Employment Rights Bill

Jim Shannon Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake]

I am not a trade union member, and I would not know about my colleagues, but I started a business, as did my hon. Friend the Member for South Suffolk (James Cartlidge), as did the shadow Chancellor and as did many others in our party. We are proud of that fact.

This morning I met business representatives covering all parts of the British economy. Like us, they have serious reservations about this Bill. The Institute of Directors highlighted the fact that 57% of its members will be less likely to hire staff, with only 2% saying that would be more likely. The Confederation of British Industry said that the costs associated with this Bill cannot be afforded by 54% of businesses.

[Jim Shannon (Strangford) (DUP)]

This legislation applies to England and not Northern Ireland, but I echo the hon. Gentleman’s concerns. I am concerned about small and medium businesses that employ a small workforce. If one or two of them have a long-term illness, they may be off for a while, come back to work and then go off for a while. Is there not a need—I look to the Deputy Prime Minister—for a methodology whereby small businesses can employ someone in the short term for those positions, otherwise they will go to the wall?

[Kevin Hollinrake]

I agree. I was interested that the Deputy Prime Minister said that her menopause measures would be exclusive to large businesses. I welcome that, and I ask her to look at attaching the same conditions, ideally, to the entire Bill, but if not to certain parts of it. The risks for small businesses are simply catastrophic. Even one or two cases could completely sink a business.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

As hon. Members may be aware, I am not a career politician. I worked as a pork delivery driver with Henry Denny’s, until I opened my own small business as a pork retailer. I worked from early morning, before I did my work for the council and then for the Northern Ireland Assembly. I employed staff members. I did the books as well as I could, then handed them to my accountant. I delivered to local businesses and shopped local. I understand what it is to be a part of small business; indeed, it was a microbusiness. I say respectfully to the Minister that I know I would have struggled to implement some of the things currently under discussion, so I remind hon. Members of the implications of the Bill on small and microbusinesses. The Northern Ireland statistics will show why I hold those concerns.

Microbusinesses in Northern Ireland are no different from those in the United Kingdom mainland. Employment law is mostly devolved, but much of the law in Northern Ireland follows the direction of what is passed in the House of Commons, which is why I want to make my comments in a constructive fashion. The fact is that most employers are not skilled at making changes. The changes made by the Bill and additional obligations on employers must be made clear, be cost-effective and not mean that they need to hire an HR consultant, which is simply out of the question.

For example, I recently heard about a case of a small business that had worked out holiday pay using the online Government calculator. An employee moved to another job and queried the holiday pay. The Labour Relations Agency has said, according to the employees’ representation, that the owner owes approximately £800 per annum to each staff member. The owner has told me that they will need to close the business. I gave that example because I want to show what can go wrong—and, my goodness, it can go wrong at an absolute volume—with regulations that the Government put in place. The business is viable, but does not have the capacity to pay £10,000 in back pay to its staff. It used online tools to get it right, and yet has been left in an untenable situation. That makes it clear that when changes are made to employment practices, the advice for employers must be accurate and easy to understand. This is clearly not currently the case.

With great respect to colleagues on the Government Front Bench, the Bill is a curate’s egg—it is good in part, but not in every part. I welcome some of the measures, such as the end of zero-hours contracts and the enhanced protections, and look forward to seeing the minutiae of the detail.

[Gavin Robinson (Belfast East) (DUP)]

On Friday, I attended an event hosted by the Northern Ireland Chamber of Commerce and Industry. It offers the Government no ill will and wants to engage positively and pragmatically on the issues, but it is concerned. Does my hon. Friend agree that it would be useful if, instead of continual hubris and politics from one side to the other throughout this debate, there were a willingness on the part of Front-Bench Members to engage thoughtfully with businesses?

[Jim Shannon]

My right hon. Friend makes exactly the point that I want to make. Through the Bill, the Government are pushing forward legislation that is necessary and welcome, but they need to work better and more closely alongside small businesses and microbusinesses of the kind I worked with many moons ago, whenever I had hair—that is a thing of the past. We cannot expect almost 80% of small businesses to behave as if they have an HR department, a payroll department and a board when most of them are simply retailers as I was, hiring local people and trying to be a good boss in a world with changing obligations.

Support must be central to any change in legislation. Like my right hon. Friend the Member for Belfast East (Gavin Robinson), I ask the Secretary of State to take that point on board. If he is able to do so, I believe we can move forward constructively and help our businesses to maintain their status as employers.

[Madam Deputy Speaker (Caroline Nokes)]

I call Imogen Walker to make her maiden speech.

