Oral Answers to Questions
Justin Madders Excerpts(2 days, 16 hours ago)
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Jerome Mayhew (Broadland and Fakenham) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government are pursuing the reforms needed to deliver sustained long-term growth. Developed and delivered in partnership with business, we have taken significant steps, including launching a consultation on the modern industrial strategy, establishing the national wealth fund, transforming our planning rules, committing to a 10-year infrastructure strategy and introducing the Employment Rights Bill to boost productivity. We have also added extra protections for small businesses by increasing the employment allowance and freezing the small business rate multiplier.
Jerome Mayhew
I think the Minister may have misunderstood my question; I asked how he would reduce employment costs. The president of the Confederation of British Industry recently said that, because of things like the Employment Rights Bill, employers will be laying people off and will be less likely to employ, and that is before the national insurance tax on employment imposed by this Government. Does the Minister accept responsibility for the increase in unemployment that we are already seeing?
Justin Madders
I think it is something of a stretch to say that a Bill that is not even law yet, most of the provisions of which will not come into force until next year, is driving unemployment already. I quote back to him what the head of the CBI said yesterday about our growth plan. He said:
“This positive leadership and a…vision to kickstart the economy and boost productivity is welcome.”
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Justin Madders
I thank the shadow Secretary of State for his question. We believe that a 0.4% increase in the overall pay bill, which is what we have estimated the Employment Rights Bill will mean for businesses, is actually a fantastic return for greater security at work, greater pay, better staff retention, increased productivity, making jobs more secure and family friendly, banning exploitative zero-hour contracts, supporting women in work in every stage of life, providing a genuine living wage, turning the page on industrial relations, and bringing an end to fire and rehire. This is a pro-business, pro-growth, pro-worker agenda from the Government, and we are determined to deliver it.
Sarah Owen (Luton North) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government understand the effects that fireworks can have on animals and vulnerable individuals. Consumer fireworks have a 120 dB noise limit, but numerous low-noise options are available on the market at around 90 dB or below. This year’s fireworks public information campaign has highlighted low-noise fireworks and the importance of considerate use. Additionally, I am meeting businesses, consumer groups and charities at the conclusion of the fireworks season in the next coming week or two to discuss their concerns.
Sarah Owen
Antisocial fireworks keep our constituents awake, cause alarm for pets, and seriously affect people with post-traumatic stress disorder or special educational needs. I know the Minister heard extensively from colleagues, campaigners and charities on this during the Westminster Hall debate on my Bill. Will he meet me to discuss the implementation of the common-sense measures presented in my Fireworks Bill, including lowering the noise limit on fireworks sold to the public, closing the licensing loophole and reviewing social media and online sales?
Justin Madders
It is always a pleasure to meet my hon. Friend and I am happy to do so. Indeed, we will see whether we can get her to come along to some of the other meetings that we are holding with interested groups, some of which she has mentioned.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
May I wish a belated happy Chinese new year to all those who were celebrating yesterday? One beauty of our great country is its diversity, but with that comes causes for celebration throughout the year. My own community in South West Hertfordshire celebrates Diwali, Eid, Christmas, Chinese new year and other events, which often entails the use of fireworks. There is an expectation of fireworks and the noise associated with them at the main events of Christmas and new year, so pet owners inevitably take safeguarding measures then, but given the likelihood of fireworks throughout the year, may I urge the Minister to get on to this Bill quickly, ensuring that we do not stifle the celebrations, but that we do protect our animals and those vulnerable children who may be affected by noise?
Justin Madders
I thank the hon. Member for his question. He is right to recognise that fireworks are used at a number of events throughout the year, but it would be wrong to characterise that as people having to expect that there will be noise. There is now a sufficient number of lower-decibel products on the market for everyone to act more responsibly, and we will be exploring that in our meetings over the coming weeks.
Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)
Ian Lavery (Blyth and Ashington) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government are investing £1.4 billion, with the North East combined authority, to deliver our shared objectives of economic growth and business support. That includes the development of the local part of the industrial strategy, guiding investment to deliver sustainable economic growth, and delivering support to grow all businesses. In 2023-24, there was £420,000-worth of direct support given to the North East Growth Hub, which provides businesses across the area with practical advice and support to grow and thrive.
Ian Lavery
Yesterday saw full-throated Government support for projects across the UK, but not so much for the north-east. The region was decimated by 14 years of Tory Government, and that cannot be repeated. I accept what the Minister says about what has happened, but what will the Government do to ensure that businesses in my Blyth and Ashington constituency can play their part in the cutting-edge technologies of the future and, crucially, see improved investment, which will create much- needed jobs with good wages and terms and conditions?
Justin Madders
I am at one with my hon. Friend in wanting all parts of the country, especially the north-west and the north-east, to have high-paid, well-skilled, good jobs, in tech sectors in particular, but also in other areas where we can see great advantage for the economy. The local skills improvement plan for the north-east will help, and the excellent facilities at Blyth’s Energy Central Learning Hub are supported by over £6 million of Government funding. That is already developing sector skills in a real-world port setting. With the reopening of the Northumberland line, we have reconnected towns in south-east Northumberland with Tyneside, improving links and opportunities across the area.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
Luke Murphy (Basingstoke) (Lab)
Sir John Whittingdale (Maldon) (Con)
Justin Madders
I can give the right hon. Member that reassurance. The independence of the CMA is very important. That will remain in place and a new strategic steer will be issued shortly that will reaffirm that independence.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Justin Madders
The experience of the pandemic really brought home that millions of people in this country do not qualify for statutory sick pay. We are determined to deal with that and I am happy to meet my hon. Friend to discuss the issue in more detail.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Yesterday, out of the blue, Bank of Scotland announced that it will close five branches in my constituency, leaving hundreds of square miles of the rural south of Scotland without a single bank branch. While we must work with Link and others to ensure access to cash in those communities, does the Minister share my concern not only that this will leave empty premises prominent on the high street, but that it sends a message that the banks are giving up on rural areas and on those who do not bank online?
Draft Register of Overseas Entities (Protection and Trusts) (Amendment) Regulations 2025
Justin Madders Excerpts(3 days, 16 hours ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I beg to move,
That the Committee has considered the draft Register of Overseas Entities (Protection and Trusts) (Amendment) Regulations 2025.
It is a pleasure to see you in the Chair this morning, Sir Desmond. The draft regulations were laid before the House on 6 December 2024.
The Government are committed to increasing transparency of beneficial ownership and combating economic crime. Hon. Members will be aware that since 2022 the UK has had a public register of beneficial ownership of overseas entities that own property in the UK, known as the register of overseas entities. The draft regulations will strengthen the transparency of trust information on the ROE to further improve transparency around the ownership and control of land.
The ROE, which was created by the Economic Crime (Transparency and Enforcement) Act 2022, requires overseas entities that own or buy property in the UK to give information to Companies House about their beneficial owners and/or managing officers. The ROE is a key tool in cracking down on dirty money in the UK and is crucial in the fight against bad actors who use UK property as a money-laundering vehicle. The information available on the ROE has been used by many journalists examining corruption, money laundering and assets held by individuals who are subject to sanctions.
Currently, the ROE collects trust information, but there is no public access to that data, other than the name of the trustee. This approach protects the right to privacy for those who operate such structures for a variety of legitimate reasons. However, the Government understand that there are concerns around the use of trusts to facilitate economic crime, particularly because their anonymity makes assets easier to hide.
The draft regulations have been designed to provide further transparency and prevent potential abuse of trusts, while supporting legitimate trust arrangements. They have been laid before the House under powers contained in the 2022 Act, as amended by the Economic Crime and Corporate Transparency Act 2023.
The draft regulations consist of two measures. First, they will enable anyone to apply to Companies House to access trust information held on the ROE. This marks a significant step forward in transparency, empowering the public and civil society to scrutinise trust beneficiaries on the ROE more effectively. Anyone can apply to the registrar of companies for information about a specific trust. Applicants must provide their personal information, the name of the trust related to the relevant protected trust information, and the overseas entity’s name and ID.
Applicants seeking trust information related to minors, or to more than one overseas entity in a single application, must meet a legitimate interest for the requested disclosures. This will ensure that the vulnerable are protected but that critical information is available to those with a valid need, such as investigative journalists. By requiring this safeguard, the Government are striking a fair balance between protecting personal information and delivering on our commitment to greater transparency.
Applicants will need to show a legitimate interest; they cannot just go on a fishing expedition. They must show that they are investigating money laundering, tax evasion, terrorist financing or breach of sanctions and must provide a statement that they are requesting the disclosure in order to further that investigation and a statement on how they plan to use the information disclosed to them. If no such interest can be demonstrated, the registrar may withhold some or all of the information.
The registrar will notify the applicant of the decision and will provide reasons. If a legitimate interest can be demonstrated, the registrar will release any unprotected information. The registrar will have the discretion to impose conditions under which the trust information is disclosed, such as restricting its use or further disclosure; failure to comply with those conditions will be an offence. The registrar may also refuse an application where disclosure may prejudice an ongoing criminal investigation or adversely affect national security, or where the trust is a pension scheme.
The second measure in the draft regulations involves provisions for the protection of sensitive information, which will come into force before the disclosure provisions go live. Through the draft regulations, we are expanding the category of individuals who can apply to the registrar of companies at Companies House to have their information protected. This will ensure that those connected to a trust, such as settlors, trustees and beneficiaries, whose information could be published or disclosed by the registrar under the ROE, can apply to have their details protected from disclosure, for instance where there is a risk of violence or harm. The draft regulations will also expand the grounds on which an application for protection may be made, to include the ground that the individual is under 18 or lacks capacity.
