Employment Rights: Impact on Businesses

Euan Stainbank Excerpts

Tuesday 16th September 2025 Westminster Hall

[Rachael Maskell]

I am grateful to the hon. Member for mentioning that. When I was the shadow Secretary of State for Employment Rights, we really fought for that right, not least during covid. What a difference it would have made to workers then, and it would have kept our country safer. Of course, we need to look after people when they are sick, so I dispute what the hon. Member for Spelthorne said about a menopause plan costing business—women generally would also certainly dispute that, because having a plan would be better for business and better for women at work.

We must reset the relationship with trade unions, which is why establishing a Fair Work Agency and championing engagement around equality are important. I look forward to the future for businesses with a traditional Labour agenda that benefits businesses and workers by bringing better security and better productivity, and providing the green shoots of rebuilding the economy.

I recognise that businesses are in a fragile environment. Over the summer, I held business summits for the daytime and night-time economy. The attendees are looking forward to engaging with me as we set out our plans for our city together: resetting the climate, realigning workers’ rights and giving businesses a boost. The voices of businesses are really important. The Living Wage Foundation notes that 87% of employers say that paying the living wage improved the reputation of their business, and two thirds said that it improved recruitment. A letter about the Employment Rights Bill from leading economists and employment lawyers, published by the Institute of Employment Rights, says:

“The emerging consensus is that labour laws do not, on the whole, have negative economic consequences, and may well have positive ones.”

[Euan Stainbank (Falkirk) (Lab)]

Does my hon. Friend agree that we have to assess the economic impact and consequences, which we have seen over a number of years, of low pay and insecure hours, and how they have contributed to high turnover and sickness absence in businesses? I believe that those problems are substantially addressed by the provisions of the Employment Rights Bill.

[Rachael Maskell]

My hon. Friend has spoken powerfully and brought that observation to the attention of the House. Low productivity was also a major feature of the last Administration.

The letter goes on to highlight how worker protection positively impacts productivity, how investment in skills improves the competency of workers, and how collective bargaining raises wages and stabilises employment. Over time, that positive investment will spill out to the wider economy and Government, so that there can be investment in the public services that have been so broken. If workers have more in their pockets, they are more likely to spend in the local economy, and wage disparities will be addressed so that wealth is more evenly spread, boosting local business. We also still have parts of the Taylor review and its 53 recommendations to implement to help small employers and those in irregular work.

--- Later in debate ---

[Euan Stainbank]

I welcome the Minister to her place. She is making an excellent point, but I refer her to specific sectors in which some Opposition parties have called for carve-outs. Does she agree that it is important that we do not carve out, for any particular sector, the strong provisions in the Bill, and that it is both morally and economically wrong to say to a young worker that if they work behind a bar, they should have fewer rights than if they worked behind a desk?

[Kate Dearden]

I want every single worker, no matter where they work, to have a good standard of rights in their workplace and to know their rights. The Bill will ensure that we can provide that opportunity for so many people, including young workers, and that they benefit from the legislation.

Employment Rights Bill

Euan Stainbank Excerpts

Consideration of Lords amendments
Monday 15th September 2025 Commons Chamber

[Sam Rushworth]

My hon. Friend raises an excellent point. Another great provision in the Bill is that right to sick pay, which is so important and would have been so important for many care workers during the pandemic.

In my mind’s eye are those women sitting at that bus stop in the cold. Two other people I met who were also care workers—one lives in High Etherley and the other in Etherley Dene—told me similar stories. They did not vote for me. They did not vote for anybody, because they did not believe that anybody could fix their problems. They just told me that their lives were tough. They had to pay for their own uniforms. They were not really getting the minimum wage for their work. They felt disrespected by everybody. They felt vulnerable and left behind. But I made them a promise that if I came to this place, I would speak up for them. I am doing that today and I am voting for them today.

