Employment Rights Bill

Debate between Lord Hogan-Howe and Lord Ashcombe
Lord Ashcombe Portrait Lord Ashcombe (Con)
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My Lords, I support the amendments tabled by my noble friends Lord Sharpe of Epsom and Lord Hunt of Wirral, as well as those proposed by the noble Lord, Lord Vaux of Harrowden. Throughout our debates, one thing has become clear: Clause 23 is one of the more troubling areas for the business community and therefore potential employees. That concern is reflected not just in what we have heard in this Chamber but in the Government’s own impact assessment.

When a company hires someone new, it takes a risk. No matter how impressive someone’s CV may be or how well they come across in interview, things do not always work out, as we have heard. That is why probation periods exist. They give both the employer and the employee a chance to assess whether it is the right fit. I have seen this at first hand in my own company, Marsh Ltd. For small businesses in particular, hiring someone new, especially during a period of growth, can be a major financial and operational commitment. When things do not work out, the company should not be left to carry all the burden because of a mismatch that is no one’s fault. Introducing a day-one right to claim unfair dismissal outside the already established exceptions places a heavy weight on employers. It could discourage them from hiring altogether. Worse still, it may lead to pressure being placed on existing staff, who are asked to do more because their employers are hesitant to take on new people.

In the Financial Times, the Chancellor said an excessive safety-first approach was not seen in any of Britain’s global competitors, adding:

“It is bad for businesses, bad for growth and bad for working people”—


a description of this Bill and Clause 23 in particular. These amendments offer a sensible middle ground. They would reduce the current qualifying period for unfair dismissal protection from two years to six months. That strikes me as fair and proportionate. It matches the length of the probation period used in many companies, and certainly in the one I work for. Six months should be enough time to determine whether someone is right for the role. These amendments would make it better for business, better for growth and better for working people. That is why I support them.

Lord Hogan-Howe Portrait Lord Hogan-Howe (CB)
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My Lords, I support the amendment. It seems to be a reasonable change to get rid of the two years, and I think six months is a more reasonable representation. My question, though, is about how this will affect police officers.

Police officers are not employees. Their terms and conditions are governed by secondary legislation or police regulations. It is already quite difficult to remove the ones who should be removed because, first, they are represented by lawyers—I say this with all respect to the lawyers in the room—in the misconduct process. It never makes it quicker, and it always makes it more expensive. Secondly, when the assessment is made of whether the proof is there to sack them, the test of the standard of evidence is moved from the balance of probabilities to beyond reasonable doubt. That is the same standard for criminal proof, so it is quite a high standard, and they are represented by a lawyer. It gets quite difficult.

The two-year probationary period has always been a good way to remove those people who should be removed or who are not suited to the role. If we are to remove that two-year period, one of the measures by which we get rid of the worst officers will be lost, and I worry about that. We know from research that often the officers who turn bad later should have been removed in their probationary period, had everyone had the courage to take that decision.

I am not saying that it is wrong or right, nor that the police regulations should definitely change, but I would like to understand what the Government’s reaction is. We will have a group of people who are not classed as employees—police officers—who will still have a two-year period and, under the new scheme, might have none at all. This is a group I think we should pay particular attention to. Perhaps the Government might give their view on how they intend to deal with that.