Employment Rights Bill

Lord Leigh of Hurley Excerpts

Report stage
Wednesday 23rd July 2025 Lords Chamber

[Lord Hendy (Lab)]

I will try to finish the point in just a couple of sentences. The point is that somebody who does not like paying the political subscription can simply leave the union. If they object to it, that is what they can do. That freedom is protected by Article 11 of the European convention and is ratified in a whole number of cases. I will not develop the argument further. I would love to take it outside with the noble Baroness. We can have a drink and go into all the cases.

I just wanted to make one further point. The suggestion was made by the noble Lord, Lord Balfe, that perhaps trade unions should be barred from making political payments at all. It is an interesting argument, which nobody else has advanced. It reminds me of the point my noble friend Lord Barber made about the fact that the requirement to have a political fund, introduced in 1909, is imposed on no other organisation in this country. Companies do not have to have separate political funds, ballot their members or shareholders or answer to anybody in making a political donation. It is only trade unions that are required to hold political funds with all the paraphernalia of opting in or opting out. I am not going into that argument.

I was contemplating—I never did it, but perhaps I should have done—moving an amendment that trade unions should be relieved of having political funds at all. It was a requirement which answered the Law Lords’ decision in Osborne vs the Amalgamated Society of Railway Servants in 1909, eight years after the foundation of the Labour Party, to bar trade unions from funding the political party that they had just launched. If we got rid of trade union political funds, we would not be having this argument at all.

[Lord Leigh of Hurley (Con)]

My Lord, I will speak to the amendment from the noble Lord, Lord Burns, and to my own Amendments 152A and 152B. In so doing, I congratulate the noble Lord, Lord Burns, on this amendment. I remember the debate we had at that time. There is no question about it: every side of the debate compromised. I remember Ministers from the other place telling us that we had to compromise and we had to make concessions that we did not feel were right. The deal was done, and the deal still holds.

The point made by the noble Lord, Lord Whitty, that we should do things in the round and in one is exactly right, rather than making this piecemeal change that the Bill proposes, if there are to be dramatic changes. I accept that times have moved on and that funding for the Labour Party is largely from individuals rather than from unions. None the less, if we are to make changes, then let us look at them in the round rather than observing the piecemeal change proposed in the Bill.

I have to correct the noble Lords, Lord Whitty and Lord Hendy. Companies cannot make donations to any political party without prior shareholder approval in the period of a year—not 10 years, but one year. That approval lasts only one year and has to be refreshed at the annual general meeting. Noble Lords are encouraged to look at the accounts of any company—certainly a public company—to see that that is the case.

[Lord Whitty (Lab)]

That is true, but it does not require a ballot of individual shareholders. There is a vote once a year, or whenever, so that a donation can be made at the annual general meeting. It is not a ballot.

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[Lord Leigh of Hurley (Con)]

With great respect, every shareholder gets a mailed piece of paper with a box to tick—every single shareholder every single year. If that is not a ballot, what is?

[Lord Barber of Ainsdale (Lab)]

Do shareholders get an opt-out facility from political donations that the company is making on behalf of the owners of the company?

[Lord Leigh of Hurley (Con)]

They can certainly vote against it, and that happens quite regularly. The situation is exactly the reverse of the one put forward by the Benches opposite.

My focus is on Clause 77, which the noble Baroness, Lady Fox, highlighted. It is a complicated clause. It refers us to the Trade Union and Labour Relations (Consolidation) Act 1992, which was itself amended by subsequent Acts, and to the famous aforementioned Section 32ZB, which relates to details of political expenditure in the political fund. The political funds, as I think has been said, were set up to protect the unions because the law did not allow them to make donations directly, so the political fund allows donations to political parties. But this clause requires details of any political expenditure to be disclosed in the annual return to the certification officer, and that is what the Bill wants to get rid of. It was brought in as Section 12 of the Trade Union Act 2016.

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[Baroness Jones of Whitchurch (Lab)]

Political campaigning, which the noble Lord will know is clearly spelled out already in the legislation, requires some of these issues to be paid for out of the political fund, Indeed, my own union, UNISON, operates two separate political funds, as my noble friend Lord Prentis explained in Committee, one of which relates to the party-political affiliation and the other to the wider campaigning role. Of course, not all political party payments have gone to the Labour Party; they have gone to other parties and candidates as well.

