(2 days ago)
Lords ChamberMy Lords, I will be brief—not quite as brief as the noble and learned Lord, Lord Phillips of Worth Matravers, but I shall do my best, and I promise to keep away from the police and definitely the clergy. I had lunch with the right reverend Prelate the Bishop of Manchester, so I think I am safe for today.
While we agree that the current two-year qualifying period is too long, we are concerned about removing it entirely without a clear statutory probation period in place. This could leave businesses in a state of uncertainty, with a gap between the removal of the qualifying period and the introduction of the new probation framework. It risks inconsistency in employment tribunals, as claims will be judged under a system that lacks clarity until the probation period is formally established.
Amendment 49, in the name of the noble Lord, Lord Sharpe, would reduce the qualifying period to six months. Most other amendments in this group are consequential to ensure legislative consistency. We are gently supportive of this amendment, as it would reduce the timeframe for an employee with a plausible case to claim unfair dismissal, while allowing businesses time to correct genuine and non-pernicious hiring mistakes. If the noble Lord were to test the opinion of the House, we would support him on this occasion.
My Lords, this Government were elected on a manifesto to provide unfair dismissal protection from day one of employment—not two years, not six months, but day one. To deliver this commitment, we will remove the qualifying period for these rights.
The Government recognise that, from time to time, employers will need to fairly dismiss an employee for a fair reason. We expect that most employers already fairly dismiss employees, and the process need not be too arduous. Our changes will not prevent fair dismissal. An employee who has been working in the job for some time but whose performance has dipped will continue to have the standard protections against unfair dismissal. However, the Government believe that it is not right to expect employers to have to meet the same standards in the first few months of employment when they are assessing their newly hired recruit and deciding whether that person can deliver what the employer expects. This is why our policy creates a statutory probationary period, during which light-touch standards for dismissal relating to an employee’s performance and suitability will apply.
The noble Baroness, Lady Lawlor, asked what length the probationary period would be. As we have said previously, the Government’s preference is for nine months. We intend to consult on the duration and how the light-touch standards will operate. The current two-year qualifying period is designed not as a training period but a qualifying period before the individual can claim unfair dismissal. If the amendments tabled by the noble Lords, Lord Sharpe and Lord Vaux, were to be accepted, employees would still have the threat looming over them of being fired arbitrarily.
Amendment 51 preserves the policy in the Bill of exempting a dismissal due to a spent conviction for many qualifying periods—a point raised by the noble and learned Lord, Lord Phillips. I am pleased that the noble Lords agree with the Government’s policy, at least to that extent.
However, I can tell the noble Lord, Lord Vaux, that the Government do not believe in protection for some workers in some limited circumstances; instead, they believe in protection for all employees, benefiting 9 million people. The noble Lord spoke about the needs of young people looking for work. Of course we identify with that, and the Government are committed to supporting people as they take their first steps into the world of work or return to work. As the Prime Minister set out on the Get Britain Working White Paper in November 2024:
“Our country’s greatest asset is its people”.
As I explained in Committee, we are
“transforming the apprenticeship levy into a new growth and skills levy that will deliver greater flexibility”
for learners and employers
“aligned with the industrial strategy”.
This will include
“shorter duration and foundation apprenticeships in key sectors, helping more people to learn new high-quality skills at work, fuelling innovation in businesses across the country, and providing high-quality pathways for young people”.—[Official Report, 21/5/25; col. 305.]
We also intend to limit unpaid internships for those who are part of an education or training course. The law is clear that, if an individual is classed as a worker, they are entitled to at least the national minimum wage and anyone eligible must be paid accordingly.
Beyond enhancing learning on the job and ensuring that a fair wage is paid for young people’s work, we also believe that all employees should be provided with security of work through protections from being fired arbitrarily. It is no less distressing to lose a job at the start of your career than at any other point in the years that follow. However, the Government recognise that employers use probationary periods to assess new hires’ performance and suitability for their role. We will ensure that UK businesses can hire with confidence.
The noble Lord, Lord Sharpe, talked about social mobility. We recognise that good employers take a chance on what we might call “rough diamonds” up and down the country. The valuable time that employers take to support new hires by developing their skills and their talents on the job is not recognised often enough. The statutory probationary period will enable this, with light-touch standards for fair dismissals. We have said explicitly that our intention is to provide for a less onerous approach for businesses to follow to dismiss someone during their statutory probationary period for reasons to do with their performance and suitability for the role. Of course, that will apply equally to healthcare employees.
The noble Lord, Lord Sharpe, talked about potentially increasing the number of tribunals. Provided that the employer can show that the reason for dismissal was fair, they should have no concerns about the outcome, as nothing is really new from the current situation.
The noble Lord, Lord Hogan-Howe, asked about police officers. I understand that they are excluded from the existing legislation, as they would be from the Bill. In that sense, there is no change.
Noble Lords have raised the issue of a cultural fit, which, of course, can mean many different things. “Not a good fit” is often used euphemistically to refer to attributes such as an employee’s work ethic, their level of commitment to the job, or how they interact with their colleagues. In many situations, these reasons will fall into the category of dismissal for conduct or capability, to which the new light-touch standards will apply. If the cultural fit is linked to a protected characteristic then of course dismissing someone for that reason could lead to discrimination claims, and the Bill does not affect that.
Beyond these reasons for dismissal, which clearly fall within the conduct and capability category, the Government will carefully consult on what other kinds of “some other substantial reason” dismissals should also be subject to those light-touch standards. The Bill contains a power for the Government to define what a “some other substantial reason” dismissals “relating to the employee” should mean. As I have noted, the intent is to define what relates to an employee’s performance and suitability for their role. We will welcome employers’ and trade unions’ input on that important issue. However, these amendments would remove the Government’s statutory probationary period to enable light-touch standards for fair dismissals for the first nine months of employment.
Noble Lords asked about consultation. We have already consulted on the proposals, and we are continuing to engage with trade bodies and trade unions prior to publicly consulting later this year. The Secretary of State for Business and Trade issued a letter to stakeholders on Thursday 26 June, which outlined the fundamental principles that are guiding the Government’s development and implementation of day-one rights to unfair dismissal protections and invited stakeholders to engage on the detail of the policy. Should your Lordships be interested, I have now placed a copy of that letter in the House Library. I should also say to the noble Baroness, Lady Neville-Rolfe, that the road map shows that these day-one rights, including protection from unfair dismissal, will not be introduced before 2027.
In the meantime, these amendments would not deliver on the Government’s manifesto commitment to introduce a day-one right against unfair dismissal, leaving many newly hired employees without robust employment protections. I therefore ask noble Lords not to press their amendments.
Finally, my Amendment 52 is simply a minor technical amendment that corrects a cross-reference in Schedule 3. With that, I ask the noble Lord to withdraw Amendment 49.
My Lords, the amendments in this group relate to the Bill’s provisions on fire and rehire. I think there is a consensus across the House that the most outrageous cases of fire and rehire should be outlawed. The particular case and example is P&O Ferries, which was not so much fire and rehire, but just fire: nearly 800 staff were dismissed without consultation or notice. Nevertheless, it serves to highlight the urgent need for stronger protection for workers and clear restrictions on the use of fire and rehire.
The series of government amendments in this group clarifies that distinction through the introduction of restricted variations that would permit contract negotiation to proceed in limited circumstances. Government Amendment 72 sets up the condition of restricted variation which, in short, it defines as the removal or weakening of entitlement relating to pay and broader terms and conditions. This approach reflects the intentions behind my Amendment 75, which would allow contract variations where they are not detrimental to employees’ terms and conditions and do not concern paid hours. I am glad that the Government have reconsidered the operability of these provisions, and we are happy to support these amendments to the Bill.
My Lords, I agree with the noble Lord, Lord Goddard of Stockport, that, as we warned when we discussed it in Committee, Clause 26 was, as originally drafted, quite simply unworkable.
As we reminded noble Lords throughout Committee, the clause was far too broad. It would have captured entirely routine contractual changes, such as simple variation in work location, and treated them as fire and rehire cases. That approach was not only impractical but potentially damaging to employers and employees alike. We therefore welcome the Government’s decision to bring forward amendment that define the concept of a restricted variation. This brings much-needed clarity to the legislation. Although I would not go so far as to say that the clause now flies, it is at least comprehensible.
The Minister quoted Unite. May I quote Unite back at him? It has just issued a statement saying that it condemns the Government’s amendments, which in its own way suggests that progress is being made. The Minister would be well placed to consider the rather detailed brief that Unite has delivered, condemning the way in which the Government are now reworking Clause 26. It suggests that progress is being made and all our warnings are coming to fruition. One now has to wonder, I suppose, whether the realisation dawned when someone in Whitehall spotted that the original drafting could have torpedoed the Government’s own plans to relocate 50% of senior civil servants out of London.
