Employment Rights Bill

Baroness Lloyd of Effra Excerpts

Consideration of Commons amendments and / or reasons
Monday 17th November 2025 Lords Chamber

Moved by

[Baroness Lloyd of Effra]

That this House do not insist on its Amendment 1B to which the Commons have disagreed for their Reason 1C.

1C: Because it would weaken workers’ rights to guaranteed hours.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Lloyd of Effra) (Lab)]

My Lords, in moving Motion A, I will speak also to Motions C and C1. In this group, we will be debating the amendments relating to zero-hours contracts and seasonal work.

Amendment 1B, tabled by the noble Lord, Lord Fox, would require employers to write to workers at the end of each reference period, explaining their right to receive the guaranteed-hours offer and giving them the option to accept or decline. I take this opportunity once again to thank the noble Lord for his contribution throughout the Bill. We agree on many of the fundamentals relating to the security of work, and we have commonality in wanting to protect workers from precarious employment.

I recognise that the intent and sentiment behind the amendment is to ensure a balanced and practical approach, and I share the noble Lord’s desire for the Bill to work for businesses and workers alike. I look forward to further conversations with him on this matter and beyond, when we will continue our programme of consultation to ensure that the Bill’s measures are delivered effectively and proportionately for business.

However, the amendment as drafted would alter fundamental aspects of the Bill. We are building an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers and a fair reward for hard work. We need to tackle exploitative zero-hours contracts that leave some staff unable to plan their working lives or manage their family finances, and the provisions in the Bill do that. We appreciate that some groups value the flexibility that zero-hour contracts can provide. Those workers will be able to decline a guaranteed-hours offer and remain on their existing arrangements if that works best for them. I hope noble Lords agree that ending exploitative zero-hours contracts and providing security for the workers who need it most is imperative.

Motion C relates to Amendment 48B, tabled by the noble Lord, Lord Sharpe of Epsom. The Government are fully aware that work in certain sectors fluctuates throughout the year, and we recognise the importance of those sectors. That is why consideration of seasonal work is built into the right to guaranteed-hours provisions. There are several ways in which an employer could approach seasonal demand. One approach would be to use annualised-hours contracts, which allow employers to vary the number of hours worked at different times of the year. Some businesses already use these contracts, ensuring that they can account for fluctuating demands in work when planning, while enabling workers to plan for household budgeting. Additionally, the Bill already allows guaranteed-hours offers to take the form of limited-term contracts where reasonable. The Bill also provides powers to address seasonal work through regulations, ensuring flexibility as needs evolve.

We will consult with employers, trade unions and stakeholders before making regulations. It is paramount that stakeholders are engaged with before we make these necessary decisions. Through the introduction of the new right to guaranteed hours, work will become more secure and predictable. It will leave workers in some of the most deprived areas less exposed to the hidden costs of insecure work, which can add up to as much as £50 a month for some, while strengthening the foundations that underpin a modern economy. I beg to move.

[The Deputy Speaker (Lord Geddes) (Con)]

The Minister’s enthusiasm got the better of her but I had not actually put the Question that the amendments and reasons be now considered. I hope the House will take it that we did so do, even though we did not say it.

Motion A1 (as an amendment to Motion A)

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[Lord Hunt of Wirral (Con)]

My Lords, I shall speak to Motion C1—but before I do so, I say to the noble Lord, Lord Fox, that I am in complete agreement with the speech that he made on Motion A1. To recall the words that he used before, the Government were put on notice that they needed to come forward with a solution, but solution there is none. Requiring all businesses to offer guaranteed hours to every worker, including those who do not want them, imposes an unnecessary administrative burden, and one that falls, as my noble friend Lord Leigh of Hurley has just pointed out, particularly heavily on small businesses. It also sits uneasily with the Government’s stated intention to reduce the regulatory load on businesses by 25%. Should the noble Lord, Lord Fox, choose to test the opinion of the House, he will have our support.

On Motion C1, the Government have to recognise that seasonal work is fundamentally different in nature from permanent or year-round employment, and defining it clearly in statute will ensure that this Bill, as well as any future legislation, properly reflects the realities faced by seasonal industries. Seasonal businesses operate within narrow windows of opportunity; their labour needs rise sharply and predictably at various times of the year, then fall away again. Without a clear and credible definition, there is a risk of uncertainty both for employers trying to comply with the law and for workers trying to understand their rights.

We on these Benches have spoken to many seasonal businesses, large and small, and they remain concerned about the potential impact of the Bill and the absence of a framework that recognises the specific characteristics of seasonal labour. If the Government are not prepared to accept this amendment, we will test the opinion of the House.

[Baroness Lloyd of Effra (Lab)]

My Lords, I thank noble Lords who have contributed to the debate today. Let me start by recapping the reason for this measure.

There is a moral case to press ahead with ending exploitative zero-hour contracts. We aim to rebalance the scales so that all the risk associated with insecure work is not placed on workers. By our doing so, work will become more secure and predictable, saving workers in some of the most deprived areas up to £600 in lost income, strengthening the foundations that underpin a modern economy and increasing productivity, rather than the obverse.

On business engagement, we have indeed engaged with businesses and consulted them, both directly and through federations that represent a large number— hundreds and thousands—of small businesses. We will continue to do so as we implement all the measures in the Bill. We are committed to full and comprehensive consultation with businesses big and small and will arrange focus sessions with SMEs specifically to look at the practical implementation, understand any challenges and make sure that we give the right guidance.

