Employment Rights Bill

(Limited Text - Ministerial Extracts only)

Report stage
Wednesday 23rd July 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords we have had an extensive debate that indeed feels a bit like another day in Committee, but I know we all want to move on so I will try to be as brief as I can.

Amendment 147 was tabled by the noble Lord, Lord Burns, and I thank him for the ongoing engagement that we have had on the topic of political funds throughout the progress of the Bill in this House. In drafting the Bill, we have of course been mindful of the lessons learned in the conclusions of the Burns committee on trade union political funds and political party funding. I am also grateful to my noble friends Lord Monks, Lord Barber and Lord Whitty for reminding us that the compromise at that time was not intended to be a long-term arrangement, particularly because of the imbalance then, which still exists, in political party funding, which has yet to be addressed.

In the meantime, the Government believe that the 2016 Act places unnecessary red tape on trade union activity that works against their core role of negotiating, dispute resolution and giving a voice to working people. We are seeking to redress that balance and remove the burdensome requirements on how unions manage their political funds. This is why the repeal of the 2016 Act was a manifesto commitment. By reverting back to the automatic opt-in for new members, we are simply returning to a long-standing precedent that was altered by the previous Government through the 2016 Act. Prior to that, automatic opt-in was in place for 70 years, even during the Thatcher and Major Administrations.

The noble Baroness, Lady Cash, raised the issue of Article 11. The Government are confident that our measures relating to political funds comply with Article 11 of the European Convention on Human Rights. Article 11 provides the right to freedom of peaceful assembly and freedom of association with others, including the right to form and join trade unions for the protection of their interests.

Unlike subscriptions in the private sector, when we speak about unions and their political funds we are ultimately talking about voluntary organisations whose members have willingly come together to represent their collective interests. Political funds are one mechanism that unions can utilise to further their shared goals. Political funds are not just about affiliation to political parties; they can allow unions to participate in and campaign on a range of issues in their members’ interests. Examples include lobbying MPs, broader public campaigns, research to develop policy ideas and paying travel expenses for workers to attend Parliament to give evidence on issues that they face at work.

[Lord Balfe (Con)]

BALPA, the union of which I am president, does all those things without a political fund.

[Baroness Jones of Whitchurch (Lab)]

Political campaigning, which the noble Lord will know is clearly spelled out already in the legislation, requires some of these issues to be paid for out of the political fund, Indeed, my own union, UNISON, operates two separate political funds, as my noble friend Lord Prentis explained in Committee, one of which relates to the party-political affiliation and the other to the wider campaigning role. Of course, not all political party payments have gone to the Labour Party; they have gone to other parties and candidates as well.

The payments must be established through the democratic structure of the union. Those same structures make unions accountable to their members, who are free to participate in the democratic process to shape how those political funds are utilised. Joining a trade union is an informed decision and members will be made aware of their right to opt out of political fund contributions. Indeed, we have been careful to draft the Bill to ensure that new members will continue to be notified of their right to opt out on the membership form when they join the union. In line with the recommendation in the report of the committee of the noble Lord, Lord Burns, the membership form will also have to make it clear that opting out will not affect other aspects of their membership. Those changes should help to address concerns that trade union members were not always aware of their right to opt out of the political fund under the system that existed before 2016. If members wish to exercise that right to opt out, they are free to do so at any time.

We are not altering the arrangement for existing union members. If they decided to join a union with the knowledge that they would be opted out of political fund contributions, they will continue to be opted out once the Bill passes. As I hope I have explained, automatic opt-in will reduce the administrative burden on unions while still allowing members to make an active choice not to contribute to the political fund if they so wish.

I turn to Amendment 148 tabled by the noble Lord, Lord Sharpe, and Amendment 149 tabled by the noble Lord, Lord Evans of Rainow. The existence of the 50% turnout threshold is not in line with the Government’s intention to create a positive and modern framework for trade union legislation—a framework that delivers productive and constructive engagement, reduces bureaucratic hurdles and respects unions’ democratic mandates.

The 50% threshold is a high bar and is not consistent with other democratic decision-making. Votes in Parliament and votes for MPs and local councillors do not normally include any turnout threshold but are not thereby considered any less legitimate. Indeed, most local elections are contested with a turnout below 50%—I am sure that a number of noble Lords who have previously been councillors have been elected on a less than 50% turnout—and nor, for the most part, do votes at general meetings of companies require any turnout threshold. Those who oppose industrial action are free to vote against it in a ballot, and they will have their voices heard in the normal way.

