Employment and Workers’ Rights Bill

Ellie Reeves Excerpts

2nd reading: House of Commons
Friday 27th April 2018 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab)]

I beg to move, That the Bill be now read a Second time.

As a former officer of the GMB trade union, I refer Members to my entry in the Register of Members’ Financial Interests.

It is no secret that our economy and the jobs that people do have changed rapidly over recent years, particularly in my constituency of Barnsley East. Coal once provided jobs for more than 30,000 people, but the economic landscape is now very different. We have seen a substantial increase in precarious work practices, such as zero-hours contracts, the gig economy and fake self-employment, where the guarantees of secure and well-paid work that people once enjoyed are no more.

Agency work has boomed, from retail and distribution through to the teachers and nurses filling the staff shortages in our public services. It is estimated that the number of agency workers will reach 1 million by 2020. Agency workers are some of the most exploited workers in our economy, and this employment practice is simply too one-sided in favour of those who hire them.

My Bill takes steps to change that. It will close the loophole that allows agency workers to be paid less than permanent members of staff undertaking the same role for the same company. After three months, agency workers will be able to request a contract of employment and the hirer will have a duty to assess it. After two years, agency workers will have the right to become a permanent employee.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

I welcome this Bill. I read clause 5 with great interest, as it seems to give an agency worker the right to become directly employed by the hirer after two years except in exceptional circumstances. Such a measure is long overdue. Will my hon. Friend clarify that it is her intention that workers would have continuous service from the date they started work with the hirer and would therefore have rights against unfair dismissal from the moment they reached two years, rather than the clock starting again?

[Stephanie Peacock]

My hon. Friend is right that these measures are long overdue. She is also right about the intention of clause 5.

I would like to share some examples with the House, particularly the case of agency workers in BT call centres, including the one near my constituency in south Yorkshire, and others who take 999 calls. The majority of them are kept on continuous assignments, working for years in the same role. In practice, they are nothing less than permanent staff, but they have no job security and are on lower pay than other workers. The nature of their contracts means that the equal pay exemption can be exploited. On average, they are paid about £500 a month less than their colleagues on permanent contracts. Some do not even take annual leave, because they simply cannot afford to do so.

There is the case of the lorry driver who has worked for the same national supermarket for the best part of 20 years but could be sacked by the hirer without notice, reason or redundancy pay. They would be left with no legal recourse against the hirer to claim unfair dismissal. Take the warehouse worker in Barnsley who works up to 20 hours a day on their feet, but is constantly threatened with immediate dismissal if they do not hit their target. It even happens in the public sector. As a former teacher, I have heard of too many cases of agency teachers being paid less than those they teach alongside. It is simply unfair.

Financial security has been lost as hard-working people in my community live week to week, rota to rota, and pay packet to pay packet. Proper working rights, pay and conditions that truly benefit employees have been sacrificed in the name of flexibility for unscrupulous bosses.

The Bill is founded on the important premise that two people working in the same role, or doing the same job for the same company, should be entitled to the same fair and equal rights. It will simply level the playing field for agency workers in Barnsley East and across the country in the face of unfair working practices, and provide them with the proper workplace rights and pay that they are overdue.