Employment Rights Bill

Debate between Becky Gittins and Douglas McAllister

Report stage
Wednesday 12th March 2025 Commons Chamber

[Becky Gittins]

I think that everyone should be on board with the national minimum wage and the living wage. I hope that we can encourage all Members of all parties to get on board. I am very pleased to hear that commitment and concern from the Reform party. It is unexpected, but I respect it.

On Second Reading, I welcomed this legislation as a central tenet of this Government’s policy of putting working people at the heart of our economy and making work pay. I am delighted to see the Bill return to the Chamber, and I pay tribute to those who served on the Public Bill Committee. The Bill modernises the UK’s outdated employment laws, bringing in more than 30 much-needed and welcome reforms, including: day one rights of employment, banning exploitative zero-hours contracts, abolishing fire and rehire, establishing bereavement leave, increasing protections from sexual harassment, introducing equality menopause action plans, strengthening rights for pregnant workers and establishing the Fair Work Agency.

I am pleased that, during the scrutiny process, the Government have tabled amendments to strengthen protections for low-paid workers, including those relating to statutory sick pay. In real terms, 1 million people on zero-hours contracts will benefit from the guaranteed hours policy. Nine million people who have been with their employer for less than two years will benefit from day-one rights relating to the unfair dismissal policy. Because of the Fair Work Agency, holiday pay rights will be enforced for the very first time.

The measures before us strengthen the Fair Work Agency. New clause 57 will enable it to bring proceedings against a non-compliant employer in an employment tribunal, in place of the worker. New clause 58 enables the provision of legal advice or representation for those who have become a party to civil proceedings related to employment or trade union law.

Although the vast majority of employers across the country, including hundreds in Clwyd East, will certainly obey the law, there are still those that sadly do not. A Citizens Advice report states that higher-paid workers are 50% more likely than lower-paid individuals to bring an employment tribunal claim, despite the fact that lower-paid individuals are more likely to have their rights violated. As Unison points out, leaving the burden of challenging workplace injustice to individual workers seeking redress at tribunal compounds inequalities of power in the UK labour market.

The Low Pay Commission figures highlight key reasons to implement these important measures. We know, for instance, that 20% of workers were paid less than minimum wage in 2023, and that nearly 1 million workers did not get any holiday pay. The agency will bring together existing state enforcement functions, and will be a single place to which workers and employers can turn for help. I am pleased that the agency will aim to resolve issues upstream by supporting employers that want to comply. I understand from evidence gathered by the Bill Committee that there was considerable support for a single enforcement body in place of what is currently quite a fractured system. On accountability, the Bill requires an annual report on the Fair Work Agency’s enforcement actions, and will allow Parliament to monitor progress in protecting workers’ rights.

I am encouraged to hear that, to produce its strategy, the Fair Work Agency will consult an advisory board made up of trade unions, businesses and independent experts. It is vital that we continue our collaborative approach in developing employment legislation and policy that is pro-business, pro-worker and, ultimately, pro-growth. I welcome the new clauses and the Bill as a whole. It is an important part of the Government’s strategy to move our economy forward, improve work security and ensure greater productivity.

[Douglas McAllister (West Dunbartonshire) (Lab)]

In speaking in support of the Bill, I declare that I am a Unison member.

The Bill and the Government amendments to it will deliver real-life improvements for working people across my constituency and across Scotland. Key amendments will strengthen protections for the lowest-paid workers in my constituency, extend protections from exploitative zero-hours contracts, boost the voice of working people in the workplace, strengthen statutory sick pay to 80% from the first day of sickness, extend sick pay to 1.3 million of the lowest earners across the country, and provide greater protection from unfair dismissal, with 9 million people benefiting from day one protection. That is the real change that we promised to deliver for real people—public service workers in West Dunbartonshire, such as frontline staff in the service industry, essential utilities, social care, transport or health.

The days of exploitation are now over. The Labour party is doing what we do best and will always do: protecting working people, promoting decent pay and work, and delivering meaningful change for so many. We are putting power in the hands of working people. The Government’s commitment to growing the economy will be built on rebalancing rights at work and raising living standards in every part of this country; the two are interwoven. The Government’s amendments will ensure just that by boosting the enforcement of rights and giving the new Fair Work Agency the power to bring civil proceedings against non-compliant employers that seek to underpay staff. In 2023, one in five workers was paid less than the minimum wage. That will stop. Almost 1 million workers in this country did not receive holiday pay in 2023. That will stop.

The amendments will level the playing field. They include measures on digital access to employment agreements, allowing independent unions to apply for recognition and stopping the practice of employer lock-out, a 20-working-day window for employers and unions to negotiate access, and a new right for unions to access the workplace, which could be transformative as it gives workers a fair voice to improve their pay and conditions.

It is time to turn the page on the combative and unproductive approach adopted by the previous Government, and it is time to modernise the industrial relations framework. The Bill and the amendments support a much-needed reset of industrial relations across Great Britain. This Government have a clear mandate to deliver real change that working people in my constituency of West Dunbartonshire can see and feel. That change cannot come soon enough. The Employment Rights Bill is the crucial first step on that path. It is the biggest uplift in workers’ rights in a generation, and I am proud to vote for it and support it today.