Of course, these amendments, while helpful, have added layers of complexity. Look at what Clause 26 now represents: it is a recipe for going to Peers such as the noble Lord, Lord Hendy, and asking, “What does this mean?” There is so much here that is very difficult to understand; these amendments have added layers of complexity. The fire and rehire provisions are probably slightly more workable now—I say this slightly optimistically—but, my goodness, they are intricate. No wonder the Government are preparing to consult on the matter in the autumn; that consultation will be crucial.
I quote another major figure: Mike Clancy, the general secretary of Prospect. He has warned that
“the government must be careful it doesn’t inadvertently create a veto against all contractual change”.
Surely that is the risk. Among the restricted variations now listed are reductions in entitlement to pay, changes to performance-based pay measures, alterations to pensions, variations in working hours or shift times, and reductions in leave entitlements. These are precisely the sort of changes that businesses, particularly smaller ones, often need to make—not recklessly, but to adapt, restructure or just survive during periods of financial strain. So we urge the Government to conduct this consultation with care. The views of employers must be front and centre. The impact on small and medium-sized businesses must be fully understood. Yes, constraints matter, but so do incentives. If we are serious about improving employment practice, we must not just punish the worst but support the best.
As amended, this clause is better, but we look forward to hearing from the Minister how he will respond to the many criticisms that have been made.
My Lords, it is a pleasure to follow my noble friend Lord Howard of Lympne and indeed all noble Lords who have made such compelling arguments for the amendments in this group. I rise to support Amendment 107 in the name of my noble friend Lord Sharpe of Epsom, to which I have added my name. I again refer the House to my registered interests, particularly as a dairy and livestock farmer and as a forester.
The farming community needs help after the run of negative actions taken by this Government: the slashing of delinked payments, followed swiftly by the cut-off in sustainable farming incentives with no notice, contrary to previous promises. That leaves a large number of farms with negligible environmental payments, incentivising the intensification of their farming operations, undermining their businesses and undermining nature restoration. To that is added the more general burden placed on all businesses of increased employer national insurance contributions.
Farmers’ long-term planning has been thrown into chaos by the reduction in inheritance tax reliefs on agricultural and business property. It is a burden that farming businesses simply cannot afford and will lead to the sale and break-up of many of these on the death of a family member, with families also losing their homes and businesses as a result.
In the run-up to the introduction of the reduced reliefs in April 2026, the financial incentive for elderly or terminally ill farmers and business owners to take their own lives increases. In Committee, I was grateful to the Minister, who is again in his place today, for his promise to speak to his ministerial colleagues at Defra and the ONS about keeping accurate and timely data on farmer and business-owner suicides. I ask him again today: what has been the result of those discussions? How can the Government assess the impact of this measure on suicide rates if they simply rely on out-of-date and insufficiently granular ONS data?
On Amendment 107, the arguments in favour of granting farming an exemption from these Bill provisions have been well made in Committee, and I will hit only the headlines. Farming is almost uniquely exposed to seasonality in its harvesting operations, as well as the weather variability in the timing of those operations. Livestock farmers have to look after their animals every day and rely on casual labour to fill in gaps due to illness or scheduling issues. That requires flexibility in its engagement with seasonal and part-time or casual staff. There are penalties enough in weather unpredictability without introducing more through compensating staff for changing hours at short notice or having to compensate for sickness from day one. These obligations are simply unaffordable for farmers and unworkable in practice.
Farming operates on cycles that are unknown in other businesses. It is easy enough to assess the quality of work and the suitability of staff in retail, offices and manufacturing, even after the first day or so. However, most farming workloads are solitary, with little oversight. We know whether a new employee has drilled a field correctly, looked after animal hygiene effectively, checked weed growth around new trees without damaging the trees, or ensured that livestock is back in calf in the necessary window, only months after those operations are performed. Reducing probationary periods and leaving farmers exposed to human resource and litigation risks, potentially from day one, is simply not acceptable or workable.
As my noble friend Lord Deben highlighted in Committee, this is not a Government who have a background or experience in the farming or rural economy. That lack of experience is often evident, and I urge the House and the Government to listen to those of us who have that experience and to support this critical amendment. I hope to hear encouragement from the Minister that the Government are listening.
My Lords, the amendments in this group relate to the disapplication of provisions of the Bill to certain sectors and employment types. Amendment 94 would give the Secretary of State the ability, through regulations, to vary or exempt specific sectors from the provisions of the Bill. We do not support this amendment as we generally do not support facilitating two-tier employment systems in which certain businesses have statutory obligations that they must adhere to and others do not. Instead, we are focused on ensuring, as part of the Government’s consultation process ahead of implementation, that sectors likely to be disproportionately affected are properly engaged and supported to operate under the Bill with minimal disruption.
My Lords, we on these Benches do not support these amendments. The obligation to consult collectively in redundancy situations is a vital safeguard for workers, providing them with a voice and an opportunity to understand and respond to proposed job losses. Reducing consultation rights, especially during the turmoil of insolvency, would leave employees even more vulnerable at a time of significant uncertainty. Similarly, cutting the notice period would deny workers essential time to plan, seek advice and make necessary financial and personal arrangements. We believe strongly that these protections must be preserved and not weakened.
My Lords, we are very grateful to my noble friend Lord Moynihan of Chelsea for his amendments. I thank the Minister and her team for the way in which they have entertained and thought through some of the key points made by my noble friend. As he rightly pointed out, collective redundancies are, sadly, not uncommon in cases of employer insolvency. In such circumstances, the role of the insolvency practitioner, which my noble friend has outlined so clearly, is both time-critical and highly constrained. The legal duties placed upon practitioners can come into direct tension with the obligation to consult collectively with employees, a tension that is not merely theoretical but is borne out time and again in practice.
I say to the noble Lord, Lord Goddard of Stockport, that the amendment does not seek gratuitously to diminish the rights of employees. My noble friend has drawn the Government’s attention to a genuine gap in the law, one that has become more acute in the light of the changes that the Bill introduces. As it stands, the duty to consult can place insolvency practitioners in an impossible position, bound by law to take urgent decisions to preserve value or manage a collapse while also facing legal jeopardy for failing to comply with collective consultation obligations that were not, and never were, designed with insolvency in mind.
We have to be realistic. Where a company is collapsing, consultation—however desirable—cannot always be carried out in the prescribed way. It is in nobody’s interests, least of all that of employees, to put insolvency practitioners in a position where they are forced to choose between compliance with employment law and their fiduciary responsibilities.
I believe that the Government should take my noble friend’s arguments seriously. This is not a theoretical concern; it is a matter of practical urgency. I therefore urge the Minister to reflect carefully on the implications of the clause and to engage with my noble friend’s proposal in the constructive spirit in which it is offered.
My Lords, this is a small group of amendments—only three—dealing with small businesses. I will briefly address my Amendment 111 and the other two. Simply put, we would require the publication of a code of practice applicable to small and medium-sized enterprises with the express intention of ensuring that the code must simplify employment law and the regime that the Bill will create, thereby enhancing the ability of SMEs with limited capacity to adhere to the principles of the Bill.
Amendment 166 in the name of the noble Lord, Lord Sharpe, would require the Secretary of State to undertake a review of the impact on small businesses. We support this amendment, as we believe that SMEs are suffering excessively from the consequences of some of the proposed legislation. However, we cannot support Amendment 194, which would repeal Parts 4 and 5 and Clauses 149 and 150 of the Bill at the end of the Parliament in which it passes. Quite frankly, we feel that this is nothing more than a wrecking amendment that would create provisions to be adhered to only for a short period of time before reverting back to pre-employment framework, thus causing real havoc in legislation.
My Lords, I am grateful to the noble Lord, Lord Hunt of Wirral, for his contribution and to the noble Lord, Lord Goddard, for speaking to his amendment.
Amendment 194, tabled by the noble Lord, Lord Sharpe of Epsom, seeks to repeal Parts 4 and 5 of this Bill, as well as Sections 149 and 150 at the end of this Parliament. In Committee, we debated at length the merits of Part 4 and 5 of the Bill, as I am sure we will again next week, as the noble Lord, Lord Hunt, mentioned. Parts 4 and 5 are key to delivering the biggest upgrade in workers’ rights in a generation, so I do not wish to repeat myself to your Lordships’ House tonight.
Amendment 166, also tabled by the noble Lord, Lord Sharpe of Epsom, proposes a review process that effectively duplicates what we are already doing. As I have outlined previously, the Government already have robust monitoring and evaluation plans in place. The Government’s impact assessment sets out how we will review the Bill and any secondary legislation that follows, including effects on small businesses, which we know are vital to the economy. The recently published road map shows that implementing this Bill will take several years and its full effects will not be realised until long after Royal Assent. Significantly advancing a post-implementation review would not allow for an effective assessment of its impact, including on small businesses.
On Amendment 111, moved by the noble Lord, Lord Goddard of Stockport, this Government know the importance of making sure that employers of all sizes are supported in preparing for employment rights reforms. As set out in our road map, the Government are committed to ensuring there is sufficient support and guidance for employers of all sizes. As set out in paragraph 24 on page 8 of the road map, we will be working closely with ACAS and others to develop codes of practice and guidance on measures where these are needed. We have committed to ensuring time is built into our implementation plans to allow stakeholders, including many small businesses, to familiarise themselves with changes in law, codes of practice and guidance. Many of the measures in the Bill build on existing legislative provisions which already have guidance and codes of practice. When we make changes to regulations, we will also work to update relevant guidance and codes of practice as a result.