Finally, the Employment Rights Bill is not just good for workers; it is also good for businesses. So many family businesses in Bishop Auckland, Shildon, Crook and Barnard Castle all tell me the same thing. They tell me how much they enjoy contributing to our local economy and how important it is to them that they are a responsible, decent employer. But they tell me how tough it is when there is a race to the bottom. They want employment rights strengthened. They do not want the watered-down version coming to us from the Lords. They want the full-fat version of this Bill, because they know it is good for their workers and good for their businesses.

[Euan Stainbank (Falkirk) (Lab)]

I would like to start by thanking all Members who have contributed to the debate, but especially the new ministerial team and senior Ministers across the Government who recommitted to this legislation in public, and especially to the previous ministerial team who advanced the Bill as it went through the Commons.

In my constituency, of the six key pledges on our leaflets, this was the one that got the younger generation interested and engaged. They were worried about where they would work, how they would work and how they would get ahead in life. The vast majority of young people across this country are aware that the path to a better life comes through the workplace.

What do we see when we look at these Lords amendments? It is another week, another paltry attempt by the Opposition parties in the Lords to undermine my constituents’ rights at work. A couple of weeks back, there was an Opposition day motion that told my constituents that if they worked behind a bar, they should have fewer rights than if they worked behind a desk. These amendments are just another feeble attempt at watering down a popular and generationally crucial piece of legislation.

--- Later in debate ---

[Gareth Snell]

I wonder whether my hon. Friend agrees that when Conservative Members oppose day one rights, they are not really worried about the day on which the rights start; they are actually opposed to the rights. That is why many of them cannot muster an argument that is about more than, as he says, spreadsheet efficiency.

[Euan Stainbank]

I agree, especially if we look at unfair dismissal. The issue is not the cause of the dismissal; at its core, this is about denying people recourse. If a worker cannot claim unfair dismissal because of the two-year threshold, their recourse is substantially weaker. The course of the conduct is not changed simply because a worker has been in a place of employment for 23 months, as opposed to two years.

This issue is real and corrosive. I have had young people in my constituency office who have experienced this issue, especially in the run-up to consideration of this Bill. There has been a course of conduct in the workplace that has resulted in them wanting to leave, or somebody wanting to force them out, and this issue makes it substantially easier for bad employers—not every employer, of course—to force an employee out. It does not change the nature of the conduct, or what we should be tackling, which is poor employment practices.

I do understand the concern that has been raised, but a two-year threshold often leads to workers, early on in their careers, being taken out of the workplace without process or prior warning. Their only right of recourse, as I have said, is taking the employer to court through a far weaker form of redress that is often time-consuming, exhausting, fruitless and restrictive, and so deters them from pursuing their rights.

[Sir Ashley Fox]

Is the hon. Gentleman aware that many small businesses are fearful of day one rights because they worry that they might take someone on, only for it to become apparent within a few days that they are not appropriate for their business, and they then fear an employment tribunal for procedurally unfair dismissal, and the costs involved. The result of granting day one rights is that small businesses will be less likely to employ more people, and far less likely to employ people at the margins of the labour market, such as someone recently out of prison or someone with mental health problems. The Bill will increase unemployment.

[Euan Stainbank]

I have to disagree with the characterisation of the Bill as increasing unemployment. We have heard the same about other measures. To tackle the hon. Gentleman’s point about somebody coming into a workforce and not being cut out for it, which I have seen happen in hospitality and retail industries, I believe that is addressed by the probation provisions in the Bill.

[Michael Wheeler]

I fully agree with my hon. Friend that the probation period is the core of the answer to the question from the hon. Member for Bridgwater (Sir Ashley Fox). Does my hon. Friend agree that a large part of the fear we see is due to scaremongering and misinformation spread by Opposition Members?

[Euan Stainbank]

I agree on the misinformation being put out about hypothetical situations, which are often talked about when we discuss hospitality.

I recognise the point being put forward for small businesses, but I also recognise that those businesses have the right to a probation period, and to other employment models, such as part time working. I have seen that happen quite frequently.

[Sam Rushworth]

Does my hon. Friend agree that the Conservatives bequeathed us an economy in which more and more people were moving out of work and becoming long-term sick? A lot of that sickness was driven by mental health disorders— in particular, anxiety, worry and stress, which are driven by an insecure labour market. Does he also agree that the measures in the Bill to make people safer and more protected at work will improve mental wellbeing and productivity, and be good for economic growth?

