Tuesday 10th December 2024
(1 day, 23 hours ago)
Public Bill CommitteesEmployment Rights Bill 2024-26 View all Employment Rights Bill 2024-26 Debates Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 10 December 2024 - (10 Dec 2024)
The Chair
Would everyone please ensure that all electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sitting is available in the room and on the parliamentary website. I remind Members about the rules on the declaration of interests, as set out in the code of conduct.
Clause 10
Policy about allocating tips etc: consultation and review
Question proposed, That the clause stand part of the Bill.
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
It is a pleasure to see you in the Chair this morning, Mr Mundell. As is customary, I refer to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and Unite trade unions.
As Members will be aware, clause 10 introduces new requirements on tipping, namely the requirements for employers to consult workers about the allocation of the tips they have earned, and to review their tipping policy. These new requirements will build on the measures introduced by the previous Government in the Employment (Allocation of Tips) Act 2023. The Act came fully into effect on 1 October this year and ensured that an estimated £200 million-worth of tips each year are no longer retained by employers.
The Act is accompanied by a statutory code of practice on the fair and transparent distribution of tips. Although the Act requires employers to allocate tips fairly to workers, the existing statutory code of practice only encourages consultation with workers in deciding that allocation. The Government were clear in their commitment to going further—indeed, I took part in a debate earlier this year in which I said that the legislation did not go far enough. We will therefore make it mandatory for employers to consult workers in developing or updating their tipping policies, including how tips are allocated.
The clause will support worker participation in the allocation and distribution of tips that they have earned, by mandating that employers consult workers during the development or revision of their written tipping policies. It will also mandate that employers review their tipping policy and maintain records of the consultation they have carried out, as well as giving workers the right to request and review records related to the tipping policy consultation. The consultation will be required to take place at the formative stage, before the policy is finalised or updated, and should be carried out, where possible, by engaging with representatives of recognised trade unions or other chosen representatives. If neither are available, the consultation will be required to be with workers likely to be affected.
We will continue to engage with unions and worker representatives in hospitality and other impacted industries to ensure that the measures in the Bill and in the statutory guidance deliver fully on our aims. Following Royal Assent, we will consult widely and properly with stakeholders to determine what changes should be made to the existing statutory code of practice. We are determined to ensure that guidance is as helpful as possible, ensuring that tips are allocated fairly and that worker consultation is carried out properly.
These measures will be enforced via the employment tribunal system. If an employer fails to consult their workers properly or to distribute tips in a fair and transparent manner, workers will be able to bring a claim to an employment tribunal. The tribunal will be able to order an employer to compensate workers up to £5,000 for financial loss. I think that Members can see what we are trying to achieve with the clause, and I therefore commend it to the Committee.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to serve under your chairmanship once more, Mr Mundell. The Minister mentioned that the clause builds on private Member’s legislation passed in the last Parliament, and it would be remiss of me not to put on record that the transformation in some employers’ attitudes to their employees and to the retention and fair distribution of tips was in large part down to the former Conservative Member for Watford, Dean Russell, who piloted the original legislation through the House. There were one or two little bumps along the road as he came into ministerial office and then out again in—what was the number?—43 days, but many Conservative colleagues really pushed for the legislation. It is one of those great unfairnesses that, for years, incredibly hard-working people in the hospitality sector and others had an expectation that they would receive the generosity of their customers’ tips at the end of the meal, the round of drinks or whatever but, for various reasons, did not get their fair share. The legislation the Minister referred to righted that historic wrong, and clause 10, which seeks to strengthen that, is very welcome.
Where I gently suggest to the Minister that there needs to be a little more thought and clarity is settings where there is no union to consult. That might be a small business such as a restaurant or pub, where the people who work there are not affiliated with any union or body that could be consulted on their behalf. Will he say something about how those smaller businesses—smaller restaurant or pub settings—will get dialogue going with their employees so that the business has a fair and equitable, and clear and unambiguous policy to ensure that the tips reach those workers?
Laurence Turner (Birmingham Northfield) (Lab)
I draw attention to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and Unite trade unions. I noticed last week that the Prime Minister made a James Bond joke, and I wondered whether he was following the Committee’s proceedings in real time. There is a valid question here: when James Bond buys a vodka martini, what happens to the tips? Hopefully, thanks to this Bill and the legislation passed last year, we will have a more equitable solution.
I want quickly to raise two issues. The “Make Work Pay” document published earlier this year stated:
“Labour will strengthen the law to ensure hospitality workers receive their tips in full and workers decide how tips are allocated.”
I would be interested in the Minister’s views on whether this measure meets that very welcome commitment. Whether tips that would have been received during shifts that are cancelled fall under the definition of reasonable compensation is presumably a question to be addressed in the future.
