Employment Rights Bill (Fourteenth sitting)

Alex McIntyre Excerpts

Committee stage
Tuesday 17th December 2024 Public Bill Committees

[Greg Smith]

I come back to this point of principle: either we have autonomous bodies that can make their own decisions or we do not. If the Government’s answer is that we do not, I certainly understand why they do not want this amendment, but I do not understand why they persist with their support for that which they created in the first place—the academisation of so many schools—and resist making the more straightforward argument for a one-size-fits-all education policy. I hope they do not adopt such a policy, because of the progress that the Labour party made through academisation in the first place. However, that is the natural conclusion of what the Minister is saying.

[Alex McIntyre (Gloucester) (Lab)]

I refer to my membership of the Community and GMB unions. In the break, the shadow Minister challenged me, saying that I had been very quiet this morning—I was feeling festive, but perhaps I am feeling less festive now. Let us take the analogy about choice that he is trying to set out and put it in a slightly different context. Private limited companies are often seen as the drivers of growth, and we have heard lots about that from the Opposition. Those companies have lots of freedoms to make decisions and to invest where they want, but they are all subject to the national minimum wage. Is the shadow Minister suggesting that a national set of terms and conditions will remove academies’ freedom to make entrepreneurial decisions? I am interested to hear whether the Conservative party’s position is now that the national minimum wage should also be abolished.

[Greg Smith]

No. I did challenge the hon. Gentleman on his quietness in the morning sitting, and he has not disappointed this afternoon, but of course that is not the position of the official Opposition. The last Labour Government brought in the national minimum wage, but the last Conservative Government brought in the national living wage. We are absolutely committed to that, but it is a rule that applies equally and evenly across every sector in the economy. In schedule 3 and amendment 168, we are talking about a specific carve-out of an existing position for one specific sector.

Employment Rights Bill (Twelfth sitting)

Alex McIntyre Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

I beg to move amendment 127, in clause 22, page 33, line 12, leave out from “that” to end of line 21 and insert—

“the reason for the variation was to provide for improved employment practices and to update and reform outdated working practices, in order to allow for the more effective running of a business or organisation.”

This amendment would provide an exemption to unfair dismissal for failure to agree to a variation of contract.

It is a pleasure to see you back in the Chair for the afternoon sitting, Ms Vaz. The amendment, in my name and those of my hon. Friends, is a probing one—I want to be clear about that from the outset—that would provide an exception to unfair dismissal for failure to agree a variation of contract.

The premise underpinning the Bill’s provisions on fire and rehire is that the only reason for an employer to want to re-engage employees on varied terms is to exploit them by giving them worse terms and conditions. I am in no way, shape or form suggesting that that does not occasionally happen, but I come at this debate from the other direction, presuming that most employers are good employers who care about their workforce and want to see a happy staff getting on, being productive and doing the things they do to make the business a success, be that making things, giving advice or providing a service.

The Bill basically says that a business needs to be going bust for the process of varying a contract to be justified. Again, I am not certain that that is the right starting point. What if there were a legitimate reason for wanting to vary certain terms and conditions? We touched on this in our debate on SNP amendments 160 and 161 before the break, and I gave some examples thinking about the pace of change in a business. Let us say a manufacturing business moves from a very manual process for putting a product together—be it a car, a piece of furniture or some smaller product—to invest in robotics or something.

I can think of a farm in my constituency that was a traditional dairy farm but, thanks to a not insubstantial grant from the previous Government, has built a robotic dairy. That means that the people who work on that farm are doing a fundamentally different job. They no longer have to get up at 4 am to manually hook the cows up to the milking machines; believe it or not, the cows now form an orderly queue for the milking robots. I am not joking, Ms Vaz. I invite anyone to come and see it with their own eyes. There is a vending machine where people can buy the milk direct. The point at which staff intervention is needed is if an alarm indicates that a machine has clogged or broken, the pasteurisation room has hit the wrong temperature, or whatever. It is a fundamentally different job. Sometimes, that happens in a workplace where the employer wants to keep the staff—they do not want to let anyone go and they do not want the robots to replace them—but it involves different terms, different conditions and a different physical thing to do on a daily basis. I offer that as a practical example of how businesses change.

[Alex McIntyre (Gloucester) (Lab)]

I refer the Committee to my membership of the GMB and Community unions. I have two short questions for the shadow Minister. First, if the changes are so positive for employees, can they not simply accept a change to their terms and conditions? Secondly, let us take the scenario that he describes, where there is a change in processes, and put that in a business-to-business context. Say a business moves from wooden cogs and to metal cogs, and it has a contract with the wooden cog supplier. Is he aware of any circumstances in which that business would be able simply to break that contract without any notice or legal recompense to the other business?

[Greg Smith]

I understand the point that the hon. Gentleman makes. He is right that the businesses in the situation he describes would have to go through a legal process, probably involving very expensive contract lawyers, to alter such a contract. I do not think it is helpful to directly compare those supply chain contracts with employment contracts, because on one level we are dealing with human beings and on the other we are dealing with the flow of parts, services or whatever.

The hon. Gentleman is also right that a change in terms and conditions can sometimes be very positive for the employee. Perhaps it involves fewer hours for more money—that sometimes happens—or longer holidays. Of course, if something better is being offered, employees should have the flexibility to accept that, having exercised due diligence and looked it over properly—dotted the i’s, crossed the t’s and all that. What I am trying to get at is where the business model, and the day-to-day operation of the job, has fundamentally changed, through robotics or whatever.

Fireworks: Sale and Use

Alex McIntyre Excerpts

Monday 9th December 2024 Westminster Hall

[Alex McIntyre (Gloucester) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I thank the hon. Member for Keighley and Ilkley (Robbie Moore) for presenting this important debate on behalf of the Petitions Committee. I also thank the 285 Gloucester residents who signed the petitions, and the scores more who have emailed me about the issue. Fireworks are a hallmark of celebrations in my constituency and around the world. From Eid, Chinese new year and Diwali, to bonfire night and new year’s eve, for many they symbolise moments of unity, happiness and cultural expression. However, I understand that for many others, the sight and sound of fireworks is not so warmly received.

Like many Members in the Chamber, I have received dozens of emails from constituents expressing their concerns about the use of fireworks. Some have written to me to highlight the risks they pose to the wellbeing and safety of pets and wild animals. Others have expressed concern about the effects that they may have on those with PTSD or respiratory conditions, and on people with autism and Down’s syndrome, who may be more sensitive to loud noises. Additionally, many of my constituents have raised concerns regarding the use of fireworks to commit crime. I share all of those concerns, and I am not alone in that, as demonstrated by today’s debate.

From the several public petitions that I have seen, I know that the concerns that I hear in Gloucester are echoed across the country. The issue is not confined to my constituency, but resonates nationwide. Sadly, in Gloucester there have been a number of crimes involving the use of fireworks, including fireworks being posted through letterboxes and set off in people’s front gardens. That is incredibly dangerous, as the cases of those present in the Public Gallery show us. We need to tackle that surge in antisocial behaviour, and I am pleased that the Government have set out their commitment to tackle crime and antisocial behaviour in all our communities.

I am also concerned about the pressure we place on our emergency services. Last year on bonfire night weekend, people sought advice on burn injuries from the NHS every 21 seconds. The fire service is under immense pressure too, responding to frequent call-outs regarding fireworks. That is particularly concerning, as we lost almost a fifth of the fire service workforce under the last Government, further exacerbating the strain.