The protection provisions will come into force on 28 February; the provisions on disclosure of trust information will come into force on 31 August. This will allow sufficient time for those who are eligible to do so to apply to Companies House for protection.
The draft regulations will not change the fact that an application for protection does not exempt an overseas entity from the requirements of the 2022 Act in general. The required information about the trust must still be supplied to Companies House, and the registrar will still be able to use their general information-sharing power, which was introduced by the 2022 Act, to share protected information with law enforcement agencies and public authorities for purposes connected to the exercise of their functions.
The draft regulations will further the Government’s mission to improve transparency of the beneficial ownership of overseas entities investing in the UK, driving confidence in our economy and exposing bad actors who seek to take advantage illegitimately. I hope that hon. Members will support the draft regulations.
Justin Madders
I am grateful for the Opposition’s support. The shadow Minister raises some important questions. I think that these will be operational matters for the registrar.
I have no doubt that there will be criteria; there will certainly be criteria available for legitimate interest tests. We envisage some kind of informal process for decisions to be challenged—but those, I think, will be operational matters for Companies House to decide in due course. I will write to the shadow Minister with further detail.
The shadow Minister asked about the period for which the information would remain protected. My understanding is that the protection would remain in situ unless something came to light that suggested that that information needed to be questioned—but, again, that is more of an operational matter. I will write to him with further detail.
If there are no further questions, let me commend the draft regulations to the Committee.
Question put and agreed to.
Unionised Workers in the Housing Sector: Pay Discrimination
Justin Madders Excerpts(4 days, 16 hours ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I thank my hon. Friend the Member for Knowsley (Anneliese Midgley) for securing this debate and for her excellent speech. She has a long and proud record in the trade union movement, which she has brought to the fore today.
I want to start by setting out the Government’s approach to the important subject of industrial relations. We want employers and trade unions to come together to grow our economy. We know that the world of work is fairer and more productive when people can come together to negotiate fair pay and decent conditions. That is why we are resetting industrial relations through the Employment Rights Bill. We are repealing nearly every part of the Trade Union Act 2016, which tried to smother trade unions in form-filling and red tape and prevent them from doing their core job of negotiation and dispute resolution.
Jim Shannon (Strangford) (DUP)
I commend the hon. Member for Knowsley (Anneliese Midgley) for bringing forward this debate. I spoke to her beforehand, and I understand what she is trying to do. She has clearly outlined the case for the unions in her contribution tonight. When I started work for Henry Denny’s in Belfast in my early 20s, they asked me if I wanted to join the union. To be honest, I was not sure, but the guy told me it was compulsory, so I said, “That’s okay.” But here’s the story. I had the union on my side when I first started work at Henry Denny’s; I had it to back me up whenever I needed something. I had had a different opinion about what unions were and what they could do for me. The hon. Lady has outlined what the unions can do, I understand personally what they can do, and I look forward to hearing the Minister tell us what he is going to do.
Justin Madders
I am grateful to the hon. Member for his support for unions. I was a little worried when the debate started because he was not in his normal place. I thought there was going to be some sort of national emergency because the hon. Member for Strangford had not attended the Adjournment debate, but I am glad he is here and that he has spoken very positively about the benefits of joining a trade union.
I shall go back to some of the work we are doing to improve the industrial relations landscape. We are of course repealing the Strikes (Minimum Service Levels) Act 2023, which, to our mind, only increased tensions and failed to prevent a single day of industrial action. We are going further in strengthening the voice of working people by making it easier for trade unions to get recognised, giving them the right of access to workplaces and making sure that they have enough time to represent their members. When the rights of working people are flouted, our new fair work agency will be empowered to investigate. We have recently run a consultation on modernising trade union laws so that they are fit for the modern workplace and the modern economy. That consultation closed on 2 December and we are currently analysing responses. We will publish a Government response to the consultation before Report stage of the Employment Rights Bill.
This is a transformative package that marks a new era for working people and I hope that hon. Members are in no doubt about the Government’s commitment to marking this new way forward. It is a way that brings a new deal for working people, making jobs more secure and family friendly, banning exploitative zero-hours contracts, supporting women in work at every stage in their life, and providing a genuine living wage and sick pay for the lowest earners. There will be further and faster action to close the gender pay gap, to ensure that rights are enforced and that trade unions are strengthened, to repeal anti-worker, anti-union laws, to turn the page on industrial relations and to end fire and rehire, while also giving working people the basic rights that they deserve at work from day one. This is a pro-business, pro-worker, pro-growth Bill from a pro-business, pro-worker, pro-growth Government.
As we know, a range of protections exist for workers against inducements and detriment related to trade union membership or activities. Of those, I will mention three that may be relevant to this particular situation. Section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 protects workers against detriment being imposed by an employer for the sole or main purpose of preventing or deterring the worker from being a trade union member or taking part in union activities, or penalising them for doing so.
Through clause 63 of the Employment Rights Bill, we are enhancing protections against detriment by conferring a right on workers not to be subjected to detriment
“for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising the worker for doing so.”
Section 145A of the 1992 Act protects workers against offers made by the employer for the sole or main purpose of inducing the worker not to be a trade union member or not to take part in union activities. Finally, section 145B of the 1992 Act protects members of trade unions that are recognised, or are seeking to be recognised, by their employer against offers made by the employer for the sole or main purpose of resulting in workers’ terms and conditions not being determined by a collective agreement negotiated by the union.
As my hon. Friend the Member for Knowsley indicated, we cannot comment on the extent to which existing legislation applies to a particular case, as that is ultimately a matter for tribunals and courts to determine. However, I hope it has been helpful to state clearly some of the existing protections that may be relevant.
It is also worth putting it on record that this Government expect employers to work in partnership with unions to resolve disputes through negotiation. We certainly do not believe that pay offers should be framed in a way that requires an individual to confirm that they are not a member of a trade union. At the very least, as my hon. Friend said, that goes against the spirit of good industrial relations.
I recognise that disputes are sometimes difficult to resolve, and I take this opportunity to highlight the important role that ACAS plays in this space. Its remit is to promote good employment relations, to advise employers and employees on workplace matters, and to resolve individual and collective workplace disputes. Employees and employers in a workplace dispute may wish to contact ACAS to get advice on employment law and workplace relations, and to help resolve their dispute.
Of course, resolving disputes through ACAS requires both parties to participate, and it is disappointing to hear from my hon. Friend that not only will Livv not engage with her on this matter, but it does not appear that it will engage with the trade union either. I hope Livv reconsiders because, through our “make work pay” agenda, we have been clear that it is our intention to ensure that workplace rights are fit for a modern economy, empower working people and deliver economic growth.
That is why we have introduced the Employment Rights Bill, which represents the biggest upgrade to workers’ rights in a generation. We will always listen carefully to any arguments on how the law on inducements or detriment could be improved, and we always welcome views on how we can reset industrial relations to create a modern framework that is fit for a modern economy and modern working practices.
I would welcome the opportunity to hear more information from my hon. Friend about the specifics of this issue, and I urge Livv to engage with her and the trade unions. I am open to looking at the case in more detail to understand what action, if any, is necessary, and I am always happy to work with my hon. Friend to ensure that trade union rights are properly observed in this country.
Question put and agreed to.
Fire Safety of Domestic Upholstered Furniture
Justin Madders Excerpts(1 week, 3 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I am notifying Parliament today of the publication of a policy paper providing an update on progress in reviewing the fire safety of domestic upholstered furniture.
The policy paper sets out important changes we are making now to amend the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (the FFRs), and our plans moving forward.
The regulations were introduced as a safety measure to respond to the increasing number of furniture fire-related deaths from the 1960s to the 1980s. The FFRs have significantly contributed to the reduction in the number of fire deaths since their introduction, but it is important to update the regulations to keep pace with product innovation. Evidence has also emerged over a number of years about the risks associated with the chemical flame retardants used to pass flammability tests.
The paper sets out the Government’s intentions for the implementation of a new regulatory approach, highlights areas of broad stakeholder consensus and provides an update on the outstanding challenges. We will work with businesses, trade associations and other key stakeholders this year to finalise key elements of the policy.
Ahead of that work, the Government will act now to remove a number of baby products from scope of the FFRs. The products being removed are not exposed to the same risks of accidental ignition, by cigarettes or similar ignition sources, as the items of furniture that will remain in scope. This change enables us to reduce the risk of exposure to chemical flame retardants to babies and young children at a significant stage in their development, where the fire risk is lower than the chemical exposure risk. The fire safety of these products will still be regulated, by the general product safety regulations.
We will also remove the requirement to attach a display label, reducing labelling costs to businesses without impacting on consumer safety and increase the time limit for enforcement authorities to institute legal proceedings from six to twelve months.
Alongside the policy paper, we will also publish a summary of responses to the consultation “Smarter Regulation: The new approach to the fire safety of domestic upholstered furniture”, held last year by the previous Government.
I will place copies of the policy paper in the Libraries of both Houses, and it will be published on gov.uk.
[HCWS379]
Competition and Markets Authority Chairman
Justin Madders Excerpts(1 week, 3 days ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Andrew Griffith (Arundel and South Downs) (Con)
(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the position of the chairman of the Competition and Markets Authority.
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
Following the resignation of the chair of the Competition and Markets Authority, Marcus Bokkerink, the Secretary of State has appointed Doug Gurr as the interim chair for a period of up to 18 months while our new permanent chair is appointed. The Secretary of State has expressed his gratitude for Marcus’s leadership of the board of the CMA since his appointment in September 2022, and for the work of the CMA in that time, particularly in response to cost of living pressures.
