Employment Rights Bill

Debate between Lord Katz and Baroness Jones of Moulsecoomb

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord Katz (Lab)]

My Lords, I thank all who have contributed to this short debate, in particular the noble Baroness, Lady Jones of Moulsecoomb, for stepping in very ably. There seems to be a pattern of noble Lords needing to step in during the groups I respond to, but I very much appreciate her moving the amendment on behalf of the noble Baroness, Lady Bennett of Manor Castle.

We are somewhat repeating the first debate we had today on Amendment 129. Amendment 141 seeks to ensure that persons are paid for the trial shifts they perform in view of potentially being offered a temporary or permanent position. It basically boils down to the same thing: how do we make sure that people are not exploited when they are in a position where they need to be flexible to try to gain work? It is very much the Government’s objective to ensure we can get more people working. However, it is also our objective to ensure we make work fair and make fair work pay.

That is obviously the intention underlying Amendment 141. In that light, I thank the noble Baroness, Lady Jones, for raising this issue and for using the case study of Ellen to outline how vulnerable people in vulnerable situations can be exploited by unscrupulous employers. I assure the noble Baroness that that is absolutely not the intention of the Bill nor, indeed, our attitude towards the amendment. However, I will go into detail as to why we are taking our position on this amendment.

As I have said, we are committed to making work pay, and we have been delivering on this promise through the actions we have taken since the Government came into office last year. At the risk of repeating myself, I note that we have delivered an increase in the national minimum wage of 6.7% to £12.21 per hour for eligible workers aged 21 or over. We have also, as I said, delivered a huge uplift for the lower national minimum wage rate for 18 to 20 year-olds, which has increased by 16.3% to £10 an hour. That is a record amount in both cash and percentage terms, and it closes the gap with the national living wage, because, as I have said, a fair day’s work deserves a fair day’s pay.

However, hand in hand with fair pay is the flexibility for workers and employers to decide whether a job is right for the candidate and, indeed, whether the candidate is right for a job. Government guidance sets out helpful and practical information on how the national minimum wage applies in the context of unpaid work trials. The guidance is clear that employers can ask individuals to carry out tasks or trial shifts without payment only if it is a genuine part of the recruitment process.

Short, genuine work trials—such as the DWP scheme that the noble Baroness, Lady Coffey, referred to—whether paid or unpaid, give employers and individuals an opportunity to test whether the role or the candidate is right for them. They empower individuals to seek out and test whether the role is suited to them and their needs. They allow employers to test whether a candidate can do the job and reduce the risk of taking on someone who might not have the right skills. As the noble Lord, Lord Goddard, rightly said, it is about finding the right balance.

Unpaid work trials can also provide a stepping stone for individuals who have been out of work for a long period of time but might want to get back into the workplace, as the noble Lord, Lord Sharpe, said. There are also government schemes where individuals in receipt of benefits can participate in an unpaid work trial and continue to receive their benefits. The flexibility of genuine—I stress “genuine”—work trials can benefit workers up and down the country, and the Government feel that an outright ban would see these opportunities for individuals diminish. However, I repeat a point I made earlier because it is worth emphasising: employers cannot rely on unpaid trial shifts for free labour. If someone is carrying out work that goes beyond a short demonstration of their suitability for the role, they are most likely to be entitled to the national minimum wage.

We are committed to protecting workers and will monitor this issue closely. If changes are needed, those issues should be dealt with outside the Bill, so that the national minimum wage legislation can remain clear on how unpaid work trials can be used and ensure workers are protected.

As noble Lords will be aware, HM Revenue & Customs is responsible for enforcing the minimum wage legislation and ensuring that employers meet their legal obligations. Any individual concerned that they have worked on a trial shift or period that does not appear to be part of a genuine recruitment process can and should complain to HMRC, or they can contact the Advisory, Conciliation and Arbitration Service for advice.

In the light of the safeguards that already exist in legislation, and despite the fact that we very much agree with the sentiment behind the amendment, we ask the noble Baroness to withdraw Amendment 141.

[Baroness Jones of Moulsecoomb (GP)]

I thank the Minister for his answer. If this amendment is so similar to Amendment 129—I was not in the Chamber during that debate, I am afraid—I wonder why they were not grouped together. That might be something to think about.

The Minister talked about genuine work trials. I argue that “genuine” is doing a lot of heavy lifting there: how on earth do you judge whether something is genuine if you are not monitoring it extremely closely? He also mentioned a “short demonstration”. How long is that? Are there criteria for them? Are they only two hours long, for example? In Ellen’s case, she worked for five hours—that is a fair amount of continuous time to work.

In speaking to this amendment, I am influenced by the fact that, in the Green Party, we are not allowed to take any unpaid work at all. We have no unpaid interns. If we have an intern, we pay them, and we pay them properly. This influences my attitude towards anyone working for nothing if they do not intend to do so voluntarily.

The noble Lord, Lord Sharpe, said that there might be fewer opportunities, but workers are still needed and companies still have to find those workers. If companies cannot afford to pay the national minimum wage to somebody on a work trial, they are not solvent businesses, so perhaps they ought to go out of business. I have no sympathy for employers who do not pay for work.

I think that the noble Lord, Lord Goddard, gave me conditional support, but I am not really sure; perhaps he will on Report.

I say to the noble Baroness, Lady Coffey, that an amendment can be written to cover such schemes as the government scheme she mentioned. It does not necessarily exclude paying somebody for genuinely working for five hours continuously.

On balance, this is a good amendment, and I hope that my noble friend will bring it back on Report. I beg leave to withdraw the amendment.

Public Transport: Expansion and Electrification

Debate between Lord Katz and Baroness Jones of Moulsecoomb

Monday 19th May 2025 Lords Chamber

[Lord Katz (Lab)]

If it is not jumping on the bus bandwagon, I would like to join in both the noble Lord’s and my noble friend Lord Hendy’s congratulations on Harrogate’s achievement. We have made some amazing progress when it comes to zero-emission buses: more than 50% of new buses registered last year were zero-emission—that is a record 1,600. I am very pleased to tell the House that more than 60% of buses procured via the ZEBRA process were procured and made by UK-based manufacturers. Zero-emission buses are not just good for decarbonising transport and providing better, more reliable bus services; they are good for growth in this country, which we need to see.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, the Minister made some excellent points earlier in response to the Opposition’s query about the price of electricity. It is linked to gas prices. Does the Minister know whether the Government have any plans to delink it so that we get the true price of renewable energy?

[Lord Katz (Lab)]

I am afraid that I am not aware of any particular plans—this strays a little outside my briefing. It is really important that we enable more green growth in transport to ensure that people have access to the sorts of transport levels that those of us who live in the capital enjoy. What we require and want, to paraphrase my right honourable friend the Secretary of State for Transport, is brilliantly boring public transport, so that where you live does not determine what you can achieve in life.

Employment Rights Bill

Debate between Lord Katz and Baroness Jones of Moulsecoomb

Committee stage
Tuesday 13th May 2025 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

Stop groaning.

Normally, if today’s list says, “at a convenient time”, that means at the end of a group surely.

[Lord Katz (Lab)]

As I said, I understand that this is unusual, but it is in no way unprecedented. We have broken in the middle of a group before. It is not ideal, but we are where we are. I think it is in the best interests of the Committee, especially as it has been agreed through the usual channels, to hear from both Front Benches and any other Back-Benchers on this group in good time, and to hear, in the meantime, a repeat of the Statement from the Minister, so that everybody gets the best of all worlds. I know this is not usual practice, and we will endeavour not to do it on future Committee days.