Employment Rights Bill Debate
Full Debate: Read Full DebateBaroness Verma
Main Page: Baroness Verma (Conservative - Life peer)Department Debates - View all Baroness Verma's debates with the Department for Business and Trade
(1 day, 21 hours ago)
Lords ChamberOh, he has already done it—very good.
Let us be real about this. A lot of situations call for tact and diplomacy, and for us to be careful about the way we express difficult thing. A lot of people do not do that; they say what they like, thinking it is totally justified, and they get into difficulty. Unions spend a lot of time helping people get round those kinds of situations when they have got into trouble with their employer.
I do not think the argument coming from the other side of the Chamber is a convincing one. Let us remember a bit of common sense, and that tact and diplomacy are still required in many organisations, not just the BBC—and not just with my old dad, who did not like the fact that I had a “Vote Labour” poster in the window.
My Lords, I did not want to intervene on this group, but, listening to the noble Lord, I became slightly worried that we are getting into censorship. This country is a proud country because of its ability to speak out and speak up. I would be incredibly nervous if we felt that we could not demonstrate our political views openly without being penalised for it. The unions do their own work, but it is incredibly important that people are able to demonstrate a political affiliation or a particular viewpoint without having to feel that they are going to be censored. That would really worry people like me, who often are the recipient of things that we do not like to hear, but we tolerate it because we think the country enables us to have the debate.
My Lords, I thank my noble friend Lord Young of Acton for his expert introduction to the amendments in this group. I agree with the noble Lord, Lord Monks, about common sense, but I fear that went out of the window of an employment tribunal some years ago. As my noble friend Lord Young laid out in an earlier group, this Bill threatens to restrict free expression in some cases with its provisions. It is for this reason that I support the amendments, which seek to safeguard political opinion and affiliation within our employment laws.
At the heart of any thriving democracy lies the freedom to hold and express political beliefs without fear of retribution. In a democratic society, freedom of speech and freedom of belief are not luxuries; they are fundamental rights that underpin our entire system of governance and civil life. The workplace, where so many of us spend a significant portion of our lives, must be a space where individuals can hold and express their political views without fear of unfair treatment or dismissal. As it stands, our existing laws provide only patchy protections for political beliefs, and they leave many workers vulnerable. My noble friend Lord Young’s examples are truly shocking, and I would like to take this opportunity to wish, in particular, Mr Poursaeedi well in his ongoing battles.
We should draw upon the timeless wisdom of John Stuart Mill, who was one of the great architects of liberalism. He argued in his seminal work On Liberty that the truth emerges only through free and open debate, and he warned against the suppression of any opinion, because no one person or group holds a monopoly on truth. Even opinions that we may find mistaken—perhaps such as democratic socialism—or indeed offensive, must be heard and challenged openly, for only through such dialogue can society discern truth from error. Voltaire was right on this. I must admit I find it a bit disappointing that the Liberal Democrat Benches are not more enthusiastic about these amendments.
By protecting employees from dismissal or discrimination based on their political opinions or affiliations, these amendments would ensure that the workplace remains a forum where diverse ideas can be expressed, scrutinised and debated. Suppressing political expression risks silencing valuable perspectives and preventing the emergence of truth through robust discussion.
We in this House pride ourselves on opening our minds to a broad range of political views. Obviously, that involves robust engagement, challenging each other and refining our positions through vigorous debate. If such diversity of opinion is essential to the functioning of this Chamber, why would it not apply beyond these walls, and particularly in other workplaces? Workers, like us, should be free to express their political beliefs without fear of losing their jobs or being discriminated against.
In conclusion, I urge the Government to accept my noble friend’s amendments. To go back to the great liberal John Stuart Mill, he also said:
“A person may cause evil to others not only by his actions but by his inaction, and in either case he is justly accountable to them for the injury”.
