Unpaid Trial Work Periods (Prohibition) Bill

Alan Whitehead Excerpts

2nd reading: House of Commons
Friday 16th March 2018 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

May I congratulate the hon. Member for Glasgow South (Stewart Malcolm McDonald) on bringing this important and well-constructed Bill to the House? We have perhaps been diverted towards the issue of people not being paid for one or two hours’ work, but essentially the Bill is about the principle of a fair day’s pay for a fair day’s work. Unpaid work trials have become a widespread practice in the hospitality, entertainment and retail sectors, and we need to place that development in a wider context.

In recent years we have witnessed an explosion of exploitative working practices associated with the so-called “gig economy”, a commonplace phrase that does not do justice to what is really occurring, namely the avoidance of employment rights, benefits and remuneration on a mass scale. Unpaid work trials must be seen in the broader context of a range of sharp practices associated with low paid, insecure employment in this country, designed to cut the burden on the employer at the expense of hundreds of thousands, if not millions, of workers.

Just in the past few weeks this place, as the hon. Gentleman has mentioned, has discussed tipping practices that take rightfully earned tips from waiting staff and recycle them to top up the pay of other workers to the level of the minimum wage. In the past two weeks we have seen how major, international companies such as Wagamama and TGI Fridays have failed to pay their staff the minimum wage.

[Luke Hall]

Does the hon. Gentleman share my shock and concern that the British Retail Consortium failed to acknowledge that that was even a problem and refused to even meet the hon. Member for Glasgow South (Stewart Malcolm McDonald) to discuss the matter?

[Dr Whitehead]

Yes, I share the hon. Gentleman’s shock and concern. That underlines how a number of very important institutions in this country continue to underestimate and even turn a blind eye to all such practices associated with the gig economy, one of which is unpaid work trials. There is a pattern and it has not been clearly addressed by the Taylor review, and it certainly has not been addressed by the Government’s weak response to that review.

More than £1 billion is lost in wages every year through unpaid work, and the continuing practice of unpaid work trials is a contributing factor to that.

[Stewart Malcolm McDonald]

I think I know the report to which the hon. Gentleman refers, but a subsequent report adumbrates that about £3 billion is lost in wages every year.

[Dr Whitehead]

Obviously, £2 billion has been lost since I last looked. That underlines the big picture. Unite the Union says that there has been a sixfold increase in complaints about the practice in the past three years. Indeed, the personal stories of exploitation collected by the hon. Gentleman chime with many of us, as we have heard today, through the experiences of our constituents, our own children and our local communities.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

As the second youngest Labour Member in the House, I can speak from relatively recent experience. My first experience of the world of work was an unpaid trial shift against four other candidates for a job. It was a full day’s shift and unpaid. That was combined with a zero-hours contract and unfair tipping practices whereby we were never given our tips and they were used to subsidise the minimum wage. Moreover, young people are unaware of trade union rights, how to join a trade union or how to engage in that sort of security in employment. That is the root cause of the problem. It is the duty of this Parliament to legislate for and protect our young people and others who are exploited by such nefarious practices.

[Dr Whitehead]

My hon. Friend makes an important point. He seems to have personally experienced all the various aspects of this problem: they came together on one occasion, in one place and happened to one person.

Many people have talked about their own experiences. One example comes, in fact, from Scotland. K from Kilmarnock says:

“My son was asked to do a trial shift in our local restaurant. The manager who was on shift did not even speak to him when he was in! He was left in the bar with no direction and when he tried to help the others he was told to get back behind the bar! He wasn’t paid a penny for his time. The same restaurant had already done the same thing to a friend of mine’s son except it was for a kitchen porter and he did 4 hours, no pay and again at end of his shift he just left waited over a week with no job offered.”

The use of unpaid trial shifts is a real problem under the current legislation. The concept of “shadowing” has been used by employers to justify bringing in unpaid workers to cover staff shortages, sickness, or particularly busy periods and events. There is a need to clarify the legal position for employees and employers with legislation, and the Bill seeks to do that by closing current legislative loopholes to ensure that workers are paid for every hour they work and every shift they do.

[Bob Stewart]

I think that what the hon. Member for Glasgow South (Stewart Malcolm McDonald) has put together is excellent, and I congratulate him. I also congratulate my hon. Friend the Member for Croydon South (Chris Philp). “Souths” seem to be in the air today!

Can it be made absolutely clear that the Bill will not apply to someone who goes along to have a taster for a day, does not necessarily work a shift, but just gets an experience of what the work is like? That is not what the Bill is about, is it?

