Employment Rights Bill Debate
Full Debate: Read Full DebateLord Young of Acton
Main Page: Lord Young of Acton (Conservative - Life peer)Department Debates - View all Lord Young of Acton's debates with the Department for Business and Trade
(2 days ago)
Lords ChamberMy Lords, I refer noble Lords to my register of interests. I ask noble Lords, when considering my amendments, to spare a thought for the great British pub. A year ago, the Chancellor promised to “turn the page” for British pubs. As she pulled a pint in the Humble Plumb in Southampton in June 2024, Rachel Reeves said that Labour would revive this “important institution”—I think we can all agree that pubs are important institutions.
Yet no sooner had she said this than she raised national insurance contributions for employers and lowered the threshold at which they are paid from £9,000 a year to £5,000. At the same time, she announced that business rates relief for hospitality brought in during Covid would be cut, while the minimum wage would rise by 6.7%. UKHospitality, which represents pubs, bars and restaurants, has estimated that the total extra cost for its members from the Budget measures announced last autumn will be £3.4 billion a year. This impact has already been felt, with 69,000 hospitality jobs lost since last autumn. According to the British Beer and Pub Association, roughly one pub is set to close every day this year—the Campaign For Real Ale is even more gloomy. If BPPA’s forecast comes to pass, it would take the number of pubs in Britain to its lowest level in a century.
What are the Government doing to save what they call an important institution? Gareth Thomas, the Business Minister, has said:
“We are determined to make the UK the best place in the world for businesses to start and succeed, and that includes our great British pubs”.
He went on:
“We’re working with industry to slash red tape … to ease the pressure on pubs and help them grow as part of our Plan for Change”.
Yet, far from slashing red tape, Clause 20 will add a whole new ream of it. As I am sure noble Lords are aware, Clause 20 amends the Equality Act to make employers liable for the harassment of their employees by third parties, for example, customers and members of the public. It does not cover third-party sexual harassment, mind you—employers are already liable for third-party sexual harassment thanks to the worker protection Act—but non-sexual third-party harassment. I have called this the “banter ban” because I believe it will mean employers will be liable for jokes, remarks and expostulations overheard by their employees—banter—that they find offensive or upsetting by virtue of their protected characteristics.
Why do I say this? We know from the way that the definition of harassment has constantly been expanded by the employment tribunal that it now encompasses overheard conversations—you can now sue your employer for failing to protect you from overhearing something uttered by another employee. The Minister will argue that Clause 20 requires employers only to take “all reasonable steps” to protect their employees from harassment, and expecting employers to protect their employees from overhearing remarks made by customers or members of the public is not reasonable. In short, the Government will argue, the tribunal will not hold employers liable for indirect, non-sexual harassment of their employees by third parties. This is a false alarm, faux outrage.
I wish I shared the Minister’s confidence about that, and note that UKHospitality is not so sanguine, which is why it supports Amendment 43, which would absolve employers of liability for indirect third-party harassment. If the Minister really believes that indirect third-party harassment—overheard remarks, banter—would be out of scope, why not accept my amendment? This would be a huge relief to beleaguered publicans who will not have to worry about employing “banter bouncers” to eavesdrop on customer conversations and will help reduce the increased insurance premiums which Clause 20 will inevitably mean.
The Minister will say that plenty of service providers and businesses already ask customers to treat their employees with respect and to not say or do anything that could be construed as harassment. The vast majority of customers follow this advice, I agree, but the fact that these guidelines are being voluntarily observed is a reason to not make them mandatory, not a reason to make them mandatory. Is it not preferable that customers should observe good manners out of consideration for workers, rather than fear of being penalised for non-compliance?
If noble Lords cannot bring themselves to support my amendment, or at the very least abstain on indirect harassment, I hope that they will consider seriously Amendment 44, which would create a carve out for
“conversation or speech involving the expression of an opinion on a political, moral, religious or social matter, provided the opinion is not indecent or grossly offensive”.
How could any noble Lord possibly object to that? Do we want people in pubs to be constantly looking over their shoulders and lowering their voices if they express an unfashionable or contentious point of view, or do we want them to enjoy the same right to speak openly and freely on political, moral, religious or social matters that we enjoy in this House?
