Employment Rights Bill

Debate between Lord Goddard of Stockport and Baroness Carberry of Muswell Hill

Report stage
Monday 14th July 2025 Lords Chamber

[Lord Goddard of Stockport (LD)]

My Lords, I welcome the opportunity to open the debate on this group. I intend to be brief, as is appropriate on Report—I have said it, Minister, I cannot do any more. I begin by saying that there is clear cross-party agreement that exploitative zero-hours contracts must come to an end. Indeed, we on these Benches unequivocally believe in the need to address the problems of exploitative zero-hours contracts, which leave too many workers in precarious employment circumstances. That said, our amendment reflects that shared objective, while offering a more practical and balanced view.

The amendment would change the obligation under the legislation to offer guaranteed hours to a right to request them. Further, it maintains that when such a request is made, the employer must grant it. This would allow workers to acquire guaranteed hours if they wish, providing greater security and stability, while enabling them to make a personal choice. At the same time, it would reduce the administrative burden on employers, especially in sectors that rely on flexibility.

Although we recognise that some workers do not want precarious zero-hours contracts, this should not come at the expense of sectors where flexibility is essential and many workers are content with those arrangements. This would balance security for workers with necessary flexibility for employers in sectors that rely on flexibility. These include seasonal, tourism-related and agricultural workers, as well as hospitality, retail, theatre and other industries where work patterns are inherently dynamic and demands fluctuate. The amendment would ensure that the new provisions are adaptable enough to function effectively across all those employment settings.

In Committee, Members raised understandable concerns about what would happen if a request for guaranteed hours were simply denied. Let me be clear: under this amendment, if a worker makes a formal request, the employer must make a guaranteed hours offer. It would not be optional or discretionary; all workers who wanted greater certainty would be empowered to secure it. At the same time, the amendment avoids placing a universal obligation on all employers to offer guaranteed hours in every instance, which could place undue strain on sectors that rely on that flexible staffing model. In doing so, it would deliver a fair and workable solution that respects the rights of workers while acknowledging the operational needs of these industries.

We also recognise the Government’s amendments since Committee. In particular, we welcome the steps taken to clarify how new obligations will apply to agency workers once the legislation is enforced. These changes will help, and the framework is clear, consistent and better understood by all those affected.

That said, the Government are asking industry and business, whose support is vital for this, to prepare ultimately to comply with this provision and with the wider Act without providing any critical detail, such as reference periods for guaranteed hours and other key elements. This lack of clarity, which seems to run throughout the Bill, makes it challenging for employers and workers to understand their rights and obligations. Hindering effective implementation and planning is not acceptable. Such clarification, particularly for reference periods for guaranteed hours, is critical if the industry is expected to prepare. We on these Benches have consistently raised concerns throughout the Bill about the uncertainty caused by leaving key details, such as qualifying periods for guaranteed hours, to be declared by some later regulation. Although we agree that some flexibility is needed, it is a question of how it is implemented. We believe that clearer rules in the Bill itself will help both workers and employers to better prepare for the challenge.

Finally, as I stated at the beginning, we fully recognise the damage that exploitative zero-hours contracts can cause. However, addressing this issue must not come at the expense of sectors where flexibility is essential and many workers are content with arrangements. Our amendment seeks a fair balance, protecting workers from exploitation while preserving the flexibility that is crucial for many industries to function. I look forward to the Minister’s response and I beg to move.

[Baroness Carberry of Muswell Hill (Lab)]

I will make a brief comment on Amendment 1, which would replace a right to have guaranteed hours with a right to request. I very much fear that it undermines the purpose of the Bill, which is trying to deal with the problem of zero-hours contracts where employees do not have predictability over their hours.

I appreciate that the desire of the amendment is to reduce the burden on employers in working out what the guaranteed hours would be, only to find that an employee declines the offer. However, I do not think that that is likely to happen very often. Obviously, it is impossible to know what proportion of employees would turn down such an offer, but we do know from surveys—and most recently from a poll that the TUC did last year—that the majority of workers on zero-hours contracts consistently say that they would prefer to have guaranteed hours. It is therefore very unlikely that large numbers of them would turn down an offer once it has been made.

Perhaps more seriously, the amendment does not take account of the imbalance of power in workplaces and the characteristics of employees who are working on zero-hours contracts. The latest figures from the ONS tell us that zero-hours contract workers are much more likely to be young and to work in elementary occupations. They are much more likely to be working part-time and in low-paid sectors. These are the least empowered workers in the workforce; they are unlikely to understand their rights, even if the employer has complied with the requirement to find information. They are the least likely to be represented by a union and the least likely to know how to exercise their rights. The right to request guaranteed hours, in those circumstances, is not a real right at all.

How many of those workers, vulnerable as they are, might come under pressure not to press for guaranteed hours? The vast majority of employers do right by their employees, but many do not. The formulation of the amendment leaves open the path for some of the worst employers not to offer guaranteed hours to workers on zero-hours contracts. I do not think that the amendment does the intention to serve those workers any favours at all.