Employment Rights Bill

Baroness Meyer Excerpts

Committee stage
Wednesday 21st May 2025 Lords Chamber

[Lord de Clifford (CB)]

My Lords, I will speak in support of this group of amendments. I refer the House to my entry in the register of interests as the proud employer of 140 employees.

The removal of the qualifying period for a right not to be unfairly dismissed is not, and should not be, feared by good employers. Good employers should have systems in place to ensure that new employees have regular reviews to enable them to feed back to the employer and, likewise, for the employers to feed back to the employees. As an employer, I am aware of the protection that employees are entitled to, and rightly so.

When dealing with any employment issue, the word that always comes to my mind is “reasonableness”. Is it reasonable to totally remove the qualifying period? I do not think so. Employees should be protected from just being dismissed without proper procedures, review and consultation. I support this group of amendments on the probationary period, which is described in the Bill as the “initial period of employment”. There is very little detail in the Bill on what length the probationary period will be.

This lack of detail and clarity creates real uncertainty for employers at present, including myself. The probationary period is an essential time for both employees and employers to get to know one another. For the employees, it ensures that the job meets their expectations, including about terms and conditions, that the culture within the workplace suits them and that they are respected. For employers, it is time to ensure that the employee has the skills and knowledge—or the potential to develop their skills and knowledge—to fulfil the tasks required by the role in question.

The employees in our business can give one week’s notice that the job is not right for them. Likewise, the employer needs flexibility, if they feel that the employee is not right for their business for conduct, personality or capacity reasons. Therefore, employers do not need to go through a long and detailed process to end the contract when the employee has just started that job. In some cases, the procedure to dismiss an employee could take longer than the time they have been employed by the company. I acknowledge that the reason for ending a contract in this probationary period, as has clearly been said by my noble friend, should never be for a protected characteristic under any circumstances, which I fully support.

The group of amendments tabled by the noble Baroness, Lady Neville-Rolfe, seek—as other Peers have clearly observed today—to enable the termination of a contract without fear of unfair dismissal claims being brought during a probationary period. It gives employers the confidence to employ individuals, and at times gives employers confidence to take on an individual who may not fully meet all the criteria of that role but shows potential, thereby giving that individual the opportunity of work. Nearly every noble Lord has discussed young people and people possibly with a disability.

However, further details are required. It is essential that a minimum length of probationary period is detailed in the Bill. For my business, that is three months, but it may be longer for others. The extension of the probation is required when things are not quite going to plan. In that case, the employer needs to go through a process of extending it, which is essential for both the employee and the employer.

I support my noble friend Lord Vaux of Harrowden’s Amendment 108, as it puts a minimum length to the probation period within the Bill and therefore gives employers confidence in the probation process. Nine months gives employers time to have an initial probation period and then extend it if need be. If then the employer wishes to terminate after that many months, they will still need to follow a detailed procedure, as the risk of unfair dismissal is still high if not followed. This is a benefit to the employee from the shortening of the qualifying period. Moreover, the probationary period cannot be renewed continuously, which is to the benefit of both the employee and the employer, as there is a time limit.

Within secondary legislation, the Secretary of State can define the length of an initial probationary period, for, say, a maximum of six months. With this time limit, as proposed in Amendment 108, it would allow for one extension to nine months. The initial period of employment is an important part for all employers, whatever size, but for the SMEs and the micro-business, as previously stated, it allows flexibility. It avoids time-consuming and very costly processes to end the contract of an employee who is not working out in terms of conduct, capacity or personality. I ask the Minister to consider these amendments or refine them before Report to give all employers the confidence to employ new people, but especially in the SME sector and micro-businesses.

[Baroness Meyer (Con)]

My Lords, I, too, rise to support all the amendments in this group. I support the Government’s ambition to boost productivity, create good jobs and crack down on bad employers. However, as many noble Lords have highlighted before me, Clause 23 risks doing more harm than good. The letter from the UK’s five leading business organisations, cited repeatedly at Second Reading, sets out the long-term damage that this Bill, and this clause in particular, would do to business and the wider economy. Surely, they understand the risk better than anyone, and, if I may say so, better than most politicians. We really should listen to their concerns.

After Covid and all the additional costs, many small and larger businesses are struggling. This clause will hit them further, particularly small and medium-sized businesses. Are we really willing to push them out of business? I do not think that this is what the Government really intend to do.

Let me give noble Lords one example. A Ukrainian cabinetmaker whom I met 15 years ago—in fact, I was his first client—built a small business from scratch. He actually talked to me last week, and told me that rising costs and additional regulations are now threatening his business. He told me that, with this Bill, he might not be able to go any further and, especially, he will not be able to hire altogether.