Every pub is a parliament; let us not turn every pub into a library and accelerate the disappearance of this beloved institution. Let us remember what Samuel Johnson said about the Great British pub:
“As soon as I enter the door of a tavern, I experience oblivion of care, and a freedom from solicitude. There is nothing which has yet been contrived by man, by which so much happiness is produced as by a good tavern or inn”.
I beg to move.
In the Mirror newspaper last week, Clause 20 hit the headlines. Deputy Prime Minister Angela Rayner claimed that reforms protecting employees from third party harassment would not chill free speech, and she rubbished claims that innocent workplace banter is the target. She said:
“Nobody should be abused while doing their job, but we’ve seen a horrific rise in violent abuse and harassment of shop workers and other public facing staff”.
She went on to describe those of us worried about the unintended consequences of this clause as resorting to
“spreading made-up nonsense”.
I feel the need to counter this misinformation because I fear Angela Rayner may herself be influenced by misinformation about what is in her own Bill.
I was especially alarmed when the TUC general secretary Paul Nowak told the newspaper that those of us opposing Clause 20 are
“insulting people’s intelligence by pretending that protecting workers from harassment is the same as banning banter”.
But actually, it is—and that is not my decision. It is present in the way equality law has been interpreted in employment tribunals, as has just been described, associating harassment with banter. Whatever the Government, Angela Rayner or the TUC think is in the Bill, it does not set out what constitutes harassment or, rather, what does not.
Therefore, in Committee, the Minister directed us to the definitions of harassment used in equality legislation, which is then interpreted in employment tribunals. It is important to note that under the Equality Act, as interpreted, harassment includes indirect harassment, which, as the EHRC guidance states, can include the following: spoken words, jokes, written words and posts on social media, physical expressions and gestures and, yes, banter.
As we have heard, employment tribunals hear many cases relating to workplace banter, with 57 cases in 2024. If we look at human resources literature, we see that it is full of advice to employers on managing banter in the workplace between their employees. One horrendous suggestion put out to employers was to monitor conversations and attempt to pick up or pre-empt any problems. Another suggestion was to send people on—wait for it—appropriate conversation training sessions. I have just been sent the details of a consultant—there is always a consultant behind all this—who is an inclusive language and banter specialist and runs workshops at £495 a shot. One of his first workshops is “What does the term transgender mean to you?”—I will not say what it means to me out loud or I might get done by the banter police. Anyway, cisgender is a term that I do not think we want to be put into the hands of the banter police.
We are not raising this issue to cause a fuss. The problem is that it is in the Bill. I have always argued against this broad and elastic definition of harassment; it is problematic because it undermines free speech, as I have made the case for many times in this House and in Committee. I also want to emphasise that it risks trivialising genuine cases of harassment and diluting the impact of genuine anti-harassment policies that require serious attention.
I do not know what is funny about that, because I do not know that I have heard any polls from the opposite side. The TUC poll found that eight out of 10 people—79%—support the plan to protect workers from harassment.
I remind noble Lords that the Government will be publishing guidance so that employers are supported with these changes. We will make it clear that they are not required to take unreasonable steps and we will set out how they can continue to effectively prevent harassment and protect free speech. No business will be required to hire staff to monitor speech or diversity under this provision.
Many public-facing businesses, such as pubs, universities, sports venues and public transport, already have posters that signal a zero-tolerance approach to any form of harassment at their venue or site, including harassment of their staff. We would consider this a reasonable step.
The noble Lord, Lord Lucas, raised the issue of this building, and this very building has notices detailing the behavioural code, making it clear that everyone on the estate should treat one another with respect and that unacceptable behaviour will be dealt with seriously. This has not had a chilling effect on free speech in this place.
Harassment is taking place in many workplaces that is not banter and, in some cases, employers are simply not doing enough to protect or support their employees. In a poll of 16 to 35 year-olds in 2018, the TUC explored the experiences and the impact of third-party harassment. For example, a young woman complained of
“customers sexually harassing staff members and myself whilst drunk. It also occurs when they are sober. It happens every time I work. My managers think it’s funny”.
Another customer, a sales assistant aged 18 to 21, said that they were constantly being sworn up by customers for no reason and called racial slurs, and had witnessed people being hit. I do not know what the answer of the noble Lord, Lord Young, is to all of that, but we have an answer, which is to take steps against third-party harassment.