As the Prime Minister set out in his speech at the international investment summit, this Government will ensure that every regulator in the UK focuses on growth. Given Doug Gurr’s background and experience as an entrepreneur and business leader, and his clear under-standing of the importance of new and developing technologies such as artificial intelligence, he will bring the necessary strategic leadership to the CMA to enable it to promote growth for the benefit of businesses and consumers. As set out in the industrial strategy Green Paper, the Government will shortly be consulting on a new growth-focused strategic steer for the CMA. While respecting the independence of the CMA and the decision making of its panel members, the steer will be clear about the Government’s expectations of the CMA in supporting growth across the economy.
Andrew Griffith
Thank you for granting this important urgent question, Mr Speaker.
What a desperate state we are in when the Business Secretary has to phone up the regulators to beg them for ideas to fix the lack of growth that his own Government’s policies have created. I hope that when the regulators attended the roundtable last week, including the chairman of the CMA, they had the courage to put at the top of their list scrapping the Business Secretary’s 150-page, job-destroying and trade union-inspired Employment Rights Bill; or to point out the jobs tax in the Chancellor’s Budget, Labour’s socialist attacks on inheritance and non-doms, and the family business death tax that is causing one wealth creator to leave this country every 45 minutes; or even to point out that one of the best opportunities that this country has for growth would be to get on a plane to our closest trading partner, the United States, and secure a trade deal, rather than lob juvenile insults at President Trump or fail to invite Elon Musk to the Government’s UK investment summit.
It is certainly the case that, while regulators have a role, they generally depress growth and drive risk aversion, bureaucracy and slow decision making. Asking regulators to boost growth is a bit like asking the village speed watch to organise the next British grand prix. I am a fan of speed watch.
The Conservative party is under new management, and we are unafraid to back wealth creators and risk takers. We are unashamed to say that we need fewer civil servants and arm’s length regulators so that our businesses carry less dead weight in the global race to be competitive, but dismissing the non-executive, part-time chair of the CMA seems a curious place to start. He is not responsible for day-to-day decision making at the CMA; that is the job of the chief executive. Did they aim and miss? Can the Minister confirm whether there are plans to change the Government’s view on the CMA’s remit, to play the ball and not the man? What evaluation has there been of all regulators as part of this process, and when will the Government publish it?
Justin Madders
I think there were a couple of questions in there about the role of the CMA chair. Of course, he did not get sacked; he resigned. A new strategic steer for the CMA will be coming out in due course. The hon. Gentleman’s tirade of criticisms of this Government was a bit rich coming from a man who was in the Treasury when the last Government crashed the economy. I would point out that PwC announced only this week that we were the second most attractive country in the world to invest in, and that the International Monetary Fund last week upgraded our growth predictions for this year. We are going to be the highest-growing major economy in Europe this year, and that shows our determination to get the growth going, which was something that his Government failed completely on.
Gregor Poynton (Livingston) (Lab)
Getting the right regulatory environment is vital to drive innovation in our economy and also to protect our consumers and markets. Does the Minister agree that this renewed focus on the regulatory environment and getting it right to drive our economy will make sure that this Government deliver our No. 1 mission of growth?
Justin Madders
My hon. Friend is absolutely right. Growth is the No. 1 mission for this Government, and getting the balance right between protecting consumers and driving up growth in the economy means that we all benefit. That is something we are very clear about on this side of the House, and something that the last Government failed to deliver on.
Justin Madders
We are absolutely clear that we need to protect consumers, but we also need to drive growth. The new interim chair’s experience will be really important in helping us to understand how the tech companies will move forward, and his chairmanship of the Alan Turing Institute gives him valuable experience to bring to the table in delivering on that.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
I should declare an interest, having worked for a competition regulator for a number of years before entering Parliament. I suggest that the Minister does not take any competition policy lessons from the Conservatives, who oversaw the re-monopolisation of the broadband network, the consolidation of power within tech networks on an unprecedented scale, and the rise of crony capitalism on a scale not seen before. Some rumours around this appointment have suggested that it is a signal of a flight away from competition regulation. Can I urge him to quash those rumours and confirm that this Government believe that competition drives investment, innovation and growth, and that this country is open for investment and new market entry by as many companies as possible?
Justin Madders
We absolutely agree that competition is vital for driving investment and growth. The CMA will remain operationally independent, as it always has been.
John Cooper (Dumfries and Galloway) (Con)
The Government seem fascinated by the price of Oasis tickets. Meanwhile, debt and the cost of debt are soaring. Should the Government—definitely, not maybe—come up with some ideas of their own for growth, rather than trying to copy the homework of regulators?
Justin Madders
We have our own ideas for growth. We have important planning reforms coming forward, and the industrial strategy, which drives forward the strengths of the UK economy. As for the hon. Gentleman’s Oasis pun, I think he needs to work a bit harder on that one.
Mrs Sharon Hodgson (Washington and Gateshead South) (Lab)
Having spent 15 years dealing with the CMA in my campaign to end the abuse of the secondary ticketing market, I have long felt that the CMA is in desperate need of much stronger and clearer ministerial oversight. Can the Minister confirm today which Minister will have oversight of the CMA, and that it will be an active role, not a role in name only?
Justin Madders
I thank my hon. Friend for her work on secondary ticketing, a subject on which there is currently a consultation. I am the Minister responsible for the CMA. A new strategic steer for the CMA will be issued later this year, and of course it will remain independent from Government.
Bob Blackman (Harrow East) (Con)
The clear issue here is why the previous chair resigned, and what remit the Minister has given the interim chair to change the policy and direction of the CMA. Can the Minister outline that remit for the House? He says he will do it later this year, but he has manoeuvred a position in which the previous chair has resigned. We need to know what the CMA will be doing now to regulate the market.
Justin Madders
The CMA’s operational independence will remain intact. We have clearly set out that there will be a new strategic steer, which will be about boosting growth. After conversations, we have decided that new leadership is needed to deliver on that.
John Grady (Glasgow East) (Lab)
I should declare that before entering the House, I advised, as a competition lawyer, on various CMA matters, including investigations and panels. Some of the criticisms from Conservative Members seem half a world away, to channel Oasis, from both the topic in question and economic reality. Will the Minister confirm that yesterday’s announcement does not change the independence of the individual CMA panels that deal with matters before the CMA?
Justin Madders
I can confirm that the CMA’s operational independence remains intact.
Bobby Dean (Carshalton and Wallington) (LD)
The power vested in large corporations is greater than ever. Tech giants are exerting monopolistic power over the market, so I am becoming exasperated with the Government’s Thatcherite-like attitude towards deregulation. Do the Government understand the risks involved in going for short-term boosts to growth over long-term stability of the economic market?
Justin Madders
I would not accept the hon. Gentleman’s characterisation at all, and I am sure that Conservative Members would not, either. We announced only this morning that we will take action against Amazon on knife sales, so I do not think the characterisation that we are in the pocket of big tech is at all accurate.
Mr Luke Charters (York Outer) (Lab)
The CMA took far too long to reach a decision on the Vodafone and Three merger. This slowed down the roll-out of 5G across all our constituencies and was a drag on growth. How can regulators be pushed to ensure that their decisions lead to growth?
Justin Madders
My hon. Friend is right that we need to give the business community confidence that decisions will be made quickly to provide certainty, so that it can move forward with investments for the benefit of the whole economy.
Sir Desmond Swayne (New Forest West) (Con)
What will be the impact on growth of a record number of millionaires having left the UK since the Budget?
Justin Madders
That is a very interesting question. I am not sure that the CMA’s role is to monitor the number of millionaires leaving the country.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
In 2023, after the CMA blocked a particular merger, the last Conservative Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), said that it must “understand their wider responsibilities”. He also said:
“I do think it’s important all our regulators understand their wider responsibilities for economic growth.”
He was right, was he not?
Justin Madders
Yes, he was right. That is the message that the Prime Minister sent out to the regulators at the investment summit, and it is why they have been invited in to give their ideas on growth. We do not think that asking regulators how they are going to stimulate growth is a problem—that is the No. 1 mission of this Government, and everyone should be signed up to delivering on it.
Llinos Medi (Ynys Môn) (PC)
Diolch, Llefarydd. The Government say that the CMA’s chair had failed to convince them that he was sufficiently focused on growth, but at the same time, reports suggest that the Government plan to freeze all rail spending except for on three projects in England. A lack of transport funding is stifling growth in the Welsh economy. To prove his commitment to growth, will the Minister outline the transport funding that his Government have committed to Wales?
Justin Madders
I thank the hon. Lady for her question. Unfortunately, transport funding—particularly in Wales—is well outside the CMA’s remit.
John Slinger (Rugby) (Lab)
Does my hon. Friend agree that the UK’s economic regulators have a responsibility to ensure supersonic growth in our economy with a pro-business approach, and that this is part of what I would term a responsibility agenda? We all have a responsibility to ensure the best for our economy, and those regulators do as well.
Justin Madders
My hon. Friend is absolutely right. We all need to be signed up to this agenda, which is absolutely critical for delivering on our aims of getting a better-growing economy, getting more money into people’s pockets, delivering on the promises we have made, and changing the tune after the last 14 years of decline.
Sir Julian Smith (Skipton and Ripon) (Con)
Changing personnel is one thing, but when we speak to business, we hear that resolving disputes and the way in which the CMA does so is key. Could I urge the Minister to look at how disputes are resolved, and whether litigation and an antagonistic approach to business is the best way for the CMA to proceed?