Employment Rights Bill

Jim Shannon Excerpts

Report stage
Tuesday 11th March 2025 Commons Chamber

[Sarah Owen (Luton North) (Lab)]

I refer Members to my entry in the Register of Members’ Financial Interests and the fact that I am a trade union member.

This Government were elected on the promise to deliver the biggest boost to workers’ rights in a generation, and that is exactly what this Bill will do. The previous Government oversaw a system that left working people paying the price for economic decline through insecurity, poor productivity and low pay. The measures in this Bill will make a serious difference to working people’s lives. Nine million people will benefit from day one protection against unfair dismissal, the around 4,000 mothers who are dismissed each year after returning from maternity leave will be protected, and 1.3 million people on low wages will receive statutory sick pay for the first time. In Luton North and elsewhere, these rights will make a real and meaningful difference to people, especially those in new jobs, on lower incomes or with insecure contracts.

As a former care worker, I know that fair pay in adult social care—bringing workers and employers together to agree pay and conditions across the whole sector—will be transformational and is long overdue. During covid, when many carers risked their lives and those of their families to care for others, the last Government handed out claps, gave out bin bags in place of personal protective equipment, and sent carers off to food banks. This Government are delivering the recognition that social care is skilled, valued and vital to a thriving society.

I will speak in my role as Chair of the Women and Equalities Committee. Our Committee’s report in January showed the need for bereavement leave following pregnancy loss. I give my wholehearted thanks to all who gave evidence, which led to our report and the amendment that followed. I thank Members from across the House for their support, and I especially thank the brave women who shared their experience of losing a pregnancy with our Committee. All of them had only the option of sick leave, and every single witness said it is time for a change.

Granting sick leave to grieve the loss of a pregnancy is not appropriate. First, it means that women workers are left fearful that human resources processes will kick in following the accrual of sick leave. Secondly, it wrongly reinforces the feeling that there is something wrong with their bodies. Thirdly, it makes them feel unable to talk about their miscarriage with both their employers and their colleagues, as they should be able to do. It is as if miscarriage is something shameful to approach one’s boss about.

From small businesses to big businesses, such as the Co-op Group and TUI, many employers already offer bereavement leave following miscarriage, as does the NHS, which is the largest public sector employer of women. They all show that doing the right thing is good for workers and good for business, and I am so pleased to hear the Minister commit to working with the other place to introduce miscarriage bereavement leave. This Labour Government will make the UK only the fourth country in the world to recognise the need for bereavement leave following miscarriage, which is truly world leading. We will be a leading light in a world that seems to be taking a backwards step on women’s rights.

Although such leave is not paid, as outlined in my amendments, it is a significant step forward. It not only provides rights, but goes a long way towards furthering how we talk about pregnancy loss in society as a whole. Miscarriage should no longer be ignored and stigmatised as a sickness. People have been moved to tears of joy, relief and raw emotion on discovering that their loss is now acknowledged and that things will change. Later tonight, in the privacy of my home, I will probably be one of those people.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for her passion and compassion, for her honesty and for talking about this subject in the Chamber. We all recognise her commitment to the task that she has set herself, and this Government will deliver it for her. I welcome that, because we have all lost loved ones. We have mothers and sisters who have had miscarriages, and we have family members and colleagues who have had miscarriages. That is why we commend the hon. Lady for making a special contribution.

[Sarah Owen]

I thank the hon. Member for his kind intervention, and I thank many Members for their support throughout the years. I experienced pregnancy loss while I was an MP, and the kindness of colleagues in this place got me though, but at no point did any of them wrap their arms around me and say, “Get well soon”; they all said, “I’m sorry for your loss.” I am so glad that today the Minister has committed to the law reflecting society’s view on miscarriage.



I thank the Department for Business and Trade team, and especially the Minister, for meeting the challenge set by the Women and Equalities Committee. Each of the Committee members is committed to this, and it was enabled by our excellent Clerks. I thank the Members who have supported my amendment—and our amendments —and so many people for their campaigning work. Many Members have been very kind and have expressed gratitude to me for tabling the amendment, but this was actually a team job, with team work and campaigning spanning many years.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords amendments
Monday 15th September 2025 Commons Chamber

[Peter Kyle]

I am grateful to the right hon. Gentleman for his thoughtful contribution, and for reflecting the voice of chambers, who do an incredible job right around our country—and around the world. I say to the chambers, and to him, that the Bill reflects the best standards that are already in use right around the country by the very best employers—indeed, by most employers. Those employers have nothing to fear and a lot to gain from this legislation.