I am saddened to hear of the effects fireworks have on our wildlife and pets, which suffer as a result. As a father of a rather sleepless one-year-old, I also highlight the struggle of parents with young children who just want a few peaceful hours of sleep. We must find a balance one that allows people to enjoy fireworks while ensuring that their enjoyment does not negatively impact others.

We need thoughtful and considerate legislation and we as individuals must be mindful of the impact of our actions on those around us. It is clear from the debate that the current regulations and enforcement do not work. I am particularly persuaded by the articulate arguments made by hon. Members from across the House for lowering the decibel limit to 90 dB, in accordance with international comparators.

I am pleased that the Government will work with businesses and charities to inform any future fireworks policy. We must ensure that legislation on the use and sale of fireworks keeps the public safe, prevents the misuse of fireworks and protects our pets and wildlife.

Employment Rights Bill (Seventh sitting)

Alex McIntyre Excerpts

Committee stage
Thursday 5th December 2024 Public Bill Committees

[Greg Smith]

The hon. Gentleman makes a perfectly sensible point. We will come on to that issue shortly. The central point that I ask the Government to reflect on, before any consultation—post-legislation or during the passage of legislation—goes live, is that it is reasonable that those who are expected to put in meaningful and thoughtful contributions to that consultation on how the measures will affect them, will be applied in the real world and will need to be complied with, have as much notice as possible, so that they can put their thinking caps on and, if necessary, bring in professional advice where that is practicable or affordable.

In that way, when the Minister ultimately has the opportunity to read through every single consultation response with, I am sure, great attention to detail, before coming to a recommendation and drafting the necessary statutory instrument to bring about the exact regulations, the detail will be there. This should not be a rush job, but something to which the people out there in our country who actually run businesses, risk their capital and fundamentally create jobs and employ people are able to give as much thought as possible, so that the Government can come to a proper conclusion.

While I am glad that remuneration will be capped, I am still worried that the provisions in the Bill are not necessarily as proportionate as they could be for businesses. Sometimes an employer will have to cancel or curtail shifts through no fault of their own. We went through that issue at length on Tuesday, on a different point. I will not repeat the arguments now, other than to remind the Committee of force majeure. Events outside any employer’s control can happen; that is a reality of life.

It seems unfair in those instances that employers should have to bear the costs of not being able to complete the work on time, as well as having to remunerate employees for hours not worked. I stress, as I said on Tuesday, that that will be a minority of cases. It will be the exception, not the norm, but it is vital, when looking at this amendment and clause that there is an acceptance that those rare cases can and unfortunately will happen in the real world.

[Alex McIntyre (Gloucester) (Lab)]

I refer the Committee to my membership of the GMB and Community unions. We had a lot of back and forth on this point on Tuesday. I want to clarify what the shadow Minister said on Tuesday. In the extreme circumstances where employers are not able to continue with their work, the shadow Minister made the point that it was not fair on the employer to bear the cost. He also said that it was not necessarily fair for the employee to bear the cost, and that the cost should be shared. If the cost is not being borne by the employer, who does the shadow Minister expect to share that cost, other than it being placed solely on the employee?

[Greg Smith]

I do not want to repeat the whole debate that we had the other day as we might not hit the clause that the hon. Gentleman’s colleagues are trying to get to today. I fully accept his point that the situation is not fair on the employee, but equally it is not fair on the employer, given that those circumstances, events or eventualities are quite literally outside anybody’s control.

I urge the hon. Gentleman and his Front-Bench colleagues to reflect on how to put in place a better and more proportionate system to share the burden. I accept that nobody wants or plans for those eventualities. I refuse to believe that any employer ever wants to have to turn somebody away at the door as they turn up for work. They actually want to make those products, provide those services, ensure people have a good night out or whatever it might be. That is the core of their business. That is how they make money. That is how they grow and create more jobs in the first place. I refuse to believe that any business wants to turn someone away and say, “Sorry, that shift isn’t available,” or, “Only half that shift is available today.”

Employment Rights Bill (Eighth sitting)

Alex McIntyre Excerpts

Committee stage
Thursday 5th December 2024 Public Bill Committees

[Alex McIntyre (Gloucester) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I want to refer to a couple of the comments made by my hon. Friend the Member for Birmingham Northfield. I appreciate that this is a probing amendment and that, as the MP for Gloucester, I perhaps have a vested interest, given that a number of my constituents work over the constituency border in Cheltenham.

Flexible working will not be available in every role, for some of the reasons listed in the Bill, but for many roles there would be the ability to start half an hour later and finish half an hour earlier, perhaps, or to work different hours over the course of a week. Those are results of flexible working requests. I think that, sometimes, there is a haste from the Conservative party to equate flexible working with working from home—and to put little notes on people’s desks saying that they are not working hard enough. It is really important that we look at flexible working as a whole.

In my experience as an employment solicitor, the Bill is welcome, because the “reasonable” test is important in making sure that we are encouraging employers to think properly about flexible working requests. This measure is also very business friendly, because there is a long list of exemptions that will allow an employer to say, “Because of x, y and z, flexible working is not appropriate.” There is no requirement to accept a request; there is only a requirement to think about it, and to think about those exemptions reasonably. In the context of what we are trying to do, and that balancing act between rights for employees and rights for businesses, I think this lands in about the right place.

The shadow Minister is right that this change will not apply evenly in every sector; it cannot in every business, because of the reasons listed in the exemptions. Each business will have different requirements regarding customer demands, performance and quality. It would be quite difficult for a dentist to work from home, I suggest, but it might be quite easy for them to come in at half-past 9 two days a week. Again, that is a flexible working request. The reasonableness test deals with the purpose of the shadow Minister’s amendment, which is to look at how different sectors might approach the change rather than having a one-size-fits-all approach.

[Jon Pearce (High Peak) (Lab)]

It is a pleasure to serve under your chairship, Sir Christopher. I refer Members to my declaration in the Register of Members’ Financial Interests, and my membership of GMB.

I will apologise now if I have an out-of-date amendment paper; the one that I have is dated Tuesday 3 December. Very early on in our discussions, we had the strange definition of a small or medium-sized businesses as one employing 500 people or more. I just want to check whether the proposed amendment is indeed accurate, because it refers to

“the test of reasonableness in subsection (2)(b)(ii)”.

I do not think that any such subsection exists—I think it should be (3)(b)(ii)—but I appreciate that that might be my misunderstanding.

--- Later in debate ---

As these are probing amendments, we will not push them to a vote, but the Opposition’s message is to ensure that everything is thought through, so that the Bill does not create some huge problems down the line. I do not believe that this is a ridiculous amendment, but I will bring up a ridiculous example. Imagine one of the authors who try to emulate the writings of Ian Fleming having to write in future about M asking where Bond is, and Moneypenny coming into the room and saying, “I’m sorry M—he’s flexibly working today. The nuclear warhead has reached its destination.” I appreciate that is an absurd example, but I make it to properly push—

[Alex McIntyre]

Will the shadow Minister give way on that point?

[Greg Smith]

I will finish the line, and then I will. I make that point just to highlight that there are sometimes circumstances in which the flexibilities that the Minister spoke of may not fully apply. I am sure a witticism is coming.

[Alex McIntyre]

Sadly, I am not very funny. Would M’s HR adviser not say, “That might have a detrimental impact on your performance, Mr Bond”? That flexible working request could therefore be reasonably denied.

[Justin Madders]

I am sure that was in “GoldenEye”!