The payments must be established through the democratic structure of the union. Those same structures make unions accountable to their members, who are free to participate in the democratic process to shape how those political funds are utilised. Joining a trade union is an informed decision and members will be made aware of their right to opt out of political fund contributions. Indeed, we have been careful to draft the Bill to ensure that new members will continue to be notified of their right to opt out on the membership form when they join the union. In line with the recommendation in the report of the committee of the noble Lord, Lord Burns, the membership form will also have to make it clear that opting out will not affect other aspects of their membership. Those changes should help to address concerns that trade union members were not always aware of their right to opt out of the political fund under the system that existed before 2016. If members wish to exercise that right to opt out, they are free to do so at any time.

We are not altering the arrangement for existing union members. If they decided to join a union with the knowledge that they would be opted out of political fund contributions, they will continue to be opted out once the Bill passes. As I hope I have explained, automatic opt-in will reduce the administrative burden on unions while still allowing members to make an active choice not to contribute to the political fund if they so wish.

I turn to Amendment 148 tabled by the noble Lord, Lord Sharpe, and Amendment 149 tabled by the noble Lord, Lord Evans of Rainow. The existence of the 50% turnout threshold is not in line with the Government’s intention to create a positive and modern framework for trade union legislation—a framework that delivers productive and constructive engagement, reduces bureaucratic hurdles and respects unions’ democratic mandates.

The 50% threshold is a high bar and is not consistent with other democratic decision-making. Votes in Parliament and votes for MPs and local councillors do not normally include any turnout threshold but are not thereby considered any less legitimate. Indeed, most local elections are contested with a turnout below 50%—I am sure that a number of noble Lords who have previously been councillors have been elected on a less than 50% turnout—and nor, for the most part, do votes at general meetings of companies require any turnout threshold. Those who oppose industrial action are free to vote against it in a ballot, and they will have their voices heard in the normal way.

The Government have been clear about our intention to repeal the Trade Union Act 2016, including industrial action ballot thresholds, but the amendments would prevent the Government delivering on that manifesto commitment. I was pleased to hear the support of the noble Lord, Lord Goddard, for upholding our manifesto commitments, and I will remind him of that when we come to vote on these amendments.

The date for the repeal of the 50% threshold will be set out in regulations at a future date, with the intention that it is aligned with the establishment of e-balloting as an option for trade unions. Together with the delivery of modern and secure workplace balloting, the intention is that this will ensure that industrial action mandates will have broad and demonstrable support.

As I expected, the noble Lord, Lord Sharpe, talked about the doctors’ strike. The Secretary of State has held constructive meetings with the BMA resident doctors committee to try to avert strike action by discussing how we can work together to improve the working lives of resident doctors. However, the BMA RDC has refused to engage in further discussions and has instead chosen to proceed with its planned strikes. Our view is that strikes have a serious cost to patients, so once again we urge the BMA to call them off and instead work together to improve members’ working conditions and to continue rebuilding the NHS.

On Amendment 149ZA tabled by the noble Lord, Lord Sharpe, the Government have made it clear that we do not intend to make sectoral carve-outs for the limitations and conditions that apply to industrial action. That is demonstrated by our repeal of the Strikes (Minimum Service Levels) Act and the repeal of the 40% support threshold for industrial action ballots, both of which remove the further conditions on industrial action that currently exist in some public services.

Ensuring that statutory notice periods for industrial action are consistent across every sector will ensure that the rules are straightforward and clear to all parties involved in industrial action in every circumstance. It is then for employers in each sector to be mindful of these rules and manage their industrial relations and businesses accordingly.

I also want to make it clear that repeal of the 14-day notice period forms part of our manifesto commitment to reverse the Trade Union Act 2016. Following the outcome of our public consultation on creating a modern framework for industrial relations, we decided that a 10-day notice period for strikes was the appropriate balance between giving employers time to prepare and upholding the right to strike. It is also a minimum, not a maximum, period and employers will be able to plan for industrial action long before receipt of a notice.

