Employment Rights Bill

Debate between Lord Davies of Brixton and Lord Sharpe of Epsom

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord Davies of Brixton (Lab)]

I thank my noble friend for his powerful and clear speech; he has said it all. I just want to add that this issue has arisen from the P&O scandal that took place three years ago. The maritime unions are particularly concerned about this, and I hope that my noble friend the Minister will be able to provide some comfort for the arguments that have been presented. The issue of pre-emptive injunctive relief for seafarers and other workers is a crucial issue and it is possible that we will need to return to it on Report.

[Lord Sharpe of Epsom (Con)]

My Lords, I appreciate the intent behind Amendment 143. After all, we are all familiar with the high-profile cases, such as P&O Ferries, to which the noble Lord, Lord Hendy, referred in his introduction.

I cannot pretend that I was au fait with the case details that the noble Lord explained, but we have some concerns about the practical and legal consequences of what is being proposed here. It seems to us that the amendment would allow employment tribunals to declare dismissals void and as having no effect; therefore, in effect, reinstating employees regardless of circumstances.

That is a major departure from the current legal framework, where the remedy for a breach is compensation, not nullification. That obviously raises serious questions. What happens if a dismissal is declared void months later? Is the employee reinstated, and are they entitled to back pay? What if the role no longer exists or has been filled? For many businesses and many workers, that would create uncertainty and not protection.

There is also the issue of enforcement. Giving tribunal decisions the force of the High Court, and allowing contempt proceedings for breach, risks confusing two fundamentally different judicial systems. Tribunals are meant to be accessible and the High Court is not.

I also question whether this change would meaningfully deter bad-faith employers. Those who already factor in the cost of breaking the law may simply budget for this risk too. Meanwhile, small and medium-sized employers acting in good faith could face disproportionate legal exposure for administrative or technical errors. I look forward to hearing the Minister’s response.

Employment Rights Bill

Debate between Lord Davies of Brixton and Lord Sharpe of Epsom

Committee stage
Thursday 8th May 2025 Lords Chamber

[Lord Sharpe of Epsom (Con)]

My Lords, I will speak to my Amendments 42, 43 and 44, which address a crucial gap in the Employment Rights Bill as currently drafted. The Bill, in its present form, assumes that collective agreements and the important rights that attach to them can be made only through trade unions. The assumption is problematic, as it fails to reflect the diverse and evolving landscape of employee representation in the United Kingdom.

Across a wide range of sectors, there are effective forms of employee representation that operate independently of trade unions. For example, many large employers across the UK have implemented formal employee forums, staff councils and other representative bodies that play a critical role in negotiating terms, improving working conditions and ensuring that workers have a voice. These bodies operate with transparency and independence; they often work closely with management but are not subject to the control of the employer. In sectors such as retail, hospitality and technology, companies have established these independent bodies to provide workers with a platform to express concerns, suggest improvements and engage with senior leadership on workplace issues. These bodies, although not unions, are trusted and valued by workers as genuine vehicles for consultation and negotiation.

Likewise, in industries such as financial services, employee representation often takes place through staff associations and other internal bodies that focus on consultation, transparency and communication between employers and employees. These bodies are instrumental in maintaining a constructive dialogue between workers and management, and they often handle issues such as pay, conditions and workplace policies without the need for union recognition.

The current draft of the Bill fails to accommodate these vital forms of representation. It risks excluding workers who are represented by such independent bodies from accessing the protections associated with collective agreements, including important provisions on guaranteed hours. This approach undermines existing employee engagement practices that have proven to be effective in fostering good relations between workers and employers. The Government have spoken repeatedly about the need to modernise our economy and bring employment rights into the 21st century. A key part of that modernisation must be acknowledging that trade unions are not the only legitimate means through which workers can be represented. Properly constituted employee forums and staff bodies can and do play a vital role in today’s diverse and evolving workplaces. By recognising this, the Government have an opportunity to align this legislation with the modern realities of work and deliver on their commitment to updating our employment framework.

Moreover, the Bill raises serious concerns about freedom of association. The principle of freedom of association is about not just the right to join a union but the right not to be compelled into union membership as a condition for accessing fair treatment at work.

If we want to strengthen the relationship between employers and employees, we must ensure that the Bill is inclusive of all legitimate and independent forms of worker representation. These amendments are designed to achieve that. They would extend the recognition of collective agreements to properly constituted employee representative bodies, such as staff forums or associations that operate independently from the employer in their decision-making. They would ensure that these bodies meet clear governance standards, including transparency, accountability and independence.

The Government’s aim is to promote better workplace relations, and these amendments support that aim. They would recognise the wide range of ways in which workers and employers engage with each other constructively. By recognising diverse forms of representation, we can build trust, enhance co-operation and create workplaces where both workers and employers can thrive. I urge the Government to support these amendments, which would reflect the realities of modern employee representation and strengthen the protections available to all workers, regardless of whether they belong to a traditional trade union. I beg to move.

[Lord Davies of Brixton (Lab)]

I totally oppose these amendments. This is the first time I have spoken in the progress of this Bill. I have amendments coming up later. I think the noble Lord’s amendments illustrate the complete difference in mental framework between those who support and work with the trade union movement and those who do not. I should be clear that, although I do not have any formal interest to declare, I have spent most of my working life working in or for the trade union movement. The trade union movement and what it has achieved is based on 150 years of struggle.