Employment Rights Bill

Andy McDonald Excerpts

Monday 8th December 2025 Commons Chamber

[Antonia Bance (Tipton and Wednesbury) (Lab)]

I wish to draw attention to my entry in the Register of Members’ Financial Interests, my membership of Unite, and the kind support of ASLEF and the GMB for my election campaign.

This Employment Rights Bill is our promise to working people on its way to being fulfilled, thanks in no small part to my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) and my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). I am glad to see that Ministers have tabled amendments that reflect the constructive negotiations between themselves, unions—including my former employers at the TUC—and business associations, because that is how we roll in the labour movement. We get round a table, we talk, we come to a deal and we move forward. That is the right way to do things when people do not agree.

To be clear, unions negotiated this deal with the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), and it has my support. Today I will not let the best be the enemy of the good. Cutting the qualifying period for unfair dismissal from two years to six months will benefit 6.35 million workers—disproportionately, young workers, ethnic minority workers, and an astonishing 36% of hospitality workers. New figures based on Government data have been produced today to tell us about the impact that the Bill is going to have. Removing the cap on unfair dismissal compensation means that workers will be able to get what they deserve, and bad bosses cannot price in the cost of ignoring the law.

I was also glad to hear my hon. Friend’s clarity about the timing. Our opinions have not changed, and our opinions on the principle have not changed. What is needed now is practicality to ensure that the Bill moves forward—and as we take it forward, Members should be sure to notice who opposes it. I would expect nothing less of the Tories. I would expect the Lib Dems to remember their total opposition to the Trade Union Act 2016, including their opposition to changes in the political fund rules and their opposition—at that time, but apparently no longer—to the undemocratic ballot thresholds that create a higher bar for trade unions than for anyone else in society. I would gently remind their spokesperson, the hon. Member for Richmond Park (Sarah Olney), that the right to request worked so well for flexible working that flexible working does not work—we are having to fix it with this Bill—and yet she proposes to bring in an unworkable right to request, instead of a guaranteed right to a decent hours contract. I will take no lectures from the Greens—what a shame that they are not here—who are letting their peers vote whichever way they want on something as important as this. As for Reform UK, they pretend to be the representatives of working-class people, but vote against their interests at every turn.

I say to those in the other place: it is time to pass this Bill to make work pay and to deliver the rights that were promised in our manifesto and voted for—the rights that millions have waited far too long to see.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests in relation to support from trade unions, of which I am proud.

I agree with my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) that this is a transformational piece of legislation, but it has been weakened. My motion would restore day one rights on unfair dismissal. I tabled a motion to reject the Lords amendments, since when the Government have tabled a motion to adopt a six- month qualification period. I commend the remarks of Lord Collins about issues relating to unfair dismissal. He said:

“These are areas clearly linked to our manifesto commitments, which the Government have an electoral mandate to deliver… we remain committed to delivering unfair dismissal protections… day-one protection from unfair dismissal will not remove the ability of businesses to dismiss people who cannot do their job or pass a probation period, but it will tackle cases of unfair dismissal in which hard-working employees are sacked without good reason.”—[Official Report, House of Lords, 17 November 2025; Vol. 850, c. 561-62.]

That was a very good speech, made just a short time ago.

--- Later in debate ---

[John McDonnell (Hayes and Harlington) (Lab)]

We have worked on this legislation for more than 20 years. I just want to put it on the record for my constituents that I wish to abide by the manifesto commitment of day one rights, and I believe it is breaking a promise not to do so. However, other matters will be consulted on now. Some in the House of Lords may take confidence from the Government’s acceptance of this; can we send them the message that we will not in any way compromise any further on this legislation, that we will dig in, and that, as my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) has said, we will sit for as long as possible, if necessary, to see it through?

[Andy McDonald]

I wholeheartedly agree with my right hon. Friend. I think that this episode highlights, again, flaws in the upper House, but even with the convention of double insistence, the concession goes too far.