Justin Madders
That is a very fair comment. We need to give businesses certainty and clarity that things will be resolved quickly, so that they have the confidence to make investment decisions.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
How does the Department plan to appoint the permanent chair?
Justin Madders
The appointment of the permanent chair will take place in the normal manner, as all other appointments do.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
An active regulator is essential to securing fair prices for consumers. Residents of areas such as mine are often at the forefront of rises in petrol prices, and residents of Pontardawe are regularly left wondering why they have to pay 8p more per litre than people in nearby towns. Will the Government commit to launching the Pumpwatch petrol price comparison platform, as recommended by the Competition and Markets Authority?
Justin Madders
That is a very important point. Consumers see the petrol prices every time they leave their home in their motor vehicle. There is a disparity there that sometimes needs explanation, and certainly needs transparency, so I will take that issue up on the hon. Gentleman’s behalf, and will come back to him on it.
Blair McDougall (East Renfrewshire) (Lab)
My constituents, particularly those living in Crookfur, have terrible mobile phone signal. How can the CMA progress the merger between Three and Vodafone, so that we get the investment in transmitters that we need to improve the mobile phone signal in Crookfur and around the country?
Justin Madders
That is certainly something that the CMA has been dealing with, and I am sure that we will be able to provide my hon. Friend with an update shortly.
Sir Christopher Chope (Christchurch) (Con)
Will the Minister ask the Competition and Markets Authority to investigate why we have the highest energy prices in the world, particularly for electricity?
Justin Madders
I will certainly pass that request on. That might be something that Ofgem would also have an interest in.
Sorcha Eastwood (Lagan Valley) (Alliance)
I thank the Minister for his responses so far. Does he agree that the first duty of the Competition and Markets Authority is to ensure that regulations are followed, and to break up monopolies at a time when our small businesses are suffering? The national insurance increase has not helped. If the CMA takes decisions that just so happen to have the by-product of stimulating economic growth, that is well, but the narrative that taking away regulation will promote growth is wrong.
Mr Speaker
It might be worth the hon. Member putting in for an Adjournment debate.
Justin Madders
I thank the hon. Member for her question. It is important that consumers and small businesses operate on a level playing field; it is also correct that we are very keen to see more growth delivered. We think that will benefit everyone in the economy, but I take the point that a balance has to be struck.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his answers. The role of the CMA chair is essential in the current economic climate, as we watch how our allies in the USA approach their trading and their deals. We need a message of strength; we need to relay the fact that we are ready and open for international business. Does the Minister believe that this interim measure sends that message, and how quickly can we get the right person in place to promote our business standing?
Justin Madders
We are really serious about growth. This is about sending the message that we want to make sure that Britain is open for investment, and that we will work with partners across the world to encourage investment and get the growth that we want, for the benefit of the entire economy. This is just one part of the plan.
Employment Rights Bill (Twenty First sitting)
Justin Madders ExcerptsThursday 16th January 2025
(2 weeks, 2 days ago)
Public Bill CommitteesRead Full debate Employment Rights Bill 2024-26 View all Employment Rights Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 16 January 2025 - (16 Jan 2025)
Steve Darling (Torbay) (LD)
It is a pleasure to serve under your chairmanship, Sir Christopher. I rise to strongly support the new clause. We have seen throughout our debates in Committee that there are opportunities for changing the weather around our employment world, whether it is around foster carers, adoption or volunteering—the subject of new clause 38, championed by my hon. Friend the Member for Woking (Mr Forster), which we will discuss later.
I hope that this new clause falls on fertile ground because, as the hon. Member for Bridgwater has highlighted, volunteering across the piece has significantly reduced. We need to change the weather around the employment world and make sure that people feel able and confident to volunteer, as we know that policing is a particular challenge.
I welcome the Government’s plans to invest in neighbourhood policing. Special officers are often involved in that. People feel confident when they see a uniformed officer on the street. The public do not care whether it is a paid officer or a special officer; it is a trusted individual. The more we can drive that agenda, as I know from my residents in Torbay, the more it will be welcomed. I look forward to a strong endorsement from the Minister.
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
It is a pleasure to see you in the Chair this morning, Sir Christopher. I start by referring to my entry in the Register of Members’ Financial Interests. I congratulate the hon. Member for Bridgwater on the new clause and join him in paying tribute to his constituent Emma-Elizabeth Murphy and all special constables who perform the vital work that Members have spoken in support of. We recognise and value the vital role that special constables play, which includes supporting neighbourhood policing. We are committed to ensuring that police forces have the support that they need from the Government to tackle important matters of public safety.
Special constables, along with the full range of police volunteers, bring valuable and diverse skills that complement the roles that officers and staff play in delivering the best service to the public. We recognise that there has been a fall in the number of special constables over recent years. Further work needs to be done to understand exactly the reasons for that. Initial consideration suggests that a range of factors has led to the reduction in the number of special constables. It is not clear whether the new clause would reverse that trend or what its impact on business would be—the hon. Member for Bridgwater has been a constant critic of the Bill’s impact on businesses—so we need to understand that better.
We are already doing a range of work to support special constables and employment rights more broadly. We are introducing the neighbourhood policing guarantee, which will put thousands of additional police officers, police community support officers and special constables on our streets and restore patrols in town centres across the country.
Many employers already support their employees to volunteer in a special constabulary. Under the Employer Supported Policing scheme, led by the National Police Chiefs’ Council, a number of organisations across a range of sectors have committed to supporting members of their workforce to serve as special constables, in recognition of the opportunities to build new skills and support local communities. The Home Office is also supporting the NPCC to develop and implement initiatives to improve the recruitment and retention of special constables. That includes developing a refreshed national citizens in policing strategy and a national special constabulary working group.
I will not be able to accept the new clause, but I am sympathetic to the case that has been made. In preparation for dealing with it, I learned that that the initial legislation that introduced time off for certain public duties is now 50 years old, so it seems time to consider this issue in the round, and the role of special constables will no doubt be included in that. The Home Office will clearly have an important say. As I said, a number of factors has led to the decline in the number of special constables in recent years.
Greg Smith
The new clause has been tabled for some weeks now. Has the Minister engaged with the Home Secretary, the Policing Minister or any officials in the Home Office? Have they presented a view on this proposal yet?
Justin Madders
We have had various discussions within the Department. Information has gone over to the Home Office, and we are waiting for a response. Obviously, I cannot speak for the Home Office, so I cannot set out its position. As I say, I think it is time more generally to consider all the legislation relating to the right to time off for public duties. It is too soon to accept this new clause, but I hope the hon. Member for Bridgwater is assured that we are taking this issue seriously and considering it.
Sir Ashley Fox
Although I am disappointed that the Minister has not accepted the new clause, I will withdraw it at this stage. I can count 10 Government Members and only five on the Opposition Benches, so my chances of success in a Division would be limited. I hope the new clause can find its way back into the Bill, perhaps in another place. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 35
Carer’s leave: remuneration
“(1) In section 80K of the Employment Rights Act 1996, omit subsection (3) and insert—
‘(3) In subsection (1)(a), “terms and conditions of employment”—
(a) includes matters connected with an employee’s employment whether or not they arise under the contract of employment, and
(b) includes terms and conditions about remuneration.’”—(Steve Darling.)
This new clause would make Carer’s Leave a paid entitlement.
Brought up, and read the First time.
Greg Smith
I listened carefully to what the hon. Member for Torbay said. On one level, I would be interested to know why the Liberal Democrats think the expansion is needed, where the shortfalls are in the current right to be accompanied, and what benefits the new right would bring. I think that what the hon. Gentleman is proposing could be done through existing legislation in many respects.
That said, representatives of the charity and third sector who seek to represent those in the teaching profession have welcomed the new clause, because the teaching unions have a bit of a monopoly at the moment. Although my mother has been retired for many years, she always joined a union through considerably gritted teeth—she may have been the only Conservative in the staff room, but she gritted her teeth. In fact, she may even have taught for many years in the constituency of the hon. Member for Birmingham Northfield. The teaching unions have that monopoly because of the insurances and so on that they give to teachers. The new clause would widen things out and allow teachers who do not wish to join a union to get the support they need—accompaniment at a hearing—from a charity or third sector organisation, which may be welcome.
We need more clarity on the impact that would have on the teaching profession, which is why we do not think the new clause should be accepted at this time. However, the hon. Member for Torbay has opened the door on an area that it is important for us to explore as the Bill proceeds, and perhaps in future legislation.
Justin Madders
I thank the hon. Member for Torbay for tabling the new clause. I think its origins are in written evidence to the Committee from the edu-legal organisation Edapt, which has been raising this issue with successive Governments for a number of years.
It is important to set out the position under current law. Section 10(3) of the Employment Relations Act 1999 explains that when a worker is asked to attend a disciplinary or grievance hearing they are entitled to bring a companion who is either a fellow worker, an official employed by a trade union, or a workplace trade union representative that the union has reasonably certified as having received training in acting as a worker’s companion at such hearings. Employers are free but not obliged to allow workers to be accompanied by someone who does not fall into those categories. Some workers may have a contractual right to be accompanied by persons other than those listed, such as a professional support body, partner, spouse or legal representative.
As one of the initial steps in resolving tensions when the worker-employer relationship has broken down, the provisions of the 1999 Act seek to keep disciplinary and grievance procedures internal to a workplace. Expanding the types of organisations that can be involved in representing workers could lead to hearings requiring legal representation for both worker and employer. We certainly do not want to see internal disciplinary or grievance hearings ending up in a legal battle. That would invariably increase the cost of holding a hearing and potentially decrease the chances of an amicable resolution. Equally, introducing increased legal expertise from outside the workplace could increase the likelihood of a tribunal. Workers and employers may judge ACAS conciliation or mediation unlikely to resolve a dispute because legal arguments have been made during an internal disciplinary hearing. We certainly believe that amicable resolutions are the swiftest way for justice to be delivered.