In respect of the points raised by the hon. Members for Torbay and for Mid Buckinghamshire about consultation with groups of workers who are not represented by a trade union, I suggest that the kinds of businesses they mentioned should have at least a degree of familiarity with the principles of that, since they are established and well understood in the context of redundancy situations and in other areas.
Justin Madders
First, I will acknowledge, as did the shadow Minister, the hon. Member for Mid Buckinghamshire, the work in this area by previous Members of this place, including the former Member for Ynys Môn. I think it was seven years after the announcement that there was to be legislation that we finally got action, but it is welcome. I note the shadow Minister’s comment that the legislation has transformed attitudes, and that is what we are trying to do with this Bill in general: transform the workplace so that workers have better security and a better voice.
The shadow Minister raised some important questions, as did the Liberal Democrat spokesperson, the hon. Member for Torbay, about what this measure means for smaller businesses where there may not be a trade union. Of course, that is an argument for greater organisation in the workplace so that employers can consult collectively with the workforce. Those smaller employers—the Great British café, for example—would not always have an easy route to consult with their workforce, but in that kind of informal setting, where there is only a handful of employees, it should be fairly straightforward. Everyone will know their role and what goes on, and the existing code of practice deals with the guidance for smaller employers in that sense.
My hon. Friend the Member for Birmingham Northfield asked whether this measure meets our commitments under “Make Work Pay”, and I believe it does. It is a significant step in continuing the welcome, transformational moves that we have seen on tips, and it gives workers an absolute right to be consulted, which I think is important. There is evidence, such as the research by the Chartered Institute of Personnel and Development, that certain sections of the workforce, including agency workers and people working in certain parts of a business, feel that they do not have a voice. This provision will give them that voice and the real teeth they need to ensure that tips are fairly distributed. As the shadow Minister said, this is all about them. It is about ensuring that everyone who contributes to the service that we all enjoy gets those tips, which the customer clearly wants to ensure are spread among the workforce. On that note, I commend the clause to the Committee.
The Chair
It is good to hear the Great British café will be covered by these provisions.
Question put and agreed to.
Clause 10 accordingly ordered to stand part of the Bill.
Clause 11
Parental leave: removal of qualifying period of employment
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Clause 12 stand part.
New clause 16—Publication of information about parental leave policies: regulations—
“(1) The Secretary of State must make regulations to require any employer with more than 250 employees to publish information on the internet about the employer’s policies on parental leave and pay for parental leave.
(2) Regulations under subsection (1) must be published within one year of this Act being passed.
(3) Regulations under this section are subject to the affirmative regulation procedure.”
This new clause would require companies with more than 250 employees to publish information about their parental leave and pay policies.
New clause 17—Entitlement to paternity leave—
“(1) The Employment Rights Act 1996 is amended as follows.
(2) In section 80A (entitlement to paternity leave: birth)—
(a) in subsection (3), for ‘two’ substitute ‘six’,
(b) in subsection (4), for ‘56 days’ substitute ‘52 weeks’.
(3) In section 80B (entitlement to paternity leave: adoption)—
(a) in subsection (3), for ‘two’ substitute ‘six’,
(b) in subsection (4), for ‘56 days’ substitute ‘52 weeks’.”
This new clause sets out an entitlement to paternity leave.
The Minister for Equalities (Dame Nia Griffith)
Clauses 11 and 12 enable employed parents to give notice of their intention to take parental leave or paternity leave from their first day in a new job. Clause 11 does that for parental leave by amending section 76 of the Employment Rights Act 1996 to remove the power for the Secretary of State to make regulations relating to the duration for which an employee must be employed before being entitled to be absent from work on parental leave. Clause 12 works in a similar manner for paternity leave, amending sections 80A and 80B of the Employment Rights Act 1996 to remove the power for the Secretary to make regulations relating to the duration for which an employee must be employed before being entitled to take paternity leave.
Currently, parents must complete one year of continuous service to qualify for parental leave, and 26 weeks of continuous service to qualify for paternity leave. Clause 11 will make an additional 1.5 million parents each year eligible for parental leave, while clause 12 will bring an additional 32,300 fathers and partners a year into scope for paternity leave. Clauses 11 and 12 will make it easier for employees to move jobs, which may enable them to secure wage increases without losing their ability to take parental leave or paternity leave. Removing deterrents to changing jobs is important, because research by the Office for National Statistics and the Resolution Foundation shows that people who move jobs are likely to get wage increases.