The Government have been clear about our intention to repeal the Trade Union Act 2016, including industrial action ballot thresholds, but the amendments would prevent the Government delivering on that manifesto commitment. I was pleased to hear the support of the noble Lord, Lord Goddard, for upholding our manifesto commitments, and I will remind him of that when we come to vote on these amendments.

The date for the repeal of the 50% threshold will be set out in regulations at a future date, with the intention that it is aligned with the establishment of e-balloting as an option for trade unions. Together with the delivery of modern and secure workplace balloting, the intention is that this will ensure that industrial action mandates will have broad and demonstrable support.

As I expected, the noble Lord, Lord Sharpe, talked about the doctors’ strike. The Secretary of State has held constructive meetings with the BMA resident doctors committee to try to avert strike action by discussing how we can work together to improve the working lives of resident doctors. However, the BMA RDC has refused to engage in further discussions and has instead chosen to proceed with its planned strikes. Our view is that strikes have a serious cost to patients, so once again we urge the BMA to call them off and instead work together to improve members’ working conditions and to continue rebuilding the NHS.

On Amendment 149ZA tabled by the noble Lord, Lord Sharpe, the Government have made it clear that we do not intend to make sectoral carve-outs for the limitations and conditions that apply to industrial action. That is demonstrated by our repeal of the Strikes (Minimum Service Levels) Act and the repeal of the 40% support threshold for industrial action ballots, both of which remove the further conditions on industrial action that currently exist in some public services.

Ensuring that statutory notice periods for industrial action are consistent across every sector will ensure that the rules are straightforward and clear to all parties involved in industrial action in every circumstance. It is then for employers in each sector to be mindful of these rules and manage their industrial relations and businesses accordingly.

I also want to make it clear that repeal of the 14-day notice period forms part of our manifesto commitment to reverse the Trade Union Act 2016. Following the outcome of our public consultation on creating a modern framework for industrial relations, we decided that a 10-day notice period for strikes was the appropriate balance between giving employers time to prepare and upholding the right to strike. It is also a minimum, not a maximum, period and employers will be able to plan for industrial action long before receipt of a notice.

Our approach is not an outlier. The UK will still provide one of the longer industrial action notice periods in Europe. Many European countries have shorter or no notice requirements on industrial action, while also requiring airlines to comply with the EU version of Regulation 261/2004. We are aware that under Regulation 261/2004 an airline may be liable to pay passengers compensation if it cancels a flight less than two weeks before its scheduled departure. But even under the current 14-day industrial action notice period, in practice airlines may therefore still be liable to pay compensation if they need to cancel flights due to industrial action.

I turn to Amendments 149A and 150, tabled by the noble Lord, Lord Sharpe. As the period of disruption between 2022 and 2024 has shown, administrative requirements and bureaucratic hurdles only make it more difficult for trade unions to engage in good-faith negotiations with employers. This is why we are substantially repealing the Trade Union Act 2016 and fixing the foundations for industrial relations that have not delivered for workers, employers or unions in the meantime.

Legislation governing picket lines is, of course, essential and, to be clear, we are repealing only those additional measures introduced by the Trade Union Act 2016 in relation to the role of a picket supervisor. Substantially repealing this in the Act is also a manifesto commitment, while other legislation relating to picketing will remain in place. Picketing must take place at a lawful location, it must be peaceful and those on picket lines must not intimidate or harass workers who choose to attend work. The existing Code of Practice on Picketing, once updated to remove the requirement for a picketing supervisor, will continue to support the legislation on picketing. Together these are sufficient to ensure the operation of peaceful picketing.

The Government’s impact assessment on the repeal of the Trade Union Act 2016, published in October 2024, set out the expected impacts of the removal of the requirement for a picketing supervisor and is available for all to read. The assessment shows limited evidence of serious problems on picket lines prior to the introduction of the 2016 Act, and there remains limited evidence of problems on picket lines in more recent years. The assessment concluded that it is therefore unlikely that the removal of the additional legal requirement to appoint a picketing supervisor will have a noticeable effect on the impact of picketing during disputes. There is nothing new to add to that assessment; we are simply returning the law on picketing to what it was prior to 2016 when it was working well and understood by all parties.

I turn to Amendments 152A and 152B, tabled by the noble Lord, Lord Leigh of Hurley. I think on previous occasions the noble Lord has reminded us of his role as treasurer of the Conservative Party, although he did not on this occasion. Clauses 77 and 78 of the Bill, which these amendments would—

[Lord Leigh of Hurley (Con)]

I am sure the noble Baroness is aware that positions that do not require financial remuneration do not need to be declared. I did, in fact, make that declaration at Second Reading and in Committee and no further declaration is required.