The new clause would give the Secretary of State the power to set out and define in regulations the professional bodies that could represent employees in disciplinary and grievance hearings. Although, as the shadow Minister said, this measure relates specifically to the education sector, one can easily see a whole range of organisations beginning to knock on the door. It would raise all sorts of questions about regulations, standards and enforcement, and it would inevitably expand quite quickly.
As the shadow Minister said, it is not clear beyond the written submission to the Committee where the demand is for the expansion of this right. Employers are of course entitled to nominate individuals or organisations for recognition. The Government are clear that trade unions are best placed to provide workplace representation. The legislation is fit for purpose in terms of ensuring that that is done in a proportionate and balanced way. On that basis, we reject the new clause.
Steve Darling
Although I am disappointed that the new clause has fallen on stony ground, it was only a probing amendment, so I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 38
Time off for volunteering: consultation
“(1) The Secretary of State must consult on the introduction of a requirement for employers with more than 250 employees to grant employees time off for volunteering.
(2) The consultation must consider, amongst other things, the following matters—
(a) the amount of time off an employer must grant;
(b) when the time off may be taken;
(c) any conditions to which the granting of time off may be subject; and
(d) the definition of ‘volunteering’.
(3) The consultation must be conducted within one year of this Act being passed.
(4) The Secretary of State must, within three months of the consultation closing, publish and lay before Parliament the Secretary of State’s response to the consultation.”—(Steve Darling.)
This new clause calls for a consultation on allowing employees at companies of over 250 people the opportunity to take time off in order to undertake voluntary work.
Brought up, and read the First time.
Greg Smith
I heard very clearly what the hon. Member for Torbay proposed on behalf of the Liberal Democrats. I think we all salute everybody who volunteers. We can all celebrate people who give up their time freely to do something worthy in our constituencies, communities and neighbourhoods—including the Scout and Girlguiding groups that the hon. Gentleman spoke of.
It is clear from the passion with which the hon. Gentleman spoke that the Liberal Democrats are still pining for the coalition days, when the big society was the centrepiece of the vision that the Prime Minister—now my right hon. Friend the noble Lord Cameron—had for this country. On one level, I had thought that one of the greatest successes of the coalition Government was—until the 2024 general election—the electoral annihilation of the Liberal Democrats, but they are still pining for many of the things that my party and theirs did together in that coalition period.
In theory, the new clause is actually very appealing; we all want to support people to do good and give their time freely in their communities, neighbourhoods and areas—in our constituencies. But where I take issue with the hon. Gentleman is that, time and again in this Committee, too much has been left to yet another consultation. While I hear his argument, “What harm would another one do?”, I think we are consultationed out at the moment. I do not think it would be helpful either for the Government, in achieving what they wish to achieve through this very wide-reaching piece of legislation—albeit with disagreement from the Opposition Benches—or for employers to have to take on yet another strand of burden in this regard, so the Opposition will not be supporting new clause 38.
However, we do want to explore ways in which volunteering can be more greatly encouraged in all of our communities. As a starting point, although consideration of the definition of volunteering would be included as part of the hon. Gentleman’s proposed consultation, we need a better definition before we consider any wider consultation on time off and so on. At the moment, it is far too wide-open a goal and too broad a word. If we asked everybody in the country to give their definition of volunteering, we would probably get 70 million different answers. If we had greater clarity about what we are really talking about—for example, my hon. Friend the Member for Bridgwater’s very clear and defined proposal on special constables, which of course is an incredibly worthwhile and nation-enhancing bit of volunteering—then we could potentially get somewhere, but at the moment, volunteering could mean literally anything to anyone. That is not to undermine the good work that people do day in, day out across our country, but we need greater clarity.
Justin Madders
Let us start where we can all agree: volunteering is a very important part of our society and we want to do everything we can to encourage it. It is a central part of civic life and has a positive impact on our society, and we all pay tribute to the volunteers in our communities. There are large employers that have impact days and corporate social responsibility days where they come into the community—there are a number of examples in my constituency where that has happened. Larger employers, in particular, have been able to pool their resources and have a real benefit in their communities.
However, as the shadow Minister outlined, the Government will be undertaking a significant number of consultations, and we do not wish to add to that at this stage. We want to focus on the priorities in our “Make Work Pay” agenda. In particular, we want to see how the enhanced right to flexible working will benefit people’s ability to volunteer. We believe that when we implement the new rights to flexible working in the earlier parts of the Bill, they will enable employees to access flexible working requests in order to fit in their volunteering, and that further legislation is not necessary at this time.
The Department for Culture, Media and Sport is delivering the Know Your Neighbourhood fund, which has a key focus to ensure that learning is shared
“on how people in disadvantaged areas can be supported to volunteer and improve their social connections”.
So there is work going on in Government, and a recognition that volunteering is an important part of the fabric of our society, but, as has been indicated, we do not wish to undertake additional consultations at this point.
Steve Darling
I draw the Committee’s attention to the fact that we are looking at employers that employ over 250 individuals, so the new clause would far from impact smaller businesses. I have grave concerns that the Government believe they have all the time in the world and expect that there will be a second glorious term for the Labour party, come hell or high water. The jury is out on whether a second term for Keir will appear. One is better driving the agenda forward while one has the helm than to hope for the helm when it turns the next headland. I encourage the Government to reflect on their proposals and grasp the opportunity to consult on this volunteering opportunity.
Question put, That the clause be read a Second time.
Steve Darling
I am delighted that the hon. Member for Mid Buckinghamshire has had a road to Damascus moment on the need for further consultation on the Bill. I am delighted that the Conservatives believe that consultation is a good thing, unlike my Conservative council colleagues in Torbay. I look forward to the Minister looking kindly on the new clause, which shows that the Conservatives believe in consultation. I would ask that he please grasp this opportunity.
Justin Madders
It seems the coalition era love-in has started again in earnest. As the shadow Minister outlined, new clause 42 would require the Certification Officer to lay before both Houses, within 12 months of Royal Assent, a report setting out the impact on various sectors of the UK economy of introducing a four-day week. It would require the Certification Officer to consult businesses, workers, consumers and others and to publish consultation responses when laying the report. Just when we thought we had got away from consultation, we have another one.
In considering the new clause, it might be helpful to set out the role of the Certification Officer. It has been the regulator of trade unions and employer associations since 1975. It not only carries out regulatory functions, but has administrative, supervisory and significant quasi-judicial functions. It adjudicates on complaints raised by trade union members and other parties. As part of our repeal of the provisions of the Trade Union Act 2016, we will remove the Certification Officer’s enhanced investigatory and enforcement powers, as well as the levy imposed on trade unions and employer associations. As such, we will return the role of the Certification Officer to what it was before that Act.
Greg Smith
His Majesty’s loyal Opposition cannot support new clause 51. The horrible practices outlined by the hon. Member for Dundee Central need to be tackled, but the Bill will already do that. I actually find myself in agreement with parts of what the hon. Member for Edinburgh East and Musselburgh said. There are other routes within immigration law where such things can and should be tackled. No matter how much we disagree with parts of the Bill, if we take the view that the law must apply equally to everybody whether or not they are a British citizen, it is unnecessarily to carve out a particular section of people through new clause 51, when there is other legislation to deal with the abuses that no one on the Committee or in the House wants to see.
Justin Madders
Let me start by reaffirming our strong view that every worker has the full right to protection under the laws of this country. That includes migrant workers, as is clear from our plan to make work pay, which recognises that particularly vulnerable sectors are open to abuse from unscrupulous employers. The immigration framework is an important part of ensuring that those who come to this country under visas and sponsorship are protected and that modern slavery abuse is tackled.
Sponsorship is a privilege that comes with certain responsibilities for sponsors to ensure that they adhere to employment rights in the United Kingdom. They must have full responsibility for the work that workers are conducting, and in all cases they must ensure that those they sponsor are paid appropriately and that they act in compliance with relevant legislation. As my hon. Friend the Member for Edinburgh East and Musselburgh says, a lot of work is ongoing in this area, particularly from the Home Office, which recently announced that it would ban from future sponsorship any business found guilty of serious employment law breaches, including failing to pay the national minimum wage.
We are committed to strengthening the enforcement of rights more broadly through the fair work agency. The Committee has heard plenty of evidence that the current system of enforcement is fragmented. Unfortunately, as we know, that often means that not everyone gets the protection that they should have. One of the essential functions of the new fair work agency will be to produce a strategy setting out its assessment of the scale and nature of non-compliance with labour market rules. This is to ensure that the risks of abuse across all sectors and groups of workers are properly understood and captured. In producing the strategy, the fair work agency will need to consult with an advisory board made up of trade unions, business and independent experts. That will ensure that we get a broad view of the gaps and risks in the labour market.
The hon. Member for Dundee Central suggests that this area is a blind spot for the Government. I can assure him that it is not. I have had conversations with the Director of Labour Market Enforcement about the issue, and plenty of work is under way at the Home Office. The hon. Member need only consider the Low Pay Commission’s report to see that the issue is clearly on our radar. An additional report would not add anything to the work that is already under way. I therefore ask him to withdraw his new clause.