We know one of the main places that people turn to for reliable, accurate information on legal requirements is GOV.UK. Work is currently under way to ensure that our digital content is usable, easy to navigate and accessible for all stakeholders. In addition, we have engaged, and will continue to do so, with stakeholders of all sizes to understand what support will be useful for them in implementing these changes.
The noble Lord’s amendment is unnecessary and duplicative. An additional code of practice on top of the guidance and support that the Government have already planned risks causing confusion among stakeholders as to where they should turn for clarity and certainty. I therefore respectfully ask the noble Lord, Lord Goddard, to withdraw Amendment 111.
I thank the Minister and the other speakers in this small group. Although it is three minor amendments and it is 11 o’clock at night, for us, and, I think, for the Conservatives, small businesses are the heartbeat of the economy in this country. We will keep nagging about small businesses, and we want clarity and certainty.
Yes, codes of practice are great. I have read the road map; it is very interesting. I understand the direction of travel with the road map. It requires patience, trust and a little bit of honesty about what is deliverable in time periods. The road map is a good thing, and I recommend people to read that road map.
Small businesses need to know now the impact of this proposed legislation. Asking for reviews of that, after a period of time, does not seem unreasonable to this group. We are not being awkward for the sake of being awkward, we are just trying to protect small businesses and small companies that are, quite frankly, bewildered. They do not have a political view on the Employment Rights Bill. They are bewildered as to how someone can come in and affect how they try to make a small profit and a small living.
We will continue to probe, not forcing votes for the sake of votes. I speak to Ministers regularly, probably more with these Ministers than on any other Bill—apart from the football Bill, perhaps, with the Minister who is sat next to the noble Lord. The Ministers have been really helpful and supportive, and I appreciate that. I think they understand where we are coming from on this—we are not trying to be obstructive, but we are just trying to tease out a little bit more detail and promise of certainty for people. At the moment, life is difficult, and to put more uncertainty in front of people who are trying to do the things the Government want them to do—grow their business, employ more people and create GVA—those things have to be compatible with the things they are trying to do for the employees. On that basis, I will stop wittering on, and I withdraw my amendment.
(1 month, 1 week ago)
Lords ChamberMy Lords, the amendments put forward by the noble Lord, Lord Jackson, which have been tabled in good faith and with good intent, aim to clarify employees’ rights for reasonable time off and to maintain a balance of obligation between employers and employees. However, this tempting repeated emphasis on balance and responsibilities risks adding unnecessary complexities to what should be a straightforward provision. The focus on sustainable assessments closely tied to individual circumstances, while well-intentioned, may create complicated decision-making for both the employer and employees, rather than finding the guidance we are looking for.
I am not a clairvoyant; I am summing up from the notes I have in front of me. The amendments from the noble Lord, Lord Sharpe, talk about linking facility time for equality representatives with statutory performance targets in the public sector—that is what the time off is for—to introduce additional conditions aimed at ensuring accountability. The proposal for a sectoral cost assessment before these changes take effect offers a measured way of evaluating their impact. It will be important to monitor how these conditions interact with the support available to employees’ representatives to maintain an efficient and effective balance.
I look forward to the Minister’s response to these amendments. I will not comment on the comments made by the noble Baroness, Lady Fox, tonight. I will leave that for the Minister to deal with.
My Lords, I thank my noble friend Lord Jackson of Peterborough and the noble Baroness, Lady Fox of Buckley, for their amendments and contributions to today’s debate.
I speak to the amendments in my name and that of my noble friend Lord Sharpe of Epsom, where we seek to make the provision of facility time for equality representatives conditional on public sector employers meeting their statutory performance standards. I believe such amendments are not merely sensible but essential if we are to ensure that public resources are allocated responsibly and with accountability.
It is no secret—we hear it constantly—that politicians and civil servants routinely claim that they want to protect taxpayers’ money, yet too often the rhetoric is hollow and budgets expand unchecked. One glaring example is the unchecked proliferation of equality, diversity and inclusion, or EDI, roles in the public sector. For those unfamiliar, EDI is a branch of human resources. There are now some 10,000 EDI officers employed across public sector organisations. There has been a veritable explosion of spending that has occurred with minimal scrutiny or measurable outcomes.
Against this backdrop, it is right and proper to demand that facility time—a significant use of public resources—should be granted only to employers who are delivering on their statutory performance targets. Our amendments would introduce a performance condition that requires the Secretary of State to be satisfied that a public sector organisation is meeting relevant standards before facility time can be allocated.
I believe this to be a vital safeguard that Clause 62 as currently drafted just fails to provide. Clause 62 in its current form risks allowing facility time to be given indiscriminately, without regard for whether the employer is fulfilling its primary obligations to service users and taxpayers. That is a pretty laissez-faire approach, which I believe is unacceptable in an era of tightening budgets and growing demand for public services—no doubt we will hear much more of this from the Chancellor of the Exchequer tomorrow morning. Without this condition, facility time risks becoming yet another unchecked entitlement, further diverting scarce resources away from front-line delivery.
We must be clear, however, that supporting and moving these amendments does not mean opposing equality representatives themselves or the very important functions they perform. Rather, it just means insisting that public funds should be spent prudently, and that facility time should be tied to organisational performance. If a public sector body is failing to meet statutory targets, I believe it is irresponsible to allow additional resource commitments without first addressing those failures. Moreover, our proposed new clause would require a sector-by-sector cost assessment of facility time, introducing much-needed transparency and evidence-based policy-making. Before expanding facility time or making it more widely available, Parliament must understand its real financial impact and weigh it carefully against the public benefits.
We urge all noble Lords to refuse to accept Clause 62 in its current form but to embrace these amendments, and then we will have a crucial performance condition. In that way, we will ensure that facility time is provided responsibly, with accountability, and only when public sector employers are meeting their statutory obligations.
However, I commend my noble friend Lord Jackson of Peterborough on introducing what I felt were very reasonable amendments. Of course, he is drawing on extensive experience serving on council business and the London Fire and Civil Defence Authority, on which he served with such distinction, so I hope the Minister will accept those amendments.
I have to say to the noble Baroness, Lady Fox of Buckley, that I was appalled by the stories she gave, showing the experience of Nurse Jennifer and Nurse Peggie. They are shocking stories, and how right she was to bring them to the attention of the Committee. There is a great worry that somewhere, deeply embedded in the system, is systemic sexism. I suppose I am looking back—it is far too long ago—to when I was, and I think I probably still am, the only man to have been appointed Minister for Women in the Cabinet. I have to say that the experience I had in that position warned me of the impending problems about which the noble Baroness, Lady Fox, spoke so passionately and so clearly.
We really have to get something right. In many ways, I know that the Bill has been put together with great haste, but Clause 62 in particular at least requires amendment, or perhaps another clause more carefully thought through should be presented to the House on Report. That is why we look forward to hearing from the Minister. We are talking about not just good governance but a necessary step to protect both taxpayers and front-line public services.
My Lords, I want briefly to commend the noble Lord, Lord Hendy, for putting this amendment forward. I have a lot of sympathy with it. The noble Baroness, Lady Jones of Moulsecoomb, has explained some of my reasons for supporting it.
I just wanted to note that it is very tempting when rights are being taken away to want to consolidate them via the law and constitutionally. I felt it myself in relation to civil liberties, which I think are under attack: the right to protest and in particular free speech. I keep wishing there was a First Amendment, because then it would be there and they would not be able to attack it.
However—this a good faith question—when I heard the noble Lord, Lord Hendy, justify it in relation to international treaties, ECHR, the Council of Europe and so on, I started to worry that maybe this would become one of those treaties where it would be, “You can’t touch this” and you would end up treating it technocratically, as it were. Rather than it being fighting for the right to strike, it would be fighting for the principle of the right to strike with ordinary workers, rather than simply referring to defending it in the law. So can the noble Lord, Lord Hendy, even though he does not stand a chance of getting it through, reassure me that this is not just an attempt at ring-fencing a right, but then neglecting to fight for it in real life? I commend him and the noble Baroness, Lady Jones, for raising this, because I really do feel that rights need to be protected under this Government as much as any other, I have to say.
My Lords, these amendments, proposed by the noble Lords, Lord Hendy and Lord Woodley, are I think as people have outlined. I have been on the wrong end of that legislation on a number of events—official strikes, unofficial strikes and secondary picketing. As a shop steward you are responsible for taking those actions for a company; there are consequences and I have suffered consequences from that.
It is not that I agree with the rights being taken away, but I think times have changed and unions have moved on now. The right of anybody to remove their labour, if they are pushed to it, should be a universal right, but it should be used very sparingly and in very special circumstances. It is all very well rushing to legislation and quoting the European Court, but we live in the real world and when things happen to people at work and people are treated badly, sometimes we have not got time to go and contact the KC and get case law. We just do the things that we used to do and take that action straight away. Sometimes that resolves the matter fairly quickly, because a reasonable employer will see the action you have taken as a direct result of another manager doing something that was not in agreement. So I get the thrust of this.