Like many tradesmen, he cannot risk employing somebody based solely on their CV. He needs a clear period to assess whether this person can actually do the job and fit into the team, as noble Lords have highlighted before. Without a workable probation framework, he will not be able to take the risk. The Government have acknowledged this problem and proposed this nine-month statutory probation period with a “lighter touch” dismissal process. However, there is no detail, no definition and no guidance, and legal experts still question its compatibility with the ACAS code.

Worse still, this framework will not come into force until August 2026, leaving 18 months of legal uncertainty. How can employers plan or hire when they do not know what the rules are going to be? Therefore, if the Government accept these risks and have promised a solution, why is it not part of the Bill as it is? It risks killing job creation, driving away investments and weakening economic recovery. This is definitely not what this Government intend to do.

However, with that background, I add my voice to those of other noble Lords who say that this clause may need to be taken out altogether; otherwise, we will need to take into account all these amendments.

Employment Rights Bill

Baroness Meyer Excerpts

Committee stage
Monday 19th May 2025 Lords Chamber

[Baroness Meyer (Con)]

My Lords, I shall speak to my amendments, as well as Amendment 84, for the same reasons so clearly highlighted by the noble Lord, Lord Young of Acton, and the noble Baroness, Lady Fox. Of course no one should ever face sexual harassment at work. That is why we passed the worker protection Act 2023 to place a clear duty on employers to take reasonable steps to prevent it, including from third parties. That law came into force only six months ago, so, as the noble Baroness, Lady Fox, quite clearly highlighted, why are we adding the so-called banter clause?

Clause 20 is not just unnecessary but a threat to free speech, a blow to small businesses, and a betrayal of the very spirit of this country. It amends the Equality Act 2010 to extend third-party harassment to non-sexual conduct. A casual comment between customers that is misunderstood or simply unpopular could trigger a legal claim, as noble Lords previously explained. This is not the same as the Conservative Government’s earlier reforms, which explicitly protected political, moral, religious or social opinions. Are we really expecting publicans, shopkeepers and café owners to police conversations on their premises? Someone joked that pubs would need “banter bouncers”. The Government laughed, but for small businesses it is not a joke. Even the Equality and Human Rights Commission warns that this is legally complex and challenging. Employers will need legal advice, staff training and new policy, and will risk get it wrong.

Clause 20 also demands that employers “take all reasonable steps” to protect their employees. This sounds minor, but it creates major uncertainty. What does “all reasonable steps” mean? To make matters worse, the Secretary of State will define reasonable steps by secondary legislation, without parliamentary scrutiny. This is not good governance. And at what cost? The Budget itself estimates an extra £3.4 billion cost for the hospitality sector alone. Dozens of pubs are already closing every week. Do we really want to make this worse?

This debate is not only legal and economic; it is also cultural and, for me, personal. I became a British citizen not because I had to but because I wanted to. I fell in love with this country for its soul, its quiet strength, its humour and its tolerance. In Britain, we did not take offence; we took the mickey. We disapproved without outrage. We rolled our eyes and moved on. We did not report people or call a lawyer. As Douglas Sutherland once said, the Englishman is never quite so natural as when he is being artificially humorous. That gentle irony—that refusal to take ourselves too seriously—is part of who we are. This clause will legislate it out of existence. This is not dignity at work; it is paranoia in public. Clause 20 will create a society where offence becomes power and litigation will replace common sense. We will become a society that silences its own people. We have seen where that leads—in regimes built on censorship and denunciation.

These amendments are crucial. Without them, the consequences will be more regulation, more red tape, more job losses and more silent voices before, once again, we will be forced to admit that we have gone too far. I support all the noble Lords who spoke before me in favour of these amendments. In particular, I reiterate that Clause 20 is unnecessary.

[Lord Londesborough (CB)]

My Lords, I will speak in particular to Amendments 83 to 85, tabled by the noble Lord, Lord Young of Acton. Clause 20, on harassment by third parties, although well-intentioned, has triggered this batch of amendments, none of which is perfect. Most seek to damage limit the Bill or bring in exemptions.

I will focus on the exemptions proposed in Amendment 85 and declare up front a relevant interest, in that I hold a significant minority stake in a rural community pub in mid-Wales. As we have already heard, the hospitality sector is low margin and struggling with a range of issues, including shortages of staff, smoking bans, competition from supermarkets, the rise of home entertainment, big tech and social media. Pubs specifically have had a horrendous time. In England and Wales alone, we have lost 13,000 pubs in the past 25 years and, as we have heard, each and every week another 10 close their doors for the final time.