--- Later in debate ---

[Greg Smith]

I will take on the chin the hon. Gentleman’s point about the 2011 dataset, which was published under the coalition Government, led by my noble friend Lord Cameron. The current Government is seeking to make this legislation, however, so the onus is on them—right here, right now—to provide the datasets, evidence, proper analysis and impact assessments for the legislation that they are putting before the House of Commons and, later, the House of Lords in this Session of this Parliament. I hope the hon. Gentleman accepts the good will with which that comment is made—it is not a political attack. It is the duty of any Government at any time, as they seek to legislate on any matter, to provide the impact assessments, the real data and the real-world evidence of why it is necessary to put that legislation in place.

As I said earlier, it is simply a case of asking the Government to do their homework properly, and to provide, not just to Parliament but to businesses and employees up and down the land, the basis for which they are seeking to change our statute book.

[Alex McIntyre]

I will return briefly to a couple of the shadow Minister’s comments. I take some quantum of solace in the fact that he now seems to be accepting the principle of consultation. Over the past couple of weeks, we have often heard that he would prefer there to be certainty for business in some of the provisions, and now there is some certainty.

[Greg Smith]

I understand the hon. Gentleman’s point, but my argument throughout our debates on the amendments has been that it is normal practice to consult first, legislate second, but in many parts of the Bill the practice is to legislate first, consult second. That, I gently suggest to him, is probably the wrong way round.

[Alex McIntyre]

The “cake and eat it” argument is the point I was trying to make. I advised on flexible working requests regularly when in private practice, where individuals and, in particular, employers were asking what their rights were in respect of a request.

The hon. Gentleman raised two points, the first of which was about costs. Again, I point to the exemptions. The burden of additional costs is one of the exemptions by which an employer can say that it is not reasonable to accept a flexible working request. The balance between having rights for employees and making sure that they are not too much of a burden on business is important. The burden of additional costs is already explicitly covered in the legislation.

Secondly, in relation to tribunals, one of the issues with the current system is the lack of explanation provided. Employees often believe the worst, even if that is not always the case. They might make their request, with valid reasons, and if their employer tells them a flat no, with no further explanation, they often believe the worst and bring a tribunal claim.

Providing that explanation at the beginning requires the employer to think about the request. Not every employer is an excellent, flexible employer; some employers think that by offering flexible working, they will somehow lose productivity, whereas lots of studies have shown the opposite. Through that provision, employers will think about the request, engage with the process and the exemptions, think about what that means for their business, and provide a reasoned explanation.

That will not take as long as we might think, because there are only eight exemptions and people know their business very well. When they give that written explanation, it can be relatively short. It does not have to be “War and Peace”—I should have mentioned another James Bond novel—because it is just to give some background. We will then have an explanation that can be used in a tribunal. That will really assist tribunals in dealing with these cases, because there will be a written explanation of why the decision has been taken.

There are loads of cases in which people bring claims of discrimination because their flexible working requests have been rejected. Those can take up lots of time, when there has been just a misunderstanding between the employer and the employee. By introducing the requirement to provide an explanation, and for the employer to think through the reasonableness of it, there might hopefully be fewer claims in the employment tribunal.

[Dame Nia Griffith]

Let me make a couple of quick points to sum up. The Opposition are trying to say that most businesses already do this, but this is not about the principle of introducing flexible working; it is about making the process straightforward, clear and consistent across businesses. As my hon. Friend the Member for Gloucester said, by ensuring that clarity, it may well reduce the number of cases that get taken to tribunal.

If most businesses are already doing this, why do we want to legislate? Well, we do not want those businesses to be penalised for doing the right thing. We want everybody to be offered the opportunity of flexible working within the reasonableness of their working situation, and with the opportunity for employers to refuse on the eight specified grounds. That will spread best practice not only in it being offered in all places of employment, but in the way that any request for flexible working is dealt with. That is an explanation of the context.

As we have clearly said, our impact assessment has provided an initial analysis of the impacts that can follow, but we will update and define them as we further develop the policy. In fact, part of the clause is specifically about the Secretary of State having the power to provide further detail. We are confident that as most businesses already participate in this process, make the appropriate responses to their employees and understand the system, it will be not a huge new burden to them in any way. I remind Committee members yet again that dealing appropriately with requests for flexible working can considerably help recruitment and retention for businesses. On that note, we reject the amendments tabled by the Opposition.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Clause 8

Statutory sick pay: removal of waiting period

Question proposed, That the clause stand part of the Bill.

Employment Rights Bill (Fifth sitting)

Alex McIntyre Excerpts

Committee stage
Tuesday 3rd December 2024 Public Bill Committees

[Greg Smith]

I understand the point the hon. Gentleman is trying to make, but the Opposition’s concern is that the burdens that the Bill’s provisions—including this one—place on many businesses will actually result in fewer jobs in the overall labour market in the United Kingdom. I cannot for one second accept that anybody in this House wants there to be fewer jobs in the economy as a whole. If small businesses are placed under the burdens that are addressed by the amendments, and do not make additional hires or take the risk on individuals for jobs, we will be in a very bad place. If small businesses—the backbone of our economy—are not hiring, not growing and not going on to become medium-sized and large businesses, the people who pay for that are workers and people looking for a job or to progress their careers.

[Alex McIntyre (Gloucester) (Lab)]

I refer the Committee to my membership of GMB and Community, and to my former membership of the Employment Lawyers Association.

I am somewhat confused by the shadow Minister’s comments. On the one hand, he says that every business in his constituency offers flexible working already and therefore there is no requirement for this legislation; on the other hand, he says it is such a burden to businesses that it will stop them employing people. If everyone is doing it already and we are still employing people, what is the problem?

[Greg Smith]

I did not say that every business is offering flexible working. I said that, having visited businesses in my constituency, I am yet to find a problem around any business’s offering flexible working, or any employee or constituent with a complaint about an inability to get flexible working—quite the opposite, in fact.

If we consider the cumulative impact of all the measures in the Bill, they will certainly place a burden on business. The Opposition are trying to ensure that we take only those measures that will work—only those that will have a direct positive impact and will not be a burden on the HR department. Well, most small businesses do not have an HR department; often, it is the director or another member of the team who has to take on that additional job and understand the burden of regulation, on top of whatever their main contract has them doing. If we get rid of the measures that are simply not necessary, that will mean less of a burden on businesses, notwithstanding the point, which the hon. Member for Gloucester rightly highlighted, that the majority of businesses that I speak to do not have a problem offering flexible working—perhaps some businesses in other Members’ constituencies do.

The point of going through the Bill line by line in Committee is to metaphorically kick the tyres to ensure that its provisions are not a burden on business and will not have unintended consequences. As I said earlier, I cannot for one second believe that anybody in this House wants to see fewer jobs in the overall economy.

--- Later in debate ---

[Greg Smith]

My hon. Friend is right. The cumulative impact of other measures should be considered in the round. I might gently push back by saying that some of those matters are perhaps not fully in scope of the amendments that we are discussing. However, he is absolutely right that the Bill has to be considered in the light of other factors relating to other decisions in Government, be that fiscal events or other legislation. That goes to the nub of this set of amendments. This is about whether some of the measures are proportionate given the Government’s original intent in the Bill, and whether some of the original intent in the Bill, from which these amendments seek to exclude SMEs, will be the metaphorical straw that breaks the camel’s back.