I have had notes typed and I have been writing my own notes, but I think the top and bottom for me is the amendment is seeking to restore a trade union’s flexibility in choosing which members to ballot and removing some procedural requirements and obligations to notify employees in advance of ballots. I think that time has gone as well.
Reinstating rights for prison officers, the group currently subject to significant legal limitations, is one I would like to slightly explore. The intent behind these amendments is to strengthen trade union rights and promote collective bargaining. The concern is potentially around impact, industrial relations and public safety, especially with the actions of prison officers. I say to the noble Lord, Lord Hendy, and to the Government that the way to protect prison officers is not to enshrine the right to strike but to remove the reasons why they would want to strike. That really is about improving the Victorian conditions that we have in 2025 prison systems, where people go into prison and come out worse criminals or nine out of 10 as drug addicts or whatever.
Governments, instead of trying to give extra law for prison officers, should be looking at the root cause. I know there is a prison plan being built and we are trying to get more education into prisons—if you want to speak to the noble Lord, Lord Timpson, he can give you chapter and verse on that, as I have listened to him doing. I hear why it is being done, I understand why it is being done and I know that it is not got a hope in somewhere else of getting through. But I thank the noble Lord for bringing it forward, because sometimes it is good to realise that things that we used to do are perhaps today not even politically correct to do. Human rights and the rights of people who go every day to work, to earn a living and support their family, need airing and need protecting. I know this is a probing amendment, but I thank the noble Lord for bringing it because it is interesting. Now and again it is good to be reminded of how it used to be and how it can be now.
My Lords, I join the general thanks to the noble Lord, Lord Hendy. I thought it was a most interesting introduction and I learned a great deal. I particularly liked the phrase “constitutional benediction”, which I am planning to nick—although not in this context, because I rise to join the Minister and express my clear and firm opposition to the proposed new clause after Clause 64. It seeks to enshrine in statute a so-called positive right to strike even in breach of contract, as opposed—if I follow the noble Lord’s arguments correctly—to the freedom to strike. It strikes me as somewhat semantic in terms of the practical outcome, which I suspect is an argument we will hear again.
Let us be absolutely frank about what the amendment would entail. It would insert into the Trade Union and Labour Relations (Consolidation) Act 1992 a wholly unprecedented and therefore dangerously broad provision that every worker shall have the right to take industrial action, whether or not it is in breach of any contract. It would not be subject to employer agreement or tethered to lawful procedures but would be an absolute statutory right to break contract terms and withdraw labour.
Industrial action, particularly strike action, is obviously a serious matter, and I think everybody would agree on that. It affects not only the employer but the public, the economy and, critically, the most vulnerable in society, who rely on public services. That is why we believe our existing legal framework strikes a careful balance. It protects the right to strike but does so within clear procedures and obligations: balloting requirements, notice periods and protections against unlawful disruption. This amendment would ride roughshod over all that.
What does it mean to have a right to breach your contract, regardless of process or proportionality? Surely, that is not a right; that is just carte blanche. This provision would displace the carefully constructed framework that governs how industrial action can be taken lawfully and responsibly. It would empower disruption without accountability. The purpose of employment law is not to tilt the playing field in one direction or another but to ensure that fairness, order and mutual obligations between employers and workers are respected. The right to withdraw labour must remain conditional on lawful procedures and not granted in the abstract, regardless of impact or legality.
Moreover, the proposed amendment would likely bring the UK into direct conflict with established contract law and create endless legal uncertainty. If workers are told that they have a statutory right to strike, even in breach of a contract, what does that mean for essential services, public safety, or the ability of schools, hospitals and transport systems to function with any consistency?
I do not think we should be mistaken. This amendment is not some minor clarification; it is a fundamental rewrite of the basis of workplace relations. It would undermine the principle that contracts entered into freely carry obligations and it would sweep away the balance between rights and responsibilities. I also have to ask: once a principle of contract breaking is established, how long before that is used as precedent in other contractual disputes?
Nobody denies that workers must be able to organise, speak up, bargain collectively and act where necessary. That is already protected in the legal framework. This amendment would take a sledgehammer to that balance. It would replace legal clarity, we believe, with legal radicalism, and accountability with absolutism. For those reasons, I urge the Government to reject the amendment.
My Lords, an interesting night has been had by all. More ammunition has been thrown into the laps of these Benches than on any other night of the entire debate. Of course, that is called an unintended consequence—never mind. I rise to speak to the important group of amendments that address the key aspects of the industrial ballot process. I wish to highlight my own probing Amendments 244 and 246, which focus on maintaining a robust democratic mandate for industrial action and ensuring clarity around the ballot’s effective period. I thank the Ministers for making time to meet me last week to understand the rationale behind these probing amendments, and I thank the noble Baroness, Lady Coffey, for signing my amendments—she is my new best friend for at least the next 45 minutes.
Amendment 244 is a probing amendment that aims to reinstate the 50% turnout threshold for industrial action ballots, questioning whether removing this requirement could weaken their democratic legitimacy. In the process, that could have significant consequences for workers, employers and the public. It is clear that the ballots genuinely reflect the clear will of the membership. That would seem obvious to me. We have spoken tonight about courts from all over Europe and the world, but there is another court: the court of public opinion. When you hear of people having strike ballots with percentage turnouts in the low 20s or 30s, you really must question the legitimacy of the argument for the ballot if you cannot at least get 50% of the workforce to take part.
I thank the Minister for his reply and thank other speakers who have spoken in this group. The noble Lord, Lord Hutton of Furness, talked about balance, in airlines and other industries. Balance runs through the conversation on this group of amendments.
The noble Lord, Lord Moynihan of Chelsea, is always good value. He throws all these numbers at us and gets very agitated, but he wants the balance to be right between the trade unions and not to swing the wrong way to the other side, and he gave us the history of what happens when that happens. I understand what he is saying and I thank him for his contribution.
The noble Baroness, Lady Coffey, almost used me as a Trojan horse, but I accept that, because her intervention was exactly on pitch. She speaks about clarity, honesty and the NHS. Again, there are many instances in this group that touch all parts of the country, from aviation to the NHS and back again.
The noble Lord, Lord Sharpe, made his position very clear. He wants transparency and responsibility, and he really wants to know where the reasonableness is in the Government’s reluctance to accept these amendments.
Today could be a watershed, because the debates we have been having as Report looms could be where some of these battle lines will be drawn. These are fundamentals. It is fundamentally not right that 50% to call for a ballot is unreasonable. All I am asking is for the Government to take back the comments we have made tonight and, when we return on Report, show some cognisance and understanding that these are not just anti-union amendments. We support the unions, but they have to be seen to be democratic and accountable to the wider public. I hope that they take my comments and criticism in the way they are offered: to help to make a better Bill that is more acceptable to everybody.
I will read the Minister’s comments in Hansard, because he went through at a canter. I was a bit concerned when he talked about balloting being a positive modern experience. I have always found it to be the opposite: it is soul destroying to vote for industrial action.
With the benefit of the doubt, this party will listen and hope that the Minister has taken on board some of our positive criticism tonight before we come back with this set of amendments. These amendments, among all the others, could be the contentious ones, and the Minister has the opportunity to lance that boil early. Getting tonight’s amendments right will go a long way to making this Bill work fundamentally better for employees and employers. On that basis, I beg leave to withdraw my amendment.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I will speak briefly to Amendment 129, in the name of the noble Lord, Lord Holmes, ably articulated by the noble Viscount, Lord Colville of Culross. I also have some sympathy with the view of the noble Baroness, Lady O’Grady, on the matter.
My Lords, I support Amendment 133 from my noble friend Lord Sharpe of Epsom. It is a great pleasure to follow my noble friend Lord Deben. In doing so, I draw attention to my registered interests, in particular as a dairy and livestock farmer.
I am most grateful to my noble friends for their supportive comments for British farmers. I have asked in Written Questions and in debates whether the Government would commit to keeping detailed and timely data on the number of farmers and family business owners taking their own lives in the run-up to the introduction of the reduced inheritance tax reliefs, due in April next year. So far these requests have been denied or ignored. We know that a number already have taken that dreadful step—and, as the deadline approaches, the risk will only rise. It would appear to be callous in the extreme that the Government refuse to take responsibility for this tragic human cost of their Budget decisions. Will the Minister commit to keeping and publishing the data in a timely manner?
Farming has unique employment challenges, as others have already mentioned in this short debate—and as indeed the whole country is now aware, thanks to the popularity of “Clarkson’s Farm”. Arable crops and silage need to be harvested when the weather allows and when they are ready for harvest. This leads to high-pressure operations at short notice and often at anti-social hours. It is not unusual to see harvesters and wagons operating well into the night until the dew starts to form. If staff are not available to operate that equipment at the optimum time, it can lead to reduced yields, higher drying costs or even the failure to harvest a crop at all.
