Employment and Trade Union Rights (Dismissal and Re-engagement) Bill

Debate between Barry Gardiner and Jo Gideon

2nd reading
Friday 22nd October 2021 Commons Chamber

[Barry Gardiner]

Not only do I agree with my hon. Friend, but I agree with the statistics. The statistics are very clear: 70% of the companies that have engaged in these tactics over the last month were actually making profits. That is why I say that this is not just an ethical problem of bullying and unfair tactics, but an economic problem that even the most hard-nosed Treasury official should recognise. As the Leader of the House has said,

“All companies operate best when their employees are working there with enthusiasm, and these types of tactics are very bad for morale in businesses”.—[Official Report, 25 March 2021; Vol. 691, c. 1103.]

And, as he also famously said, “Fire and rehire is no way to do capitalism.”

[Jo Gideon (Stoke-on-Trent Central) (Con)]

The hon. Gentleman has given examples of large companies and talked about shareholders. We had a discussion earlier in the week, and I understand that the legislation he proposes would apply to companies with 50 or more employees. Can he give us an example of how that might affect smaller businesses such as small and medium-sized enterprises, and has he found examples of smaller businesses practising fire and rehire? I think that we need to put this in context.

[Barry Gardiner]

I am happy to respond to the hon. Lady’s question. We chose the figure of 50 employees, and the Bill refers to 15 or more employees being affected by these changes, because that marries up with the existing legislation on redundancy and other matters. Fifty is the figure that has been chosen by the Government in previous legislation. I have tried at all points to make the Bill technically proficient, so that it intersects with all the other legislation in this area.

The hon. Lady asked whether this was happening in smaller companies. Sadly, it is, and I would dearly like to see it outlawed there also. We have made the Bill commensurate with all the other employment legislation, which is why the figure of 50 was chosen.