[Baroness Jones of Whitchurch (Lab)]

I think that is the point I was making; I was just reminding the noble Lord. He could have reminded us on this occasion, given that a number of his points were very much party-political ones.

Clauses 77 and 78 of the Bill, which these amendments would omit, remove burdensome requirements and regulation on unions imposed by the Trade Union Act 2016. This red tape works against unions’ core role of negotiating and dispute resolution, which is why we made a manifesto commitment to repeal the Trade Union Act 2016. In relation to Clause 77, trade unions will continue to submit an annual return to the certification officer; however, the amount of information required in that return will be less.

--- Later in debate ---

[Lord Leigh of Hurley (Con)]

Can the Minister be quite clear with us in that case? She said that unions will be required to report to the certification officer gross amounts of income and expenses. Can she be crystal clear that there will be no requirement to disclose expenses made within the political fund to any organisation?

[Baroness Jones of Whitchurch (Lab)]

My understanding is that the political funds will be required to continue to spell out how they are spending the money, but not for sums under £2,000. The certification officer will continue to be able to enforce remaining annual return requirements—

[Lord Leigh of Hurley (Con)]

I am sure the Minister would not like to have on record something that does not seem to be correct. I think she means that amounts under £2,000 need not be disclosed.

[Baroness Jones of Whitchurch (Lab)]

That is what I said.

We are simply returning to the situation as it was pre-2016. I would add that the unions are already specifically regulated in the requirement to have a separate fund for spending on political purposes that is subject to many rules. There is no such requirement on many other membership organisations.

I turn to the amendment tabled by my noble friend Lord Davies of Brixton relating to Clause 62 on equality representatives. Trade unions have long fought for equality. We recognise that equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. New Section 168B(2)(a) therefore provides for the broad purpose for equality representatives to take paid time off for carrying out duties

“for the purpose of promoting the value of equality in the workplace”.

In addition, new Section 168B(2)(c) makes provision for

“providing information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace”,

and new Section 168(2)(d) makes provision for

“consulting with the employer on matters relating to equality in the workplace”.

Finally, equality representatives may also be eligible for time off under Section 168 of the 1992 Act, which includes time off for

“negotiations with the employer related to or connected with matters falling within section 178 … in … which the trade union is recognised by the employer”.

We believe that these measures are broad enough to include a range of activities, which encompass collective bargaining, negotiating with employers and representing members. I ask the noble Lord, Lord Burns, to withdraw Amendment 147.

[Lord Burns (CB)]

My Lords, I am grateful to all who have contributed to the debate, particularly the noble Baroness, Lady Finn, and the noble Lord, Lord Sharpe of Epsom, who added their names to the amendment. I am also very grateful for the meetings I have had with the Minister. However, I am disappointed that I have failed to move her thinking in any serious way on this issue.

I welcome the support of the use of active consent in making contributions to political funds. The noble Baroness, Lady Fox, made a very good point that unions should not be frightened of giving members a clear choice. From those who have disagreed we have heard very little in the way of new arguments for ditching the 2016 compromise, other than a desire to persuade members to contribute more by relying on their inertia.

I enjoyed the history lesson from the noble Lord, Lord Barber. I agree entirely that it is quite astonishing; as I discovered at the time of the committee, political funds were illegal prior to 1909. I agree with the noble Lord, Lord Whitty, about the need for an agreement on party funding. The issue is: which is the right mechanism until then? Is it the 2016 compromise or the 1945 model? The noble Lord, Lord Monks, said he is worried that in 10 years’ time all members will be covered by the 2016 compromise. He will not be surprised that I do not think that this is necessarily a bad thing.

I remain bewildered by the desire to go ahead with the proposal in the Bill. I do not think the compromise should last for ever, but it is surely preferable to the 1945 version. I am very disappointed that there is no appetite for finding a way of dealing with this that gives some hope that it will stand the test of time. I have heard no recognition that views on the ethics of this type of choice have moved on since 1945 and that the arrival of a digital world increases the options for dealing with this in a different way. Instead, what we have is a desire to go back to the 1945 mechanism. Therefore, I would like to seek the opinion of the House.

--- Later in debate ---

18:21

Division 1

Amendment 147 agreed.

Ayes: 290

Noes: 143

--- Later in debate ---

18:34

Division 2

Amendment 148 agreed.

Ayes: 271

Noes: 138

--- Later in debate ---

18:46

Division 3

Contents 198; Not-Contents 198.