On consultation, this is a Government who listen constantly, and we will continue to listen. On those measures for which an implementation phase is really important, there are, unusually, formal consultations in which businesses can engage. This is a listening Government and an acting Government, and we will deliver on our manifesto commitments.

[Jim Shannon (Strangford) (DUP)]

We welcome many aspects of the legislation, but I put this question on behalf of my small businesses. They say that sickness absence costs them £3,500 a year—it costs some £5 billion across all the United Kingdom of Great Britain and Northern Ireland—and they are worried that the legislation could dramatically raise their fees and costs for the next year. How will this Bill support small businesses that literally cannot afford to pay sick pay as well as hire someone in the place of the sick? That is a constructive question, and my small businesses need the answer.

[Peter Kyle]

In all the Front-Bench jobs I have had, I have enjoyed my exchanges with the hon. Gentleman, who is always constructive and well intentioned. I did not expect that we would enjoy that renewed relationship so soon in my new position. I say to him, and to the incredible businesses in his community, which I have had the pleasure of visiting, that a healthy workforce is a productive workforce. We intend to ensure the health and wellbeing of employees, and to ensure support for them in the workplace, structured in a way to get the very best out of them. That will be of benefit to employees, and certainly to employers as well.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[Kate Dearden]

I thank the right hon. Member for working with us and for her support throughout the passage of the Bill. I understand her passion and work in this area. As she says, the guidance will offer a clear benchmark for reasonable activities and assist inspectors in important decisions. The Government are committed to the work, as she will know, with publication targeted by 31 March 2026. We believe that this collaborative effort will provide practical guidance that empowers children to engage safely and meaningfully in heritage railway volunteering.

Turning to the issue of political funds, Lords amendments 61 and 72 would remove clause 59 from the Bill. That clause reverses measures in the Trade Union Act 2016, which we have committed to repeal, that require members to opt in to political funds. This therefore reinstates longstanding arrangements where members are automatically included unless they choose to opt out. Removing clause 59 would break that commitment to restore balance and fairness in union operations. The opt-in system, introduced in 2016, added bureaucracy without improving transparency or strengthening members’ choice. To be clear, we are not removing that choice. At the point of joining, every new member will be clearly informed on the application form that they have the right to opt out of contributing to a political fund. The same form will make it plain that opt-out has no negative bearing whatsoever on any other aspect of union membership. That is why the Government cannot support Lords amendments 61 and 72.

We have heard reflections around how opt-out notices would take effect and have tabled an amendment in lieu to refine that process. Under the pre-2016 legislation, an opt-out notice was effective on 1 January following the year in which it was given. Under the Government’s amendment, opt-out notices will now have effect from either 1 January or the following year after it has been provided, or on a date specified or determined in the rules of the union, whichever of those dates comes first. This provides unions with flexibility in the legislation to act more quickly and process the member’s request to opt out, without having to wait until the subsequent 1 January to do so. In practice, unions already do this. We will also commit today to engage with unions directly, to continue to make clear our expectation that opt-out notices can be honoured as swiftly and practically as possible. Our amendment is simply about ensuring that legislation matches what has been the established practice.

[Jim Shannon (Strangford) (DUP)]

I hope that the Minister has not referred to this already, but small businesses in my constituency that do not have human resources departments tell me that they will find it hard to navigate these legislative waters. Although we need strong employment rights and I support the Bill’s objectives, we need to ensure that there is support for employers, so that they know how to implement the measures and how to defend themselves, which they will sometimes need to do, without paying costly solicitors’ bills that are detrimental to their business. Will the Minister reassure me on that matter?

[Kate Dearden]

I come from a family that has a business in the hospitality sector, which is close to my heart. In the first eight weeks that I have been in this role, I have had the pleasure to meet small and large businesses, and I have made clear our determination to work closely with them on the implementation of this legislation and to ensure that they are prepared for the changes when they come. We published our road map earlier this year and have committed to stick to that, which has been welcomed by businesses small and large.