In the livestock and dairy sectors, staff are also required to be available to work flexibly. In livestock, this can mean being available for callout to inspect the health of animals, assist in lambing and calving, and recapture escaped animals. In dairy, cows need to be milked at regular intervals from one to three times a day, depending on the system being employed. If that regular schedule is not followed, animal health can be threatened and milk yields suffer.
In the fruit and vegetable growing industry, the fruit and vegetables need to be picked when ripe and when the market demands it. Contracts governing the supply of these goods to retailers and processors can be highly onerous and punitive when conditions are not met. It is essential for this industry that it can employ workers to meet these needs and contract terms.
Unfortunately, agricultural employers need to have staff who are committed to working flexibly, and access to staff who are willing to work when the work is available. The Bill makes it more difficult for employers to refuse employee submissions for flexible working requests. While these submissions can already be made from day one, employers can refuse them on the grounds of inability to fill the gap from reduced hours, or the detrimental impact on business performance or meeting customer demand. The higher bar set by the Bill is likely to make it harder to protect the business.
The Bill applies unfair dismissal rights from day one of employment versus the two years currently in law. We are yet to see the timetable to be proposed, creating significant uncertainty. I have first-hand experience of the damage that a new, unsatisfactory employee can do to a business, even without any malice, and being able to remove them at short notice when the poor performance is revealed is critical. In that case, due to the nature of dairy farming, it took over a year for the poor performance to come to light. The widespread industry reliance on casual workers is threatened by restrictions on zero- and low-hours contracts and the potential for those to obtain a right to guaranteed-hours contracts.
Paying fees for cancellation of shifts at short notice is also impractical in farming. While it is easy to see why the Government might want to penalise employers for potentially capricious and harmful decisions around shifts, the timing of work in farming is often not predictable. Therefore, it does not make sense to penalise farmers even more than they are already for changing weather.
The Bill is a massive threat to the viability of British farming. The extent of that threat will be known only when the Government have decided when employees’ probationary periods will end, when a casual employee gains permanent employment rights, and when notice has to be given of a shift cancellation. I ask the Minister why this work has not been done already and why are we debating a Bill when the extent of its negative impact is unknowable.
The English farming industry has been targeted by this Government, with dramatic reductions in delinked payments, the abrupt cancellation of SFI applications, the imposition of inheritance tax and the withdrawal of the rural services delivery grant being the highlights. We now read in the papers that the spending review is likely to slash the farming budget, offering little hope that government support will improve. Farmers also now face greater competition from heavily subsidised overseas farmers with little or no environmental obligations. On top of that, as my noble friend Lord Deben highlighted, our arable farmers are struggling with low crop prices and extremely dry weather damaging yields.
Let us at least accept this modest amendment to the Bill to allow an open appraisal of the impact on the sector after a full annual cycle, when the terms of the Bill are fixed and in force, and ensure that the information is available to make changes that might prove necessary. This Government have claimed to be pro business and pro growth. Will they, at last, show some support to this business? I hope that the Minister will listen to this debate, depart from his brief and offer encouragement.
I rise with some trepidation to comment on the proposal of an impact assessment for farming businesses, as I am not a farmer and have never lived on a farm. But I say to the noble Lord, Lord Deben, that there are lots of people who support the farmers and the culture, as well as the steadfastness of an industry that is so reliant on the weather. I do not think that any other industry has to try to run a business, make a living and make a small profit with the weather this country has—unfortunately, I cannot blame the weather on the Government, or on any Government. It is literally the force of nature.
In considering the implications of the Bill, it is important that we pay close attention to the needs and circumstances of the UK farming sector. Agricultural businesses operate within a complex and fragile environment, where changes to employment law, however well intentioned, can have disproportionate effects. Recent debates around the family farm tax further highlight concerns about the punitive financial pressures on farmers, underscoring the need for careful assessment of any new burdens placed on this sector. This amendment proposes a structured approach to understand the impact through a formal assessment within a defined timeframe. While views may differ on whether such a provision needs to be set out in primary legislation, the underlying concern is legitimate and should be supported. We should ensure that policy changes do not inadvertently place additional strain on a sector already facing considerable challenges.
My Lords, I thank Tim Leunig for drawing my attention to this proposal. The standard in the UK when a person has a job and contracts for a new one is that he or she has to serve a three-month notice period. In the United States, notice periods are typically two weeks. There is no legal requirement, but that is the convention and any longer is considered unreasonable. It is quite clear, looking at things in the round, that three months is not necessary to run a dynamic and effective economy—it is inefficient. Shifting the notice period down would be a contribution to productivity and a benefit to workers. Most people get a pay rise when they move jobs. Getting it 11 weeks earlier would mean a direct rise in the individual’s income, as well as a rise in GDP and tax revenues. It is of all-round economic benefit.
The most important effect is indirect. If notice periods are short, a dynamic company can scale up more quickly and easily than is currently possible. It can go out and bid for contracts knowing that it can get the staff in time to honour them. If an entrepreneur has a good idea, they can make it happen. If demand rises for one firm, it can respond more easily. Making it easier for dynamic firms to grow quickly is definitely an economic benefit.
Finally, knowing that employees can leave more quickly would give firms an incentive to think more carefully about them. If their leaving is a big nuisance, firms will want them to stay, and will therefore have an incentive to think more about pay rises, promotions, new training opportunities and other things that make the employee feel that his current job is worth having. In contrast, allowing firms to set long notice periods helps incumbents, particularly firms not seeking to grow and that do not want to respond to growth opportunities. That is not a productivity-enhancing strategy.
My amendment suggests a gentle way of seeking to change current practice in the UK—to incentivise a change without requiring anything. If the Government can see a better way of getting to the same outcome, I should be delighted to support them. I beg to move.
My Lords, this amendment raises questions about notice periods and how they are handled under employment contracts. I make no particular case for or against it, but it draws attention to a more pressing issue: the complexity introduced by this Bill around notice periods and contractual exits. For many employers, particularly those without specialist legal support, understanding and implementing these new requirements will not be straightforward.
I am appreciative that this amendment attempts to bring some clarity and firmer parameters to that part of the framework. Striking the right balance is crucial: while shorter notice periods can support quicker recruitment and flexibility, they may limit employers’ ability to ensure a smooth handover or maintain continuity in key roles. Any reform should therefore weigh the benefits of agility against operational realities.
If the Government want compliance, they must ensure that the legislation is not only sound in principle but clear in practice. That means providing details on how these provisions interact with existing arrangements and what precisely is expected of employers. A complex system with vague guidance helps no one. That is not the first time we have made that point to the Government tonight, and we will keep doing so.
My Lords, I thank my noble friend Lord Lucas for his amendment and the gentle way in which he introduced what could be a very important move to simplify what the noble Lord, Lord Goddard of Stockport, rightly reminded us is becoming a hugely complicated employment situation, with so many differing, complex and contradictory requirements.
It could be said—and is being said by a number of HR departments—that this is just the sort of Bill that will give an enormous boost to human resources as a profession. There are already queues of people lining up to join HR departments. My noble friend seeks a simple aim: to incentivise shorter notice periods and avoid situations where individuals are financially disadvantaged for moving jobs, especially when their employers insist on enforcing long notice terms.
My Lords, I am sympathetic to the intentions behind this amendment. There are risks of exploitation, which the noble Baroness has just set out. Where I am somewhat more concerned and have more sympathy with the amendment debated earlier today is about how people continue to do these sorts of jobs and still do not get paid.
To give a real example, the Department for Work and Pensions runs a programme called SWAP. It is quite a short-term programme and it is not quite the same as a boot camp, principally run by the DfE. It is often for people perhaps wanting to go into a new sector or who are open to new experiences, so there is an element of training. However, a key part of the SWAP is that you work and try out. There is no guarantee that, at the end of that, you will get a job with that specific employer, but what really matters is that it will give you a sense of aptitude and of getting back into the workplace, while you continue to receive benefits.
Let us not pretend that receiving universal credit for a week is necessarily the same as being paid the equivalent of a national minimum wage. But my principal concern with this amendment is that, while wanting to avoid exploitation, it would unwittingly or unknowingly shut down these broader opportunities and programmes which the Government run to help get people back into the world of work. That is why it needs to be considered carefully by the Minister, but ultimately rejected.
I will speak briefly to this amendment, which proposes to prohibit unpaid trial shifts by ensuring that those who undertake such shifts are paid at least the national minimum wage. This issue echoes concerns raised in earlier debates on unpaid work experience.
The amendment seeks to clarify that shift trials, defined as work undertaken in the hope of securing a temporary or permanent position, should be fairly compensated. This would address that potential gap in existing legislation and offer clearer protection for workers, ensuring that their time and labour are respect and valued. Such clarity is important for both workers seeking fair treatment and employers, and in maintaining transparent and ethical recruitment practices.
At the same time, it is important to consider the practical implications for employers who may rely on trial shifts as part of their recruitment process. I therefore invite the Minister to consider carefully whether this amendment strikes the right balance between protecting workers’ rights from exploitation and allowing employers reasonable flexibility in assessing candidates.