There is also a benefit from our changes to employers, who will gain access to a larger pool of applicants for vacancies, as parents will be more likely to apply for new jobs because they will not lose their access to those leave entitlements. We have engaged with stakeholders who represent the interests of parents, and they have said that they welcome the removal of continuity of service for parental and paternity leave. Making those entitlements available from day one also brings parental and paternity leave into line with other entitlements, such as maternity and adoption leave, creating a clearer and fairer system.
New clause 16 would commit the Government to introducing regulations that require organisations employing more than 250 people to publish information about their parental leave and pay policies. The hon. Member for Torbay is right to highlight the significance of publishing parental leave policies. It is certainly true that parental leave and pay policies are not perks on a par with gym memberships; they are critical policies that allow people to manage their lives. As well as being hugely important at a personal level, parental leave and pay policies are critical for addressing wider social and economic issues.
The Bill already does a lot to support working families. It reforms the right to request flexible working to make it the default. It puts in place legislation that makes it unlawful to dismiss pregnant women, mothers on maternity leave and mothers who return to work for a six-month period after they return, except in very specific circumstances. It also requires large employers to produce equality action plans. That is why at this point we believe that not requiring publication of parental policies in the Bill is the correct approach. It strikes the right balance between doing more to help working families and being manageable for employers to respond and adapt to.
New clause 17 would increase the length of paternity leave from two weeks to six weeks and also seeks to introduce the ability to take paternity leave at any time in the first year following birth or adoption. The Government value the vital role that fathers and partners play in caring for children and supporting their partners. We recognise that parental leave and pay entitlements, such as paternity leave and pay, play a key role in their ability to do that. That is why we are taking the first step of making paternity and parental leave day one rights.
Recent changes to paternity leave and pay, which took effect on 6 April 2024, allow parents to take their leave and pay in two non-consecutive weeks; to take their leave and pay at any point in the first year after the birth or adoption of their child, rather than only within the first eight weeks; and to give shorter notice for each period of leave. That means that parents are now able to take their paternity leave at any point in the first year following their child’s birth or adoption. While I very much support the intent behind this element of the new clause tabled by the hon. Member for Torbay, it is already in place and so is not required.
If fathers or partners wish to take a longer period of leave and pay, shared parental leave and pay is an option they can consider. Up to 50 weeks of leave and up to 37 weeks of pay can be “created” for parents to share from maternity entitlements that the mother does not intend to use. Parents can use the scheme to take leave together for up to six months or to intersperse periods of leave with periods of work.
We know that more needs to be done to ensure that the parental leave system provides the best possible support for working families. That is why we have committed to a review of the parental leave system. The review will be conducted separately to the Bill and work is already under way across Government on planning for its delivery. I therefore commend clauses 11 and 12 to the Committee and invite the hon. Member for Torbay not to move new clauses 16 and 17.
The Chair
Before I call the shadow Minister, I should tell the Committee that there may be a fire alarm this morning. We will be advised on what to do if that happens.
Greg Smith
I understand the point that the hon. Lady makes. I am the last person to want to put a greater burden or unnecessary burden on any form of business. All I gently suggest is that this probably is not that great a burden on a business, on the grounds that it will already know what it is going to do when an employee comes and asks for paternity leave, maternity leave or whatever. That is particularly the case given that much of the rules and regulations is already set in statute and, when this Bill undoubtedly achieves Royal Assent at some point, will be further enshrined in statute. There are many other regulations that businesses have to comply with when publishing on their website—I am thinking of privacy notices and various GDPR regulations and so on—just as all the members of this Committee and Members of this House have to do on our own websites. I do not think anyone would try to define any of us as large businesses or huge employers, and I do not think that there are any hon. or right hon. Members left who do not have a website. Perhaps one or two do not—
Greg Smith
He is a fine television superstar these days.
All of us will have published these statements on our websites, because that is straightforwardly set out in statute—straightforwardly set out in law. I am at a loss to understand why it would be a burden for a business of any size to do that, but I am mindful that we do not want to overburden businesses. I accept the explanation given by the hon. Member for Chippenham.
Turning to new clause 17, I would have loved to have six weeks of paternity leave when my three children were born. When my first child was born, I was still self-employed. It was before my election to this place, so the time I took off in 2016 was entirely unpaid because I just had to forgo client work, but it was important to do that.
I am slightly concerned that, as desirable as six weeks would be, it is too great a burden for businesses automatically to have to shoulder. Some good and generous employers may well find a way of offering it in one way or another, paid or otherwise. However, to go beyond the current entitlement of two weeks, which can be split up, as the Minister mentioned, seems to be too big an ask for some businesses, desirable though it may be for fathers to be able be there with their new child in the most precious early days of life to support the mother and the child. I gently invite Liberal Democrat Members to reflect on whether six weeks is realistic for every business.