Finally, turning to the issue of industrial action ballot thresholds, Lords Amendment 62 would remove clause 65(2) from the Bill, which would retain the existing 50% turnout threshold for industrial action ballots. The Government do not support this amendment. Clause 65 removes an unnecessary bureaucratic hurdle and aligns union democracy with other democratic processes, such as parliamentary votes and local elections, which do not typically require turnout thresholds but are still accepted as legitimate. As the period of disruption under the Conservatives’ watch between 2022 and 2024 has shown, bureaucratic hurdles only make it harder for unions to engage in the bargaining and negotiation that settles disputes. This Government’s approach will foster a new partnership of co-operation between trade unions and employers.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Under Lords amendment 1, the duty would be shifted to the employee to request guaranteed hours, as opposed to it being down to the employer to offer hours. That means that the employee can request hours, and then the employer can cancel them at the last minute. Can the Minister reassure me that provision will be made to protect workers, ensuring that if they are given hours, they are compensated in the right way?

[Kate Dearden]

I will speak to zero-hours contracts later in my contribution. This is about rebalancing power —giving workers access to guaranteed hours if they need and want them.

Let me return to the unfair dismissal protections that we will bring in from 1 January 2027. Our intention is to adopt a commencement approach that would extend protections immediately from that date to employees who already have six months’ service or more. For example, under this proposal, someone employed from today will gain protection against unfair dismissal on 1 January 2027. That is almost a full year earlier than under the current law. Other employees will gain protection once they reach six months’ service; for example, someone who starts work on 1 November 2026 will qualify for protection from unfair dismissal on 1 May 2027—International Workers’ Day—which is 20 months earlier than under the current law. This approach was taken in 1999, when the qualifying period was reduced from two years to one. This approach will prevent a two-tier system, in which some people would remain on a two-year qualifying period while newly hired employees were subject to a six-month qualifying period.

The commencement of the unfair dismissal provisions will be set out in commencement regulations, as is standard practice. I am happy to commit to making those regulations early next year, implementing our commitment to commencement on 1 January 2027. This change will benefit millions of working people, who will gain greater security at work, and it will offer businesses and employers the flexibility to ensure new hires can do the job, get the skills to match, contribute to business success, and build a stable and secure working life.

To further strengthen these protections, the Government amendments will also ensure that the unfair dismissal qualifying period can only be varied by a future Government through primary legislation, and will remove the compensation cap. I know that some businesses have expressed concern about the agreement to lift the compensation cap; I can tell the House that we want to remove the scope for employment tribunal cases to be more complex and convoluted than they need to be. We need a tribunal system that works for employees and employers alike—one that is not gummed up by process and unnecessary delay nor bedevilled by bogus claims. Our aim is to make the tribunal system work more effectively and efficiently for all, so that those judged to have been unfairly dismissed get the compensation they deserve, the system works to resolve cases more speedily and unfounded claims are dismissed more urgently.

As we review the tribunal system, in the spirit of partnership, we will work with businesses and trade unions to create a tribunal process that is fairer and faster. No committed employee should lack the protection they deserve, nor should any reasonable employer fear the consequences of an unsubstantiated claim. For several other employment rights, the amount of compensation that can be awarded by a tribunal is limited by cross-referring to the unfair dismissal cap, so our amendments will ensure that these consequential issues can be considered and dealt with effectively through secondary legislation.

We know that security of work is critical for working families, and we are also acutely aware of the challenges businesses face. That is why we are committed to open and constructive dialogue with all stakeholders. If these changes are to create the conditions for lasting, fair and flexible labour laws, dialogue and co-operation must be our watchwords. I hope the other place can attach similar importance to that co-operation, and that it will let this Bill—the product of a general election mandate and the good will of both business and trade unions—proceed to Royal Assent. These discussions and the workable compromise highlight the importance of participation, and I urge those listening to today’s debate to engage with the consultations set out in the implementation road map.

I will now speak to the Government amendments in lieu that relate to zero-hours contracts and the right to guaranteed hours. We have tabled amendments that will create a statutory duty to consult on the length of the initial reference period and the length and timings of subsequent reference periods before exercising the relevant powers. These amendments will ensure that vital stakeholders can have the opportunity to contribute before the lengths of the reference periods are determined by regulations that work for worker and employer alike. By delivering this change with the input of stakeholders, we will provide a fair and balanced approach.

Let me turn to the Government amendments in lieu of Lords amendment 48B, which relate to seasonal work. In order to help address fluctuating demand, the Bill allows guaranteed hours offers to take the form of limited-term contracts where reasonable. The Government have tabled amendments that place a statutory duty on the Government to consult before making any regulations to specify what counts as a temporary need. This means that before any such regulations are introduced, employers, trade unions, and other parts of civil society with an interest in seasonal work, will be fully consulted.