Amendment 140 excludes employers with fewer than 500 employees from the Bill’s provisions on dismissal for failing to agree a variation of contact—this is also part of our set of amendments. We have questions about the wisdom of clause 22, or at least we seek reassurance from the Minister that it will not prevent employers from improving working conditions or working practices. I would like to remove yet another burden on small and medium-sized business unless and until the Government can prove that that measure is needed and proportionate, and that, critically, the benefits will outweigh the costs.

[Alex McIntyre]

My experience in business goes way back. My parents ran a small business and, although I would not say I was a worker at it, I helped out from the age of nine. I got my first job at a small business when I was 12, and I worked in the hospitality trade throughout my school and university years, all at small and medium-sized enterprises. I spoke last week about the fact that I was on a zero-hours contract for the most part while I was there. I then became an employment lawyer advising businesses, from start-ups to FTSE 100 companies and global conglomerates. So I have some experience in these matters, and I am very grateful to be on the Committee.

Let me go back to my experience on a zero-hours contract. We are talking about amendments that would take out SMEs from many of these provisions, and I want to draw on two of my experiences and say why I think this issue is important. I mentioned the first last week: when I was on a zero-hours contract at the hotel that I worked at in my later teens, everybody in that business was on a zero-hours contract. As a 15-year-old, I was quite happy to be on a zero-hours contract. I had to balance it with playing rugby and my studies, but in the summer I could flex up and work longer hours. However, for many of my colleagues, that was their full-time job; it was the job that paid their rent or mortgage—if they had been lucky enough to buy a house—looked after their kids and provided the heating each winter. But when it came to it, it was open to abuse, and the manager I had would vary hours based not on demand, but on whether she liked the individual or not.

I remember vividly that one week a colleague refused—quite rightly, I would say—to take the manager’s personal shopping up to her fourth-floor flat, because he was really busy behind the bar; he was the only barman on shift. He usually worked between 50 and 60 hours a week; for the next month, he was given five hours a week. He had two children, and rent to pay. I just do not agree with the amendment suggesting that that is fine and that that abuse of someone’s rights could continue indefinitely.

[Mr Bedford]

The example the hon. Gentleman has just given would be covered anyway by employment law. If an individual is being discriminated against, they could take that to a tribunal under current employment law. The amendment would not in any way dilute the rights that currently exist in that respect.

[Alex McIntyre]

Well, the individual would be able to raise a grievance, but discrimination requires it to be related to a protected characteristic, and there is no protected characteristic saying that just because someone disagrees with a manager, he would be able to bring a claim under the Equality Act 2010 for discrimination. He might be able to raise a grievance about that, but that requires an employer to have a fair grievance process and to actually follow through. Is that individual, who is already on very low pay and struggling to pay his rent and feed his kids, going to take that grievance through a tribunal system that the previous Government allowed to really suffer? Eighteen to 24 months is the standard waiting time to get any form of justice, so I do not think it is appropriate to say that he would be able just to go to a tribunal. What he really needed was guaranteed hours and small businesses being prevented from abusing people by saying that they can continue to work 60 hours but not offering them a regular-hours contract.

My second point is on sexual harassment or harassment by third parties. When I was 15 years old, I worked at a Christmas party for midwives at that same hotel, and during that party I was sexually assaulted in the workplace. I was groped by the midwives and told that because I was only 15, they would be able to teach me a thing or two. When I approached my manager about it, he said I should enjoy that kind of attention because I was a man. I am really conscious that female colleagues suffered way worse than I did. Just because businesses are smaller, that does not mean that the impact on victims and people working there is any less.

However, the wording of the Bill is “all reasonable steps”, and the “reasonable” test is taken into account when tribunals consider such matters and what reasonable steps need to be taken by businesses. The size of a business is often something that tribunals will take into account when they look at what “all reasonable steps” would mean. In my example, there were reasonable steps that could have been taken, but I was told that I had to get back in there and carry on working with that party. Excluding small businesses would prevent them from having the duty to look after their employees when they are suffering harassment in the workplace.

To come back to the point made by the hon. Member for Mid Leicestershire about competing evenly, my hon. Friend the Member for Birmingham Northfield has already talked about some of the perverse outcomes that the amendment might lead to. Unscrupulous employers who want to get around the legislation in whatever way they can might end up setting up umbrella companies in order to do that if this amendment were passed. A two-tier employment system would be a barrier to growth for companies, because it would say, “If you grow your company and continue to do well, you are going to put additional regulation on to the company.” There would be a perverse incentive for businesses to grow to 499 employees and stop there.

[Sir Ashley Fox (Bridgwater) (Con)]

On the hon. Gentleman’s point about employers wanting to set up separate entities to keep below a limit, he will be aware that in the Budget the Chancellor increased the employment allowance, to protect small businesses from her otherwise devastating increase in national insurance charges, and there is no indication that the Exchequer is incapable of managing that. Equally, with small business rate relief, there is no indication that local councils cannot distinguish between employers that are setting up different business and those that are taking advantage of that. Why does the hon. Gentleman think that employers would be able to exploit what he describes as a loophole—but what we would say is there to protect small businesses—and yet the Government are perfectly happy to have similar allowances for national insurance and through rate relief?

[Alex McIntyre]

If we are looking at the numbers, I am glad that somebody on the Opposition Benches is finally acknowledging that we have massively increased employment allowance, taking many small businesses out of paying national insurance contributions altogether. It is nice to finally have some recognition of some of the good stuff this Government are doing for small businesses.

To return to the point, though, there is a big difference between having four employees, which would allow somebody to employ people on the national living wage, and having 500 employees. It would be much easier for a large business to exploit the kind of loopholes that are being suggested by reorganising itself into blocks of 499 employees than it would be for a business of a couple of thousand employees to be split into organisations of four employees or fewer, so I think that that is what is much more likely to happen.

I will not name names, but I have been in the trade for a long time, and whenever there is employment legislation, businesses will be considering how best to deal with it, and some are more aggressive than others. In this case, aggressive employers would potentially exploit that loophole, as my hon. Friend the Member for Birmingham Northfield suggested. We are creating a level playing field, which is an important part of this Bill. We heard in evidence last week that many employers are already doing so many of the good things in this Bill. This is a levelling of the playing field, to stop people undercutting good employers with what are, quite frankly, shoddy employment practices.

To sum up, I fully support the Bill, and I do not support the amendment. We should not create a two-tier employment system, where instances such as those that I and my colleagues suffered, like others working on zero-hours contracts in small and medium-sized enterprises, are allowed to go unchecked. We should continue to create a level playing field, as the Minister has suggested. It is important that we encourage all small and medium-sized enterprises to be good employers because, as the hon. Member for Chippenham said, staff retention in small and medium-sized enterprise is difficult. Being good employers—offering flexible working and ensuring that people have regular hours, if that is what they are working—can only benefit small and medium-sized enterprises, as they grow and expand their businesses.

[Sarah Gibson]

As I have stated, I am concerned for small businesses and have spoken to many across my constituency of Chippenham that are extremely concerned about the cumulative effects of these measures on businesses without an HR department and about the huge cost they will impose. However, although I welcome the amendment, I am seriously concerned that if we create a system in which the rights of those who work for small businesses are curtailed, that will affect their ability to take on extra staff.

I feel as though I could have supported the amendment if it had been drafted for seriously small businesses, rather than SMEs of up to 500 employees. I struggle to think of a firm in my constituency with that many employees that does not have an HR department, because they would be struggling as a single employer—I used to struggle as the HR department of my own business with 15 employees. If the number of employees in the amendment could be brought down to around 20, it would be much more acceptable to those kinds of small businesses, but as it is, I would find it difficult to support.