[Dr Whitehead]

My clear understanding, which I think will be borne out by the hon. Member for Glasgow South, is that that is not what the Bill is about. It is not about work experience, or any of the other factors that the hon. Gentleman has mentioned.

[Andrew Griffiths]

May I clarify the position? As drafted, the Bill would exclude those factors. Anything, including making the coffee, briefly, would be outlawed. The Bill sets the threshold at zero. Any moment spent working would be caught by it.

[Dr Whitehead]

I am not sure, if I may say so, that the Minister has correctly put across the idea of what “working” is. Various activities that do not actually constitute work, but constitute other activities not related to work, would not be covered by the Bill. When what is clearly work is being undertaken, and that work is recognised in the normal sense of the word, it will be covered.

[Andrew Griffiths]

May I clarify the position again for the hon. Gentleman? That kind of trial, or test, would not be covered by the national minimum wage, so the payment would not be applicable anyway.

[Dr Whitehead]

I think the point of the Bill is that it is intended to close gaps in legislation in order to make it clear what people are doing when they are working and what constitutes trial work, and to ensure that that is much better defined and protected.

The Bill would require employers to pay applicants undertaking trial work periods at least the national minimum wage. Equally important is the clarity that it will provide about what a “work trial” is, and what is the relationship between the employer and the worker at that point. I am sure we all agree that many unscrupulous employers have taken advantage of that grey area to use unpaid labour when there has not been a job on offer, simply to cut staff costs. There is an element of coercion as well. A widespread response to the call for evidence was that many people who had undertaken unpaid work trials had felt that they could not refuse to do so or speak up because of a fear of jeopardising their chances of getting a job.

[Michelle Donelan]

Does the hon. Gentleman not accept that there is a difference between exploiting people by employing them to do shifts when jobs do not exist, and trying people out for an hour or two and giving them an opportunity to prove themselves?

[Dr Whitehead]

Of course there is a difference, and this Bill does not fundamentally change that position: it is my understanding that it seeks to clarify what it is to actually do work and, following that definition, get paid for that work. The principle is that if someone does work—defined as serious work, which I am sure the hon. Lady agrees the arrangements she mentions would not be—they should get paid for it. It is as simple as that.

[Mr Sweeney]

There is a world of difference between an exploitative unpaid trial shift in a casualised context such as I experienced in my first job, and going to a controlled and time-bound assessment centre, which took a full day, as I did for my first graduate job, where it was controlled and defined. The Bill seeks to define that difference, and the Government should support it.

[Dr Whitehead]

If, indeed, methods are being sought not to support the Bill because of quibbles about what is work and what is not work, and what are trials, and when someone is just doing a practice, that would be a great shame. We need to make it clear that this is about a principle and an area of bad practice that needs to be shut down.

There has been widespread public anger about the practice of unpaid trials. We have heard about the two Mooboo Bubble cafés in Glasgow, which sparked this Bill and campaign, and 13,000 people signed the petition objecting to that. Indeed, the petition calling on MPs to support the Unpaid Trial Work Periods (Prohibition) Bill has 137,000 signatures. It is therefore clear that the practice of unpaid work trials goes against the sense of natural justice that most people have.

There is also widespread public support to remedy this issue as soon as possible, through the clarification of the contractual relationship between the worker and the employer, and the amendment of section 54 of the National Minimum Wage Act 1998 to require the minimum wage to be paid to those who participate in work trials.

Of course, as I stated at the beginning of my contribution, the abuses associated with work trials are part of a much broader picture. The serious, long-term remedy for this all-too-common exploitation is a raft of worker protection measures. Right at the head of Labour’s manifesto commitment at the last election to a fair deal at work is our pledge to

“give all workers equal rights from day one, whether part-time or full-time, temporary or permanent—so that working conditions are not driven down.”

After years of diminution of workers’ rights, that will be no easy task, and we will be faced with many similar loopholes to close and abuses to tackle. I am pleased to offer Labour’s full support for this Bill, to deal with this particularly unjust form of exploitation, which, as my hon. Friend the Member for Midlothian (Danielle Rowley) mentioned, affects so many young people across the country at the start of their working lives. It gives them the impression that the world is perhaps stacked against them in their working career. If only for that reason, we need to ensure that this Bill progresses today.

[Andrew Griffiths]

On a point of order, Madam Deputy Speaker. May I clarify something? The hon. Member for Glasgow South (Stewart Malcolm McDonald) mentioned an advert for an unpaid internship. I can confirm that that position was never filled; it was advertised, but never filled. I am, however, reminded that a paid researcher worked for me for, I think, a brief 20 days of internship with travel expenses paid before she took on the role as a full-paid researcher. It was so brief that it had slipped my mind, but I apologise if I misled the House in any way.