[Euan Stainbank]

I fully agree that the economic benefit of security in the workplace is evident. I have worked in some of the most insecure industries in hospitality, and people trying to rush themselves back into work was a severe issue, especially just after the pandemic, because they did not have another source of income. If they had to isolate, there was financial support, luckily, which was just about enough to cover wages for a period, administered by local authorities. However, there were still a lot more people who tried to drive themselves back into the workplace. I remember coming back after a 10-day isolation period after having covid, and I could tell that I was not prepared physically or mentally to re-enter the workplace. It did make me think that I wanted to call in sick. It is then substantially more difficult for someone to re-enter work, especially in high-intensity industries. We often forget how physically intensive hospitality and retail workplaces, where people are working on zero-hours contracts, can be.

[Laurence Turner]

My hon. Friend is making a very powerful case. I rise merely to support what he is saying. About a decade ago, the University of Manchester published research that found that being in forms of insecure employment may be more damaging to health than being unemployed.

[Euan Stainbank]

That is substantially clear. I would add the concern that long-term sickness translates into long-term unemployment, which is often seen in the most insecure workplaces. We often think of people burning out in a very high-stress, high-income job, but it happens right through our labour market. In my experience, it has led to devastating consequences, but those are personal stories that I do not have the permission or time to go into.

[Suella Braverman (Fareham and Waterlooville) (Con)]

I appreciate that the hon. Gentleman is trying to get through his speech, and I very much respect the position he has taken, but I have to fundamentally disagree. We Opposition Members have been accused of scaremongering and of misinformation, but what does the hon. Gentleman say to the Federation of Small Businesses, the British Chamber of Commerce and the Confederation of British Industry, all of which have said that because of the Bill and the regulations it will impose, employers will be letting go of staff, and that there will be a damaging consequence to employment and jobs? Does he think that that is misinformation and scaremongering, or is that just expert voices urging caution about the Bill?

[Euan Stainbank]

To address the point about substantial issues facing businesses, I acknowledge that is the case at the moment. We are not talking about energy costs or business rates, but I have a local business improvement district on my high street and I am well aware that it is talking about the costs that are put on business.

This Bill is a fundamental rebalancing in favour of workers, and frankly that would have to happen, irrespective of economic conditions. We need it to get people to believe that work pays again, because sadly much of my generation have not had that perception of work for too long. They may have seen other avenues—easier, passive income that does not come from hard graft, and from learning skills that are needed at a fundamental level.

The problem is that the entry point to work for many young people has been casualised and is insecure, and often it does not seem as though there are any prospects. I believe the Bill will change that perception substantially. To go back to doorstep conversations, this was one of the pledges in our manifesto that got young people engaged and thinking about how politics could fundamentally change their life and their experience in the workplace.

Turning to Lords amendment 1, I want to Members to put themselves in the mind of somebody experiencing a zero-hours contract for the first time. The hon. Member for Mid Dunbartonshire (Susan Murray) made some reasonable points about the right to request, rather than the right to have a contract that reflects hours, but in my experience of who zero-hours contracts are meant for in society, they are extensively given to the younger generation at the entry point of their career. There is a fundamental flaw in the concept of a right to request. Someone may be in their first job behind the till at Argos, or at a pie kiosk, or at a hotel bar or a restaurant—I do not have to imagine it; this is essentially my CV, prior to entering politics, all done in the last 10 years. At age 18, people do not necessary know their rights beyond what their mum and dad tell them, and this is a point I have heard addressed by several Members.

Imagine a person who, after years of zero-hours contracts, reliance on casualised working and low pay, is in an industry that is still adapting to the Bill’s provisions. They ask for a contract that reflects their hours, rather than what they would be entitled to under the Bill if we reject the amendment. How likely would they be to press the issue with their employer in this market? How likely is it that somebody will bang their fist on the table and say, “I want the contract that I can request, rather than the one I am entitled to”? People often want to make a career in the retail and hospitality fields, but how likely are they to do so if they cannot get the hours they are entitled to, or foresee their income for the coming year? They can get a contract that reflects the shift that they are putting in.