--- Later in debate ---

[Sir Ashley Fox]

I want to talk about the reference period in relation to the hospitality and tourism industry, which is particularly important to my constituency of Bridgwater and to many other constituencies in the south-west of England. Clearly a lot of seasonal workers are employed, and although I would prefer there to be no reference period, the Government have a mandate to introduce one. Any reference period of less than 26 weeks will cause great difficulty for businesses that may start engaging people just before Easter and are looking for employment to end in September or October, according to their business need. The fact that that detail is left to secondary legislation causes concern to those businesses.

[Alex McIntyre]

Does the hon. Member not agree that most businesses in hospitality know their seasons very well? They come every year and they tend to operate on a relatively regular basis—that is how seasons work. As has been highlighted, businesses could use fixed-term contracts to ensure that they have appropriate staffing for the season. Those contracts would end at the appropriate time, negating the need for a longer reference period.

[Sir Ashley Fox]

I am grateful to the hon. Member for making that point, but in Burnham-on-Sea in my constituency there are many very small businesses, with perhaps two or three employees, that take on an extra person or two during the summer season. This summer has been particularly bad because there has been an awful lot of rain. Business needs change. The danger is that if there were a short reference period and we were fortunate enough to have a very hot and sunny April, May and June but a very wet July, August and September, businesses would be employing more staff because they had to, rather than because it was justified by the business conditions.

This is just not necessary. It is Government regulation for the sake of it, and it will make life more difficult for small business owners. Every time Government Members have risen to speak, they have declared that they are a member of one union or another, but very few have actually run a small business. I did run a small business. I was self-employed before I came to this place. It is challenging, because you are on your own: you take the decision whether to employ someone or not. Dare I say it, there are too few Government Members who have set up small businesses and who have actually employed people and experienced that challenge. That is part of why they do not understand how difficult this regulation would make life for some very small businesses.

Employment Rights Bill (Sixth sitting)

Alex McIntyre Excerpts

Committee stage
Tuesday 3rd December 2024 Public Bill Committees

[Greg Smith]

Amendment 12 states that it is to be presumed by tribunals

“that it was not reasonable for the worker’s contract to have been entered into as a limited-term contract”

if the work done

“was of the same or a similar nature”

as the work undertaken by other employees, with the following conditions:

“(i) where the period in question is the relevant reference period, during that period;

(ii) where the period in question is the offer period, during that period or the relevant reference period;

(iii) where the period in question is the response period, during that period, the relevant reference period or the offer period.”

I have stressed the wording of the amendment because I would be grateful if the Minister could clarify what protection the clause is designed to give employees. The vast majority of businesses reading that could easily be forgiven for getting slightly confused. Why is that wording necessary, particularly on this measure, to create the protections that I think I understand the Government want to achieve? The amendment might result in confusion from most businesses.

[Alex McIntyre (Gloucester) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I am grateful to the Minister for introducing this amendment. It makes a lot of sense to make sure that we avoid the opportunity for unscrupulous employers to try to get around the legislation by entering into a series of short-term/fixed-term contracts so that they do not have to make anybody an offer.

We spoke at length this morning about making sure that responsible employers are encouraged, but ensuring that the loopholes are closed is equally important. Although Government Members are seeking to comment on the number of amendments, this is an example where the amendments are excellent and very well thought through. It makes an awful lot of sense to take into account the responses from experts and the consultation responses that the Department is receiving to make sure that the legislation works not only for businesses, but for employers. The amendment is very sensible, and I encourage everyone to vote in favour of it.

--- Later in debate ---

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I would like the Minister to deal with these points when he concludes, because I am concerned about the effect of an amendment that is as complicated as Government amendment 12 is on the small businesses that make up the bulk of business in my constituency. They will not have the benefit of an employment lawyer, such as the hon. Member for Gloucester, and they will not have an HR department. I ask the Minister to glance at the wording of the amendment and imagine that you do not spend your day job in a solicitor’s office, or a trade union office, or perhaps in the Palace of Westminster. You are wondering whether to employ someone and then you read that

“it is to be presumed, unless the contrary is shown, that it was not reasonable for the worker’s contract to have been entered into as a limited-term contract if the work done by the qualifying worker under the worker’s contract was of the same or a similar nature as the work done under another worker’s contract under which the qualifying worker worked for the employer—

(i) where the period in question is the relevant reference period, during that period;

(ii) where the period in question is the offer period, during that period or the relevant reference period;

(iii) where the period in question is the response period, during that period, the relevant reference period or the offer period.”

There are all sorts of technical legal terms used. The point is that you want this to apply to all small businesses, no matter how small—whether they have one, or two, or three employees. This point applies generally to the Bill. When the assessment of the Bill put the costs at £5 billion, the majority of which would fall on small businesses, I think it had exactly this sort of legal gobbledegook in mind. Very small businesses are going to have to deal with this, and they will probably not be able to understand it.

[Alex McIntyre]

I am grateful to the hon. Gentleman for touting out my services as a legal adviser, but I have committed to not taking any second jobs, and certainly none that involves legal services in the Cayman Islands. What I will say is that all of us here, as individuals, are governed by laws in our day-to-day lives. I doubt that many Members will be familiar with, on a detailed basis, the provisions of the Consumer Rights Act 2015, for example, but there are guidance documents and the Money Saving Expert is fantastic. If you ever have an issue with one of your financial products, there is always a guide that can be provided. I am sure that alongside the Bill there will be updated guidance—from ACAS, for example. Does the hon. Member for Bridgwater agree that although small businesses may not be able to take legal advice, there will be guidance documents? They are not expected to read the whole Bill line by line. There will be guidance, on websites such as that of ACAS, that is readily available to all employers, in which they will be able to get an explanation of some of these provisions.

[The Chair]

Order. There are just two points I wish to make, as lightly as I can. First, if hon. Members refer to “you”, they are referring to me. We use the normal debating protocols that apply in the Chamber. Secondly, if hon. Members wish to do so and catch my eye, they can speak more than once in a debate, so interventions should be kept as precise and short as possible.

--- Later in debate ---

[Greg Smith]

Quite a list of amendments and edits to the 100-day-old Bill.

I will start where the Minister left off. The amendments extend the time for employees to bring a case to the employment tribunal from three to six months if they believe their employer has breached the duties imposed by the Bill. That includes the provisions around zero-hours contracts and the right to reasonable notice. In that light, a reasonable question would be: why were the provisions not included in the Bill on introduction? What changed? Was that an oversight, or something never originally intended to be included in the Bill? What is the rationale? Furthermore, what is the rationale for increasing the period from three to six months? That is not a modest change—not a matter of a couple of days, a fortnight or something that most people might deem reasonable; that is a substantial shift. It is only right and proper that the Minister, when he responds, gives a full explanation for such a huge change from the original provisions in the Bill.

Data from His Majesty’s Courts and Tribunals Service shows the backlog in employment tribunals, with outstanding cases increasing 18% on last year. To add in additional burdens will add to the overall burden on the service, so as part of the consideration of the Bill and of the amendments it is crucial to understand what the Government will do not just to clear that backlog, but to create the capacity in the service to deal with the increase in demand that the Bill will undoubtedly bring about. I shall be grateful if the Minister will comment on his discussions with the Ministry of Justice to deliver on that.

