Employment Rights Bill

Lord Hunt of Wirral Excerpts

Consideration of Commons amendments and / or reasons
Monday 17th November 2025 Lords Chamber

The Minister is closely associated with Sir Tony Blair and, I believe, served on The Tony Blair Governance Initiative. Labour’s plans to strengthen workers’ rights risk harming jobs and hurting growth, as Sir Tony Blair has personally warned. His former think tank said that the controversial day one protections against unfair dismissal would make it more expensive and riskier to hire workers. The Tony Blair Institute said that the “extreme”—its word, not mine—reforms threaten to undermine the critical strength of the British economy. It says that they would erode business confidence to hire and ultimately undermine growth. It is not too late. I urge the Government to reconsider.

[Lord Hunt of Wirral (Con)]

My Lords, I shall speak to Motion C1—but before I do so, I say to the noble Lord, Lord Fox, that I am in complete agreement with the speech that he made on Motion A1. To recall the words that he used before, the Government were put on notice that they needed to come forward with a solution, but solution there is none. Requiring all businesses to offer guaranteed hours to every worker, including those who do not want them, imposes an unnecessary administrative burden, and one that falls, as my noble friend Lord Leigh of Hurley has just pointed out, particularly heavily on small businesses. It also sits uneasily with the Government’s stated intention to reduce the regulatory load on businesses by 25%. Should the noble Lord, Lord Fox, choose to test the opinion of the House, he will have our support.

On Motion C1, the Government have to recognise that seasonal work is fundamentally different in nature from permanent or year-round employment, and defining it clearly in statute will ensure that this Bill, as well as any future legislation, properly reflects the realities faced by seasonal industries. Seasonal businesses operate within narrow windows of opportunity; their labour needs rise sharply and predictably at various times of the year, then fall away again. Without a clear and credible definition, there is a risk of uncertainty both for employers trying to comply with the law and for workers trying to understand their rights.

We on these Benches have spoken to many seasonal businesses, large and small, and they remain concerned about the potential impact of the Bill and the absence of a framework that recognises the specific characteristics of seasonal labour. If the Government are not prepared to accept this amendment, we will test the opinion of the House.

[Baroness Lloyd of Effra (Lab)]

My Lords, I thank noble Lords who have contributed to the debate today. Let me start by recapping the reason for this measure.

There is a moral case to press ahead with ending exploitative zero-hour contracts. We aim to rebalance the scales so that all the risk associated with insecure work is not placed on workers. By our doing so, work will become more secure and predictable, saving workers in some of the most deprived areas up to £600 in lost income, strengthening the foundations that underpin a modern economy and increasing productivity, rather than the obverse.

On business engagement, we have indeed engaged with businesses and consulted them, both directly and through federations that represent a large number— hundreds and thousands—of small businesses. We will continue to do so as we implement all the measures in the Bill. We are committed to full and comprehensive consultation with businesses big and small and will arrange focus sessions with SMEs specifically to look at the practical implementation, understand any challenges and make sure that we give the right guidance.

I want to reflect on the point about business regulation and the 25% target. We have established a baseline for the administrative burden; the 25% target is about ensuring that regulation is proportionate and efficient and works for business. It is not about blocking regulation that is needed to deliver the Government’s priorities. We want to implement the Bill in a way that delivers the intent as efficiently as possible. For example, the fair work agency will consolidate the functions of the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and the Director of Labour Market Enforcement into a single body, so we are reforming as we go ahead with all these measures, and we believe that, fundamentally, this is about balance.

The noble Lord, Lord Hunt, raised the issue of seasonality. Let me reassure noble Lords that the Government are fully conscious of the need to take account of fluctuations in seasonal demand, while ensuring that workers are not left holding all the risk. Under the Bill, there are several ways that an employer could approach seasonal demand while upholding the new rights, depending on circumstances. I set out some of those in my opening speech, but they could be limited-term contracts or guaranteed hours in various ways, such as an annualised hours contract. We think it is important to continue to consult on seasonality.

On growth, we have seen huge progress in foreign direct investment and trade agreements. We are very keen to continue to promote the economic prospects of the country, which is fundamental to improving the productivity of the labour market. In conclusion, I thank noble Lords for their contributions today and I look forward to further discussions on these issues.