are three prisons in my constituency and I know about the hardships that prison officers face, which are pushing many of them to the brink. I hope that the Minister will be able to meet representatives from the POA and work to repeal section 127 so that its members can have real equality with their fellow trade unionists in other unions.
What we have here is a series of policies that will drastically improve the lives of workers across the country. The Bill is an important first step towards ensuring that all workers can realise their own dignity and worth through their work. The fact that we have it before us today is a testament to the strength of organised labour and the resolve of trade unionists throughout the country.
Zarah Sultana (Coventry South) (Ind)
I am a member of Unite the Union and am the parliamentary chair of the Fire Brigades Union. I refer Members to my entry in the Register of Members’ Financial Interests.
After years of Tory attacks on trade unions and workers’ rights, the Bill will begin to reverse decades of Thatcherite anti-union laws, marking a real shift in the balance of power at work. The repeal of minimum service levels for strikes is a major victory: those laws were tools of class warfare that were designed to break the unions and silence workers. Scrapping them restores the right to strike, a win for every worker.
Equally important is the removal of the undemocratic ballot thresholds imposed by the Tories in 2016. Those barriers undermined collective action. By removing them, we reclaim the power taken from us. Permitting electronic and workplace balloting is another welcome move that will expand democratic participation, but it is not enough. We must go further and repeal every single anti-trade union law since Thatcher.
In its current form, the Bill retains the six-month mandate on strike ballots. Strikes are not battles of a few days or weeks; they are drawn-out struggles for justice and dignity. Workers in Coventry South who are fighting union-busting corporate giants such as Amazon know that these fights can last years. They need mandates that match the reality. We should abolish them entirely and repeal the Trade Union Act 2016 in its entirety, as the Government committed to doing.
Sectoral collective bargaining for social care and support staff is a good start, but all workers across all industries deserve that protection. Voluntary agreements on union access are not enough. Union organisers need guaranteed automatic access. We should also guarantee automatic union recognition when a majority of members join.
Workers have already waited for a decade under Tory rule while their rights have been stripped away, their wages have stagnated and they have been subjected to rogue operators such as P&O. We cannot afford more delays while powerful interests water down reforms. This legislation is a victory for the trade union movement, but the fight is far from over. We need radical change, and that is what I will keep fighting for.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests. I am a proud member of the Communication Workers Union and the GMB and am a former official of Unison.
It is a huge source of personal pride to me as a former trade union official that our Government have introduced a Bill that will deliver the greatest uplift in workers’ rights in a generation. While the Conservatives have focused on scaremongering during this debate, it is important to remember the facts. Hard-working people are the trade union movement of this country. No one on the Government Benches will deny our pride in that.
The TUC estimates that 1.1 million employees did not receive any of the holiday pay to which they were entitled last year. This Bill supports those ordinary hard-working people. Last year, 4,000 pregnant women and mothers returning from maternity leave were dismissed. This Bill supports those hard-working people. Some 1.7 million people are out of the labour market because they have to look after their family. This Bill supports those hard-working people. There are 3,800 workers across my constituency of Paisley and Renfrewshire South who earn the minimum wage. This Bill supports those hard-working people. I commend it to the House and am pleased that our Government have strengthened its enforcement measures.
Several hon. Members rose—
Madam Deputy Speaker (Judith Cummins)
Order. The Front-Bench speeches will start at 9.40 pm, so the final Back-Bench speaker will be Michael Wheeler.
Michael Wheeler (Worsley and Eccles) (Lab)
I refer the House to my entry in the Register of Members’ Financial Interests, to my membership of USDAW and the GMB and to the fact that I chair USDAW’s parliamentary group.
I spent my career as a trade unionist working to better the lives of people in low-paid and insecure work. They are exactly the sort of people who will benefit from the measures in the Bill, but the Bill goes so much further. I am proud to have stood on an election platform that put improving the conditions of all workers at the heart of the change that was promised. I am even prouder to be stood here today supporting the Government who are delivering that.
I will focus on one element of the Bill: the right to a contract that reflects the hours that someone regularly works. Too many people are contracted for pitifully few hours and are utterly reliant on additional hours that can fluctuate too wildly to provide financial security, with no guarantee that they will not be taken away at the whim of an employer. Measures in the Bill will take steps to rebalance that. If the hours are regularly needed by the employer and worked by the worker, it is only fair that they are guaranteed in the contract.