Ayes: 198

Noes: 198

[The Deputy Speaker (Baroness Fookes) (Con)]

My Lords, there being an equality of votes, in accordance with Standing Order 55, which provides that no proposal to amend a Bill in the form in which it is before the House shall be agreed to unless there is a majority in favour of such amendment, I declare the amendment disagreed to.

--- Later in debate ---

[Lord Hunt of Wirral (Con)]

My Lords, I listened carefully to the noble Lord, Lord Hendy, and the noble Baroness, Lady O’Grady of Upper Holloway, but I think that the argument fell rightly to my noble friend Lord Jackson of Peterborough, because he explained why we could not possibly accept this amendment. Therefore, I rise briefly to speak to Amendments 150B, 151 and 152.

With this Bill, the Government have chosen to make it easier to strike, lowering thresholds, relaxing long-standing restraints on picketing and removing vital safeguards. It is inevitable then that businesses, especially small ones, will find themselves bearing even greater burdens as a result of what is anticipated will be a new wave of industrial action. Amendment 150B would give employers a narrow and reasonable defence: where a decision taken during or immediately after lawful industrial action was strictly necessary to keep the business afloat, it should not be automatically treated as unlawful detriment. Without this amendment, we risk a situation where businesses face paralysis, exposed to litigation on one side and operational collapse on the other.

I believe that Amendment 151 is essential. It makes it clear that intimidation, harassment, damage to property and other coercive actions dressed up as industrial activity will not be protected under the law. Workers have the right to strike, yes, but they do not have the right to bully, vandalise or threaten.

To turn to Amendment 152, the Government may now claim that the Strikes (Minimum Service Levels) Act has proved ineffective, but we do not agree, not because we are ideologically wedded to it, but because it is simply far too early to make such a sweeping judgment. The Act has barely had time to be tested properly. Therefore, if the Government abandon the principle of minimum service, we look forward to hearing the Minister explain what the Government stand for instead.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I am grateful to the noble Lord, Lord Jackson of Peterborough, and my noble friend Lady O’Grady of Upper Holloway, for contributing to this debate, and to the noble Lord, Lord Goddard, for setting out the Lib Dems’ position. I will now speak to Amendment 150, tabled by my noble friend Lord Hendy, and Amendments 150AA, 150B, 151 and 152 in the name of the noble Lord, Lord Sharpe of Epsom.

On Amendment 150, we are clear that industrial action should take place only where there is a dispute between a group of workers and their direct employer and we will not change this position. Secondary or solidarity action has been prohibited for several decades and the Government will not change this. Permitting secondary action would enable parties with no direct stake in a dispute to take co-ordinated action, increasing the risk of disruption to employers and the public, and would allow industrial disputes to escalate beyond the original context and across different employers. The Government are clear that we are compliant with our international obligations under ILO Convention 87, Article 11 of the ECHR and Article 6 of the European Social Charter, all of which protect the right to strike but also permit restrictions on industrial action necessary in a democratic society.

As noted by the European Court of Human Rights in the RMT case in 2014, there is a democratic consensus in the UK in support of the prohibition of secondary action and a broad acceptance of the public interest reasons for it, spanning the gamut of political opinion.

Furthermore, the UK is not an outlier. Similar countries such as Australia, Canada, Austria, France and the USA also prohibit or do not protect secondary action. The UK’s model reflects our unique industrial relations framework and economic context, and protects the ability to strike, while also protecting the rights of others. The Government have no intention of changing this.

On Amendment 150AA, 150B and 151, in the name of the noble Lord, Lord Sharpe of Epsom, Clause 73 of the Bill is required because the Supreme Court ruled in April 2024 that Section 146 of the 1992 Act is incompatible with Article 11 of the European Convention on Human Rights. That is because it fails to provide any protection against detriments—that is, sanctions short of dismissal—intended to deter trade union members from taking part in lawful strike action organised by their union or penalise them for doing so. I have no doubt that many Members of your Lordships’ House agree that the UK cannot continue to be in breach of our international obligations. The Bill will correct this by inserting new Section 236A into the 1992 Act, to provide that:

“A worker has the right not to be subjected … to detriment of a prescribed description by any act, or any deliberate failure to act, by the worker’s employer, if the act or failure takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising the worker for doing so”.


The prescribed detriments will be set out in secondary legislation following a consultation.

These amendments seek to prejudge a full and open consultation on this issue by setting out the circumstances in which the detriment protection—whatever the prescribed detriments may ultimately be—will not apply. Indeed, as part of the consultation, we look forward to hearing the perspective of employers on why they may consider detriments could be appropriate in certain circumstances.