Businesses, especially small and medium-sized enterprises, rely on the tribunals service being able to process claims quickly so, if the Government are to bring about such a huge and significant change to demand on the service, they should put in place the relevant steps. Have the Government undertaken any assessment of the impact that such an extension will have on employment tribunals, or the likely number of claims? It would help to know what, under the amendments, the Government’s assumptions are—will the level of increase that the Opposition fear come about?

Is there a model—I fully accept that such models are rarely 100% accurate, but they give the country and the service planners an important ballpark figure to be working around, going into the future—and, off the back of that, what is the impact on businesses, particularly small and medium-sized enterprises? If there is no such modelling—if there is no ballpark figure that the Government are working to—why not?

My final question on this group of amendments is: why does the Minister believe that it is proportionate or sensible to double the window in which an employee can bring a claim? Surely the three-month window is sufficient. As I said, the Opposition would like to understand why that doubling is so necessary.

[Alex McIntyre]

Apologies, Mr Stringer, if I inadvertently used “you” in my previous intervention. That was a mistake; I apologise.

I am grateful to the Minister for tabling these amendments. This is an important set of suggestions to extend time limits for bringing lots of tribunal claims. In my previous professional experience, the change will benefit businesses up and down the country, because one of the biggest issues for anyone involved in advising employers on employment law is the rush to bring employment tribunal proceedings, owing to the three-month time limit. It often stops negotiations from progressing fully, preventing an out-of-court agreement being reached at an early stage. In a commercial setting, most businesses are given six years to bring claims under contract against other businesses. It is only really in employment law that we have such a narrow window for people to bring their claims.

I am interested in the shadow Minister’s comments on employment tribunals—they are broken, but the responsibility for breaking the employment tribunals sits firmly on Opposition Members. We had years of under-investment in our courts and tribunals, and we have really long backlogs. The issue there for employers is that, given the actions of the previous Government, they are spending far too much money on people like me, as such proceedings take a significant amount of time.

[Greg Smith]

I understand why, in our combative political system, the hon. Gentleman wants to bring up the previous Government’s record. I gently suggest that the covid pandemic had a big impact on all court backlogs, be it tribunals or otherwise, and I ask him to reflect on the fact that the Bill will add to the pressure on the tribunal service. How much does he think it will add? Given that the Labour party is in government and in charge, rather than just pointing the finger at the previous Government, can he tell us what will materially happen to increase capacity in the tribunal service?

[Alex McIntyre]

The Committee received a submission from Lewis Silkin, a leading legal expert in the field of employment law. It says that some of the Government’s proposals will lead to a reduction in claims, and certainly in complex claims such as those that many employees with less than two years’ service may make under the Equality Act 2010 because they do not qualify for unfair dismissal rights.

The tribunal deals with unfair dismissal claims very quickly. Such claims tend to receive one, two or three days of consideration by a tribunal, at the most, whereas Equality Act claims are often listed for longer than a week. Giving people unfair dismissal rights from day one will reduce the number of people who have to bring Equality Act or whistleblowing claims to try to fit their circumstances, and that will mean a reduction in the number of tribunal sitting days.

I will not step on the Minister’s toes when it comes to the Department’s modelling for tribunals, but it is important to remember that as a result of the measure, more people will be able to negotiate and negotiations will be more sensible. Let us think about the anatomy of an employment tribunal claim. Day one starts when something happens to an individual. In the case of being sacked or being discriminated against, that thing is quite traumatic, so in the first week or so, employees are not generally thinking about their legal options. That is one week gone already. Then people have to look at getting legal advice, contact their trade union and look at the options available, all of which take time. By the time they are in a position to think, “Perhaps I will negotiate with the employer,” they are already two months down the line.

If an employee rushes through an employment tribunal claim, the practical implications are that the claim is really complex, the employee does not quite understand their legal claims and an awful lot of tribunal time and business time is spent on trying to clarify things. If we give employees longer, we will find that more claims are sensibly put. Employees will have obtained legal advice or sought support from their trade unions, and they will have had time to negotiate with employers about potential out-of-court settlements.

This is important and, most significantly, it is about access to justice: many people who are timed out of bringing a claim did not even realise that they had one in the first place. Not everyone has immediate access to the knowledge that they have rights at work and that employment tribunals exist, so it is important that we try to level the playing field to ensure that employees have time to bring claims in the best possible way. Not everyone is a lawyer. Individual employees, like many small businesses, do not have the benefit of being able to call up their local employment lawyer to get advice on potential claims. Preparing a claim takes time, and the measure means that employees will be able to make more sensible claims.

It is a very positive change, and I am glad that it is being made. The Law Commission recommended several years ago that the time limit should be extended from three to six months, so this is not an arbitrary time that has been plucked out of nowhere; it is based on Law Commission suggestions, as I understand it. I encourage all hon. Members to vote in favour of the measure.

[Steve Darling]

The hon. Member for Gloucester has ably made the legal case for why this measure is a worthwhile way to support our communities. I am aware, from my 30 years of supporting people in Torbay, that quite often those who are less legally literate face real challenges in getting themselves organised within the three-month period. The measure will support those who would otherwise fall by the wayside. It is a real opportunity for employers to make sure that tribunal applications are appropriate and to support those in greater need in our communities. I truly welcome it, and I am sure that my hon. Friend the Member for Chippenham does as well.

--- Later in debate ---

[Greg Smith]

The amendments are intended to probe the Government’s thinking, as once again it is not clear to us in the Opposition whether they have done the necessary policy work to justify the approach taken in the Bill. The impact assessment clearly shows the administrative cost that the Bill will have in shift and workforce planning, with estimated costs of some staggering £320 million to business. I would like to ask the Minister what evidence there is for the late cancellation or alteration of shifts being a problem of such magnitude that it requires legislation. The Bill does not set out what would be a reasonable notice period for cancelling a shift, and the Government must be clear what they actually intend to do in that respect.

This is a serious point. The burdens that this provision would place on small business would undoubtedly be considerable. Some small businesses cannot always, in every circumstance, guarantee shifts; that is perfectly reasonable. For example, a small furniture-making business with two employees has issues with the supply chain. It cannot provide work until the materials have actually arrived, but the employer in those circumstances could have no idea how long it will take for those materials to materialise—perhaps they are specialist materials or something that has to come from abroad and is delayed in shipping channels. Attacks by Houthis on shipping have caused supply chain problems, for example. In those circumstances, those businesses find themselves in a very sticky place and it would be unreasonable to try to argue that they should absolutely guarantee those shifts to their workers.

[Alex McIntyre]

I understand the hon. Gentleman’s point about uncertainty in certain industries meaning that businesses may not be able to guarantee shifts.

I want to ask two questions. First, cannot certain industries take out insurance policies to account for some of those unforeseen circumstances, particularly when it comes to shipping? Secondly, what about the uncertainty for employees for whom losing a day’s work would mean a deduction of 20% on a five-day working week? If someone told the hon. Gentleman that his salary would be reduced by 20% next week, would he not find that difficult?

[Greg Smith]

I am grateful for the intervention. On the hon. Gentleman’s first point, yes, of course there are insurance policies that many businesses will take out. But the example I just gave is one I can see affecting many businesses in my own constituency; there is a strong furniture making heritage around Prince’s Risborough in Buckinghamshire. There are very small businesses that do an incredible job and make some fantastic furniture, but they are microbusinesses with only a couple of employees and they operate on tight margins. They would not necessarily be able to bake the additional cost of a very expensive insurance policy into their bottom line without significant pressure on their overall business.