Chris Law
I appreciate the comments that have been made in this short debate. Just to be clear, the new clause is about issues that are not currently protected under the Modern Slavery Act 2015 and are often under-reported. I welcome the Minister’s comments about the fair work agency and the recent Low Pay Commission report, but I must ask about the timeframe. My suggestion—I will try to work with him on this—is that the timeframe be six months beyond the passing of the Bill, so that we can get decisions made. Perhaps the Secretary of State could let us know what kind of timeframe we are talking about, to give us peace of mind that action will be taken for those who are most vulnerable and have come here from overseas. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Schedule 1
Warrants under Part 5: further provision
“Part 1
Application of this Schedule
1 This Schedule applies in relation to—
(a) applications for warrants under section (Power to enter dwelling subject to warrant) or 83, and
(b) warrants issued under section (Power to enter dwelling subject to warrant) or 83.
Part 2
Warrants: applications and safeguards
Applications for warrants
2 (1) Where an enforcement officer applies for a warrant, the officer must—
(a) state the ground on which the application is made,
(b) state the provision of this Act under which the warrant would be issued,
(c) specify the premises which it is desired to enter, and
(d) identify, so far as is practicable, the purpose for which entry is desired.
(2) An application for a warrant must be made without notice and must be supported by an information in writing or, in Scotland, evidence on oath.
(3) The officer must answer on oath any question that the justice hearing the application asks the officer.
Safeguards in connection with power of entry conferred by warrant
3 A warrant authorises an entry on one occasion only.
4 (1) A warrant must specify—
(a) the name of the person who applies for it,
(b) the date on which it is issued,
(c) the provision of this Act under which it is issued, and
(d) the premises to be entered.
(2) A warrant must identify, so far as is practicable, the purpose for which entry is desired.
5 (1) Two copies are to be made of a warrant.
(2) In the case of a warrant issued in electronic form, the copies must be clearly marked as copies.
(3) In the case of a warrant issued otherwise than in electronic form, the copies must be clearly certified as copies.
Part 3
Execution of warrants
Warrant to be executed within three months
6 Execution of a warrant must be within three months from the date of its issue.
Time of entry
7 Execution of a warrant must be at a reasonable time, unless it appears to the officer executing it that there are grounds for suspecting that the purpose of entering the premises may be frustrated if the officer seeks to enter at a reasonable time.
Evidence of authority etc
8 (1) Where the occupier of premises to be entered under a warrant is present at the time when an enforcement officer seeks to execute the warrant, the following requirements must be satisfied—
(a) the officer must produce to the occupier documentary evidence of the fact that the officer is an enforcement officer;
(b) if the officer is asked for it, the occupier must be told the officer’s name;
(c) the officer must produce the warrant to the occupier;
(d) the officer must supply the occupier with a copy of the warrant that is marked or certified as a copy in accordance with paragraph 5.
(2) Where—
(a) the occupier of premises to be entered under a warrant is not present when an enforcement officer seeks to execute it, but
(b) some other person who appears to the officer to be in charge of the premises is present,
sub-paragraph (1) has effect as if any reference to the occupier were a reference to that other person.
(3) If there is no person present who appears to the enforcement officer to be in charge of the premises, the officer must leave a copy of the warrant, marked or certified as a copy in accordance with paragraph 5, in a prominent place on the premises.
Securing premises after entry
9 An enforcement officer who enters premises under a warrant must take reasonable steps to ensure that when the officer leaves the premises they are as secure as they were before the officer entered.
Return and retention of warrants
10 (1) A warrant which—
(a) has been executed, or
(b) has not been executed within the time authorised for its execution,
must be returned to the appropriate person.
(2) For the purposes of sub-paragraph (1) the appropriate person is—
(a) in the case of a warrant issued in England and Wales, the designated officer for the local justice area in which the justice was acting when the warrant was issued;
(b) in the case of a warrant issued in Scotland by a justice of the peace, the clerk of the justice of the peace court in the sheriffdom for which the justice of the peace was appointed;
(c) in the case of a warrant issued in Scotland by a sheriff or a summary sheriff, the sheriff clerk;
(d) in the case of a warrant issued in Northern Ireland, the clerk of petty sessions.
(3) A warrant that is returned under this paragraph must be retained by the person to whom it is returned for a period of 12 months.
(4) If during that period the occupier of the premises to which the warrant relates asks to inspect it, the occupier must be allowed to do so.”—(Justin Madders.)
This new Schedule makes further provision about applications for, and the execution of, warrants under Part 5.
Brought up, read the First and Second time, and added to the Bill.
New Schedule 2
Increase in time limits for making claims
“Safety Representatives and Safety Committees Regulations 1977
1 (1) In regulation 11 of the Safety Representatives and Safety Committees Regulations 1977 (S.I. 1977/500) (time off for safety representatives), in paragraph (2), for ‘three’, in both places it occurs, substitute ‘six’.
(2) In regulation 12 of those Regulations—
(a) in paragraph (2), for ‘three’ substitute ‘six’;
(b) in paragraph (3), for ‘three’ substitute ‘six’;
(c) in paragraph (4), for ‘three’ substitute ‘six’.
Trade Union and Labour Relations (Consolidation) Act 1992
2 (1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.
(2) In section 66 (unjustifiable discipline by union), in subsection (2)(a), for ‘three’ substitute ‘six’.
(3) In section 68A (unauthorised deduction of union subscriptions), in subsection (1)(a), for ‘three’ substitute ‘six’.
(4) In section 70C (collective bargaining: obligations relating to training), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(5) In section 87 (unlawful deduction of contributions to political fund), in subsection (2)(a), for ‘three’ substitute ‘six’.
(6) In section 139 (refusal of employment on grounds related to union membership), in subsection (1)(a), for ‘three’ substitute ‘six’.
(7) In section 145C (inducements), in subsection (1)(a), for ‘three’ substitute ‘six’.
(8) In section 147 (detriment for trade union activities), in subsection (1)(a), for ‘three’ substitute ‘six’.
(9) In section 171 (time off for trade union activities), in subsection (1)(a), for ‘three’ substitute ‘six’.
(10) In section 189 (consultation in collective redundancy), in subsection (5)—
(a) in paragraph (b), for ‘three’ substitute ‘six’;
(b) in paragraph (c), for ‘three’ substitute ‘six’.
(11) In section 192 (remuneration under protective award), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(12) In paragraph 157 of Schedule A1 (detriment in relation to trade union recognition), in sub-paragraph (1)(a), for ‘3’ substitute ‘six’.
Pension Schemes Act 1993
3 In section 126 of the Pension Schemes Act 1993 (unpaid pension contributions), in subsection (2), for ‘three’ substitute ‘six’.
Employment Rights Act 1996
4 (1) The Employment Rights Act 1996 is amended as follows.
(2) In section 11 (written statements), in subsection (4)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(3) In section 23 (protection of wages)—
(a) in subsection (2), for ‘three’ substitute ‘six’;
(b) in subsection (4), for ‘three’ substitute ‘six’.
(4) In section 27N (information relating to tips etc)—
(a) in subsection (2), for ‘three’ substitute ‘six’;
(b) in subsection (3), for ‘three’ substitute ‘six’.
(5) In section 34 (guarantee payments), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(6) In section 48 (detriment in employment), in subsection (3)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(7) In section 51 (time off for public duties), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(8) In section 54 (time off following redundancy), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(9) In section 57 (time off for ante-natal care), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(10) In section 57ZC (time off for ante-natal care: agency workers), in subsection (3)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(11) In section 57ZF (time off to accompany to ante-natal appointment), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(12) In section 57ZH (time off to accompany to ante-natal appointment: agency workers), in subsection (3)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(13) In section 57ZM (time off to attend adoption appointments), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(14) In section 57ZQ (time off to attend adoption appointments: agency workers), in subsection (3)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(15) In section 57B (time off for dependants), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(16) In section 60 (time off for pension scheme trustees), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(17) In section 63 (time off for employee representatives), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(18) In section 63C (time off for study or training), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(19) In section 63I (requests in relation to study or training), in subsection (5)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(20) In section 70 (rights following suspension from work)—
(a) in subsection (2)—
(i) in paragraph (a), for ‘three’ substitute ‘six’;
(ii) in paragraph (b), for ‘three’ substitute ‘six’;
(b) in subsection (5)—
(i) in paragraph (a), for ‘three’ substitute ‘six’;
(ii) in paragraph (b), for ‘three’ substitute ‘six’.
(21) In section 70A (rights of agency worker where supply is ended on maternity grounds)—
(a) in subsection (2)—
(i) in paragraph (a), for ‘three’ substitute ‘six’;
(ii) in paragraph (b), for ‘three’ substitute ‘six’;
(b) in subsection (5)—
(i) in paragraph (a), for ‘three’ substitute ‘six’;
(ii) in paragraph (b), for ‘three’ substitute ‘six’.
(22) In section 80 (parental leave), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(23) In section 80H (right to request flexible working), in subsection (5)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(24) In section 80N (carer’s leave), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(25) In section 111 (unfair dismissal), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
(26) In section 188 (rights on insolvency of employer), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
Health and Safety (Consultation with Employees) Regulations 1996
5 (1) In paragraph 3 of Schedule 2 to the Health and Safety (Consultation with Employees) Regulations 1996 (S.I. 1996/1513) (time off for representatives of employee safety etc), for ‘three’, in both places it occurs, substitute ‘six’.
(2) In paragraph 3A of that Schedule—
(a) in sub-paragraph (2), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (3), for ‘three’ substitute ‘six’;
(c) in sub-paragraph (4), for ‘three’ substitute ‘six’.