While hugely welcoming the Bill, I urge the Minister to consider the use of the word “low” in its drafting, as it might unfortunately limit the benefits and lead to unintended consequences. I ask the Minister to work with trade unions, as the organised representatives of workers, to ensure that the maximum number of working people benefit from this new right. I will be proud to vote for this Bill tonight. I commend it to the House.
Gareth Bacon (Orpington) (Con)
We are approaching the end of a long and robust debate, with a total of 71 speeches so far and no fewer than seven maiden speeches. The hon. Member for Hyndburn (Sarah Smith) spoke powerfully and very impressively. The hon. Member for Penistone and Stocksbridge (Dr Tidball) spoke memorably of overcoming considerable adversity and of her considerable achievements, culminating in her arrival in this House. The hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) gave a moving tribute to her late parents. The hon. Member for Dover and Deal (Mike Tapp) laid down an ambitious claim to have the highest number of castles in his constituency and talked of his grandfather serving on flying boats in world war two, which is something that he and I share. The hon. Member for Airdrie and Shotts (Kenneth Stevenson) spoke of his and his family’s great pride in his taking his seat here in Parliament. The hon. Member for Hamilton and Clyde Valley (Imogen Walker) spoke fluently about the history of her constituency, in a deeply impressive speech.
On the Opposition side, my hon. Friend the Member for Leicester East (Shivani Raja) talked about the entrepreneurial spirit of Leicestershire and about her fears that it could be eroded by the Bill. She also, I suspect, achieved a first for Parliament by managing to shoehorn a reference to Showaddywaddy into Hansard. My hon. Friend the Member for Weald of Kent (Katie Lam) spoke movingly of her grandparents’ escape from Nazi Germany and amusingly of the Labour party’s contribution to introducing her parents, ultimately leading to the creation of a future Conservative MP. I commend all hon. Members who made their first mark in this House in a debate on so important a subject. I am sure that they will serve their constituents diligently in the coming years; I wish them all well.
There is much that the Opposition believe is wrong with the Bill, but I have limited time, so I will focus primarily on one element—the role of the trade unions, because their influence runs right through it. If, as expected, the House declines to support the amendment in the name of the shadow Business Secretary, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), and grants the Bill a Second Reading, there will be time to explore the Bill’s many other problems in Committee.
A running theme throughout the debate was hon. Members’ enthusiastic declarations of membership of trade unions, but for some reason they forgot to mention how much they have received in financial donations from them. I remind them and the House that, according to the LabourList website, the Government MPs who have spoken today have accumulated a total of £371,974 in donations from the trade unions. Those donations are no surprise. The public are quickly becoming acclimatised to the idea that this Labour party is in the pocket of the highest bidder, whether that be Taylor Swift, Lord Alli or indeed the trade unions.
I was, however, pleasantly surprised by the number of hon. Members on the Government Benches who have spoken in today’s debate. When I attended the Bill briefing kindly organised by the Under-Secretary of State for Business and Trade, the hon. Member for Ellesmere Port and Bromborough (Justin Madders), just a handful of Labour Members were in attendance, but today they have turned up in great numbers to sing the Bill’s praises. It is to their credit that they are here. Perhaps they have read or watched news of the harm that this Bill will bring and are quietly apprehensive, but have put their heads above the parapet regardless. However, when push comes to shove, they remember that they will be up for re-election in four or five years’ time, and they have to think about their trade union donors.
Very early in this debate, my hon. Friend the Member for Meriden and Solihull East (Saqib Bhatti) said that the Bill is about not growth, but ideology. He is right. This is a trade union charter that will send Britain back to the 1970s. Of course, we know that that is a goal of the Deputy Prime Minister, who has said that she wants to repeal union legislation dating back as far as the 1980s. I appreciate that neither the Secretary of State for Business and Trade nor the Deputy Prime Minister was born until the 1980s, so they will not remember the time when Britain was brought to a grinding halt by the trade unions. The lights were switched off, bodies were left unburied and rubbish piled up all over the place. It is at this point that I remind Members that their constituents will see how they vote today.
I understand that the inboxes of Labour Members are already full, following the freebie scandal, the cash-for-access scandal, the political choice to take away the winter fuel payment and the concerns about tax rises in the Budget. They have my sympathy, but I warn them that their inboxes are about to get even busier. When the junior doctors strike, meaning that their constituents cannot access important medical treatment, they will know that it was facilitated by this legislation. When local councils strike, meaning that their constituents cannot get their bins collected, they will know that it was facilitated by this legislation. When the train drivers strike, meaning that their constituents cannot see their loved ones, they will know that it was facilitated by this legislation. And when small businesses fail because they cannot cope with the massive extra bureaucracy and costs, they will know that it was facilitated by this legislation. As the letters pile high from constituents who are unable to access the services they expect, Labour Members might want to hire more staff, or ask their current staff to work late, but they will be prevented from doing so by the very regulations brought in by this legislation, which they support.
