Employment Rights Bill

Debate between Lord Goddard of Stockport and Lord Lucas

Monday 14th July 2025 Lords Chamber

[Lord Lucas (Con)]

My Lords, has the Minister consulted the Clerk of the Parliaments about how he would apply this clause to this House, should it be passed? What would be the rules in, for instance, the Peers’ Dining Room about discussing politics and religion? The fact that we might think it unreasonable that we should not be allowed to discuss that does not make it unreasonable. What makes it unreasonable, under the words of the Bill, is that it would be something it would not be reasonable to do. It is clearly within the scope of the organisation of this House to say that no potentially offensive conversations should be held in spaces where employees are likely to be present. This is what the Bill says at the moment. I can see that noble Lords opposite find it ridiculous, but this is the legislation that their Government have drafted.

[Lord Goddard of Stockport (LD)]

My Lords, I wish to state clearly that we on the Liberal Democrat Benches do not agree with Amendments 43, 44, 45 and 193 or their intentions. Throughout Committee, the noble Lord, Lord Young, consistently framed his amendments on this subject around the defence of what he terms banter, suggesting it as a justification for remarks that can be harmful in the workplace.

To us on these Benches, it is clear that the debate on this issue has been shaped by a somewhat misleading portrayal of the Bill’s aims. The amendment rests on a narrow and simplistic view of harassment that risks undermining protection for workers by focusing on policing private conversations rather than addressing the real problems of bullying and harassment.

I must also express concern over the repeated invocation of banter as a shield for inappropriate behaviour. Too often, the phrase has been used to excuse sexist, racist or otherwise discriminatory conduct. To say otherwise is discourteous.

If we undermine the protections the Bill offers, especially through amendments that narrow employers’ duties, we risk signalling that the experiences and well-being of their workers are of little consequence. We cannot and must not dismiss their right to a safe and respectful working environment.

Employment Rights Bill

Debate between Lord Goddard of Stockport and Lord Lucas

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord Lucas (Con)]

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.

[Lord Goddard of Stockport (LD)]

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.