Sir Ashley Fox
Sorry. I ask her whether she could advise on what analysis the Government have done on the likely cost to small businesses of making maternity-paternity shared parental leave a day one right. Although I agree that these are important rights for parents, I wonder what analysis has been done. I am concerned for small businesses, such as those with only one or two employees. If they were to take on a new employee, they could immediately find that they have to grant leave and pay, as well as find a substitute worker. I fully accept the importance of these rights, but is the Minister satisfied that it is appropriate to impose those burdens on small businesses, particularly given the other burdens in the Bill, the national insurance charges in the Budget and all other manner of taxes and impositions that the Government are introducing?
Dame Nia Griffith
Let me address that last point first. We have had engagement with stakeholders who represent families, such as Pregnant Then Screwed and Maternity Action, which has shown that they welcome the removal of continuity of service for paternity leave. We can all understand the benefits that that brings in terms of people being able to apply for new jobs and move to better-paid jobs. While the change will have a cost to businesses, it is estimated to be relatively small, at £6.2 million a year, and we believe that the positive impact on families will be much larger. This clause will make 10,000 more fathers and partners eligible for paternity leave, including those with low job security, who are most likely not to meet the current qualifying requirements. I remind the Committee that it is often those people in the most transitory jobs who have the most precarious financial positions and the least opportunity to spend time with their families.
I will address the comments made by the Liberal Democrat Front-Bench spokesman, the hon. Member for Torbay. We are making immediate changes to paternity leave through this Bill. We will make paternity leave available from day one in a new job and enable paternity leave to be taken after shared parental leave. The flexibility that this will give rise to will enable employees to move towards better-paid employment without the fear of losing their right to protected time away to be with their families. We have also committed to review the entire parental leave system to ensure that it best supports families. As I mentioned earlier, that is already in progress across the Government.
I will make a small technical point. The effect of new clause 17 is that fathers and partners who are eligible for paternity leave would be entitled to six weeks of leave, adding four weeks to the existing two weeks offered by the current paternity leave entitlement. The new clause would not affect the entitlement window in which fathers and partners need to take their paternity leave, as this was extended from 56 days to 52 weeks in April 2024. However, the change to enable paternity leave to be taken over 52 weeks was made in secondary legislation. The new clause would make this change in primary legislation, which would mean that it would not be possible to make any future changes to the period in which a parent could take parental leave in secondary legislation. On that note, I commend clauses 11 and 12 to the Committee.
Question put and agreed to.
Clause 11 accordingly ordered to stand part of the Bill.
Clause 12 ordered to stand part of the Bill.
Clause 13
Ability to take paternity leave following shared parental leave
Question proposed, That the clause stand part of the Bill.
Dame Nia Griffith
The point of clause 13 is to give employed fathers, partners and secondary adopters, including those who have their children through a surrogacy arrangement, the ability to take paternity leave and pay after taking shared parental leave and pay. The clause amends the Employment Rights Act 1996 by removing the limitation that prevents fathers and partners from taking paternity leave and pay after shared parental leave and pay. In April 2024, changes were made to paternity leave and pay, enabling it to be taken at any time in the first year following a child’s birth or adoption. Before then, parents had eight weeks to take their paternity leave and pay. That change means that parents are now more likely to take their paternity leave and pay after their shared parental leave and pay, as they now have more time to take their paternity leave and pay. Removing that restriction creates more flexibility for parents and means that parents who choose to take their shared parental leave and pay first will not then lose their ability to take their entitlement to paternity leave and pay.
Currently, if shared parental leave and pay is taken, parents lose any remaining paternity leave and pay entitlements they have not yet used. Removing that restriction creates a more supportive framework for families by allowing greater flexibility in how parents structure their leave, and ensures that they will not inadvertently lose access to the leave and pay they are entitled to.
Sarah Gibson
Given the Liberal Democrat new clauses we discussed earlier, it is clear that we welcome any flexibility that encourages paternity leave and allows parents to share the leave in an equal and welcoming way. Therefore, we welcome this clause.
Dame Nia Griffith
In response to the point made by the hon. Member for Mid Buckinghamshire, there are clearly defined time limits, and I am sure that most employers and employees will manage to work this out. I just point out gently that the impact assessment on these provisions received a green rating, so some work has been done on this. I remind Members that we are undertaking a wider review as well in respect of paternity and parental leave.
Question put and agreed to.
Clause 13 accordingly ordered to stand part of the Bill.
Clause 14
Bereavement leave
Question proposed, That the clause stand part of the Bill.