I look forward to the Government’s view on the best way to achieve a proportionate and effective approach that serves the interests of all parties involved.
My Lords, I thank all noble Lords who have contributed to this relatively brief group. I agree with my noble friend Lady Coffey. At first glance, the idea of banning unpaid trials seems fair, because no one wants to see people, especially young people, exploited under the guise of a try-out, as the noble Baroness, Lady Jones, pointed out when she was introducing the amendment.
However, we also need to be honest about the likely effect of the change, particularly for those very people it is trying to protect. In many sectors—in particular hospitality, retail and care—trial shifts are often the only realistic way for somebody without a formal CV to show that they can do the job. Trial shifts can therefore open doors for young people, school leavers and those coming back into work.
If we start requiring every short work trial to be paid at minimum wage then the reality is that many of them simply will not happen at all. Employers, especially small ones, may decide that they are just too risky or costly. The obvious result will be fewer opportunities and fewer chances for somebody to get in front of an employer to show what they can do. I worry that this amendment, although well intentioned, could have the opposite effect: closing off relatively informal routes into work for those who need them most. The measures in the Bill already create the wrong incentives, and we do not need any more of them.
I will again speak on behalf of my noble friend Lady Bennett of Manor Castle.
Amendment 141B is a no-brainer; I believe the noble Lord, Lord Goddard, referred to it as blindingly obvious. It would give workers the right to disconnect, which is already available to French workers; I am sure that many noble Lords have heard about that, since its introduction was seen to be world leading at the time. I am sure that many British workers expected to have exactly the same right as a result of this Bill, given the widely covered promises that the Labour Party made over recent years before it was in government.
I quote the Labour Party 2022 Green Paper on employment rights, as it is unequivocal on this issue. It says:
“Labour will bring in the ‘right to switch off’, so working from home does not become homes turning into 24/7 offices. Workers will have a new right to disconnect from work outside of working hours and not be contacted by their employer outside of working hours”.
That is very clear. By June 2024, the party had fleshed that out with an explanation in the document, Labour’s Plan to Make Work Pay:
“The pandemic has led to a step change in flexible and remote working practices in many workplaces, which … inadvertently blurred the lines between work and home life”.
That is extremely worrying. The headline in that 2024 text is: “Right to switch off”.
Unfortunately, backtracking is already evident, but the promise to the electorate is more equivocal:
“We will follow similar models to those that are already in place in Ireland or Belgium, giving workers and employers the opportunity to have constructive conversations and work together on bespoke workplace policies or contractual terms that benefit both parties”.
However, the headline was: “Right to switch off”. I think most people would have read that and hoped for a more balanced and less harassed life.
The Green Party is always keen to help any Government. Here, we would like to help the Government live up to the promises they made to an exhausted and overstretched group of workers, who find themselves trapped with a boss who expects them to answer emails from the sideline of their child’s netball match or to take a client’s call when they are on holiday. The promise from the Government has been that they intend to introduce a statutory code of practice instead. That does not mean that such contact will be illegal or even prohibited, but if an employee can prove that they are routinely being contacted outside of their contracted hours then this can play a role in an employment tribunal payout. On the previous amendment, the Minister mentioned that it is possible to make complaints. Most people do not do that; it takes too long and they do not have the expertise to do it, and they may not even have the energy to do it—that is fair enough. Tribunal cases are possible but they are extraordinarily rare and extremely slow.
We have a health crisis in the UK—an overworked crisis—and a huge imbalance in the power relationships between employers and employees, as many other parts of the Bill point out. In the Green Party, we are always constructive. This amendment provides the Government with a chance to live up to their promise to the electorate to empower workers and to help them remain healthy and engaged in their family and community lives, not for ever distracted by having to check their phone. After all, the economy is there to serve people; it is not for people to serve the economy. I beg to move.
My Lords, I will briefly clarify the situation. I have just checked with my party, and we are not in coalition with the Green Party, that is for sure. But the noble Baroness, Lady Jones, on behalf of the noble Baroness, Lady Bennett, makes a valid point. It is valid because of the societal change post Covid, where the number of people working from home now is exponential to what it was before Covid.
I go back to my days as a British Gas engineer, when I had a bleeper and was on call. We would dread the bleeper beeping, but I was on emergency calls and so I had to go out and do it. That was then and this is now.
There are so many people who are working from home who cannot switch off—the emails and alerts come through on their mobile phones. There needs to be some recognition of that within the legislation. Clearly, some organisations may need to contact people, but that should be by an arrangement that is agreed and supported by both parties. We are almost in a cowboy society again, where an unscrupulous company director of a small business with a small number of people wants to get things done and the deal has got to be made tonight—at 10 pm or 11 pm, when children are in bed—and so the phone goes and you have got to do it. If you do not, you face the consequences. These employees are probably not unionised, so it is difficult for them to resist. It is a never-ending circle.
I would like the Government to understand the importance of considering the framework set out in this amendment to provide a fair and practical approach that looks after the worker but protects the legitimate needs of the employers. It comes back to this idea of reasonableness and proportionality—the thread that seems to run through all this legislation. If it is reasonable and proportional then by and large it is fairly acceptable, but you have always got the unscrupulous person on either side. I have seen employees on call who have not replied when they should have, and they have been disciplined. That is correct; if you have an agreement and are on call, but you do not do it, there is a price to be paid.
The pendulum swings very slowly one way but very fast the other, to all those people who are working from home now and have no protection from the unscrupulous employer who just wants results 24 hours a day. We live in a 24-hour society—there is no escape from it. It happens with Ministers, spokespeople and friends I know. I have to turn my phone off—sometimes at 9 pm I switch the thing off until the morning, and then I get messages asking why I did not answer it. My answer is, “Because it was quarter to one in the morning and I was fast asleep”. These messages are from friends and colleagues. If you put that in the context of a work environment, where it is about your livelihood, marriage and children, it comes more into focus. I want the Government to look at this and see that there must be a way that we can strike a balance between the needs of an employer and the rights of a worker.
(2 months, 1 week ago)
Lords ChamberMy Lords, this has been a valuable debate; I agree with the Minister. Indeed, I welcomed her admission that zero-hours contracts work very well for students and are valued by them. I was interested in the TUC survey. All the surveys I have seen so far tell this Committee that full-time students do not want to lose zero-hours contracts.
It may be that the Minister will say, “Why is this amendment necessary, because they will not request full-time employment?” However, under the Bill, the employer has to work out how the business will be able to offer someone on a zero-hours contract full-time employment as and when they request it. It comes later, of course, when we are moving amendments, that we can say that it should not be the duty of the employer to give the opportunity of full-time employment; it should be the right to request full-time employment. What I think we are arguing about is whether all employers will have to go through the process in advance of any request being received. Under this legislation, they have to work out how they will be able to respond positively to an offer.
My noble friend Lady Lawlor shared the real-life experience and the way in which various students have taken advantage of these contracts. But what if they are not going to be offered them and given the opportunity of working as and when, in the flexible, lumpy way they want to organise their studies, as my noble friend Lord Jackson of Peterborough, pointed out? I thank him for going down memory lane; it was a fascinating glimpse of life as a stacker. I suppose all of us will remember what we did as students. I volunteered. I crossed Whiteladies Road in Bristol and offered my services to the BBC. The BBC took me on as a freelance newsreader.
Yes. I had to turn up at 5 am and then read the news.
My Lords, I will speak to my Amendment 29 and support my noble friend Lord Fox’s Amendment 27. My amendment probes the Government’s intended meaning for the phrase “reasonably believed”, which relates to short-notice cancellation of shifts. This phrase may seem innocuous at first glance, but it carries considerable weight in determining whether workers—particularly those in insecure or temporary arrangements—are entitled to compensation when a shift is cancelled, shortened or otherwise fails to materialise. Without a clear understanding of what constitutes a reasonable belief in this context, we risk leaving both worker and employer in an uncertain and potentially contentious position. A test that lacks definition can quickly become a source of dispute rather than a resolution.
To be clear, my intention is not to impose overly prescriptive language on the Government, but rather to seek clarity on how this standard is to be understood and applied. For example, it is not enough for an employee to assert that they are expecting a shift to proceed even when the hirer has not provided written confirmation. What factors should we consider in assessing what is reasonable? Should they include previous patterns of communication, the urgency of the situation or a reliance on verbal assurances? Clarity is not a luxury that employment law has—it is a necessity. Vague thresholds serve no one, least of all those trying to navigate an already precarious labour market. I hope the Minister will take this opportunity to provide reassurance that the Government’s use of this term is underpinned by clear guidance, sound reasoning and a fair balance between the interests of workers and agencies alike.
My Lords, I speak in favour of Amendment 22, which would allow the duty to provide reasonable notice not to apply in certain cases, and Amendment 24, which would do likewise for the duty to provide compensation under new Section 27BP(1). The Bill’s approach is likely to damage the effective working of the labour market, for which any sensible law needs to take account of the delicate balance between the needs of a business, which needs a workforce, and those of a workforce, which depends on a business succeeding to provide work and income for the future.