I will now address the issue of political funds and the related Government amendments in lieu of Lords amendments 72D to 72H. The Government remain committed to the repeal of the Trade Union Act 2016. That includes reinstating the long-standing practice that existed for 70 years before that Act, whereby new union members are automatically included as contributors to a political fund unless they choose to opt out. This will return us to arrangements that worked well for decades, removing bureaucratic red tape on trade unions that works against their core role of negotiation and dispute resolution in the interests of working people. We have heard the concerns about how opt-out notices would take effect, and we believe our amendments will refine that process.

Under the pre-2016 legislation, an opt-out notice could only take effect on 1 January of the year after it was given. Under the Government’s amendment, opt-out notices will now take effect on either 1 January of the following year or on a day specified or determined by the rules of the union, whichever comes first. We are aware that in practice, prior to 2016, unions generally gave effect to opt-out notices before the subsequent 1 January date anyway; amendment (a) in lieu affirms that flexibility in the legislation. We have also tabled amendment (b) in lieu, which places a statutory duty on the Government to issue guidance within three months of the clause coming into effect. That guidance will set out the kind of provision that unions should include in their rules about the timing of giving effect to opt-out notices.

Finally, I will address the issue of industrial action ballot thresholds and related Government amendments in lieu of Lords amendment 62. As I have said, this Government want to end disputes and conflict in the labour market; we also want more trade union members to have a say in decisions about escalating disputes where they arise. We will repeal the 50% threshold and—as we have previously stated—align this with the establishment of non-postal balloting, including e-balloting, so that decisions about industrial action keep pace with the communication channels of modern life.

Our amendment (a) in lieu cements that intention by requiring the Secretary of State to have regard to any effects of the introduction of non-postal balloting, including e-balloting, on the proportion of those entitled to vote in industrial action ballots who actually do so. In having regard to the effects of e-balloting, the Government will monitor and assess the practical impact of non-postal balloting on rates of participation in industrial action ballots, so that we will be confident that modernising the means of balloting increases member participation. In addition, we have tabled amendment (b) in lieu, which will place a statutory duty on the Secretary of State to lay a statement before Parliament that demonstrates how the Government have had regard to non-postal balloting before making regulations to repeal the 50% threshold.

I urge hon. Members to support the Government motions before the House today, including our amendments in lieu. Together, they form a package that strengthens workplace rights, reflects the value we place on fair and flexible labour markets, and demonstrates the Government’s willingness to listen to concerns and act on them. We place a premium on dialogue and compromise as key components in modern labour relations; we want to consign the narrow, partisan, party political prejudice of previous decades to the dustbin of history, and build instead a modern industrial relations framework that values partnership, dialogue, flexibility and fairness for all sides. Our amendments in lieu fully reflect that approach, and in that light, I commend them to the House.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

We are absolutely determined to get this legislation through, and I urge colleagues in the other place to pass this Bill for the reasons my right hon. Friend outlines: 1.3 million people will be entitled to statutory sick pay from as soon as April. That is significant, and it is why it is so important to get the legislation on to the statute books.

[Jim Shannon (Strangford) (DUP)]

My colleagues in the other place all expressed concern about open-ended, unlimited compensation. That is a concern not only for them and for colleagues here, but for businesses back home. I know the Minister means well, but for goodness’ sake, this will not work for business.

[Kate Dearden]

If hon. Members allow me to make some progress, I will get to the background and reasoning for the compensation cap.

Continued delay to the Bill will put implementation at risk, which creates insecurity and uncertainty for workers and employers alike. I hope the other place acknowledges the importance of this and will let the Government deliver the Bill, which is backed by an electoral mandate, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) said. We have been engaged in ping-pong for far too long, and further delay is in no one’s best interests. I hope the arguments I make today will address the reservations of those Members of the other place who have been engaging in good faith when they have had genuine concerns about the Bill.

As I told the House last week, I convened a series of constructive conversations on the unfair dismissal provisions, which resulted in a workable agreement with trade unions and business representatives and was the subject of Government amendments made last week. I can assure hon. Members, as someone who was in the room during the negotiations, that the agreement between unions and business representatives was made with good will and in good faith by all sides.

As those representatives of the British Chambers of Commerce, the Chartered Institute of Personal and Development, the Recruitment and Employment Confederation, Small Business Britain, the Federation of Small Businesses and the Confederation of British Industry said in today’s letter to the Secretary of State, the “outcome” of the

“dialogue…represented a significant step forward which will have a positive impact on growth and opportunities.”

The amendments tabled in the other place undermine that agreement, as the compensatory award cap would not be removed and instead the Government would conduct and publish a review of the impact of the cap. The removal of the cap would then require further primary legislation.