Our approach is not an outlier. The UK will still provide one of the longer industrial action notice periods in Europe. Many European countries have shorter or no notice requirements on industrial action, while also requiring airlines to comply with the EU version of Regulation 261/2004. We are aware that under Regulation 261/2004 an airline may be liable to pay passengers compensation if it cancels a flight less than two weeks before its scheduled departure. But even under the current 14-day industrial action notice period, in practice airlines may therefore still be liable to pay compensation if they need to cancel flights due to industrial action.

I turn to Amendments 149A and 150, tabled by the noble Lord, Lord Sharpe. As the period of disruption between 2022 and 2024 has shown, administrative requirements and bureaucratic hurdles only make it more difficult for trade unions to engage in good-faith negotiations with employers. This is why we are substantially repealing the Trade Union Act 2016 and fixing the foundations for industrial relations that have not delivered for workers, employers or unions in the meantime.

Legislation governing picket lines is, of course, essential and, to be clear, we are repealing only those additional measures introduced by the Trade Union Act 2016 in relation to the role of a picket supervisor. Substantially repealing this in the Act is also a manifesto commitment, while other legislation relating to picketing will remain in place. Picketing must take place at a lawful location, it must be peaceful and those on picket lines must not intimidate or harass workers who choose to attend work. The existing Code of Practice on Picketing, once updated to remove the requirement for a picketing supervisor, will continue to support the legislation on picketing. Together these are sufficient to ensure the operation of peaceful picketing.

The Government’s impact assessment on the repeal of the Trade Union Act 2016, published in October 2024, set out the expected impacts of the removal of the requirement for a picketing supervisor and is available for all to read. The assessment shows limited evidence of serious problems on picket lines prior to the introduction of the 2016 Act, and there remains limited evidence of problems on picket lines in more recent years. The assessment concluded that it is therefore unlikely that the removal of the additional legal requirement to appoint a picketing supervisor will have a noticeable effect on the impact of picketing during disputes. There is nothing new to add to that assessment; we are simply returning the law on picketing to what it was prior to 2016 when it was working well and understood by all parties.

I turn to Amendments 152A and 152B, tabled by the noble Lord, Lord Leigh of Hurley. I think on previous occasions the noble Lord has reminded us of his role as treasurer of the Conservative Party, although he did not on this occasion. Clauses 77 and 78 of the Bill, which these amendments would—

[Lord Leigh of Hurley (Con)]

I am sure the noble Baroness is aware that positions that do not require financial remuneration do not need to be declared. I did, in fact, make that declaration at Second Reading and in Committee and no further declaration is required.

[Baroness Jones of Whitchurch (Lab)]

I think that is the point I was making; I was just reminding the noble Lord. He could have reminded us on this occasion, given that a number of his points were very much party-political ones.

Clauses 77 and 78 of the Bill, which these amendments would omit, remove burdensome requirements and regulation on unions imposed by the Trade Union Act 2016. This red tape works against unions’ core role of negotiating and dispute resolution, which is why we made a manifesto commitment to repeal the Trade Union Act 2016. In relation to Clause 77, trade unions will continue to submit an annual return to the certification officer; however, the amount of information required in that return will be less.

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Indeed, we are not changing the requirement on unions to provide an annual statement to members that specifies, among other things, the total income and expenditure of the union’s political fund. In relation to Clause 78, there is no need for the certification officer to retain powers to investigate requirements that will no longer exist when this Bill is passed. The certification officer—

[Lord Leigh of Hurley (Con)]

Can the Minister be quite clear with us in that case? She said that unions will be required to report to the certification officer gross amounts of income and expenses. Can she be crystal clear that there will be no requirement to disclose expenses made within the political fund to any organisation?

[Baroness Jones of Whitchurch (Lab)]

My understanding is that the political funds will be required to continue to spell out how they are spending the money, but not for sums under £2,000. The certification officer will continue to be able to enforce remaining annual return requirements—

[Lord Leigh of Hurley (Con)]

I am sure the Minister would not like to have on record something that does not seem to be correct. I think she means that amounts under £2,000 need not be disclosed.

[Baroness Jones of Whitchurch (Lab)]

That is what I said.

We are simply returning to the situation as it was pre-2016. I would add that the unions are already specifically regulated in the requirement to have a separate fund for spending on political purposes that is subject to many rules. There is no such requirement on many other membership organisations.