Dame Nia Griffith
Clause 14 establishes a new day one right to bereavement leave. The loss of a loved one is a deeply personal experience, and a sad reality that almost all of us will experience. When that happens, the grief that comes with a loss will impact us all in different ways. Some individuals may need time and space away from other demands, including work, to begin to process their loss. Others may prefer to keep working to maintain a sense of familiarity while adjusting to a new normal. Thankfully, for those who need it, the majority of employers respond compassionately to requests for time away from work, and recognise the key role they can play in supporting their employees during this time. In the absence, however, of a statutory right, not all employees may be afforded the time off they need to grieve. We estimate that this would benefit at least 900,000 workers each year. That is a significant proportion of the working population who will be able to access bereavement leave from day one of employment.
Currently, the only bereavement entitlement in legislation is parental bereavement leave, which provides two weeks of leave for parents who experience the devastating loss of their child, from 24 completed weeks of pregnancy until the child reaches the age of 18. That is set out in sections 80EA to 80EE of the Employment Rights Act 1996 and in the Parental Bereavement Leave Regulations 2020. Subsections (2) and (3) of clause 14 amend those sections of the 1996 Act, so that the duty on the Secretary of State to lay regulations establishing parental bereavement leave is widened to require regulations providing for bereavement leave for other loved ones as well.
The amendments in subsection (3) ensure that the regulations, in the case of the new bereavement entitlement, must set out the following: first, the eligibility of the new entitlement by definition of the employee’s relationship to the deceased; secondly, the length of leave, which must be a minimum of one week; thirdly, when the leave must be taken, which must be before the end of at least 56 days after the person’s death; and finally, how the leave is to be taken, such as in one block or two blocks, or whatever is appropriate.
Should an employee suffer multiple bereavements, the clause sets out that they are entitled to leave in respect of each person who has passed away. The approach to regulations mirrors that taken when establishing parental bereavement leave and allows similar provisions to be included in the new regulations. Due to the sensitive and personal nature of bereavement, we will consult stakeholders on the details to be set out in regulations to ensure that the entitlement is constructed with the needs of employees and employers at the forefront.
Subsections (4) to (11) make amendments to other provisions of the 1996 Act to enable the regulations to provide important protections for employees who take bereavement leave, such as protection against detriment, protection of contractual rights, and protection for treating a dismissal that takes place for a reason relating to bereavement leave as unfair.
Subsections (12) to (13) make consequential amendments to His Majesty’s Treasury legislation to provide for how persons on bereavement leave are to be taken into account when assessing an employee’s “committed time” or the number of employees for the purpose of certain initiatives or schemes, in the same way as other family-related entitlements. Subsection (14) makes consequential amendments to the Parental Bereavement (Leave and Pay) Act 2018 to remove provisions that no longer have any effect following the amendments made by clause 14 of this Bill.
Greg Smith
I am grateful to the Minister for her explanation of clause 14. It is quite clear on a purely human level that bereavement can strike any family and any individual, often with zero notice or ability to plan, and it is therefore a basic tenet of humanity that we would all expect employers to be sensitive, generous and sympathetic to any employee who finds themselves in that position. For the record, it is certainly my experience that the vast majority of businesses and employers show compassion, sensitivity and generosity to ensure that anybody who is bereaved has the time, space and freedom to be able to grieve, plan for things such as funerals and start the very hard process of not just saying goodbye to that loved one, but putting various affairs in order, such as registering the death. People have to go through a high burden of bureaucracy when they find themselves in that position.
The core principle of the proposals is fundamentally a good one, and does not warrant opposition. However, there is an area that I think needs a little more debate and potentially some refinement. The Minister spoke about the need to consult and to get these regulations right, and it is important that we do that. I do not in any way oppose the principle of the proposals, but I gently suggest that perhaps it would have been better to do the consultation first, so that this could have been clearer in the legislation as it goes forward. I repeat, however, that I say that not to distract from the good principle that sits underneath these regulations.
I ask the Minister to reflect further on the point from the evidence session about bereavement leave being available to parents who have lost their child after 24 weeks of pregnancy. There are many people who suffer the loss of a pregnancy before 24 weeks. That is one of the most heartbreaking things for mothers, fathers and wider families, and it happens every single day up and down the land. After all the joy, excitement and future planning that go into any mother’s, father’s and family’s life when they find out that they are expecting a child, the often very sudden news that that pregnancy has not made it comes as a huge shock, often with no notice.
There are things that a family, a mother, a father, will go through when they find out that that pregnancy has not been viable and has sadly ended under 24 weeks, including being taken to a small room and being asked the direct question—which, I assure the Committee makes the ears prick up and the reality of what has just happened come into sharp focus—about whether you wish to attend the burial of that failed pregnancy. That brings into sharp focus that you are actually being asked to say goodbye to your child. That can happen at any point in a pregnancy; it happened to my wife at about 14 weeks in 2018, and I remember vividly sitting in that room, having to fill out what seemed like the “Yellow Pages”-worth of forms, and reflecting that what should have been our second child was not going to be our second child. That takes some getting over, and it often involves surgery for the mother afterwards.
