Employment Tribunals Act 1996 (Tribunal Composition) Order 2012
Debate between Baroness Gibson of Market Rasen and Lord Hodgson of Astley Abbotts
Baroness Gibson of Market Rasen
My Lords, I do not have the expertise in this area that many of my colleagues on this side of the Committee have. However, I am a former trade union official, as many noble Lords know, and therefore I am very interested in employment legislation. I should declare an interest in that my husband is a member of an employment tribunal. Indeed, he serves on the central London tribunal. I know that the Minister was lucky enough to go to that tribunal and meet members of it last week.
I wish to make two small points. My husband has served on an employment tribunal for a number of years and I have heard about the cases in which he has been involved and have reached my own judgment on what we ought to be doing in the future. Some of what is being proposed is bothering me. I am well aware that when employment tribunals were first introduced there were industrial relations problems in this country. One of the reasons for bringing in employment tribunals was the hope that they would be a more informal way of sorting out the difficulties that arose in industrial relations issues on both sides of industry. By and large, I think they have worked very well over the years. Unfortunately, we may now be heading in the other direction, and that worries me. Two points worry me particularly. The first follows on from what the noble Lord, Lord Jones, said about job creation. Obviously, I am in favour of job creation, particularly given the position the country is in at the moment. The noble Lord talked about small businesses. My background is in small business. My father and both sets of grandparents had small businesses so I am well aware of the difficulties that can arise when taking on even one extra employee.
I am a little surprised about this measure because last October the Government produced their own statistics which showed that only 6 per cent of small and medium-sized enterprises said that employment legislation was a problem in relation to taking on staff. I understand that about 1,100 businesses were consulted. This means that 94 per cent did not say that employment legislation was high on their agenda in terms of difficulties. There were other problems higher up the agenda. I am rather surprised that this issue is being brought up five months later as something that is definitely stopping SMEs taking on even one extra employee. That is something which, as the noble Lord, Lord Jones, said, I would support.
My second point concerns the expertise of those serving on employment tribunals. We in this House have all come here because of our background and expertise in different areas. It is exactly the same with those who serve on tribunals. It is not just important that a judge sits with one lay person from each side of industry to discuss issues and listen to the evidence put before them; the expertise also comes out when they get together in chambers behind closed doors to discuss what they have heard. I have spoken to judges and I know that they value employment tribunal members from both sides of industry. They value the advice of the lay members and they pick up things which, if they sat alone—whether they are a man or a woman—they would not pick up. I cannot see how one person sitting alone would be better than three people in these circumstances. Perhaps the Minister will give a little more detail on why the Government think that one person alone would be better than three.
Lord Hodgson of Astley Abbotts
My Lords, I support the proposals, which I consider balanced and sensible. I will declare some interests that are on the Register. I am a director of various companies that employ people. Therefore, we will take some benefit from the proposals if they are accepted. I believe that this would increase the likelihood that we would recruit people.
I read the debate that took place in the other place on Tuesday 13 March, but did not find it very helpful. An attempt was made to characterise the orders as a throwback to an earlier age, which was both unhelpful and unfair. Employers are not red in tooth and claw, as was suggested in the other place. The noble Lord, Lord Monks, asked why an employer, if they felt that they had a good case, did not just go through to the tribunal. The answer was given in part by the noble Lord, Lord Jones: it is the enormous time that it takes to get to a tribunal.
In the case I shall refer to later, it took a year to reach a tribunal and a further three months to get the case determined with a written judgment. A small business simply cannot wait for 15 months, with all that that implies for having to pay someone who is clearly disaffected. That is why you are going to a tribunal. There would be a difficulty in the system even if it were maintained as it is now. I do not argue that all employers are saints; far from it. However, as my noble friend pointed out in his opening remarks, and various other noble Lords have said, the basic protections for employees are maintained, with day one rights particularly in cases of discrimination, which are of particular relevance in smaller companies.
Why do I support the case for the extension from one to two years? All the businesses that I am involved with are hungry for talent, and hungry to keep a stable workforce. Hiring people is extremely expensive—and letting them go is expensive, too. It is expensive because they have to be replaced, and expensive in morale terms, because when people are let go, particularly in circumstances that are not their fault, the effect on the morale of the rest of the workforce is very great. By talent, I do not just mean the talent to shoot the lights out. I mean talent at every level to put in the time to carry out his or her allotted task with care, integrity and professionalism, to be a good colleague and team member, and to provide flexibility at times of strain within the organisation. In the business in which I am involved, when we discover that sort of talent at any level, we wish to nurture, engage with and develop it. We do this through the annual performance appraisal cycle. This is an important part of the reason we should extend it from one to two years.