I turn to the amendment tabled by my noble friend Lord Davies of Brixton relating to Clause 62 on equality representatives. Trade unions have long fought for equality. We recognise that equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. New Section 168B(2)(a) therefore provides for the broad purpose for equality representatives to take paid time off for carrying out duties

“for the purpose of promoting the value of equality in the workplace”.

In addition, new Section 168B(2)(c) makes provision for

“providing information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace”,

and new Section 168(2)(d) makes provision for

“consulting with the employer on matters relating to equality in the workplace”.

Finally, equality representatives may also be eligible for time off under Section 168 of the 1992 Act, which includes time off for

“negotiations with the employer related to or connected with matters falling within section 178 … in … which the trade union is recognised by the employer”.

We believe that these measures are broad enough to include a range of activities, which encompass collective bargaining, negotiating with employers and representing members. I ask the noble Lord, Lord Burns, to withdraw Amendment 147.

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Moved by

[Lord Leigh of Hurley]

152A: Leave out Clause 77

[Lord Leigh of Hurley (Con)]

My Lords, we have debated this at length. I listened very carefully to what the Minister said, but I cannot see a reason why payments should be hidden from members of a union.

In wishing to test opinion of the House, I also declare that I have never received any financial remuneration from the Conservative Party: neither have I received any union payment or indeed a union pension. I wish to test the opinion of the House.

Employment Rights Bill

Lord Leigh of Hurley Excerpts

Report stage
Monday 21st July 2025 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, I support my noble friend’s amendments. There are good reasons to exempt small businesses, which make up the backbone of our productive economy, from the measures in Clauses 55 and 56, both for the statement of trade union rights and for trade union access.

We know, as we discussed in Committee, how rapidly trade union membership is falling, and that it has fallen particularly in the private sector. We know that, although it has gone up in the public sector, it still represents a much smaller proportion of trade union members than in 1995, when statistics began. Small and medium-sized businesses account for 99.8% of our productive economy. If we impose additional compliance costs on 1.16 million micro businesses of up to 10 employees and on 4 million sole traders, we are saddling them with the kind of compliance costs to which noble Lords have already referred.

I wholeheartedly support my noble friend’s amendments to exempt the majority of small, tiny and medium-sized enterprises from the compliance costs of furnishing a letter and the costs—indirect, perhaps—of access arrangements for trade unions, when there may be no trade unionists in the workforce of these small, entrepreneurial businesses.

[Lord Leigh of Hurley (Con)]

My Lords, I rise briefly to mark that this is the moment—21 July, at 8.59 pm—when the Labour Government are going to put such unreasonable demands on small businesses that they will all come together and say, “This Government are not our friend. This Government are distracting us from growth, from employing more people and from productivity”. Just as small businesses are getting over Making Tax Digital, Covid and tariffs, this legislation will do irreparable harm. I wanted to make that point because I assure noble Lords that there will be future reference to this very moment.

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, I too will be brief. I thought it might be helpful to inject a bit of balance into the debate. Noble Lords might recall that in Committee I spoke of how often there are positive voluntary agreements between employers and unions about access, because everybody recognises that in a modern, civilised society, workers should have the right to speak to a trade union. It is their choice whether to join, but it ought to be seen as a basic right to be able to meet a union at the workplace. In my experience, very often you go in and have a cup of tea and you get a chance to meet the workers, who will make up their own minds about whether they want to join.

Employment Rights Bill

Lord Leigh of Hurley Excerpts

Report stage
Wednesday 16th July 2025 Lords Chamber

[Lord Londesborough (CB)]

My Lords, I will speak to Amendment 94, tabled by the noble Baroness, Lady Noakes, and Amendment 159, tabled by the noble Lords, Lord Sharpe and Lord Hunt, both of which I have signed. I also support the amendment in this group tabled by the noble Lord, Lord Leigh, which calls for some scientific and statistical significance in polling a representative group of SMEs on the impact of certain provisions in the Bill. This Government’s consultation with SMEs is, to put it politely, curious and opaque, lacking, so far, any meaningful numbers or quantified response, and with barely any names. Consultation carries little weight if it lacks statistical credibility.

The entirely sensible and pragmatic amendment tabled by the noble Baroness, Lady Noakes, seeks to hand the Secretary of State regulatory tools to bring in exemptions to Part 1 for certain groups or sectors, for specified periods of time, should he or she decide that these are appropriate.