Although we have no formal amendment on this at this stage—I reserve the right to perhaps revisit it on Report—it is worth the Government reflecting on a genuine cross-party basis whether the 24-week period can be substantially reduced to give time to families who are saying goodbye. I do not want to get into the debates about when is a child a child, but it is devastating for families who go through that experience, and if the Government can find a way to ensure that families facing those circumstances can have some breathing space, so that we do not just have the “Back to work tomorrow, please” mentality that persists in this country, it would be a welcome and positive step. That might yet bring the whole House together and ensure that people have, as I say, space and time to reflect on what has just happened—to grieve, come back together again and then hopefully plan for the future.
Sarah Gibson
After that incredibly moving speech by the hon. Member for Mid Buckinghamshire, I cannot help but share the absolute concerns of friends of mine who have also lost children in pregnancy quite early on. I appreciate that that causes devastation, and I would be very happy to support any amendments that are suggested on Report. Perhaps an earlier date for bereavement would be appropriate.
Dame Nia Griffith
I, too, thank the hon. Member for Mid Buckinghamshire for sharing such a personal story with us today. As he says, the loss of a child or a baby at any stage is incredibly upsetting. Parents who suffer a stillbirth may be entitled to parental bereavement leave and pay. Although there is no statutory entitlement for miscarriage before 24 weeks, we expect employers to respond with compassion and understanding and encourage employees to discuss the support that they need with their employer. A woman is protected against discrimination in the workplace due to pregnancy, any illness related to pregnancy or absence of that illness. That includes any illness caused by miscarriage extending to two weeks after the end of the pregnancy. After that, the woman is still protected by the Equality Act 2010 sex discrimination protections if she is treated less favourably because she suffered a miscarriage.
Clause 20 will also allow for regulations to be made about dismissal during a protected period of pregnancy, and the enhanced dismissal protection policy will cover women during their pregnancy. I point out that at the moment the Women and Equalities Committee is looking into that and doing an inquiry. We will study the outcome of that very closely as we take our policies forward.
Question put and agreed to.
Clause 14 accordingly ordered to stand part of the Bill.
Clause 15
Employers to take all reasonable steps to prevent sexual harassment
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Amendment 130, in clause 16, page 30, line 24, at end insert—
“(1D) In exercising their duties under this section, an employer must have regard to protecting freedom of expression.
(1E) In subsection (1D), ‘freedom of expression’ is defined in accordance with Schedule 1 of the Human Rights Act 1998.”
This amendment would require employers to have regard to protecting freedom of expression when exercising the Bill’s duty not to permit harassment of their employees.
Amendment 131, in clause 16, page 30, line 24, at end insert—
“(1D) Subsection (1A) shall not apply to—
(a) higher education institutions, or
(b) providers of─
(i) hotels and similar accommodation;
(ii) holiday and other short-stay accommodation;
(iii) restaurants and mobile food service activities; and
(iv) beverage serving activities.”
This amendment would exclude higher education institutions and hospitality providers from the Bill’s duties for employers not to permit harassment of their employees.
Clauses 16 and 17 stand part.
New clause 29—Employer duties on harassment: impact assessment—
“(1) The Secretary of State must carry out an assessment of the likely impact of sections 15 to 18 of this Act on employers.
(2) The assessment must—
(a) report on the extent to which the prevalence of third-party harassment makes the case for the measures in sections 15 to 18;
(b) include an assessment of the impact of sections 15 to 18 on free speech;
(c) include an assessment of the likely costs to employers of sections 15 to 18;
(d) include—
(i) an assessment of which occupations might be at particular risk of third-party harassment through no fault of the employer, and
(ii) proposals for mitigations that can be put in place for employers employing people in such occupations.
(3) The Secretary of State must lay a report setting out the findings of the assessment before each House of Parliament.”
This new clause requires the Secretary of State to assess the impact of the provisions of Clauses 15 to 18.
New clause 39—Duty to prevent violence and harassment in the workplace—
“(1) Section 2 of the Health and Safety at Work etc. Act 1974 is amended as follows.
(2) After subsection (2)(e) insert—
‘(f) the adoption of proactive and preventative measures to protect all persons working in their workplace from violence and harassment, including—
(i) gender-based violence;
(ii) sexual harassment;
(iii) psychological and emotional abuse;
(iv) physical and sexual abuse;
(v) stalking and harassment, including online harassment;
(vi) threats of violence.’