The problem with the amendment is that it shifts the power dynamic ever so slightly back to the employer, when the legislation quite rightly tips the balance in favour of the worker—the working people who have endured the acute impacts of a pandemic. I lost my job and my ability to privately rent, and I had to move back home, aged 20, in a cost of living crisis.

[Dawn Butler (Brent East) (Lab)]

My hon. Friend talks about tipping things in favour of the employee. How important is that, when we have heard of employees who have been exploited through zero-hours contracts, and who cannot say no, or pay their bills? Some people, especially young women, have been sexually abused at work when they try to adjust their contracts. These measures are a vital part of the legislation.

[Euan Stainbank]

I thank my hon. Friend for her excellent intervention. That dynamic is apparent in the workplace, from the smallest perceived grievance all the way up to the very serious criminal allegations she refers to. It is a power dynamic that we need to address through the Bill. Zero-hours contracts put far too much power in the hands of the employer over the employee.

To address the point about notice of cancellation, I have worked as agency staff, and have been told not to come in the night before a shift. It is demoralising, quite frankly. In the workplace, it alienates people from colleagues they have had a good laugh with the day before. They may have worked closely beside them and said, “See you tomorrow”. Most good employers know that and do not cancel shifts the night before. Sadly, short-term cancellation has increased, especially post pandemic. This is something I endured, having lost my job during the pandemic picking up takeaways.

Imagine young parents working payslip to payslip who have to arrange childcare on a Friday night and are then sent a text at 3 am on a Saturday by their boss that says, “Don’t bother coming in on Monday.” Are we seriously saying that that gives them enough time to arrange their life and that it is fine to arrange their life around the employer, or should we rightly acknowledge that it is insufficient to provide legitimate flexibility? It is a cover for the rare but corrosive practices of bad employers. We must keep this purpose in mind during the consultation with Ministers. That moral clarity should negate the need for a lengthy consultation.

Oral Answers to Questions

Euan Stainbank Excerpts

Thursday 17th July 2025 Commons Chamber

[Gareth Thomas]

I recognise that my hon. Friend is a great champion of businesses in his constituency, and I was pleased to meet one of them when I was there recently. I absolutely recognise the significance of business rates reform. The Chancellor has been very clear that she is committed to business rates reform, and we will set out further detail on our plans in the Budget later this year.

[Euan Stainbank (Falkirk) (Lab)]

Despite public transport linking people from the Braes, Bonnybridge, Bainsford and beyond to Falkirk, the high street has been dwindling over the past 20 years. SNP and Tory councillors decided to cut the “free after 3” parking scheme for Falkirk town centre businesses and further drive footfall away from our high street restaurants, cafés and pubs. In the forthcoming small business strategy, will the Minister consider looking at how this Labour Government can support accessible and cheap parking in Scottish town centres?

[Gareth Thomas]

I very much sympathise with my hon. Friend’s frustration about what both the SNP and the Conservatives have done to free parking in his constituency. I sympathise because the Tory-run council in my constituency has taken similar steps to curtail free parking, which has undoubtedly had an impact on the town centre. I hope that the concerns my hon. Friend has articulated today will be heard loud and clear in his constituency, and that action will be taken. Our SME strategy will set out a range of steps that we are determined to take to back small businesses and help entrepreneurs across Britain.

Oral Answers to Questions

Euan Stainbank Excerpts

Thursday 1st May 2025 Commons Chamber

[Mr Alexander]

I assure the hon. Lady that we are looking at how we can improve that relationship, and she is right to recognise that a whole number of barriers were created as a consequence of choices made previously, which are causing significant challenges to businesses small, medium and large. As the Secretary of State made clear, we cannot give a running commentary on discussions that are under way, but I assure her that the needs and concerns of British business are uppermost in our minds in those discussions.