Noble Lords may remember that the Government were offered similar powers of exemption by amendment in the NICs Bill earlier this year, voted through enthusiastically by Conservatives, Liberal Democrats and the majority of Cross-Benchers, only to receive the custard pie treatment in the other place under the cloak of financial privilege, which was a great pity. The noble Baroness has, very generously in my view, made the same offer again, and I hope it gets a more constructive response this time.

For there is broad consensus across business that Part 1 of the Bill will have a significant impact on the jobs market, especially for SMEs, but let us be frank: the degree or level of impact is highly unpredictable. If we see the sorts of outcomes suggested by membership surveys from such bodies as the ICAEW and the FSB, then the Secretary of State would be well advised to grab the option of these exemption tools with both hands rather than doggedly sticking to a one-size-fits-all mantra.

Turning briefly to Amendment 159, seeking the disapplication of certain provisions for small and micro-businesses with fewer than 50 employees, this gets my wholehearted support. I will spare the House a repeat of my arguments in Committee. But for the Government to argue, as I am sure they will, against this amendment, because they do not want to create a two-tier workforce, simply does not reflect economic reality or indeed the jobs market or the structure of businesses.

SMBs cannot compete with large businesses when it comes to pay scales, training, promotion opportunities, pensions and a whole range of other benefits. That is a reflection of their size, their culture and their stage of development, yet they succeed in delivering strong employee loyalty and identification. This is true of family businesses, start-ups and scale-ups. To apply all the provisions in this Bill, and specifically those listed in this amendment for disapplication, to a micro-business employing five staff as it does to a multinational employing 10,000 is wilfully indiscriminate and, I suggest, economically illiterate. That is why I put my name to the amendment.

[Lord Leigh of Hurley (Con)]

My Lords, it is a pleasure to follow the noble Lord, Lord Londesborough, and, of course, my noble friend Lady Noakes. I shall speak to my Amendments 106, 153, 155 and 184. The main thrust of the first amendments is to force the Government to listen to real concerns of the SME community who, frankly, even at this late stage, are unaware of the effects of this Bill. They are too busy trying to keep afloat in a difficult economic environment, where the painful costs of NICs and other tax rises are kicking in.

I declare an interest as an adviser to many SME businesses in my career at Cavendish plc and, to the extent that it is relevant in union matters, as a Conservative Party treasurer. We have not yet heard from any Labour Party Back-Benchers today, but I am sure that, if we do, they will declare their interests in respect of union membership.

Turning first to Amendment 106, which relates to Part 1 of the Bill, we are constantly told by the Labour Front Bench that they want to consult with business—indeed, they repeated that today. They want to consult with business, but they fail to disclose who exactly they are consulting with, let alone what they are being told by those businesses and their representative bodies. I suspect that is because they are embarrassed by the backlash against the severity of this Bill from SME and micro employers, who will make it clear to the Government that this Bill will mean they are less likely to employ more people and much more likely to let people go as the burden of employment is ratcheted up. I am grateful to the noble Lord, Lord Vaux of Harrowden, for reminding us of the Labour Party manifesto’s commitment to consultation.

If the Government are so confident of the benefits of this Bill for all businesses, why not agree to engage with them? This proposal is really very modest: just 500 companies out of some 5.5 million in the UK. It is not unreasonable to ask the Government to be honest with us and tell us what the reaction of the SME community is and what are its concerns, particularly as we know there has been a shocking lack of impact assessments for this Bill. We know that the recent CIPD survey revealed that 79% of organisations expect these legislative changes to increase employment costs.

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[Lord Katz (Lab)]

I apologise for interrupting the noble Lord’s flow, but I feel that his comments on political funds go a fair way outside the scope of the amendments we are speaking to today. There will be plenty of time to discuss political funds next week on Report.

[Lord Leigh of Hurley (Con)]

With the greatest respect, I do not know if the noble Lord has read my amendment, but that is exactly the point. The point is that before the Bill is passed there should be consultation on these proposals, but there is no opportunity for consultation because they are implemented at Royal Assent. The Government keep telling us that there will be a consultation, but how can there possibly be consultation if the measures come in at Royal Assent?