(3) After subsection (3) insert—
‘(3A) It shall be the duty of every employer to prepare, and as often as may be appropriate revise, an assessment to identify potential risks of violence and harassment in the workplace and implement policies and procedures to eliminate these risks so far as is reasonably practicable.
(3B) It shall be the duty of every employer to provide training to all employees on recognising and preventing violence and harassment in the workplace, with a focus on gender-responsive approaches.
(3C) In subsection (3B) a “gender-responsive approach” means taking into account the various needs, interests, and experiences of people of different gender identities, including women and girls, when designing and implementing policies and procedures.
(3D) In this section, “persons working in the workplace” includes—
(a) employees;
(b) full-time, part-time, and temporary workers; and
(c) interns and apprentices.
(3E) In subsection (2)(f) and subsections (3A) and (3B), a reference to the workplace includes remote and hybrid work environments.’”
This new clause will amend the Health and Safety at Work etc. Act 1974 to place a duty on employers to protect all those working in their workplace from gender-based violence and harassment.
New clause 40—Expanded duties of the Health and Safety Executive—
“In the Health and Safety at Work etc. Act 1974, after section 11 (functions of the Executive) insert—
‘11ZA Duties of the Executive: health and safety framework on violence and harassment
(1) It shall be the duty of the Executive to develop, publish and as often as may be appropriate revise a health and safety framework on violence and harassment in the workplace.
(2) This framework shall include specific provisions relating to—
(a) the prevention of gender-based violence and harassment of those in the workplace including the prevention of physical, emotional, and psychological abuse;
(b) the duty of employers to create safe and inclusive workplaces and the preventative measures they must adopt; and
(c) the use of monitoring and enforcement mechanisms to ensure compliance with the duty of the employer in relation to violence and harassment (see section 2(2)(f)).
(3) The Executive shall work with other relevant bodies, including the Equality and Human Rights Commission and law enforcement agencies, to develop and revise this framework.
11ZB Duties of the Executive: guidance for employers
The Executive shall, in consultation with such other persons as it considers to be relevant, issue guidance for employers about the protection of those facing violence and harassment on the basis of gender in the workplace by—
(a) implementing workplace policies to prevent violence and harassment;
(b) establishing confidential reporting mechanisms to allow victims to report incidents;
(c) conducting risk assessments and ensuring compliance with the health and safety framework (see section 11ZA);
(d) reporting and addressing incidents of violence and harassment; and
(e) supporting victims of violence and harassment, including making accommodations in the workplace to support such victims.’”
This new clause will create a duty on the Health and Safety Executive to develop a health and safety framework on violence and harassment and to issue guidance for employers about the protection of those facing violence and harassment on the basis of gender in the workplace.
Amendment 135, in clause 118, page 105, line 20, at end insert—
“(3A) But no regulations under subsection (3) may be made to bring into force sections 15 to 18 of this Act until the findings set out in the report under section [employer duties on harassment: impact assessment] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”
This amendment is linked to NC29.
Dame Nia Griffith
If I may just correct the record, there was not an impact assessment on clause 13—I inadvertently said that there was—because the impact is so small. But there was on clauses 11 and 12, and they received a rating of green.
Dame Nia Griffith
I will now speak to clauses 15 to 17, new clauses 29, 39 and 40, and amendments 130, 131 and 135. Clause 15 will strengthen the new duty on employers to take reasonable steps to prevent sexual harassment of their employees, which came into force on 26 October 2024 under the Equality Act 2010. Clause 15 requires that employers must take all reasonable steps to prevent sexual harassment of their employees. Including “all” emphasises the thorough approach that employers must take to prevent that. At the same time, the requirement remains limited to steps that are “reasonable”. The amended duty will mirror the existing statutory defence for an employer regarding vicarious liability, which requires them to show that they have taken all reasonable steps to prevent harassment.
The concept of “all reasonable steps” has the advantage of being well established and familiar to employers and employment tribunals. This will therefore provide a consistent threshold and decrease uncertainty for all. The Government intend to provide businesses with clear guidance to ensure that they are fully supported in complying with the new legislation.
Clause 16 will introduce an obligation on employers not to permit the harassment of their employees by third parties under section 40 of the Equality Act. As well as employers taking action to prevent sexual harassment, workplaces and working conditions must be free from all forms of harassment. The clause therefore encompasses all three types of harassment set out under section 26 of the Equality Act. As well as sexual harassment, it covers harassment related to a protected characteristic that is covered by the existing harassment provision. It also covers treating someone less favourably because they have either submitted to or rejected sexual harassment, or harassment related to sex or to gender reassignment.
