(1 month ago)
Commons ChamberI congratulate those who have given their maiden speeches today and spoken with such passion for and about their communities.
There is much in the Bill that I support, and I support the sentiment behind it. I am sure there is common ground in wanting to improve conditions and rights for workers, but there is a balance to be struck, and I have grave concerns about some provisions in the Bill—those that increase burden and red tape on employers and on employees, and those that are a threat to and a drag on economic productivity.
My first concern is the unnecessary introduction of a new concept of statutory probation. As the law currently stands, workers get protections against things like unfair dismissal. Those long-standing principles have survived different Governments, and indeed survive in this Bill. The debate has been about when those rights are accrued—whether it is after two years of employment or one—and there has been a fluctuation. This Bill attempts to introduce those rights from day one, but then to row back on them by introducing a statutory probation period, during which, in the Deputy Prime Minister’s own words, there is only a “light touch” approach to unfair dismissal. It creates a new concept that is vague and unclear, and it will increase the glut of litigation in the employment tribunal. Indeed, it will need to do so to create case law so that employees and employers can understand what a “light touch” approach to unfair dismissal means.
My second concern is the increased burden on smaller employers. Indeed, that is contained in the Government’s own analysis, and much has been said about that, so I will turn to my third issue: specific burdens in specific sectors, such as social care. The Government’s own analysis says that the Bill will increase costs for employers, but employers in social care cannot bear any more cost. The Government have said they will bring forward reform of social care; that must come first, before this law is brought into force.
Does my hon. Friend agree that the crux of the issue is that the Bill is lacking in detail? The issues he is discussing have been identified and indeed referenced in the Government’s own economic analysis, and we cannot get into the detail of this debate without having that level of information on the face of the Bill.
I agree that the Bill lacks detail. It also contains a lot of powers that are intended to come about through secondary legislation. For example, we do not know how long that probation period will be, because it is not set out in the legislation.
Turning to the NHS, we understand that the Chancellor will increase the money to the NHS in the Budget but, as an employer, the NHS will have increased costs through this Bill. If national insurance contributions on employers are to be raised in the Budget, it will have that cost as well. That means there will be less money available to cut waiting lists. I urge the Government to delay this Bill, get the detail right and put some detail into it, and ensure that sectors such as health and social care get the support first so that, as employers, they can deal with the increased costs from this legislation.