Still, I am grateful to the noble Lord for that interruption because it proves the point. It also allows me to explain to him another payment from the Unite political fund, which he may not be aware of, to the Marx Memorial Library. I kid you not—you could not make it up. I am sure the members of Unite are thrilled to know that their hard-earned wages are going to support the Marx Memorial Library, but when the Bill becomes an Act, in a matter of months, they will no longer have the right to see that disbursement.

If that is what Unite wants to do then that is up to Unite, but surely it should not be covered up. All I am asking at this time is that proper consultation on the effects of Parts 4 and 6 should take place before this is ramrodded through on the statute book without any proper consultation and discussion with, as the Government like to call them, “relevant stakeholders”. It is on Amendment 106 that I will probably be seeking to test the opinion of the House today.

[Lord Howard of Lympne (Con)]

My Lords, I rise to support these amendments and declare my interests, as recorded in the register, as the chairman of three businesses that would undoubtedly qualify as small enterprises.

I was provoked into intervening in this debate by an observation made by the Minister when she replied to the last debate. She said to your Lordships that if an employer dismissed an employee for cause, as set out in the Bill, the employer would have nothing to worry about because the tribunal would find in their favour. Very long ago I practised in the field of employment law, and I saw at first hand the consequences—often very damaging, sometimes disastrous—for a small business of having to spend the time, trouble and expense involved in contesting a case at the tribunal, even if ultimately, it was successful. In the real world, faced with that predicament, employers often find themselves obliged to settle these cases, again at considerable expense, even if the application is completely unmeritorious and would stand scant chance of success, were it ever to come before the tribunal. That factor ought to be taken into account.

My question to the Minister, the noble Lord, Lord Leong, is this. Attention has been drawn today to the impact assessment, particularly by my noble friend Lord Sharpe of Epsom, who pointed to the increase in the number of tribunal cases that would be a consequence of the Bill. To what extent did that impact assessment take into account disputes that were not actually taken to the tribunal and were settled by the employer, who could not afford the consequences of contesting the case at the tribunal, but which would nevertheless involve substantial, damaging and sometimes disastrous consequences for the employer?

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[Lord Leong (Lab)]

My Lords, if the noble Lord starts throwing statistics around, I can throw statistics at him as well. As I said earlier, the Deloitte survey shows that the UK is the top destination for businesses. In fact, the Chancellor’s speech at Mansion House yesterday was very much welcomed by the City of London. All the financial services say that London will be the destination for fintech investment. Furthermore, KPMG’s recent consumer index says that people are feeling that they have more money in their pocket and are starting to plan holidays for the summer—good for them.

[Lord Leigh of Hurley (Con)]

I am sure the Minister will want to be very clear on this. I think the Deloitte survey he refers to was in respect of inward investment only, probably because the UK is regarded as a cheap place, given what has happened to us in the last month, whereas the chartered accountant survey is specifically on business confidence, which has fallen every quarter for the last four quarters. One wonders what happened four quarters ago to prompt that.

[Lord Leong (Lab)]

We got into government one year ago, after 14 years. Business confidence was very low then, and at the same time unemployment was on the rise. At the end of the day, we are making progress. The figures will take time to change, but I am confident that confidence will grow. Inward investment is coming in, which means more investment in business and growth. Furthermore, the FTSE index reached the 9,000 mark yesterday. What does that say? People have confidence to invest in British companies, so let us not talk down the economy.

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[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, I want to take this opportunity to correct what I think has been a mischaracterisation of the TUC briefing, which makes it very clear that the right to be accompanied includes, yes, trade union reps but also workmates. I also want to correct what is a misunderstanding of the spirit of the right to be accompanied, which was very much about dealing with grievances, disciplinaries and procedures within a workplace. Hence, when a union is recognised by the employer and the worker is a member of the union and chooses their union rep to represent them, that is a good thing. Our experience is that that is about resolving issues at an early stage. Likewise, a worker may choose a workmate to represent them—somebody inside the organisation who can take a practical, common-sense view of dealing with a grievance and disciplinary procedure.

During the debates on the Bill, we have heard a lot about the worries of ending up in employment tribunals, disputes being protracted and lawyers and others who maybe want to make a pretty penny from representing workers in trouble. Noble Lords will find that many employers, like workers, want to keep resolution of those issues within the workplace because that is often the quickest, more effective and cheapest way that everybody concerned can sort out problems when they arise. Surely it is in resolving issues that we should all share an interest.