If a Bill does not account for exceptional circumstances, it becomes a straitjacket on all parties. In the case of this Bill, in providing for exceptions to guaranteed-hours, reasonable notice and compensation obligations, it should take account of the difficulties businesses have to navigate to keep afloat and continue to make a success of things, as well as contribute to the whole economy and the country’s overall welfare, provide jobs for the labour market, and offer opportunities for people to work, earn and, sometimes, get their first job on the jobs ladder.
We understand that businesses have both quiet periods and busy periods—such as hospitality events—where they need extra hands. A business must allow for periods of extra business as a matter of course—some of these are predictable, others not. Businesses know there are times when cover is needed with no notice, such as when a team member is off sick or at a funeral, but by the same token they need to be able to avoid adding to their problems and costs when they are a victim of circumstances that unexpectedly change. Yet the Bill requires the employer to give notice of changes and make provision for compensation if a shift is cancelled, moved or shortened without sufficient notice.
These amendments simply ask that a Government can make regulations so that the duties under new Sections 27BI and 27BJ need not apply. That would give power to a responsible Government to ensure that there can be exceptions, so that businesses are not burdened with the costs and time involved in the tribunal process and potential compensation payments in cases where, due to unlikely and unforeseen circumstances, the guaranteed-hours work was not available at short notice.
We have already heard examples, but no business is exempt from the difficult changing circumstances with which they contend. Given the burden that the business sector will face under the guaranteed-hours clause, a Government will have few tools at their disposal to tackle what could be an unfair obligation—one that might be mitigated by circumstances in the normal course of events—to exempt the reasonable notice required for changes or cancellations that have an impact on the business, and the compensation obligation, which will add unfair costs to a business.
I will take three sectors—each very different—to illustrate a potential example. The first is the retail sector, where extra help is needed to deal with a delivery and prepare it for the shelves overnight. What if the delivery van does not arrive, or the motorway is closed due to an accident or roadworks? The business has little or no notice of the failure, yet it will lose custom and income on lost sales. None the less, there is no provision in the Bill to allow for it to give less than what, under the measure, will be reasonable notice, or to protect it from paying compensation.
In the care sector, extra hours may be needed to help with certain residents needing extra support, or someone due to arrive on a given day. What happens if the person dies or the resident falls ill, has a heart attack and must go to hospital right away? There is no notice of that, and the extra work does not materialise. The care home will lose income on its empty room and overhead, yet payment will be expected. Where is the money to come from—the local authority, the care recipient, or the estate if it is a death? What will the care home do to tide over an income shortfall when having to pay its suppliers for everything from food and cooking to linen, room cleaning and care?
The CEO of the Carers Trust explains that social care providers are often forced to rely on zero-hours contracts because of a “lack of funding” from local authorities. She says:
“If zero-hours contracts are banned”—
or, I would add, made more difficult or costly—
“social care providers must be given the funding to afford the increased costs that brings”.
The CEO of the National Care Forum says that
“these measures must be accompanied by the financial and wider support necessary for providers to implement them, as well as interim measures to boost care worker pay”.
These changes must be reflected in its funding so that it can continue to do its vital work. So are the Government prepared to make a commitment to cover the costs that will be incurred if these clauses go through unamended?
Another example would be a conference organiser where the IT system fails. Despite a service contract in place to repair it instantly, nothing can be fixed because the failure lies elsewhere: a cyberattack or an energy blackout. This can happen overnight. The business loses its data, it loses customers, who are unable to pay an entry price, and it loses an overhead. Depending on how long it is before the system can be got back to normal, it may lose so badly that, ultimately, if the problem recurs, it may have to curtail operations and overheads. Without the amendments allowing the Government to provide for exemptions from the clause, there will be higher costs that may ultimately lead to the failure of the business.
There are enough uncertainties and costs for employers without making these worse, but the obligations of the Bill and these clauses could add significantly to costs and complications. Who will pay these extra costs? We know that this Government have been in the habit of saddling the taxpayer with additional costs in respect of workers in the public sector but not for businesses or charitable trusts, or indeed independent schools in the case of imposing VAT. What about the care homes taking local authority work? What about the costs of the uncertainties of the Bill itself? Although the compensation clause stipulates that compensation will not exceed pay for the lost shift, we do not yet know what the amount will be, what “short notice” is supposed to mean and what is meant by “qualifying shift”. We have to wait for regulations.
There are good reasons for these amendments. If we want businesses and the labour market to flourish, and to enable businesses to navigate the unwelcome outcomes of unexpected problems preventing expected workloads without adding to their costs, there are good reasons for the Government to accept them and for the regulations to respect the spirit in which they have been made.
My Lords, as we now move to consider reasonable notice in agency work, I will speak to Amendments 33 and 36 to 38.
Unfortunately, and despite all their show of consultation, I believe the Government have failed to realise how agencies operate in the labour market, so once again the drafting of the Bill shows the failure of a one-size-fits-all approach. The challenge we face in the context of the Bill is clear. Work-finding agencies operate in a highly dynamic and often unpredictable environment, where the flow of information from hirers is essential in matching workers to available shifts.
This brings us to the core concern. Agencies often rely on information from hirers about the availability and cancellation of assignments. Without timely and sufficient details from hirers, agencies cannot predictably or properly fulfil their role. Therefore, any new obligation to provide reasonable notice for agency workers must consider the time taken for agencies to receive this confirmed information and make the necessary arrangements and assessments.
Regulation 18 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 lays down that an agency cannot
“introduce or supply a work-seeker to a hirer unless the agency or employment business has obtained sufficient information”
to assess the suitability of the worker for the role in question. The issue here, therefore, is straightforward. Agency workers often find themselves without income as a consequence of cancellations initiated by hirers, yet agencies are held financially liable for those decisions, even though they have no control over the cancellations.
To illustrate the risk, let me provide a scenario. A work-finding agency places an agency worker with a hirer for a shift. However, due to unforeseen circumstances, the hirer cancels the shift at short notice. The agency, having no control over the cancellation, is still required to compensate the worker. The financial burden therefore falls on the agency, despite the cancellation being the decision of the hirer.
How will this amendment help to ensure that small and medium-sized agencies are not disproportionately impacted—that is what we seek to do here—bearing in mind the financial responsibility associated with hirer-induced cancellations, particularly when the business in question may already be financially vulnerable? Do the Government believe that it is justified to place the financial burden of a cancellation or curtailment on the agency when the failure to provide notice lies entirely with the hirer?
I believe that the Minister understands the complexities of the agency-worker relationship, but the Bill in its present form does not make proper allowance. How do the Government propose to monitor and enforce the full accountability of hirers for failures in notice arrangements? This is an issue that has to be faced, given the rigidity of the legislation we are required to consider under this Bill. I beg to move.
My Lords, I am pleased to speak to this group of amendments, which seek to clarify the framework governing agency workers, and I have some sympathy with the views of the noble Lord, Lord Hunt, on this matter. It seems to me that a third person looking into this process will see the Labour Party trying to protect employees and give them 100% rights and the Conservatives trying to ensure that small and other businesses have a level playing field to employ, create jobs and grow the economy, which I thought was the Government’s objective. I wonder why, with this employment Bill, we cannot get a little closer to dealing with the mechanics.
The answer that the Minister gave to my probing amendment baffled me. I wanted to get up to ask him to explain what he said to me. Millions of people who listened to it or who read Hansard tomorrow will not have a clue. As my lumpy noble friend has said in previous debates, we seek clarity before the Act comes into power. We need to know these things. I spent four years on the Secondary Legislation Scrutiny Committee. The watchword on that committee was quite clear: do not give Ministers unfettered powers. What is in the tin of a Bill is what it says on the front of the tin of a Bill. I wonder whether this tin will say “tomatoes” but when you open it, you will have carrots—a problem for somebody that does not eat carrots.
Running through this group of amendments, we on these Benches are trying to bring the parties together to understand that it is a two-way thing. I have been a committed trade unionist for 25 years. I have also run a business and employed 20 people. Those two things are compatible, but they are complicated, because you have different pressures from a different standpoint. As with all legislation, we try to move it through by being sensible and finding common ground for what the trade union movement wants, what the Government want and what employers want. I had guests in yesterday who were asking about the Bill. I roughly outlined it, and they could not believe it. They employ 30 people. They said, “We can’t afford HR, we can’t afford lawyers, we can’t afford for people to take us to tribunals. We just want to employ people, make a small profit and grow the business”. I cannot understand how this has become so complicated.
On Amendment 33, concerning the interpretation of “reasonable notice” when shifts are offered to agency workers, the aim appears to be to require agencies to make offers promptly once details are confirmed by the hirer and all the checks have been completed. While this may be an attempt to bring greater clarity, I question whether that proposal and that language fully address the practical realities of agency work. The intention may be sound, but there is a risk of replacing one form of ambiguity with another. That said, for agency workers some degree of predictability and transparency is important and long overdue.