I want to reflect on the point about business regulation and the 25% target. We have established a baseline for the administrative burden; the 25% target is about ensuring that regulation is proportionate and efficient and works for business. It is not about blocking regulation that is needed to deliver the Government’s priorities. We want to implement the Bill in a way that delivers the intent as efficiently as possible. For example, the fair work agency will consolidate the functions of the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and the Director of Labour Market Enforcement into a single body, so we are reforming as we go ahead with all these measures, and we believe that, fundamentally, this is about balance.

The noble Lord, Lord Hunt, raised the issue of seasonality. Let me reassure noble Lords that the Government are fully conscious of the need to take account of fluctuations in seasonal demand, while ensuring that workers are not left holding all the risk. Under the Bill, there are several ways that an employer could approach seasonal demand while upholding the new rights, depending on circumstances. I set out some of those in my opening speech, but they could be limited-term contracts or guaranteed hours in various ways, such as an annualised hours contract. We think it is important to continue to consult on seasonality.

On growth, we have seen huge progress in foreign direct investment and trade agreements. We are very keen to continue to promote the economic prospects of the country, which is fundamental to improving the productivity of the labour market. In conclusion, I thank noble Lords for their contributions today and I look forward to further discussions on these issues.

[Lord Leigh of Hurley (Con)]

Before the Minister sits down, she said that she had consulted representative bodies of industry and commerce, by which I assume she means the FSB, the IoD and the CBI. Can she give us a flavour of those conversations, and identify any organisation that has given wholehearted support to the Bill?

[Baroness Lloyd of Effra (Lab)]

Of course, we have had many discussions and there have been amendments during the passage of the Bill as a result of some of the consultation we have had with all social partners. We made amendments to the Bill on Report in respect of fire and rehire and the school support staff negotiating body—all sorts of changes or amendments have been made through the consultation process. We have also set out a clear plan for implementation, so that each milestone is there and there is a consultation before that, so that all businesses, large and small, can have the right amount of time to prepare and to get the guidance they need to implement these measures.

[Lord Fox (LD)]

My Lords, I thank the Minister for her response. I very much welcome the objective that she set out of reducing red tape. I remind her that the Bill contains 170 statutory instruments. In my experience, every statutory instrument leads to at least one regulation, so perhaps when next she stands up, she can commit to retiring at least one regulation, if not two, for each one that the statutory instruments bring in on the tail of the Bill, if indeed it ever becomes an Act.

The Minister also talked about a moral duty in respect of zero hours. I share that moral duty. Nothing in Motion A1 resiles from that moral duty, and on that basis, I would like to test the will of the House.

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Moved by

[Lord Collins of Highbury]

That this House do not insist on its Amendments 23 and 106 to 120, to which the Commons have disagreed; and do agree with the Commons in their Amendments 120C, 120D and 120E in lieu of Lords Amendments 23 and 106 to 120.

120C: Schedule 3, page 189, line 14, for “(3)” substitute “(6)”

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Moved by

[Baroness Lloyd of Effra]

That this House do not insist on its Amendment 48B to which the Commons have disagreed for their Reason 48C.

48C: Because the amendment is unnecessary.

[Baroness Lloyd of Effra (Lab)]

My Lords, I have already spoken to Motion C. I beg to move.

Motion C1 (as an amendment to Motion C)

Moved by

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Moved by

[Lord Leong]

That this House do not insist on its Amendments 60B and 60C, to which the Commons have disagreed; and do agree with the Commons in their Amendments 60D and 60E in lieu of Lords Amendments 60B and 60C.

60D: Page 60, line 23, at end insert the following new Clause—
“Guidance about the employment of children on heritage railways
(1) The Office of Rail and Road and the Health and Safety Executive, acting jointly, must, before the end of the relevant 12-month period, prepare and publish guidance setting out circumstances in which a child carrying out activities for the purposes of a heritage railway in Great Britain is, or is not, to be regarded as employed in an industrial undertaking for the purposes of section 1 of the Employment of Women, Young Persons and Children Act 1920 (restrictions on the employment of children in industrial undertakings).
(2) The Office of Rail and Road and the Health and Safety Executive, acting jointly—
(a) may from time to time revise guidance published under this section;
(b) must publish any revisions of that guidance.
(3) In this section—
“heritage railway” means a railway which—
(a) is operated for the purposes of—
(i) preserving, recreating or simulating railways of the past, or
(ii) demonstrating or operating historical or special types of motive power or rolling stock, and
(b) is exclusively or primarily used for recreational or educational purposes;
“railway” includes a tramway;
“the relevant 12-month period” means the period of 12 months beginning with the day on which this Act is passed.”

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Moved by

[Lord Collins of Highbury]

That this House do not insist on its Amendments 61 and 72, to which the Commons have disagreed; and do agree with the Commons in their Amendment 72C in lieu of Lords Amendments 61 and 72.

72C: Clause 59, page 87, line 10, after “case,” insert “the earlier of—
(i) a day specified in, or determined in accordance with, the rules of the union, and
(ii)”

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Moved by

[Lord Collins of Highbury]

That this House do not insist on its Amendment 62, to which the Commons have disagreed; and do agree with the Commons in their Amendment 62C in lieu of Lords Amendment 62.

62C: Clause 156, page 151, line 6, at end insert—
“(5) In deciding whether and when to make regulations under subsection (3) bringing section 65 (industrial action ballots: turnout threshold) into force for any purpose, the Secretary of State must have regard to what effect any provision made after this Act is passed for industrial action ballots to be conducted otherwise than by post has had, or is expected to have, on the proportion of those eligible to vote voting in such ballots.
(6) In subsection (5) “industrial action ballot” means a ballot for the purposes of section 226 of the Trade Union and Labour Relations (Consolidation) Act 1992 (ballots on industrial action).”