[Lord Leigh of Hurley (Con)]

I rise to say simply that, in my experience, I have found that employees want to bring with them family members, often parents—particularly women want to bring a parent—and I am not sure that this will allow that anymore.

[Lord Sharpe of Epsom (Con)]

I thank the noble Baroness, Lady Fox of Buckley, and the noble Lord, Lord Palmer of Childs Hill, for their amendments and their introductions. I speak strongly in favour of these amendments, which address a crucial gap in the rights currently afforded to workers.

At its core, this is about fairness, autonomy and dignity; it is about giving working people real choice and a real voice when it matters the most. As we have heard, under the current law, a worker facing a disciplinary or grievance hearing has the right to be accompanied, but only by a fellow worker or a trade union representative. What of the workers who are not in the union, which, as the noble Lord, Lord Palmer of Childs Hill, and my noble friend Lord Ashcombe pointed out, is most of them? What of those who work in small businesses, where asking a colleague to attend is uncomfortable or perhaps even counterproductive? What of those sectors in which peer support simply is not realistic? We must not confine workers to a narrow and outdated list of whom they are allowed to bring into the room at a time of maximum stress and uncertainty. As the noble Baroness, Lady Fox, so powerfully illustrated with her real-world examples, that causes problems.

This amendment would bring common sense, compassion and modern flexibility into law. This is about worker autonomy, trusting people to decide whom they need in the room with them. If we are truly to modernise employment rights, either amendment should be accepted.

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Moved by

[Lord Leigh of Hurley]

106: After Clause 26, insert the following new Clause—
“Consultation on Part 1(1) The Secretary of State must initiate a consultation on the effects of the provisions in Part 1 of this Act.(2) As part of the consultation under subsection (1), the Secretary of State must ensure that views are specifically sought from at least 500 small and medium-sized enterprises (SMEs).(3) The Secretary of State must lay before each House of Parliament, within 18 weeks of the initiation referred to in subsection (1), a report on the outcome of that consultation, including a summary of responses received from SMEs.”Member's explanatory statement
This amendment requires the Secretary of State to undertake a consultation on the effects of the provisions in Part 1 and to ensure that at least 500 small and medium-sized enterprises (SMEs) are consulted as part of that process.

[Lord Leigh of Hurley (Con)]

My Lords, the Labour Party manifesto promised consultation; it has not happened. The Minister, when batting away amendments promises consultation, and it has not happened. The SME community of this country is petrified about provisions in Part 1 of the Bill. They want to be heard, and I think noble Lords do as well. I wish to test the opinion of this House.

Corporate Liquidations

Lord Leigh of Hurley Excerpts

Tuesday 10th June 2025 Lords Chamber

Asked by

[Lord Leigh of Hurley]

To ask His Majesty’s Government what assessment they have made of the reasons for the reported rise in corporate liquidations in the year to 31 March 2025.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, in the year to 31 March 2025, total corporate liquidations rose by 8%. This increase was driven by a 36% jump in solvent liquidations, while insolvent liquidations fell by 3%. The current corporation insolvency rate remains less than half what it was during the 2008-09 recession. Businesses go into liquidation for various reasons—tight cash flow, falling sales and loss of market share to online rivals—but no single factor dominates. Compulsory liquidations have increased mainly due to the increase in winding-up petitions from creditors, mainly from HMRC.

[Lord Leigh of Hurley (Con)]

The Minister is right: in fact, more than 2,000 businesses have faced winding-up petitions this year, the highest rate since 2012. Today, we learn that the number of payrolled employees has fallen by 274,000 over the past year, and most worryingly by 109,000 just this month past. The Institute of Chartered Accountants has predicted that eye-watering costs to business, particularly tax costs, will lead to more job losses. Does the Minister agree with me that as every single Labour Government have left office with unemployment higher than when—

[Noble Lords]

Oh!

[Lord Leigh of Hurley (Con)]

Noble Lords may groan. As every single Labour Government have left office with unemployment higher than when they came to office, now is the time to reduce tax, which is at an all-time record high for businesses, particularly SMEs, before the next election.