[Euan Stainbank (Falkirk) (Lab)]

On the day of the Government’s necessary action to save British Steel, I sent the Secretary of State a letter requesting a meeting to discuss what further we need to do for Grangemouth, where hundreds of jobs have been lost this week when Petroineos decided to cease refining operations, and where thousands of further jobs are at risk. Will he commit to meeting me to discuss the urgent actions that we need to take to secure accelerated investment in Grangemouth’s industrial future?

[Jonathan Reynolds]

I can absolutely give that assurance. I have had meetings about this issue just this week. We are ambitious for the just transition for Grangemouth and recognise the issues not just with the refinery but with the polyethylene cracker. We will get to work and set that meeting up.

Oral Answers to Questions

Euan Stainbank Excerpts

Thursday 13th March 2025 Commons Chamber

[Euan Stainbank (Falkirk) (Lab)]

Over 100 jobs have been lost in Falkirk since September due the previous Government’s failure to keep their commitments to the bus manufacturing sector. We need a plan for bus manufacturing. Has the Minister engaged with the Department for Transport, the bus manufacturing industry or regional mayors, prior to launching the UK bus manufacturing expert panel?

Oral Answers to Questions

Euan Stainbank Excerpts

Thursday 30th January 2025 Commons Chamber

[Gareth Thomas]

In her speech yesterday, my right hon. Friend the Chancellor set out a series of measures that the Government want to take to boost growth across the country and benefit every part of the UK, from investing in modern road and rail systems to expanding airport capacity, rebalancing the planning system and driving investment in cheaper renewable energy, and by creating a national wealth fund that can back the new technologies of the future. I would be happy to meet my hon. Friend to discuss the specific concerns he has mentioned, if he thinks that would be useful.

[Euan Stainbank (Falkirk) (Lab)]

Falkirk High Street is the beating heart of our district, with recent additions including Barracuda chippy, El Toro Gaucho steakhouse, Greek Theory restaurant and Rock Bottom beer hall. Many Falkirk town centre businesses still raise with me the hardship they have faced because of cost rises and utility, rent and parking increases over a number of years, as well as rental value threshold changes by the Scottish Government, which have contributed to decreased footfall and failing business over a number of years. While I welcome the Government’s commitment to shifting the burden away from the high street, will the Minister outline what further steps he is taking to support my high street, and what engagement he has had with the Scottish Government to support shifting the rate burden away from Falkirk High Street taxpayers?

[Gareth Thomas]

I referred to the establishment of the business growth service in answer to an earlier question. We are working with the Scottish Government to begin to think through how that service can support businesses in Scotland and complement the support already provided by the Scottish Government. We are clear on the need to reform business rates to support retail, hospitality and leisure businesses on the high street. I am very happy to meet my hon. Friend if he thinks there are further initiatives we can take to help small businesses in Falkirk.

Oral Answers to Questions

Euan Stainbank Excerpts

Thursday 12th December 2024 Commons Chamber

[Jonathan Reynolds]

We have had seven or eight of the same question from the Opposition Benches, and not a single answer to how they would pay for the promises that they make. We are getting on with fixing the foundations, looking to the future and improving the business environment across the board. That is why businesses in the hon. Lady’s area and mine should look to 2025 with real confidence.

[Euan Stainbank (Falkirk) (Lab)]

I declare an interest as co-chair of the all-party parliamentary group on British buses. The Secretary of State will be aware of the consultation on 160 jobs at Alexander Dennis in my constituency. In September, it cited an increasingly unlevel playing field over a number of years for domestic bus manufacturers. That shows the requirement for a clear industrial strategy. What assurances can the Minister give me, as part of implementing the industrial strategy, that the Labour Government are working to level the playing field for domestic manufacturers?

[Jonathan Reynolds]

I recognise the issue and I welcome my hon. Friend’s raising it at the annual dinner of the Society for Motor Manufacturers and Traders. It matters to this Government that we make these products in the UK. There have been specific procurement issues, mainly with local areas. I promise him the meeting that he needs to take that forward, but I assure him that the industrial strategy will cover this issue.