Amendment 36 introduces the idea of joint liability between work-finding agencies and hirers when a shift is cancelled or curtailed at short notice. There is merit in exploring whether a shared responsibility could lead to fairer outcomes, particularly when neither party should be able to shift all risk on to the other. Equally, it is important to consider how such provision would work in practice and whether it risks disincentivising the use of agency labour altogether.
Amendment 37 proposes that compensation should be triggered only when a shift has been formally confirmed, rather than relying on the more subjective “reasonable belief” test. I appreciate the effort to bring objectivity to a murky area, but workers should not be left guessing whether an assurance from an agency amounts to a genuine commitment. We need to understand how this might interact with the fast-moving nature of some temporary staffing such as seasonal work or that connected with the weather. Ambiguity in the current framework serves no one, least of all the workers.
Finally, Amendment 38 provides that the agency would not be liable to pay compensation where the hirer fails to give appropriate cancellation notice. This is arguably a fairer allocation of risk, as agencies should not be penalised for the failure of others. However, it must be clear that such changes would not weaken the overall protections intended for the worker.
While these amendments raise important issues around the treatment of agency workers, I am not yet convinced that they strike the right balance in all aspects. There is a risk that in seeking to impose clearer structures, we introduce new complexities and unintended burdens. I think that this is what the Government are trying to say. Nevertheless, the underlying objectives—clarity, fairness and accountability—are ones that we should continue to pursue. Any changes to the framework must support clearer obligations and deliver fairer outcomes, for the workers and for the agencies and hirers. If these amendments highlight anything, it is the pressing need for the Government to offer clarity and consistency in this area.
My Lords, I thank the noble Lords, Lord Hunt and Lord Goddard, for their contributions, and the noble Lord, Lord Sharpe of Epsom, for tabling the amendments in this group, covering Amendments 33 and 36 to 38.
Before I speak to these, I reassure all noble Lords, especially the noble Lord, Lord Goddard, that the Government respect and appreciate all the amendments tabled by noble Lords. The whole purpose of this is to address individual amendments and see where the Government are coming from and how we can find a way forward. There are some things in noble Lords’ amendments that may not be required because the Bill already covers them elsewhere. We are trying our very best to address every amendment and we welcome noble Lords’ scrutiny of the Bill. I reassure noble Lords that we are not being flippant about any of these amendments.
(1 year, 3 months ago)
Grand CommitteeMy Lords, I speak on this minimum service level agreement from a unique position: I spent 25 years working for British Gas and was a GMB union negotiator for 35,000 gas workers. Roll on to when I was in local government; I was on the Greater Manchester Fire and Rescue Service for 15 years and on the NJC that dealt with the FBU on national pay negotiations. In both those exercises, as poacher and gamekeeper, even in the bitterest disputes, one thing was certain: public safety was the primary concern of the gas industry and the Fire Brigades Union.
Introducing minimum strike levels is a sign of desperation from the Government. I have seen minimum strike levels—I think they are in the railways now, are they not? The difference between railwaymen and fire- fighters is that firefighters, as has been said, are vocational; they do this from the heart, as well as doing it as a job. I have been at Euston station, where there are supposed to be minimum service levels for trains and train drivers, and seen hundreds of people trying to get home to Cardiff, Manchester and Glasgow while there are picket lines outside. With the FBU, whenever there is a fire, the fire brigade turns out and puts it out whether it be Grenfell, the Woolworth fire or Kings Cross.
As a party, the Liberal Democrats take the view that fire safety is extremely serious. We continually emphasise the ongoing importance of the victims of disasters and want to ensure the safety of the public against the risk of fire. However, the main threat to the fire and rescue service comes not from this agreement but from central government’s cuts to the fire service. It is being expected to do more and more with less and less. Having had 20% cuts in real terms since 2013 means that all fire authorities are struggling to meet their budgets. If you talk to people from Greater Manchester, Merseyside, South Tyneside, Yorkshire and the West Midlands, along with London, Cleveland and Humberside, they will all say that they will receive slightly more this year but that inflation has removed all the benefits. So fire brigades are trying to do more with less, and the Government want more from that.
The Minister—he is the messenger in this place so this is nothing personal—would do well to go back to the other place and say to the Minister there, “Instead of looking at minimum strike levels, why don’t you look at rethinking some of your recent decisions like changing the legislation that says that all new schools will have sprinkler systems installed, which you have now reversed?” Think of the damage that could do when schools begin to burn down, whether people are on strike or not. What about revisiting the issue around tower blocks and the need for second staircases to ensure that people who live in those properties can get in and out safely?
Why do the Government not reconsider those sorts of legislative things, which will really save lives? No, they take the big sledgehammer to crack a small nut. That is all the Government are trying to do here. I know Matt Wrack and the unions. I have found that they always say, “At the end of the day, if we’re needed, we will turn out”. Sometimes, the Government have to step up, acknowledge that, stop messing about with these minimum levels and go to the heart of the problem with a number of industries in this country: the funding for and protection of firefighters.
My Lords, I thank the Minister for introducing this statutory instrument and join him in paying tribute to all those who work in this area.
As the Minister said, on 8 February this year, the Government published their minimum service levels for fire and rescue services in England. These new laws will restrict the ability of firefighters and emergency control staff to take lawful strike action. We believe that the new laws are unnecessary. The FBU has always negotiated a major incidents agreement with fire employers before national strikes. Last year, collective bargaining between the FBU and fire employers meant that there were no fire strikes. An acceptable pay agreement was reached and endorsed by the firefighters.
The minimum service level regulations state that fire and rescue control rooms must function during industrial action as if it were a non-strike day. All calls have to be answered, assessed and a response mobilised. Requiring the same standards as a non-strike day is in effect a ban on control staff taking industrial action, despite repeated assurances that it is not a strike ban.
The regulations for minimum service levels of firefighting functions dictate that 73% of appliances usually deployable on a non-strike day must be deployable on days when industrial action is taking place. My noble friend Lord Hendy gave the example of his local fire station, which has three appliances, so it is in effect a strike ban on that station. How many firefighters will be forced to work if a work notice is issued? What is to stop chief fire officers abusing the work notice and forcing all firefighters to work? Ministers have failed to explain how work notices will affect retained firefighters since retained firefighters cannot be compelled to work on strike days; I would be grateful if the Minister could comment on that.
The minimum service level regulations state that national resilience assets, such as high-volume pumps, must be capable of being deployed as if the strike were not taking place that day. This is in effect a strike ban for firefighters deployed on national resilience assets. I would be grateful if the Minister could comment on that.
Ministers claim that these laws are needed because the Army no longer provides cover. The last time the Army was deployed during fire strikes was in 2003. After the coalition Government attacked firefighters’ pensions between 2010 and 2015, the FBU organised 50 separate firefighter strikes in England. The FBU has always signed a major incident agreement with fire employers before national strikes, with provisions to recall firefighters in the event of a major emergency.
Government guidance makes it clear that the liability for work notices lies with fire authorities. Fire employers in England are rightly unhappy with these regulations. Many will not impose work notices because of the impact on industrial relations. Fire Ministers in Scotland and Northern Ireland have refused to implement these laws. It is unclear how these regulations can or will be applied in operation. It is a risk, both legal and reputational, on fire service employers who choose to issue work notices.
The guidance is clear that it is not statutory and that, ultimately, the courts will interpret the law. This places a risk on employers that is compounded by the additional difficulties that are unique to the fire and rescue service. Failure to comply with these unworkable measures exposes individual firefighters to the risk of the sack, while the FBU could also face financial penalties.
The regulations before us today are an example of the Government’s failed approach to industrial relations. No one wishes to see the public disrupted by industrial action. We all wish to see minimum standards of service in our public services but these regulations will not achieve what the Government want them to. They will poison relations when what is needed is a constructive working agreement between management and unions. The Labour Party opposes attacks on working people’s freedoms. That is why we would repeal the 2023 Act and why we oppose the regulations before us today.
(4 years ago)
Lords ChamberMy Lords, as I said, there are certainly lessons to be learned, but I for one am incredibly grateful to the police for the role that they played. Some 19 of them were injured, and of course there are lessons to be learned from that day. However, there was a surge event and on the whole the police did incredibly well to manage it.
My Lords, the Minister and I come from the north-west of England—Greater Manchester—where clearly we have tribal loyalties to football clubs. But this is about information. On the day that Manchester United’s football ground was invaded and broken into and a Premiership match was abandoned, that was fully on the internet, everybody knew what was going on and very little happened. What happened at Wembley is a mirror image of that. These people see this happening, see that there are few consequences, with no arrests or prosecutions, and try it again. It is only by the grace of God that nobody was killed at Wembley, and I just hope that, instead of apologising, the Minister actually does something.
My Lords, I will not at this point state which team I support, because that might get us into another row. However, I agree that lessons have to be learned. I understand that there was very regular communication on what was going on, and I think the police on the whole did a very good job. As the noble Lord says, it is a very good thing that nobody was more injured than they were, particularly the police officers. Nineteen officers were injured but, thankfully, none died.