Employment Rights Bill

Debate between Andy McDonald and Kate Dearden

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[Kate Dearden]

The taskforce will bring together different stakeholders so that we can assess the problems within the system and work out the best way to fix them, because at the moment it is not working for employers or workers, who want access to justice and want it quickly.

[Andy McDonald]

Would the Minister agree that the introduction of these rights and protections is absolutely critical, but equally important is the ability to enforce those rights? The Fair Work Agency has the potential to bring that to fruition and ensure that when people are in those circumstances and are the beneficiaries of an award, they will ultimately receive it, because far too many people take on these cases and do not get any redress.

[Kate Dearden]

We met Matthew Taylor, the new chair of the Fair Work Agency, this week to discuss the agency’s progress to ensure that it is up and running at speed. As my hon. Friend rightly points out, enforcement is vital, and it is crucial that workers are aware of their rights. That is why the agency is so transformational in our approach and important for our wider agenda.

To respond to the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney), I urge her to support the Government as we seek to update and upgrade our employment rights to be fit for the 21st century. She mentioned lots around detail. As I mentioned earlier, as is standard for lots of employment rights legislation, we want to consult extensively with businesses, unions and employers to ensure that we get this right, and I am sure that she agrees with that approach.

The hon. Member mentioned turnout thresholds. As I have mentioned, we want to create an industrial relations framework fit for a modern economy and workforce and that works for everybody. We have been clear that we intend to ensure that trade union legislation is proportionate and effective and does not create unnecessary bureaucratic hurdles. We remain committed to removing the 50% turnout threshold for industrial action ballots through the repeal of the Trade Union Act 2016. We support a strong mandate for strike action, but a threshold set in legislation is not the best way to achieve that.

My right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) talked about our proud Labour legacy of the courage and conviction to change lives, and she is a powerful and inspiring demonstration and testament to that. That is why this legislation is so important, reshaping the world of work and delivering security and dignity that people can feel, as she rightly mentioned. We cannot build a strong economy through employment insecurity. The legal loopholes that exist have contributed to the erosion of living standards and allowed a race to the bottom. I am always grateful for her support and thank her for her offer of support as we proceed to Royal Assent and the implementation stages to ensure that everybody across the country can benefit, workers and business alike, and that is why the Bill is pro-worker, pro-business and pro-growth.

My hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) made a powerful speech and responded eloquently to lots of points raised by Opposition Members, and I thank him for that. I reassure him that we remain committed to the repeal of the 50% turnout threshold, and we have been clear that it is our intention to align the removal of thresholds with the establishment of e-balloting as an option for unions. The amendment does not change that commitment. We are working at pace to permit electronic balloting by April 2026. He will be pleased to know that we will shortly launch a consultation on an electronic and workplace balloting code of practice, and I encourage all stakeholders to respond to that consultation.

I thank my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) for her excellent points on the importance and use of political funds. I reiterate my remarks on the 50% threshold and hope that she is reassured by them. She will have heard the Government’s commitment to delivering the Bill in full from the Prime Minister and the Secretary of State at Labour conference. I hope to have reiterated that commitment at the Dispatch Box today.

I thank my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) for all his work on this legislation. It has been a pleasure to work with him over a number of years. He mentioned fair pay agreements, which we are introducing for social care, as he rightly said. We will learn from that process before considering their introduction in other sectors, but I appreciate his passion for this area. I am sure that we will be in touch with him to speak about that progress.

Oral Answers to Questions

Debate between Andy McDonald and Kate Dearden

Thursday 30th October 2025 Commons Chamber

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

10. What assessment he has made of the potential merits of implementing fair pay agreements in a range of business sectors.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I thank my hon. Friend for his long-standing advocacy in this area. We want to work constructively with unions, employers and stakeholders to build on the Employment Rights Bill. Our first priority for a fair pay agreement is adult social care, a large and complex sector with over 19,000 providers and 1.5 million dedicated workers. As such, our priority is ensuring that this process works effectively, which is why I am delighted that the Government have announced a £500 million investment in the first ever fair pay agreement in the social care sector. We will use what we learn to consider where fair pay agreements can offer similar benefits across other sectors.

[Andy McDonald]

I thank the Minister for her response, but with the cost of living pressures continuing, it is clear that delivering increased real incomes and better living standards is our No. 1 priority. Can the Minister say a little more about which further sectors are most ready for fair pay agreements, and what steps the Department is taking to meet the UK’s obligations, as a member of the International Labour Organisation, to extend sectoral collective bargaining as a means to raise pay and improve living standards?

Trade Union Workplace Access

Debate between Andy McDonald and Kate Dearden

Wednesday 22nd October 2025 Westminster Hall

[Kate Dearden]

I agree with my hon. Friend, and enforcement will be really key to that. I encourage him to get involved in the consultation and to share his views on exactly that point.

The Government will review responses to those two consultation questions with interest, as we will the responses to the consultation as a whole. The consultation matters, because it is important that the implementation of the right of access works in practice, not just on paper. That is why the Government have committed to support businesses throughout the implementation of the Bill, and why we will produce a new code of practice for the policy. That will contain practical guidance on how access should take place in practice to help support employers and businesses to manage the process smoothly and effectively. The Government will consult on that code next year before the new right comes into force in October 2026.

My hon. Friend the Member for Middlesbrough and Thornaby East also mentioned enforcement, and I welcome his support for the Fair Work Agency and its newly appointed chair, Matthew Taylor. Strengthening our labour market, compliance and enforcement is absolutely key to this issue, and to our wider Employment Rights Bill.

[Andy McDonald]

Does the Minister agree that there are many good employers across our economy who actively engage and encourage trade union access and recognition? They could be of great service in the process that she describes for supporting other businesses as the regulations are implemented.

[Kate Dearden]

I could not agree more. There is brilliant practice across the country and across workplaces, with good employers and unions working together in the better interests of the workforce. That is why the Employment Rights Bill, which the Government are proud to be implementing, is such a positive step forward for workers, employers and our wider economy.

The new right of access will deliver for everybody, recognising the needs of unions and employers. Building on the good work that already exists across this country, it will deliver on our make work pay commitment to ensure access is responsible and regulated. It will also provide the opportunity for many workers to understand their rights and access trade unions, which are such a vital part of our economy.

I look forward to working closely with my hon. Friend the Member for Middlesbrough and Thornaby East and with all other hon. Members present, on both sides of the House, to deliver this positive change for the British economy. I thank my hon. Friend again for securing the debate, and I thank all other hon. Members who have contributed to it. I look forward to working with them as part of this agenda.

Question put and agreed to.

Employment Rights: Impact on Businesses

Debate between Andy McDonald and Kate Dearden

Tuesday 16th September 2025 Westminster Hall

[Andy McDonald]

If workers are in good, well-paid work, they can go on to lead good, flourishing lives, and they will return that as a dividend through their collaboration with their employer. They will also be in a position to be more active in the economy. We know that when working people have money, they are able to spend it and generate activity in the economy. Does the Minister agree?

[Kate Dearden]

I absolutely agree that all workers will benefit in some way from the Bill and be able to give back to the economy, whether by spending in the local economy or by contributing to other local businesses.