Working Time Regulations 1998
6 In regulation 30 of the Working Time Regulations 1998 (S.I. 1998/1833) (rights as to working time), in paragraph (2)—
(a) in sub-paragraph (a), for the words from ‘three months’ to ‘six months)’ substitute ‘six months’;
(b) in sub-paragraph (b), omit ‘three or, as the case may be,’.
National Minimum Wage Act 1998
7 In section 11 of the National Minimum Wage Act 1998 (access to records)—
(a) in subsection (3), for ‘three’ substitute ‘six’;
(b) in subsection (4), for ‘three’ substitute ‘six’.
Employment Relations Act 1999
8 In section 11 of the Employment Relations Act 1999 (right to be accompanied), in subsection (2)—
(a) in paragraph (a), for ‘three’ substitute ‘six’;
(b) in paragraph (b), for ‘three’ substitute ‘six’.
Transnational Information and Consultation of Employees Regulations 1999
9 (1) In regulation 27 of the Transnational Information and Consultation of Employees Regulations 1999 (S.I. 1999/3323) (time off for members of a European Works Council etc)—
(a) in the heading, for ‘tribunals’ substitute ‘employment tribunals in Great Britain’;
(b) in paragraph (1), for the words from ‘complaint,’ to ‘, that’ substitute ‘complaint to an employment tribunal in Great Britain that’;
(c) in paragraph (2)—
(i) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(ii) in sub-paragraph (b), for ‘three’ substitute ‘six’;
(d) omit paragraph (2B).
(2) In the heading of regulation 27A of those Regulations (extension of time limit to facilitate conciliation before institution of proceedings), at the end insert ‘in Great Britain’.
(3) After regulation 27A of those Regulations insert—
‘Right to time off: complaints to industrial tribunals in Northern Ireland
(1) An employee may present a complaint to an industrial tribunal in Northern Ireland that the employee’s employer–
(a) has unreasonably refused to permit the employee to take time off as required by regulation 25; or
(b) has failed to pay the whole or any part of any amount to which the employee is entitled under regulation 26.
(2) A tribunal shall not consider a complaint under this regulation unless it is presented–
(a) before the end of the period of three months beginning with the day on which the time off was taken or on which it is alleged the time off should have been permitted; or
(b) within such further period as the tribunal considers reasonable in a case where it is satisfied that it was not reasonably practicable for the complaint to be presented before the end of that period of three months.
(3) Regulation 27B (extension of time limit to facilitate conciliation before institution of proceedings in Northern Ireland) applies for the purposes of paragraph (2).
(4) Where a tribunal finds a complaint under this regulation well-founded, the tribunal shall make a declaration to that effect.
(5) If the complaint is that the employer has unreasonably refused to permit the employee to take time off, the tribunal shall also order the employer to pay to the employee an amount equal to the remuneration to which the employee would have been entitled under regulation 26 if the employer had not refused.
(6) If the complaint is that the employer has failed to pay the employee the whole or part of any amount to which the employee is entitled under regulation 26, the tribunal shall also order the employer to pay to the employee the amount which it finds due to the employee.’
(4) In regulation 27B of those Regulations (extension of time limit to facilitate conciliation before institution of proceedings in Northern Ireland)—
(a) in paragraph (2), for ‘27(2)(a)’ substitute ‘27AA(2)(a)’;
(b) in paragraph (3), for ‘27(2)(a)’ substitute ‘27AA(2)(a)’;
(c) in paragraph (4), for ‘27(2)(b)’ substitute ‘27AA(2)(b)’.
Merchant Shipping (Working Time: Inland Waterways) Regulations 2003
10 In regulation 18 of the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003 (S.I. 2003/3049) (merchant shipping: rights as to working time), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
Civil Aviation (Working Time) Regulations 2004
11 In regulation 18 of the Civil Aviation (Working Time) Regulations 2004 (S.I. 2004/756) (civil aviation: rights as to working time), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004
12 In regulation 19 of the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004 (S.I. 2004/1713) (fishing vessels: rights to rest and leave), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
Transfer of Undertakings (Protection of Employment) Regulations 2006
13 (1) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) are amended as follows.
(2) In regulation 12 (notification of employee liability information), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
(3) In regulation 15 (information and consultation requirements), in paragraph (12)—
(a) in the words before sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in the words after sub-paragraph (b), for ‘three’ substitute ‘six’.
Cross-border Railway Services (Working Time) Regulations 2008
14 In regulation 17 of the Cross-border Railway Services (Working Time) Regulations 2008 (S.I. 2008/1660) (cross-border railway services: rights as to working time), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
European Public Limited-Liability Company (Employee Involvement) (Great Britain) Regulations 2009
15 In regulation 28 of the European Public Limited-Liability Company (Employee Involvement) (Great Britain) Regulations 2009 (S.I. 2009/2401) (time off for members of special negotiating body etc), in paragraph (2)—
(a) in sub-paragraph (a), for ‘three’ substitute ‘six’;
(b) in sub-paragraph (b), for ‘three’ substitute ‘six’.
Agency Workers Regulations 2010
16 In regulation 18 of the Agency Workers Regulations 2010 (S.I. 2010/93) (rights of agency workers), in paragraph (4), for ‘three’ substitute ‘six’.
Equality Act 2010
17 In section 123 of the Equality Act 2010 (discrimination etc at work), in subsection (1)(a), for “3” substitute “6”.
Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018
18 In regulation 26 of the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018 (S.I. 2018/58) (rights of seafarers to leave), in paragraph (6), for ‘three’ substitute ‘six’.”—(Justin Madders.)
This new Schedule would increase time limits for making claims in employment tribunals (and, in certain cases, industrial tribunals in Northern Ireland) from three months to six months.
Brought up, read the First and Second time, and added to the Bill.
New Schedule 3
Seafarers’ wages and working conditions
“Amendment of Seafarers’ Wages Act 2023
1 The Seafarers’ Wages Act 2023 (“the Act”) is amended in accordance with paragraphs 2 to 23.
Part 1 of the Act: relevant services
2 For the italic heading before section 1 substitute—
‘Part 1
Relevant services’.
3 In section 1 (services to which this Act applies)—
(a) for the heading substitute ‘Relevant services’;
(b) in subsection (1), for ‘This Act applies to’ substitute ‘In this Act, “relevant service” means’;
(c) in subsection (2), for ‘this Act does not apply to’ substitute ‘“relevant service” does not include’;
(d) for subsection (4) substitute—
‘(4) In this Act, “ship”—
(a) includes—
(i) any kind of vessel used in navigation, and
(ii) hovercraft;
(b) includes a ship which is registered in a State other than the United Kingdom.’
Chapter 1 of Part 2 of the Act: non-qualifying seafarers
4 After section 1 insert—
‘Part 2
Remuneration of seafarers
Chapter 1
Non-qualifying seafarers’.
5 In section 2 (non-qualifying seafarers), in paragraph (a), for ‘service to which this Act applies’ substitute ‘relevant service’.
Chapter 2 of Part 2 of the Act: national minimum wage equivalence declarations
6 For the italic heading before section 3 substitute—
‘Chapter 2
National minimum wage equivalence declarations’.
7 In section 3 (request for declaration)—
(a) in the heading, after ‘for’ insert ‘equivalence’;
(b) in subsection (1)—
(i) for ‘Act applies’ substitute ‘Chapter applies (see subsection (4A))’;
(ii) at the end insert ‘(see section 19 for the meaning of “relevant year”)’;
(c) after subsection (4) insert—
‘(4A) This Chapter applies to a relevant service, subject to provision made by remuneration regulations in reliance on section 4A(6).’;
(d) omit subsections (5) and (6).
8 In section 4 (nature of declaration)—
(a) in the heading, after ‘of’ insert ‘equivalence’;
(b) after subsection (5) insert—
‘(5A) For the meaning of “UK work”, see section 19.
(5B) For the meaning of “national minimum wage equivalent”, see section 4D(1).’;
(c) omit subsections (6) to (10).
Chapters 3 and 4 of Part 2 of the Act: remuneration regulations and declarations
9 After section 4 insert—
‘Chapter 3
Remuneration regulations and declarations
Remuneration regulations
4A Remuneration regulations
(1) Regulations may specify requirements relating to the remuneration of non-qualifying seafarers in respect of their work carried out in relation to the provision of a relevant service (whether or not in the territorial waters of the United Kingdom).
(2) In this Act, regulations under subsection (1) are referred to as “remuneration regulations”.
(3) Remuneration regulations may relate to remuneration in respect of only some of the work carried out in relation to the provision of a relevant service, and may frame such provision by reference to the waters in which the work is carried out or in any other way.
(4) Remuneration regulations may apply to—
(a) all relevant services, or
(b) one or more relevant services of a specified description.
(5) For the purposes of subsection (4)(b), a service may be described by reference to (among other things) the route operated by the service.
(6) Remuneration regulations may provide that Chapter 2 does not apply to any extent to a relevant service to which the regulations apply.
Remuneration declarations
4B Request for remuneration declaration
(1) Subsection (2) applies where a harbour authority has reasonable grounds to believe that ships providing a service to which remuneration regulations apply will enter, or have entered, its harbour on at least—
(a) 120 occasions, or
(b) if remuneration regulations specify a higher number in relation to services of a specified description and the service is of that description, that higher number of occasions,
during a relevant year (see section 19 for the meaning of “relevant year”).
(2) The harbour authority must, within such period as is determined by regulations under this subsection, request that the operator of the service provide the authority with a remuneration declaration in respect of the service for the relevant year.
(3) The duty under subsection (2) is subject to any direction given by the Secretary of State under section 16(1)(a).
