Employment Rights Bill

Andy McDonald Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

If hon. Members allow me to make some progress, I will get to the background and reasoning for the compensation cap.

Continued delay to the Bill will put implementation at risk, which creates insecurity and uncertainty for workers and employers alike. I hope the other place acknowledges the importance of this and will let the Government deliver the Bill, which is backed by an electoral mandate, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) said. We have been engaged in ping-pong for far too long, and further delay is in no one’s best interests. I hope the arguments I make today will address the reservations of those Members of the other place who have been engaging in good faith when they have had genuine concerns about the Bill.

As I told the House last week, I convened a series of constructive conversations on the unfair dismissal provisions, which resulted in a workable agreement with trade unions and business representatives and was the subject of Government amendments made last week. I can assure hon. Members, as someone who was in the room during the negotiations, that the agreement between unions and business representatives was made with good will and in good faith by all sides.

As those representatives of the British Chambers of Commerce, the Chartered Institute of Personal and Development, the Recruitment and Employment Confederation, Small Business Britain, the Federation of Small Businesses and the Confederation of British Industry said in today’s letter to the Secretary of State, the “outcome” of the

“dialogue…represented a significant step forward which will have a positive impact on growth and opportunities.”

The amendments tabled in the other place undermine that agreement, as the compensatory award cap would not be removed and instead the Government would conduct and publish a review of the impact of the cap. The removal of the cap would then require further primary legislation.

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

My hon. Friend has set out how sensible the conversations have been thus far, but does she agree with me that they have been totally frustrated by colleagues down the corridor, who have no regard for the mandate that was returned to the Government at the last general election, and that we should stand firm and make sure that these rights are not further impeded by the unelected House?

[Kate Dearden]

That is why our motion today disagrees with the Lords amendments and insists on our amendments from the previous round of ping-pong, which deliver on the agreement made by trade unions and business representative organisations.