I accept that I am not talking about every or possibly the majority of businesses; my point in the amendments is that some circumstances might need a more sympathetic ear. In such cases, it could be argued reasonably and sympathetically that businesses in such a sticky spot would be unable to meet the requirements that the Bill sets out. Supply chain problems are just one example.

I take on board the second point made by the hon. Member for Gloucester, although, as I said in one of the earlier debates, I was self-employed for 15 years before entering this place in 2019. Some clients varied every month their requirements of the services that I provided back then. It was frustrating: nobody wants to be in that position, but it is sometimes a business reality, particularly if the ultimate client is struggling for whatever reason—their supply chain or the fact that they are just not doing very well so they need to throttle service provision up and down. I know that my example is not the same as that of a direct employee, but sometimes business needs a sympathetic ear.

To come back to my earlier point, nobody wants people not to be in a secure employment environment. Sometimes, however, things happen in businesses. Businesses in the automotive sector have shed quite a lot of jobs in recent weeks—look at Stellantis and Ford. Sometimes these things happen. With greater flexibility, perhaps more jobs overall can be saved in the short, medium and long terms, rather than having in every circumstance rigid rules that do not allow businesses that flexibility. I suggest that most people would want jobs to be saved rather than lost through that level of rigidity.

I will continue with my questions to the Minister about these probing amendments. In the furniture company example that I gave, what notice would an employer have to give? What do the Government expect an employer in such circumstances to do? From the hefty number of amendments that the Government have tabled, it looks as though small businesses are going to have to pay those employees for hours not actually worked; and even this will be through no fault whatever of the actual business in question.

Given that the Regulatory Policy Committee has flagged the risk that employers, often in fluctuating demand sectors such as hospitality and retail, may respond by scheduling fewer shifts to avoid penalties for cancellations and the consequential lost output to the economy, I would be grateful for the Minister’s appraisal of whether the provisions on short notice cancellations will support or inhibit the Government’s aim of actually achieving economic growth.

--- Later in debate ---

[Greg Smith]

Oh, here we go. It is multiple choice.

[Alex McIntyre]

I want to drill down on an important point of principle that we should be considering. I do not want this to become a tale of woe from my previous career in hospitality, but I remember being docked three hours’ pay by my boss because there were no customers for those three hours, and there is a similar point of principle here. I understand that there will be times when a restaurant is empty, but someone turning up to work will expect to get paid for that shift. Then there is the cost to the employee of going to work. People might have to secure childcare—I have recently had to look at the cost of childcare and the astronomical prices that are being charged—or pay to travel into work, and they might have paid in advance and be unable to get a refund. Why does the shadow Minister believe that the burden on the employee is less important than the burden on the business?

[Greg Smith]

I can assure the hon. Gentleman that, with three children, I am acutely aware of the cost of childcare. The point I am making, to go back to the one I made earlier to his hon. Friends, is that this is not “all or nothing”. It is about recognising, to refer back to the answer I gave the hon. Member for High Peak, that at certain times, albeit not the majority of cases—in fact, far from the majority of cases—circumstances will arise that are beyond the business’s and the employee’s control, and they will push that business to the very edge. It is not a happy place or a good place to be, but there are some realities here that I think need much more careful reflection.

Employment Rights Bill (Third sitting)

Alex McIntyre Excerpts

Committee stage
Thursday 28th November 2024 Public Bill Committees

[Steve Darling]

Q I will be brief. Tackling harassment is a really important duty and a really important part of this Bill to me. I would welcome your reflections on how the Bill could be strengthened to support employers in this area, which in Torbay hits hard, particularly for young women.

James Lowman: We need absolute clarity on what “reasonable steps” means. Those reasonable steps should not be onerous, given the reality of 15 million people coming to the store every day, whose behaviour we unfortunately cannot control—believe me, if we could, we would. Having clarity and reasonableness in all reasonable steps is the thing to do, and there is an opportunity to build on that; the ShopKind campaign, for example, has been very successful. That is one way we could channel those steps to promote good behaviour among customers.

[Alex McIntyre (Gloucester) (Lab)]

Q My questions are for Claire. I should declare that I am a Co-op member and a member of the Co-operative party. You mention having a positive relationship with your unions. I was an employment lawyer before I came to this place, advising businesses up and down the country. In terms of your view on the provisions around union recognition in this Bill, what do you think the benefits to business are of having a positive relationship with the trade unions that represent your employees?

You also mention an increase in employment tribunal claims. We would hope that most employers would follow the new legislation and therefore avoid those claims, but we both know that there are a small number of bad-faith actors who will always try to find a claim. There are already claims that individuals can bring from day one, but do you think you will see a big increase in bad-faith claims, or do you think they are already there in the system?

Claire Costello: I will take the point about unions first. The strong relationship we have with the union means that we can work in a very collaboratively challenging way together—do not get me wrong; it is not without having difficult conversations, but that is the point. A healthy relationship is like a healthy marriage. You do not just give up on each other. You have those difficult conversations with each other and face into issues and look for solutions. The key for me is looking for solutions. Having very progressive relationships means that you can talk about the direction of the business and what you need to do, and work together on finding solutions. That is what we have found with our relationships. It is not always easy, but it is absolutely the better way of going forward.

In terms of employment tribunals, I think you are right. The reason we think it would go up is that, as with all things, when something becomes more available, by virtue of that fact there will be more people who want to use it. We do not have the absolute evidence to say it, because it is not there today, but the reality will be that if you can take their employer to court, why would you not? There will be more individuals who would wish to do so. We have said before that it is about having clarity and making sure that we understand what reasonable looks like and what the steps are that would be expected. It is more about the onus of extra work that this will bring to each of the areas. As I said, we follow all of the processes very strictly, and we try to make sure that we have a very fair and open conversation with all of our colleagues. The challenge will always be that you cannot make everybody happy all the time.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

Q Ms Costello, you mentioned some statistics on those leaving your organisation quite early on after starting. Could you reflect on the impact on productivity of the day one rights and probationary period?

Claire Costello: Gosh, that is a good question. I do not see why it would make a difference to productivity itself, because at the end of the day you are still bringing someone new into the organisation. I think it would be a longer-term impact. If we did start to see more people raising a grievance because they want to leave or because we have said, “Actually, this is not the right role for you.”, it would be the time perspective that would be drawn on. That is more your line managers, store managers and leaders around the organisation that would draw on to that resource. I kind of see it as more of a longer play in terms of productivity.

Employment Rights Bill (Fourth sitting)

Alex McIntyre Excerpts

Committee stage
Thursday 28th November 2024 Public Bill Committees

[Sarah Gibson]

Q Do you think that the measures in the Bill go anywhere in the way of supporting those with family or carer responsibilities?

Dr Stephenson: Obviously, the provisions about paternity and parental leave as a day one right will benefit those with caring responsibilities. We are pleased to see that there are plans to review carers’ entitlement. The problem with leave for carers is that it is one of the lowest-paid benefits that we have in the UK. Very many carers end up in poverty as a result. We know that there are higher rates of physical and mental health problems among carers because of the poverty, the strains caused by caring and the difficulties of balancing caring work with paid work. Obviously, the flexible work provisions will go a long way to helping people with caring responsibilities, and we think that is a very good thing.

[Alex McIntyre (Gloucester) (Lab)]

Q One of our previous witnesses, Luke Johnson, said that one thing that he thought was bad for business in the Bill was increasing access to paternity leave. Mr Johnson publicly backed the now Leader of the Opposition in her leadership campaign, and she of course said that maternity pay had gone too far. Do you think, in reflecting on your evidence, that those comments belong to the 1950s, and do you see the benefits for both business and workers in protecting mums and dads in the workplace?