This is not the time for inaction. These amendments not only would protect workers from unfair dismissal and discrimination but would uphold our fundamental democratic values. By embedding these protections into our laws, we would reaffirm our commitment to free expression. I am afraid saying just that they are not necessary is not good enough. They clearly are necessary, as we heard in the examples from my noble friend.
My Lords, I have added my name to the amendments in the name of my noble friend Lady Neville-Rolfe, but I also support all the other amendments in this group. Both the noble Lord, Lord Vaux, and my noble friend have already fairly comprehensively treated the issues that concern a number of us, so I will not repeat all those points.
I just underline three brief points. We are trying to look for a balance between the legitimate expectations of employees and employers, because we need those to work in harmony. At the end of the day—as my noble friend Lady Neville-Rolfe pointed out—employers will be producing the growth that the economy needs, so their hiring plans will be critical and anything that harms this balance will damage the economy.
From an employer perspective, anybody who has undertaken recruitment as an employer knows that most employers approach this extremely responsibly—it is not a cheap process to get the right people into the jobs—but we also know that, however diligent you are in screening, interviewing and assessment processes, you do not always get it right. You can usually test whether a person has technical skills, although sometimes you need to see them in practice before you know whether they really have them. The important area is whether an employee fits with an organisation. That is really difficult to tell until the person turns up and starts working. Do they share the same values as the rest of the workforce? Do they have ways of working that are just not compatible with the culture of the organisation? This is particularly important for small organisations: if you have one employee who does not fit in a very small organisation, that is a significant proportion of the workforce and can be very damaging to the business of a small business.
The last point that I underline is that this Bill will make it much more difficult for the difficult categories of people who want to find a job but cannot. There has been much talk about NEETs, and ex-offenders are another case. Why would any employer want to take on an ex-offender with day-one rights? We know some of them make excellent employees but quite a lot of them do not. They can become quite difficult to handle in the workplace. If employers fear that they will not be able to easily overcome mistakes in recruitment they simply will not hire, which will harm people who want to work.
My Lords, as an employer who has employed people over the past 40-odd years, I know that the difficulty for an SME—any small business such as my own—is the ability to manage all the bureaucracy that is entailed with it.
For businesses in the social care sector, for example, unfortunately you cannot really understand how good or bad a care worker will be until they have worked a little while in the organisation, even with the training. However, if we are to give the rights from day one, the difficulty will be that we will end up with a sector already very short of workers needing to hire more workers in case any are not suitable for the role. We would have to release them, knowing that they may then apply workers’ rights on day one without proper probation periods and take us to tribunal. It is a difficult sector.
There are many sectors like the care sector, and it is particularly challenging for small businesses in the wider sector of delivering something that is so important. If the care worker is not the right fit, it does not really matter how big or small the organisation is—that person is just not suitable for the role. We need to have the ability to dismiss the person without having to go through the bureaucracy of all the Government’s intentions in this part of the Bill. I therefore support my noble friend and the noble Lord on these amendments.
It is time to have a strong rethink about how we can come to a good middle ground, where employers are not fearful of employing. I have been talking to a lot of SMEs over the past few months, and the difficulty that noble Lords across the House will have found, when they have talked to businesses in their own communities, is the worry around what will happen when the legislation in this Bill is enforced.
My Lords, I will speak in support of this group of amendments. I refer the House to my entry in the register of interests as the proud employer of 140 employees.
The removal of the qualifying period for a right not to be unfairly dismissed is not, and should not be, feared by good employers. Good employers should have systems in place to ensure that new employees have regular reviews to enable them to feed back to the employer and, likewise, for the employers to feed back to the employees. As an employer, I am aware of the protection that employees are entitled to, and rightly so.
When dealing with any employment issue, the word that always comes to my mind is “reasonableness”. Is it reasonable to totally remove the qualifying period? I do not think so. Employees should be protected from just being dismissed without proper procedures, review and consultation. I support this group of amendments on the probationary period, which is described in the Bill as the “initial period of employment”. There is very little detail in the Bill on what length the probationary period will be.