To avoid liability, employers will need to do what is reasonable. What constitutes “all reasonable steps” for third-party harassment will depend on the specific circumstances of the employer. Employers will need to consider the nature of any contact with third parties—for example, the type of third party, the frequency and the environment. In certain sectors, there may be more regular worker interaction with third-party contractors than in others. This amendment to the Equality Act will give much-needed clarity on the rights and responsibilities of employees and employers in these scenarios, and require employers to take action to prevent such harassment from occurring.
The burden of holding perpetrators and employers to account and of driving change is too great to be shouldered alone by employees who have experienced harassment. This measure therefore sends a clear signal to all employers that they must take steps against third-party harassment. That is the right thing to do because tackling misogyny and violence against women and girls is a societal issue in which employers can play a key role. This also means that victims can be confident that they are protected by the law if their employer has not taken all reasonable steps to protect them, and that they are able to take legal action if they so wish. This measure will therefore benefit all employees by making workplaces safer and ensuring that everyone has the same opportunity to succeed at work.
As I said earlier, oral evidence from the Fawcett Society shows that one in five women have been sexually assaulted in the workplace by third parties. These measures could have a positive effect on women, those with disabilities and ethnic minorities across the UK.
Clause 17 introduces a power to make regulations to specify steps that are reasonable for employers to take to prevent sexual harassment. That is to meet the requirements set out in the Equality Act 2010 that employers take all reasonable steps to prevent sexual harassment of their employees. Those are contained in section 40A, the general preventative duty; section 40, as amended by this Bill, to the extent it relates to sexual harassment by third parties; and section 109, employers’ vicarious liability, where that relates to a failure to prevent the sexual harassment. The provisions place broad requirements on employers, but it will be important to ensure that specific steps are taken where the evidence demonstrates that they are proportionate and needed to prevent sexual harassment. The regulations may also require an employer to have regard to specified matters when taking those steps.
The Government have already produced an extensive set of impact assessments, published on Second Reading and based on the best available evidence for the potential impact on business, workers and the wider economy. We intend to refine that analysis over time, working closely with businesses, trade unions, academics, think-tanks and the Regulatory Policy Committee. We will publish an enactment impact assessment once the Bill reaches Royal Assent, in line with the better regulation framework requirements. That will account for where primary legislation in the Bill has been amended in its passage through Parliament in such a way as to change significantly the impacts of the policy on business. That impact assessment will be published alongside the enacted legislation. In addition, we will publish further analysis alongside future consultations ahead of any secondary legislation, to meet our better regulation framework requirements.
No one should fear being sexually assaulted in the workplace, and the measures go further to protect employees. One in five women has been sexually assaulted in the workplace by someone outside their organisation. The measures could have a positive effect on women, those with disabilities, and ethnic minorities across the UK. The amendments and new clauses in this group would not add value, given the extensive impact assessment to which the Government have already committed.
On new clauses 39 and 40, I reassure the Committee that the Government entirely support the importance of ensuring that workers, including women and girls, are protected from workplace violence and harassment. We already have in place a strong and appropriate regulatory regime that provides protection to workers from violence and harassment. Through the Health and Safety at Work etc. Act 1974 and the statutory provisions made under it, employers already have a duty to protect their workers from health and safety risks, including workplace violence, and they must consider ways in which they can remove or reduce such risk. That legislation applies to everyone, irrespective of whether the victims have protected characteristics—it is a law to protect all workers.
The Health and Safety at Work etc. Act, along with associated legislation, requires employers to reduce the risks of workplace violence. As part of that, the Management of Health and Safety at Work Regulations 1999 require employers first to assess the risks in the workplace, including the potential for violence, and then to take appropriate action to reduce those risks. The Health and Safety Executive and local authorities, which are responsible for enforcing the 1974 Act, carry out proactive and reactive work to ensure that employers are complying with their duties under the Act to assess the risks and are implementing appropriate control measures to protect their workers, and others affected by their work, from workplace violence.
The Health and Safety Executive has also published a range of readily available guidance on its website to assist employers in complying with their legal obligations. The right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) has tabled new clause 40, asking the HSE to publish a health and safety framework on violence and harassment in the workplace, including violence against women and girls in the workplace, but employers already have such duties under the 1999 regulations, which require them to have suitable and sufficient arrangements in place to manage health and safety in the workplace, including violence and aggression.
Harassment in the workplace could be covered by the Health and Safety at Work etc. Act, but the HSE does not act where a more appropriate regulator has specific responsibility, or where there is more directly applicable legislation. Police already have powers to prosecute harassment offences under the Protection from Harassment Act 1997, and the Equality and Human Rights Commission can take action under the Equality Act 2010.