[Ian Lavery]

My hon. Friend was one of the authors of the new deal for working people, which insisted that the most critical part of this Employment Rights Bill would be employment rights from day one. Does my hon. Friend agree with me on that point?

[Andy McDonald]

Absolutely, and no decent employer should fear any of these measures. Rogue employers were warned that exploitation and arbitrary dismissal would end, but under the compromise, a bad employer may still dismiss someone without reason or justification.

[Rachael Maskell (York Central) (Lab/Co-op)]

The point that my hon. Friend is making is that this is not about fair dismissal, but about unfair dismissal. Does he agree that the people who will experience the most discrimination will be disabled workers, young workers and ethnic minority workers?

[Andy McDonald]

That is absolutely right, but under this compromise, a bad employer may still dismiss someone without reason or justification. A worker could leave secure employment in good faith, only to be summarily dismissed with no protection or explanation, months into a new role.

[Richard Burgon (Leeds East) (Lab)]

On that point, will my hon. Friend give way?

[Andy McDonald]

No, I will carry on.

This debate has been muddied by talk of probation. We never proposed abolishing probation periods—they are proper and necessary—but no system should allow dismissal without cause for blatantly unfair reasons. At present, workers can still be dismissed without cause nearly two years into a job. Under this compromise, they can be dismissed almost half a year in, when they might have a mortgage to pay and a family to support. This climbdown casts doubt on the Government’s resolve and determination to deliver all the elements of the new deal for working people in full.

Worse still, emboldened opponents of the workers’ rights reforms will return for more. They will undoubtedly attempt to weaken the Bill through secondary legislation. Major businesses are already signalling that they will use consultations to soften, delay or carve out core protections. Their language of “burdens”, “balance” and “flexibility” is not commentary, but a co-ordinated push to reshape the settlement.

I say to my colleagues on the Government Front Bench that they should be bold and take heart. The thing that was missing from this Bill was the status of workers’ rights reforms. If we were to take courage in our hands and deal with that issue, we would resolve matters by collecting uncollected tax and national insurance to the tune of £10 billion per annum, as well as giving people security in employment. Think about the lack of a pull factor for people to go into the black economy.

If this legislation is to deliver a new deal for working people, this House must ensure that the back door is not opened to dismantling it. I urge Ministers, even now, to reconsider, because they are making a profound mistake.

[Kate Dearden]

I only have a few minutes, so I will try to respond as quickly as I can to comments from colleagues across the House. I thank everybody for their reflections today.

To respond to the shadow Minister, I do not recognise the figures he mentions, and I urge hon. Members to reflect carefully on the figures that he mentioned in the debate. I would have thought that he had learned the terrible lessons from his former boss, Liz Truss, and I know my constituents are still paying the price for the impacts of her mini-Budget. He is now quoting the Growth Commission, which has Liz Truss as an adviser. I will leave it at that.

The Tories had 14 years to adapt to the way the world of work has changed, but they did nothing to tackle exploitative zero-hours contracts and barely acknowledged the existence of the gig economy. They saw the impacts of covid on our key workers and the limits of statutory sick pay, and decided to do nothing. The world of work has changed an enormous amount in the last 20 years, and the Conservative party seems to be telling us that the system is working as intended, but I say that it is not. I say it needs change, and it needs this Bill.

I thank my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for her leadership, and for all her work on the Bill and on our wider package for working people. I know she is keen to see the time that employees must wait for fair rights to be shortened, and we share her desire for employees to benefit as soon as possible from this Bill, which is why it is so important that we get it on to the statute book and implemented as soon as possible. I thank her for her remarks and reflections today.

The Government amendments in lieu are a result of dialogue and compromise. Business and unions have preferred to go the extra mile to find solutions, rather than insisting on their own positions and disregarding all other perspectives. I thank my colleagues for their reflections, and I am pleased that we have been able to provide a workable agreement with trade unions and business representatives on the unfair dismissal provisions.