This lack of detail and clarity creates real uncertainty for employers at present, including myself. The probationary period is an essential time for both employees and employers to get to know one another. For the employees, it ensures that the job meets their expectations, including about terms and conditions, that the culture within the workplace suits them and that they are respected. For employers, it is time to ensure that the employee has the skills and knowledge—or the potential to develop their skills and knowledge—to fulfil the tasks required by the role in question.
The employees in our business can give one week’s notice that the job is not right for them. Likewise, the employer needs flexibility, if they feel that the employee is not right for their business for conduct, personality or capacity reasons. Therefore, employers do not need to go through a long and detailed process to end the contract when the employee has just started that job. In some cases, the procedure to dismiss an employee could take longer than the time they have been employed by the company. I acknowledge that the reason for ending a contract in this probationary period, as has clearly been said by my noble friend, should never be for a protected characteristic under any circumstances, which I fully support.
The group of amendments tabled by the noble Baroness, Lady Neville-Rolfe, seek—as other Peers have clearly observed today—to enable the termination of a contract without fear of unfair dismissal claims being brought during a probationary period. It gives employers the confidence to employ individuals, and at times gives employers confidence to take on an individual who may not fully meet all the criteria of that role but shows potential, thereby giving that individual the opportunity of work. Nearly every noble Lord has discussed young people and people possibly with a disability.
However, further details are required. It is essential that a minimum length of probationary period is detailed in the Bill. For my business, that is three months, but it may be longer for others. The extension of the probation is required when things are not quite going to plan. In that case, the employer needs to go through a process of extending it, which is essential for both the employee and the employer.
I support my noble friend Lord Vaux of Harrowden’s Amendment 108, as it puts a minimum length to the probation period within the Bill and therefore gives employers confidence in the probation process. Nine months gives employers time to have an initial probation period and then extend it if need be. If then the employer wishes to terminate after that many months, they will still need to follow a detailed procedure, as the risk of unfair dismissal is still high if not followed. This is a benefit to the employee from the shortening of the qualifying period. Moreover, the probationary period cannot be renewed continuously, which is to the benefit of both the employee and the employer, as there is a time limit.
Within secondary legislation, the Secretary of State can define the length of an initial probationary period, for, say, a maximum of six months. With this time limit, as proposed in Amendment 108, it would allow for one extension to nine months. The initial period of employment is an important part for all employers, whatever size, but for the SMEs and the micro-business, as previously stated, it allows flexibility. It avoids time-consuming and very costly processes to end the contract of an employee who is not working out in terms of conduct, capacity or personality. I ask the Minister to consider these amendments or refine them before Report to give all employers the confidence to employ new people, but especially in the SME sector and micro-businesses.
I absolutely agree that most cases never get to a full hearing; only a tiny minority ever do. The noble Baroness is right that many cases settle, of course. Many are conciliated, because there is now compulsory conciliation by ACAS, but many are withdrawn by the employee. You have to visualise it, as I am sure the noble Baroness does: most employees bringing an unfair dismissal claim are completely unrepresented. They are on their own, so all the expense, research and preparation that have to be done must be done by them personally. That is a huge disincentive. Many claims—tens of thousands of them—are simply not brought because it is not worth the employees’ while to do it.
My Lords, does the noble Lord accept that the case is exactly the same for small employers? They too will be in the position of having to deal with tribunals in the same way—hence why, as often as not, the settlements are taking place.
Of course; that is always the way whenever there is litigation. Whatever the subject matter, people do not want the burden of defending the case and the people bringing the case do not want the burden of bringing it. That is just the reality of litigation.
I will say one last thing before I sit down. The argument that the noble Lords and noble Baronesses opposite have put forward is all about what they perceive to be the consequences of this matter, which my noble friend Lord Monks just addressed. But nobody can seriously advance the case that employers should have the right to dismiss anybody unfairly and without recourse to the law.