I must also add that, importantly, the protection from prescribed detriment applies only where the sole or main purpose of subjecting the worker to detriment is to prevent, deter or penalise the worker from taking protected industrial action. For example, if a worker is subject to a detriment solely or mainly because they have damaged property, this protection will not apply. Moreover, the criminal law still applies to pickets and others taking part in industrial action, just as it applies to everyone else.

Finally, on Amendment 152, also in the name of the noble Lord, Lord Sharpe of Epsom, Clause 75 seeks to repeal the Strikes (Minimum Service Levels) Act 2023. The repeal of the strikes Act is a manifesto commitment that this Government have a mandate to deliver. Minimum service levels unduly restrict the right to withdraw labour and undermine good industrial relations, and our plan to make work pay pledged to repeal the Act. No work notice has ever been issued by an employer to seek to meet a minimum service level during strike action, and the legislation has never prevented a single day of strike action. Evidence suggests that this is due to employer concerns around worsening industrial relations and the complexity of implementing a minimum service level under the legislation. This demonstrates the futility of that Act and why we intend to repeal it upon Royal Assent.

We believe that negotiation and co-operation are better ways to ensure essential services continue during any industrial action, while respecting workers’ rights. Evidence given at the time the strikes Act was being introduced, including from employers, was that existing voluntary arrangements worked and ensured that vital services were able to continue during periods of industrial action. We are simply returning to this situation. We want to reset the relationship with both employers and trade unions to resolve disputes through meaningful negotiations. Repealing the rights of the strikes Act will help us to achieve that. I therefore respectfully ask my noble friend Lord Hendy to withdraw Amendment 150.

[Lord Hendy (Lab)]

My Lords, I am very grateful to all noble Lords who spoke in the debate on my amendment. I have a couple of words by way of reply.

I point out to the noble Lord, Lord Jackson, that the P&O Ferries scandal was not the basis of the argument that I advanced to the House but simply an egregious example of the absence of the right to take secondary action. Noble Lords will recall that that case involved some 800 seafarers who were sacked instantaneously and replaced immediately with agency crews recruited in third-world countries. In doing so, P&O Ferries knowingly and intentionally broke the law. It could do so because it knew exactly how much compensation it was liable for, and it paid it. The unions, on the other hand, were unable to call on fellow workers in the Port of Dover and other cross-channel ports to support them in an industrial dispute to reverse that decision. The seafarers themselves, of course, were on the stones; they were unemployed. A strike by the direct workforce would have been completely pointless. I mentioned it because that is the last example of the ILO commenting on the UK ban on secondary action. It said that the Government and social partners should sit down together and endeavour to negotiate some form of permissible secondary action. The ILO has been consistent on the position since 1989, repeatedly saying that the 1990 law to which my noble friend Lady O’Grady referred was incompatible with Convention 87.

The noble Lord, Lord Jackson, pointed out various circumstances, which I will not debate with him now, that would make the return of secondary action in this country unacceptable. The point is that special circumstances are not a legitimate justification for a state not to comply with its international obligations. That point was made clear by the noble and learned Lord the Attorney-General in a speech that he made about a month ago, but it is a fundamental principle of international law.

Finally, I say to the noble Lord, Lord Jackson, who commented on the suggestion that the phrase “connected with” ought to be brought back, that phrase is the one that was deployed in the original drafting of the Trade Disputes Act 1906.

I thank my noble friend Lady O’Grady for her support and for reminding the House of the fragmentation in employing enterprises, often precisely to achieve and exploit the bar on secondary action, to weaken workers. I thank the noble Lords, Lord Goddard and Lord Hunt, for their comments.

To the Minister, my noble friend Lord Leong, I make three quick points. First, I am afraid I do not agree with his comparative law analysis. I have done some work on this over the years, and it is not the case that the countries that he mentioned bar secondary action—at least, not all of them do, although the United States does. Secondly, I accept, as I did in Committee, that we are not in breach of Article 11 of the European convention, but I simply cannot see how it can be argued that we are not in violation of ILO Convention 87 and the European Social Charter’s Article 6.4. The supervisory bodies have said so over and over again. Thirdly, of course I recognise the Government’s position, and my noble friend will not be surprised to hear that I do not intend to test the opinion of the House. I respectfully ask to withdraw my amendment.

--- Later in debate ---

19:30

Division 4

Amendment 152A disagreed.

Ayes: 171

Noes: 189