Now this Bill expects the owner or the bar manager, often on low pay and inexperienced, to take on the role of a conversation arbiter or chat monitor in case a customer says something to their drinking or dining pal that is overheard and deemed offensive by an employee. To be clear, I accept that employers should step up if their customers or clients are being offensive to their staff. Yes, they have a responsibility to their staff’s welfare and to their code of conduct, but is legislating in this way the answer? It leaves so many questions, on a subjective level, of what is offensive and what is not.

That brings me to the second sector proposed for exemption by Amendment 85: sports venues. This is where Clause 20 threatens to become unworkable. This struck me only yesterday while I was in the London Stadium, with 60,000 others, watching West Ham stumble to yet another home defeat, this time against Nottingham Forest. There was a lot of anger in the crowd and much of the language could be described as vulgar or offensive. Others would call it passionate, fruity, spiky or humorous, but these views could be heard—or, importantly, overheard—by club officials, security staff, stewards, the police, bar staff, programme sellers and burger flippers, all of whom are employees of the club, the stadium, or various contractors and subcontractors. These views, in the space of 10 minutes, included the manager’s IQ being questioned vigorously and frequently; savaging of the players and their work ethic; forthright suggestions that the referee’s assistant should book multiple appointments at Specsavers; and, finally, the referee himself being repeatedly accused of practising self-love.

I am choosing my words carefully and not quoting directly in order to meet this House’s Code of Conduct, which I respect and have signed up to, but if I did not and repeated some of the profanities I heard yesterday, I would be in trouble. Here is the thing: Parliament, as an employer, would not currently be taken to a tribunal by a colleague, a doorkeeper or a Hansard employee who found my language offensive, but that could change if this Bill has its way.

The point is that most workplaces are covered by a code of conduct or employer’s handbook that sets out the markers and helps sort most of these incidents without the need for dispute litigation, employment lawyers or, indeed, tribunals. Much of this is driven by common sense and human decency, and the mutual interest of employer and employee to ensure a productive and harmonious working environment. Clause 20 threatens to undo much of that. I ask the Minister and this Government to seriously think again.

Employment Rights Bill

Baroness Meyer Excerpts

Committee stage
Tuesday 29th April 2025 Lords Chamber

Ultimately, I am conscious that the Government did put this in their manifesto, but we need to make sure that the legislation is fit for purpose and that it does not end up creating unemployment rather than employment. I also believe that the way that the noble Lord, Lord Fox, tabled his final amendment in this group is a sensible approach of saying that nothing else can start until it is clear for employers how they are expected to undertake this massive legislation, which will add to the already complex employment law situation we have today.

[Baroness Meyer (Con)]

My Lords, I, too, support what the noble Baroness, Lady Noakes, and the noble Lord, Lord Frost, said. I too am very worried about this Bill and its outcome, which be to kill job creation, drive away investments and slow economic growth. It could drive unemployment, fuel inflation and trigger social unrest. It risks taking us back to the economic chaos of the 1970s, when trade unions held the country to ransom.

Back then, strikes paralysed the country. Businesses went bust and the UK entered a period of stagnation and crisis known as the “winter of discontent”. Some of us are old enough to remember it. Inflation soared to 24% in 1975. The economy flattened. The country was forced to beg the IMF for a bailout of around £3.9 billion; that is worth around £20 billion today. I remember the queues, the power cuts and the garbage piling up in the streets. I remember the feeling of helplessness as Britain slid deeper into decline.

Most of all, I remember the humiliation of seeing our great nation ranked as one of the worst-performing economies in Europe. While France and Germany grew richer, we grew poorer. Our reputation was in tatters and we were known as the “sick man of Europe”. It took bold leadership and tough decisions to turn the tide. That leadership came in the form of Margaret Thatcher. Love her or hate her, she saved Britain from economic collapse. She imposed the discipline that was needed to rebuild our economy and restore our standing in the world.

See where we are now. As has been pointed out, if we have consistently outperformed many European countries in recovering faster from the financial crisis and the pandemic, it is because of the flexibility of our economy. Do we really want to follow the French example, where unemployment rates are at 7.4%, with youth unemployment at 19.2%? That is a result of high labour costs, rigid laws, excessive bureaucracy, early retirement and overly strong—

[Lord Evans of Rainow (Con)]

Unions.

--- Later in debate ---

[Baroness Meyer (Con)]

Unions; thank you. Remove flexibility and you remove opportunity. This will especially attack young people looking for their first job. We will end up with more workers’ rights but fewer jobs. That is why we need to examine this Bill and take account of all of the amendments—or, possibly, just scrap the Bill altogether.

[Baroness Lawlor (Con)]

My Lords, I support—