Labour’s misunderstanding of labour relations goes right to the top. When the Secretary of State for Health and Social Care announced that a deal had been reached with the British Medical Association, he said that he was making a real difference. However, we now know that the deal has failed and the BMA is already beginning preparations for further strike action just weeks after accepting the pay deal.
I represent a Greater London constituency and I, of course, remember the Mayor of London’s promise that there would be no Transport for London strikes under his regime, but that is not going very well either. We now learn, thanks to the latest copy of Civil Service World, that there are set to be strikes in the Secretary of State’s own Department. All of that was before this Bill was introduced.
It is clear that, despite being in the pocket of its trade union paymasters, Labour’s approach to industrial relations has failed and will continue to fail. Much of the reason for that future failure will be the rushed job that is this Bill. It has been rushed to the House so quickly that it contains fewer than half of the measures included in the plan to make work pay—a fact recognised by the Government’s “Next Steps to Make Work Pay” document. A vast amount of it will require secondary legislation to take effect.
The Prime Minister has talked incessantly of the Government’s mission to pursue growth, which is an entirely laudable aim, but growth does not just happen. Sometimes, the Government have to do things to facilitate it, and sometimes the Government must not do things that would jeopardise it. The measures in this rushed Bill threaten to destroy any prospect of economic growth.
I am sure the Secretary of State will deny it, but the fact remains that the trade unions will always win out against the Labour party. The unions have donated almost £30 million to the Labour party since 2020. According to LabourList, 16 Cabinet Ministers and more than 200 Labour MPs have received training and donations, averaging £9,500 each. This rushed Bill is the first part of what the trade unions have bought with their money: the chance to massively increase their power base, not just in the public sector but in the private sector, especially in small businesses. This will not lead to growth, unless the Prime Minister is talking about growth in red tape and growth in the trade unions’ ability to choke the economy.
This rushed Bill is not a charter for economic growth; it is a charter for industrial strife, plunging productivity, rising unemployment, inflation and economic ruin. This rushed Bill is not fit for purpose, and the Government should withdraw it and think again.
The Secretary of State for Business and Trade (Jonathan Reynolds)
I thank right hon. and hon. Members across the House for an informed debate on the Employment Rights Bill and the Government’s plan to make work pay. In closing, I declare to the House that I am a proud member of the Unite and USDAW trade unions. Even more proudly, I declare that I come from exactly the kind of working-class family that stands to gain from the measures.
As this is Second Reading, let us remember the history and context leading up to the debate. In recent times, work has changed a great deal. We have seen the impact of technology and the gig economy, and we have had working from home in the pandemic. Many things have changed what work is for many people. That has created a need to consider whether our employment laws are up to date.
Indeed, it was the Conservatives, under Boris Johnson, who first promised an employment Bill in their 2019 manifesto, but they did not deliver. The subsequent Queen’s Speech, after the 2019 election, included an employment Bill, but again the Conservatives did not deliver. In contrast, this Labour Government not only promised an employment Bill; we have delivered one, and in just 100 days. Meanwhile, it appears that some Conservative Members do not even support the existing provision of things like maternity pay, so there have been some differences in opinion between Members on opposite sides of the House today.
It is a proud day for the new Government, but it is a prouder day for Britain’s workers, many of whom can now look forward to a future with far greater security and stability than they have at present. Quite simply, good work and good wages are what this Labour Government were sent to this place to deliver, and that is exactly what this Bill is about.
I take pride in the fact that the new Government have worked closely with all parties in drawing up this legislation, acting pragmatically and listening at all times. The result is a Bill that will make a huge difference to the lives of millions of working people, while being proportionate, fair and reasonable in the asks it makes of business, recognising that the majority of businesses operating in the UK already do so to a higher standard than even this Bill would introduce.
We would not have known that from listening to the depressing speeches made by Conservative Members today. People would not know that Sainsbury’s already pays a living wage; that instead of zero-hours contacts, McDonald’s already offers contracts that provide guaranteed hours; that the Mace Group offers full trade union access to workers on construction sites; that Mars Wrigley offers equal parental leave; and that BT Group already has carer’s leave. Frankly, what we heard from the Conservatives today was binary, outdated and extremely depressing, but I was delighted to hear such significant support for the Bill from the Government Benches, and from all around the House.
