Employment Rights Bill (Seventh sitting) Debate

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Department: Department for Business and Trade
Greg Smith Portrait Greg Smith
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The hon. Gentleman makes a fundamentally good point about issues such as modern slavery. Actually, it was a former Conservative Prime Minister—I accept that we had a few in the last Government—my noble Friend Baroness May of Maidenhead, who did an enormous amount to tackle modern slavery in this country. Is it a case of job done? No, clearly not. However, we have made enormous strides and I encourage this Government to do all they can to continue the fight against modern slavery, which is a particularly evil crime that needs to be stamped out for good.

The hon. Gentleman asked for concrete examples. I felt that I gave one, with the example of the two-employee furniture maker. However, I will give another example of where force majeure may come in. Let us take the example of a small business. In fact, let us take a bathroom fitter, where there is perhaps one business owner who has, say, two employees who support him or her in fitting those bathrooms. They take on a big job in a hotel to refit all the bathrooms. Let us say that it is a 25-room hotel; I can think of a couple of those in Buckinghamshire. However, that hotel goes bust. It is not the fault of the company whose owner thought they had just taken on a really lucrative contract to refit 25 bathrooms. Clearly, it is the fault of the hotel that, sadly and for whatever reason, has ceased to trade, or perhaps it has been taken over as an asylum hotel. Obviously, that order to refit the bathrooms would have fallen.

What does that business do? It cannot suddenly magic up 25 bathrooms to fit in the space of a month, or a quarterly period, or whatever period it might be. However, it has probably already had to fork out for the parts, bathtubs, showers, toilet cisterns and everything else that goes into a bathroom. I gently suggest to the hon. Gentleman that that is a concrete example of where it is a lose-lose situation for the business owner and their employees, until they can get themselves back on track.

Nobody wants to see that type of thing happen, but it does happen. It is a reality of trading, not only in this country but worldwide, that sometimes bad things happen. So, there has to be flexibility around such events. That is notwithstanding the good points that the hon. Gentleman made about modern slavery and businesses exploiting those who perhaps are less able than other workers to stand up for themselves in workplaces in this country. However, I accept the broad sweep of the points the hon. Gentleman made in that regard.

I am conscious of how long I have been speaking about this amendment, but I am always up for a good debate. I will conclude by returning to the evidence that—

Jon Pearce Portrait Jon Pearce (High Peak) (Lab)
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Will the shadow Minister give way?

Greg Smith Portrait Greg Smith
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I am tempted not to give way to the hon. Gentleman, since he seemed less than keen to take my interventions in the farming debate yesterday, but I will grant him an intervention today.

--- Later in debate ---
Jon Pearce Portrait Jon Pearce
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It is an honour to serve under your chairship, Mr Mundell. I refer to my entry in the Register of Members’ Financial Interests and to my membership of the GMB. I apologise to the shadow Minister for not taking his interventions yesterday. I did take two, if that assists.

I wanted to build on the point that the shadow Minister was making. I actually agreed with some of the examples he gave, in that there are emergency situations where things do not work out for a business. I am interested in whether the shadow Minister would apply the same principle when the employee has an emergency, which builds on the point made by my hon. Friend the Member for Scarborough and Whitby. For example, an emergency for the employee might be childcare, the illness of a family member, or the death of a family member—actually that may not be relevant because that would be a different type of leave. In those emergency situations, there is a right to dependant leave, but that dependant leave is unpaid. Would the shadow Minister accept the principle in those circumstances that the employer should equally bear the cost and pay the employee?

Greg Smith Portrait Greg Smith
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I understand the point that the hon. Gentleman makes, and I fundamentally agree with his point about bereavement leave and dependant leave. As we heard in the evidence sessions, I have an enormous amount of sympathy for extending certain elements of bereavement leave, including to pregnancy loss before 24 weeks, which we will come on to later in the Bill. Those circumstances are arguably more about humanity than some of the practical realities of market failure, supply chain failure or whatever it might be. I think they should be kept in very distinct columns. One is a human response to tragedy and the facts of life with dependants, or people to whom individuals might have a caring responsibility, as opposed to the need for flexibilities to exist, such as with the example of the lost contract or supply chain problems. I accept that this is a slightly different point to being told, “No bookings today” in a hospitality setting, or whatever it might be. I accept the point made by the hon. Member for High Peak, but I see it as a distinct column as opposed to something that is all in the same category.

Jon Pearce Portrait Jon Pearce
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Will the shadow Minister allow me to clarify?

Greg Smith Portrait Greg Smith
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I will give the hon. Gentleman one more go.

Jon Pearce Portrait Jon Pearce
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The principle is, though, that with dependant leave in those emergencies, whether that is childcare or anything else, there is no right to pay; that is the point I am trying to make. The shadow Minister is saying that if there is an emergency for the business they should bear no cost of it. If there is an emergency for the employee, that employee will, under the statutory provisions on dependant leave, bear the cost of it. In both scenarios, the shadow Minister appears to be asking the employee to bear the cost. Is that correct?

Greg Smith Portrait Greg Smith
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I understand the point that the hon. Gentleman makes. Actually, at no point have I said there should be no cost to the employer; I have said there needs to be flexibility, as opposed to a hard and fast rule. On Tuesday I had an exchange with the hon. Member for Birmingham Northfield on the point around, “Okay, what else?” While I put that problem list back in the column for the Government to address, there are other safeguards; there are other things that the Government could look at so that the burden is more shared, as opposed to zero cost to the business. The key word here, which I have probably said 100 times this morning, is “flexibility”, as opposed to hard and fast rules.

I will get back to my conclusion. Allen Simpson from UKHospitality made some sensible points when giving evidence to the Committee last week, so I pose his questions to the Minister. I should be grateful for a response on each, as I imagine employers throughout the country would be. Could a different approach be taken to what constitutes “reasonable notice” for different employers in different sectors? That goes back to the point made by the Opposition earlier. Will shift swapping still be allowed, and if so, how will the regulations account for it? If shift swapping will not be allowed, why not? What will be considered “reasonable notice” within shift-swapping provisions? If an employee wants to change their shift at the last minute, are they allowed to do so, and in what circumstances? What would happen if an employer were to put out a message saying, “There is a shift available right now. Does anyone want it?” Does that constitute an offer of employment? Will there be a time after which employers will not be able to do that, because it does not constitute reasonable notice? Those were very sensible, thoughtful questions from UKHospitality, and as this legislation progresses through Committee it is only right that the Government and the Minister give a clear and full answer to them.