(8 years, 7 months ago)
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I will in a minute. There has been a very positive response to the appointment of Paul Newby as the Pubs Code Adjudicator. I am grateful for the briefing supplied by the House of Commons Library and the comments on 16 March from the Royal Institution of Chartered Surveyors, which we have heard a lot about and heard some quotes from. Its statement regarding the appointment of Paul Newby as Pubs Code Adjudicator went as follows:
“By the very nature of the role, the adjudicator’s office will need someone with past experience in this field of valuation and Paul’s professional history has seen him represent both pubcos and tenants at various junctures in his career. As Paul Newby will no longer continue in his role with Fleurets, there should not be a risk of this posing a conflict of interest in his execution of his new post.
An RICS spokesman has said: ‘Chartered Surveyors are expected to demonstrate the highest professional standards and act within the RICS Code of Conduct at all times. We have no reason to believe that Paul Newby is failing to meet these standards. On the evidence that we have seen to date, this does not appear to be an issue of conflict.’”
The reality is that complainants at a tribunal who are in receipt of universal credit, have less than £3,000 in savings and have gross annual earnings of less than £6,000 will automatically qualify for the full remission of fees. As with any other complaints admitted to an employment tribunal, anyone who feels that they cannot afford to pay the costs associated with making the complaint can apply for a fee remission and have the fees waived or reduced. An individual can apply for remission at the fee-paying stage so that they are not out of pocket. That seems very fair and I hope that it allays some of those fears.
Does the Minister share my concern that employers might be more cavalier in enforcing the exclusivity clauses if they know that it is not guaranteed that claimants will be able to achieve the discounts that she describes? As costs are still associated with the tribunal, and if the decision has to be taken at the time of the cost hearings, employers might still be keen to push forward with exclusivity.
The legislation stipulates that exclusivity clauses cannot be enforced. It applies when an employer goes over or above the existing powers available. If it is known there is a problem with fees, there is an automatic full remission of fees, so I am satisfied that this is the right and fair thing to do. People on such contracts should feel that they have the security that we would expect, so the measures are good.
Importantly—this may relate to the two questions that have been asked—the ability to go to a tribunal will create a deterrent for employers, making them think twice about ignoring the exclusivity ban. In the consultation, it was a strongly held view that employers should face consequences if they treat their zero-hours contract workers unfairly as a result of the ban. We will be laying an order that will ensure that those on zero-hours contracts will be subject to the early conciliation regime, which is important. If early conciliation does not resolve the issue, these regulations will allow the individual to bring their case to an employment tribunal in the same way as with any other issue. If successful, the tribunal will be able to set a level of compensation that reflects the detriment caused. With all those things borne in mind, there will be a real deterrent to employers abusing the system and thwarting the will of Parliament.
In conclusion, both Government and independent evidence have shown that zero-hours contracts have a place in today’s labour market. They support workplace flexibility, make it easier to hire new staff and provide pathways to employment for young people. Many young people like zero-hours contracts, particularly students, and I think we sometimes forget that. Zero-hours contracts allow businesses to adapt to changes in their circumstances. They can support business flexibility and make it easier to hire new staff, as well as provide pathways to employment for young people, retired people or those with caring responsibilities, who often welcome that flexibility. In fact, many people choose to work in this way. These contracts and other flexible arrangements give individuals more choice and the ability to combine work and other commitments.
Evidence has highlighted that the use of exclusivity clauses in zero-hours contracts is wrong, and that is why Government have banned them, and properly so. The regulations strengthen the ban on exclusivity clauses in the 2015 Act, adding another layer of protection for individuals and ensuring that employers cannot simply ignore the law. By creating a route of redress, individuals will have the right to make a complaint to an employment tribunal if they are dismissed or treated unfairly as a result of their employer attempting to demand exclusivity. The Government believe that the regulations are essential in strengthening the ban on exclusivity clauses, so I recommend the regulations to the Committee.