Dr Stephenson: Yes. What we know is that at every point at which women’s rights have been improved in the labour market—the Equal Pay Act 1970, the Sex Discrimination Act 1975 and the introduction of the national minimum wage, where women were the majority of those who benefited—there have always been some people who have said, “This will be disastrous for business and will lead us to stop employing women,” but that has not actually happened. The proportion of women in the labour market has gone up, and businesses have benefited from having an increased number of women in the labour market.

I think that what is proposed around paternity and parental leave is relatively minimal, compared with what is available in a number of other European countries, for example. I do not think that this will be disastrous for business. I do think that if we want women to be able to survive and thrive in the labour market, we have to redress the balance where women of child-bearing age are seen as much more of a risk for employers than men are. We know that in the long term we will all benefit from legislation that makes things better for parents and makes it easier for people to have children and to raise a family, because one of the crises that we are facing on a global scale is a falling birth rate. A society where there are not enough young people to work and pay the taxes that will support those of us here today when we are in our old age and to care for us when we are old is a society that is in trouble. Part of doing this is improving rights for parents when they have small children, so that people have the children they want to have, rather than thinking, “We can’t afford to do this.”

[Anneliese Midgley]

Q I want to follow on from the last question. A previous witness today said, “I think, if you introduce lots of rights like paternity rights and flexible working rights from day one, you risk having more problems and that will be a cost.” I just want to go a bit deeper into your assessment of that and whether you think family leave and flexible working should be viewed as a net cost.

Dr Stephenson: I am also an employer, and we have an incredibly flexible working policy. I think flexible work is largely beneficial for employers as well as workers, not least because it enables you to recruit and retain the best staff. At the moment, the labour market is relatively tight, particularly in some parts of the country and in some sectors. We have higher levels of, for example, economic inactivity among women than men and we know that this is something the Government want to do something about.

One of the reasons for economic inactivity among women is caring responsibilities. There are large numbers of women who are not in the labour market who said that they would like to be in paid work if they could find a job that gave them the flexibility they needed. That can only be a benefit to wider society, and ultimately to employers, first, because they can attract the best people and, secondly, because we are more likely to have a strong and growing economy.

Employment Rights Bill (First sitting)

Alex McIntyre Excerpts

Committee stage
Tuesday 26th November 2024 Public Bill Committees

[Laurence Turner (Birmingham Northfield) (Lab)]

I draw people’s attention to my declarations in the Register of Members’ Financial Interests. I am also a member of the Unite and GMB trade unions.

[Alex McIntyre (Gloucester) (Lab)]

I refer to my membership of the GMB and Community unions, and my previous membership of the Employment Lawyers Association.

--- Later in debate ---

[Chris Law (Dundee Central) (SNP)]

Q A number of parts of the legislation have been removed, and some are obviously there for consultation. I wanted to ask you as a panel where you would like to see the Bill go further. What more ambition would you like to see in the Bill? Matthew, maybe we could start with you. I can see you have a bit of a blank stare at the moment.

Matthew Percival: No; it is that I think there is so much in the Bill that it is not a question of where we could do more. What is already on the table is far too much for businesses to be able to engage with in its entirety. And bearing in mind that the Bill is only one aspect of the Government’s agenda, I am already finding that it is very hard for our members to engage on the breadth of topics at the pace at which the Government hope to get engagement. To squeeze anything more in at this time would just mean another issue that cannot be properly considered before we would get to legislation.

That is not say that there cannot be other conversations about other topics at other times. There are aspects of “Make Work Pay” that are not in the Bill because they are being developed; a number of them are being discussed and consulted on outside of this Bill process to support the development of those issues. But I would not be suggesting there is a lack of urgency in any way for any of these things.

The best legislation will come from having a process that stakeholders have the capacity and engagement to contribute to, rather than feeling that they have to choose one or two things to engage with and ignore the rest, which then does not get proper attention.

Jane Gratton: I would agree. The reflection from members is that they are overwhelmed with all the changes that are being put in front of them through the Bill and the wider plan to make work pay. We have said from the outset, “Please take your time with this, consult carefully and make sure we get it right.”

The biggest concern we have with all this is the cost and complexity for SMEs. They are very much behind the Government in wanting to get 80% employment. They want to help tackle economic inactivity and bring people back into work. It is good for all of us to be able to utilise those skills and resources that are under-utilised at the moment, and to help people, and to go further to support people who may be on the margins of the workforce and need additional help. But SMEs cannot do that if they are faced with additional complexity and more restrictions on what they can do, and more risk of getting it wrong. It is the risk of getting it wrong that is the problem. Someone said to me, in respect of the harassment and the inclusion of the word “or” in terms of the reasonable steps that employers have to take, “I want to comply, but as drafted, I don’t know how I could guarantee that I am compliant.” It is that complexity that is the problem. I would say, “Let’s not go further right now; let’s do this at the right pace and bring employers with us.”

Alex Hall-Chen: I would agree with what others have said. I would add that if there are areas where more ambition is needed, it is around how we can make sure that the policies that will be implemented via the Bill are sustainable and can actually be implemented on the ground in business. That partly returns to the point I made earlier around the already creaking tribunal system, but also a recognition of the costs that this will have, particularly for SMEs. That is why, for instance, we have been calling for the reinstatement of the statutory sick pay rebate scheme for SMEs. That is where we would like to see more ambition.

[Alex McIntyre]

Q I used to work on a zero-hours contract in the hospitality industry, as many do. Everyone who worked in that small business was on a zero-hours contract, which led to a situation where colleagues of mine would be on 60 hours one week and then given five hours the following week by the boss, who was doing that for personal reasons, frankly. I was a student at the time—I was growing up and at school—but they had a family and bills to pay. Would you not agree that there does need to be reform in a system that puts all the flexibility in the hands of the employer and none in the hands of the employees? Particularly on zero-hours contract reform, would you not agree that most seasonal businesses understand the seasonality of their business and, with some planning, would be able to put employees on permanent contracts for their baseline business throughout the year, but then use fixed-term contracts for the seasonal part of their year so that they had additional employees for the fixed term of their season?

[The Chair]

If the witnesses can be brief with their answers, we will fit one more question in.

Jane Gratton: A lot of our members do not use zero-hours contracts; they tend to be used in industries where they need that flexibility, and the feedback is that a lot of the workers who want zero-hours contracts want them to fit in with their own studying or caring responsibilities, or whatever it might be. Where the flexibility is mutually beneficial, that is fine and zero-hours contracts should be able to continue, but I agree with you that, if somebody wants a permanent contract, over a suitable reference period they should be allowed to have one.

Matthew Percival: This is one of those issues where we are looking for that landing zone I was describing. It is equally fair to recognise that there are some people who work on zero-hours contracts and do not want to, and others who do and want to continue to work on that basis because it suits them. How do we find a landing zone that supports both? The challenge is that, if our intervention is too blunt and makes it risky to allow people to work more hours than their minimum contract guarantees, it also increases the cost premium for employers of offering it to people who want it, as well as those who do not. Our challenge is how to find that middle ground that achieves both objectives, rather than being forced into a trade-off that potentially means making the experience of work worse for some people at the same time as better for some others. We are interested in more winners and fewer losers, rather than just different winners and different losers.

Alex Hall-Chen: Our research found that the majority of business leaders think zero-hours contracts have an important role to play but should be reformed. Our concern is about the detail rather than the principle.