Some Members raised specific points. I wish I had time to respond to all of them, but I want to acknowledge the tremendous maiden speeches we heard. The hon. Member for Leicester East (Shivani Raja) gave an incredibly gracious speech about her predecessors, in a very skilful way, which is not easy when she had to defeat several of them to get her place in the House. The hon. Member for Weald of Kent (Katie Lam) told an incredibly powerful family story, woven into a wonderful description of her constituency, and she extolled the romantic benefits of campaigning for the Labour party, which is something we can all get behind.
My hon. Friend the Member for Hyndburn (Sarah Smith) captured the glorious industrial heritage of her area in a way that was extremely relevant to today’s debate. My hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball) gave a speech that testified to the fact that politics can be a force for good, and it was wonderful to hear. My hon. Friend the Member for Blackpool North and Fleetwood (Lorraine Beavers) showed passion and commitment in every word she spoke; I cannot wait to hear more from her. My hon. Friend the Member for Dover and Deal (Mike Tapp) showed his commitment to public service, which has run throughout his entire life; again, it was a wonderful speech to listen to. My hon. Friend the Member for Airdrie and Shotts (Kenneth Stevenson) managed to draw a comparison between his constituency and ancient Rome, which was particularly skilful. His speech was funny, warm, authentic and passionate. Finally, my hon. Friend the Member for Hamilton and Clyde Valley (Imogen Walker), the MP for the area known for Robert Owen, made a wonderful and apt contribution to the debate, with a tribute to hard work and the rewards it can bring—again, it was wonderful to listen to.
Unfortunately, I must give the House some negative advice: to reject the reasoned amendment in the name of the new shadow Secretary of State, the hon. Member for Thirsk and Malton (Kevin Hollinrake). Quite frankly, lads, it is a bit of a mess, isn’t it, as motions go? It claims credit for measures the Conservatives once opposed, such as the minimum wage. It opposes the fair work agency, which they used to support. It claims that there will be more strikes, when they presided over a record number of days lost to strike action, and it shows even less self-awareness when it comes to the burdens on small businesses. Let us not forget who called the referendum on leaving the European Union, with no preparation for either result.
The serious point is this: the Conservative record was one of stagnant wages, low business investment and low productivity. Frankly, it was a record of failure. That is why we must act differently. The shadow Secretary of State claims that the Bill is rushed. Nothing could be further from the truth. The fact that the Bill is ready in 100 days is testament to the brilliance of the civil service and the resilience of the British model of government.
The impact assessment we have published shows that these measures will increase total employment costs by 0.4%, but we know that smaller businesses face proportionately greater up-front costs from regulatory changes. That is why we are working with them closely to make sure that these reforms, and the speed at which they are implemented, work for them. However, I want to be clear that we will not allow for the creation of a two-tier market where someone’s protection as a worker depends on the size of their employer. That would create an uneven playing field and exactly the kind of disincentive to grow that we saw too many of under the last Conservative Government.
The shadow Secretary of State also raised the question of vexatious claims under day one rights. The point he missed was that there are already some day one rights. Protection for whistleblowers is a day one right. Disability discrimination protection is a day one right. If his worry is vexatious claims, those could be brought under the existing system. I thought that was a major weakness in his argument.
We heard speeches paying tribute to what this Bill will do on parental leave. On fire and rehire, I pay tribute to my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) for his work preparing these measures.
I will also say one more thing on impact assessments to set that 0.4% impact on the UK’s total pay bill in context. Last year, the UK’s total wage costs were £1.3 trillion. To draft a Bill that will have such an impact for so many workers, with a direct benefit transferred to low-paid workers, and to keep it as proportionate as that is, I believe, an achievement.
Finally, on zero-hours contracts, we are not taking away flexibility, but making flexibility two-way. We are ensuring that workers have the right to a contract that reflects the number of hours they regularly work, while allowing them to remain on a zero-hours contract if that is what they want. We are making sure that flexibility works in both directions. There is no reason why that should in any way adversely affect seasonal work compared with what we have at present.
To close, this is a proud day for this Labour Government. This is a change of direction. It is a change to a better and more productive culture of industrial relations in this country. In the case we are making as a new Government, we are not alone. Study after study shows the benefits of investing in the workforce, in better productivity, better resilience and more market dynamism. This Bill makes good on our promise to the British people to change their lives for the better, to deliver an economy that works for them, and to end the poor pay, poor working conditions and poor job security that have held too many people back for too long. For all those reasons, I proudly commend this Bill to the House.
Question put, That the amendment be made.