My noble friend Lord Leong shared a very personal story about when he worked in a pub in his student days and was harassed constantly, being called all manner of racist names. He complained to the manager, who dismissed it as banter, but it was not banter, and he still finds it very difficult to talk about it to this day. He left the pub after two weeks because he could not take it any more. We do not want people to have to do that in future. It is very important to us that future employees do not feel this way.
Diversity in businesses can be linked to benefits, including improved recruitment, employee engagement, more effective teams and improved understanding of customer wants and needs. We also know that companies with the most diverse leadership teams are more likely than ever to outperform less diverse peers on profitability. A customer service survey by Hospitality UK and CGA found that almost two-thirds of customers think that a venue’s equality, diversity and inclusion policy is important, and a third said that they would be more likely to visit a venue if it had policies to promote equality. We are, therefore, convinced that very few businesses, if they want to keep their customers, would support the amendments from the noble Lord, Lord Young.
I now turn to Amendment 193, tabled by the noble Lord, Lord Sharpe of Epsom. As set out in our road map for delivering Labour’s Plan to Make Work Pay, we intend to commence the Bill’s protections against third-party harassment in October 2026. It is important that we get implementation and the details right to ensure that employers and employees understand the new law, and that it can be as effective as possible in ending third-party harassment. The approach we have taken and the timeline set out allow the time required to deliver effective implementation.
I assure the noble Lord that there is no need to delay commencement of Clause 20 until October 2027 due to concerns relating to free speech or burdens on business. Over the coming months, we will be engaging with stakeholders to ensure that guidance is fit for purpose. This will build on the consultation held in 2019 on introducing protections against third-party workplace sexual harassment, as well as on responses to the recently closed call for evidence on equality law. This timeline therefore accounts for the need for stakeholders to prepare for changes, and we will ensure that they are supported in their preparations. I remind your Lordships that, if a woman is sexually harassed by a customer at work today, she cannot seek individual redress, and if an employee experiences racial or homophobic harassment from a third party at work today, they have no protections under the Equality Act 2010.
I hope that we can all agree that employees should feel safe at work and be free of harassment. Therefore, we should not delay introducing these important protections any longer, and I urge the noble Lord, Lord Young, to withdraw his amendment.
I would just like to clarify that, when I referred noble Lords to my entry in the register of interests, I was referring them specifically to my job as the general-secretary of the Free Speech Union, which has been campaigning on this issue. I thank noble Lords for all their excellent contributions to this debate, particularly the noble Baroness, Lady Fox of Buckley.
I will quickly respond to a couple of points made by the Minister. I do not think she can justifiably claim that Clause 20 will be for the first time protecting workers from being racially abused by customers or members of the public. If someone racially abuses another person, as I understand it, that would be a racially aggravated offence under Section 5 of the Public Order Act 1986. So it is not as if there are currently no legal protections for workers who are abused in that unacceptable way.
The Minister said that the Government intended to publish guidance. on what “all reasonable steps” employers would be expected to take to protect their employees from third-party harassment. But, as I understand it from my reading of the Bill, the Government are obliged to provide guidance when it comes to protecting workers from third-party sexual harassment. They will set out what all reasonable steps are with respect to that, but there is no comparable clause in which the Government commit to providing guidance on what all reasonable steps are when it comes to protecting employees from third-party non-sexual harassment.
The Minister said that it would introduce an element of confusion into Clause 20 to accept either Amendment 43 or 44, because the things these amendments are trying to rule out of scope are already out of scope. If that is the case, and if the Minister genuinely believes that indirect harassment is not within scope, that banter is not within scope and that this is an exaggeration, a faux outrage, and if she genuinely believes that good-faith conversations about moral, political, religious or social matters, provided that they are not obscene, are out of scope, why not accept Amendments 43 and 44?
Doing so would provide the hospitality sector, and publicans in particular, with some clarity about what reasonable steps they can be expected to take to comply with this new clause. As it stands, there is a great deal of confusion. They will feel that they must err on the side of caution to prevent the possibility of being taken to the employment tribunal by aggrieved workers.
Pubs are on their knees. I ask the House not to impose these additional burdens on publicans who are already struggling to survive and keep their businesses afloat. If the Government genuinely believe in growth, and if they genuinely believe that pubs are an important British institution and want to take steps to preserve them, at the very least they should give publicans the clarity that accepting Amendments 43 and 44 would provide.
I am afraid that I am not satisfied by the Minister’s answer and so would like to test the opinion of the House.