(4) A harbour authority which fails to comply with subsection (2) is guilty of an offence and liable on summary conviction—
(a) in England and Wales, to a fine, or
(b) in Scotland and Northern Ireland, to a fine not exceeding level 5 on the standard scale.
4C Nature of remuneration declaration
(1) A remuneration declaration in respect of a service for a relevant year is a declaration within any of subsections (2) to (5).
(2) A declaration is within this subsection if it is provided before the beginning of the relevant year and it is to the effect that—
(a) in the relevant year there will be no non-qualifying seafarers working on ships providing the service, or
(b) in the relevant year non-qualifying seafarers working on ships providing the service will be remunerated in respect of their work in relation to the service in accordance with the remuneration regulations that apply in relation to them.
(3) A declaration is within this subsection if it is provided during the relevant year and it is to the effect that—
(a) in what remains of the relevant year there will be no non-qualifying seafarers working on ships providing the service, or
(b) in what remains of the relevant year non-qualifying seafarers working on ships providing the service will be remunerated in respect of their work in relation to the service in accordance with the remuneration regulations that apply in relation to them.
(4) A declaration is within this subsection if it is provided during the relevant year and it is to the effect that—
(a) in so much of the relevant year as has already occurred—
(i) there have been no non-qualifying seafarers working on ships providing the service, or
(ii) non-qualifying seafarers working on ships providing the service have been remunerated in respect of their work in relation to the service in accordance with the remuneration regulations that apply in relation to them, and
(b) in what remains of the relevant year—
(i) there will be no non-qualifying seafarers working on ships providing the service, or
(ii) non-qualifying seafarers working on ships providing the service will be remunerated in respect of their work in relation to the service in accordance with the remuneration regulations that apply in relation to them.
(5) A declaration is within this subsection if it is provided after the end of the relevant year and it is to the effect that—
(a) in the relevant year there were no non-qualifying seafarers working on ships providing the service, or
(b) in the relevant year non-qualifying seafarers working on ships providing the service were remunerated in respect of their work in relation to the service in accordance with the remuneration regulations that apply in relation to them.
Chapter 4
Chapters 2 and 3: supplementary regulations
4D Regulations about national minimum wage equivalent etc
(1) For the purposes of this Part, the national minimum wage equivalent is an hourly rate specified in regulations.
(2) Regulations may make provision for determining for the purposes of this Part—
(a) the hourly rate at which a non-qualifying seafarer is remunerated in any period in respect of any work, and
(b) whether, or the extent to which, a non-qualifying seafarer’s work in relation to a relevant service is UK work.
(3) Regulations under subsection (2)(a) may in particular make—
(a) any provision referred to in section 2(2) to (6) of the National Minimum Wage Act 1998;
(b) provision relating to currency conversion.
(4) Subsection (5) applies for the purposes of—
(a) section 4, and
(b) remuneration regulations that are framed by reference to the national minimum wage equivalent.
(5) The Secretary of State must in making regulations under this section seek to secure that a non-qualifying seafarer is remunerated at a rate equal to the national minimum wage equivalent only if their remuneration is in all the circumstances broadly equivalent to the remuneration they would receive if they qualified for the national minimum wage.’
Part 3 of the Act: seafarers’ working conditions
10 After section 4D (inserted by paragraph 9 of this Schedule) insert—
‘Part 3
Seafarers’ working conditions
Safe working regulations
4E Safe working regulations
(1) In this Part, “seafarer” means a person who works on a ship providing a relevant service.
(2) Regulations may specify conditions relating to the working pattern and rest requirements of seafarers who carry out work relating to the provision of a relevant service, including conditions about—
(a) their maximum periods of work in a specified period;
(b) their minimum periods of rest in a specified period.
(3) Regulations may make provision for the purpose of managing and mitigating risks arising from fatigue suffered by seafarers when carrying out their work relating to the provision of a relevant service.
(4) Regulations under subsection (3) may, among other things—
(a) require the operator of a relevant service to produce a plan to manage and mitigate risks arising from fatigue suffered by seafarers when carrying out their work relating to the provision of the service (a “fatigue management plan”);
(b) make provision about the contents of such a plan by reference to a specified document as amended from time to time.
(5) Regulations may make provision for and in connection with the training of seafarers who carry out work relating to the provision of a relevant service, for the purpose of ensuring—
(a) the safety of the ship on which they work,
(b) the safety of things on the ship, or
(c) the health or safety of persons on the ship.
(6) In this Act, regulations under subsection (2), (3) or (5) are referred to as “safe working regulations”.
(7) Safe working regulations may impose requirements on the operator of a relevant service.
(8) Safe working regulations may apply to—
(a) all relevant services, or
(b) one or more relevant services of a specified description.
(9) For the purposes of subsection (8)(b), a service may be described by reference to (among other things) the route operated by the service.
Safe working declarations
4F Request for safe working declaration
(1) Subsection (2) applies where a harbour authority has reasonable grounds to believe that ships providing a service to which safe working regulations apply will enter, or have entered, its harbour on at least—
(a) 120 occasions, or
(b) if safe working regulations specify a higher number in relation to services of a specified description and the service is of that description, that higher number of occasions,
during a relevant year (see section 19 for the meaning of “relevant year”).
(2) The harbour authority must, within such period as is determined by regulations under this subsection, request that the operator of the service provide the authority with a safe working declaration in respect of the service for the relevant year.
(3) The duty under subsection (2) is subject to any direction given by the Secretary of State under section 16(1)(a).
(4) A harbour authority which fails to comply with subsection (2) is guilty of an offence and liable on summary conviction—
(a) in England and Wales, to a fine, or
(b) in Scotland and Northern Ireland, to a fine not exceeding level 5 on the standard scale.
4G Nature of safe working declaration
(1) A safe working declaration in respect of a service for a relevant year is a declaration within any of subsections (2) to (5).
(2) A declaration is within this subsection if it is provided before the beginning of the relevant year and it is to the effect that the safe working conditions will be met in relation to the service in the relevant year.
(3) A declaration is within this subsection if it is provided during the relevant year and it is to the effect that the safe working conditions will be met in relation to the service in what remains of the relevant year.
(4) A declaration is within this subsection if it is provided during the relevant year and it is to the effect that—
(a) the safe working conditions have been met in relation to the service in so much of the relevant year as has already occurred, and
(b) the safe working conditions will be met in relation to the service in what remains of the relevant year.
(5) A declaration is within this subsection if it is provided after the end of the relevant year and it is to the effect that the safe working conditions were met in relation to the service in the relevant year.
(6) For the purposes of this section the safe working conditions are met in relation to a service at a particular time if at that time—
(a) the service is operated in compliance with regulations under section 4E(2) or (3) that apply to the service,
(b) the service is operated in compliance with a fatigue management plan that is required for the service by regulations under section 4E(3) (see section 4E(4)), and
(c) the service is operated in compliance with regulations under section 4E(5) that apply to the service.
(7) References in subsection (6) to the operation of a service include references to its operation outside the territorial waters of the United Kingdom.’
Part 4 of the Act: enforcement of Parts 2 and 3
11 After section 4G (inserted by paragraph 10 of this Schedule) insert—
‘Part 4
Enforcement of Parts 2 and 3
Offence of operating service inconsistently with declaration’.
12 In section 5 (offence of operating service inconsistently with declaration)—
(a) in subsection (1)—
(i) for ‘service to which this Act applies’ substitute ‘relevant service’;
(ii) in paragraph (a), for ‘an equivalence declaration’ substitute ‘a declaration’;
(b) in subsections (2), (3) and (4), omit ‘equivalence’.
13 (1) Section 6 (imposition of surcharges: failure to provide declaration in time) is amended as follows.
(2) In subsection (1)(a)—
(a) for ‘service to which this Act applies’ substitute ‘relevant service’;
(b) for ‘an equivalence declaration’ substitute ‘a declaration’.
(3) In subsection (1)(b), for ‘an equivalence declaration’ substitute ‘the requested declaration’.
(4) In subsection (2)(b)(ii), for ‘an equivalence declaration’ substitute ‘the requested declaration’.
(5) In subsection (3)(b)(ii), for ‘an equivalence declaration’ substitute ‘the requested declaration’.
(6) In subsection (5)(a), for ‘an equivalence declaration’ substitute ‘the requested declaration’.
(7) In subsection (5)(b), for ‘section 4(4) or (5).’ substitute ‘—
(i) section 4(4) or (5),
(ii) section 4C(4) or (5), or
(iii) section 4G(4) or (5),
(whichever applies).’
(8) In subsection (6)—
(a) for ‘an equivalence declaration’ substitute ‘a declaration’;
(b) in the definition of ‘prescribed period’, for ‘3(5)(a)’ substitute ‘16A(1)(a)’;
(c) in the definition of ‘prescribed form and manner’, for ‘3(5)(b) and (c)’ substitute ‘16A(1)(b) and (c)’.
14 In section 7 (imposition of surcharges: in-year declaration that is prospective only), in subsection (1)—
(a) in paragraph (a)—
(i) for ‘service to which this Act applies’ substitute ‘relevant service’;
(ii) for ‘an equivalence declaration’ substitute ‘a declaration’;
(b) in paragraph (b), for ‘3(5)’ substitute ‘16A(1)’;
(c) in paragraph (c), for the words from ‘within subsection (3)’ to the end substitute ‘—
(i) within subsection (3) of section 4 (and not also within subsection (4) of that section),
(ii) within subsection (3) of section 4C (and not also within subsection (4) of that section), or
(iii) within subsection (3) of section 4G (and not also within subsection (4) of that section),
(whichever applies).’
15 (1) Section 8 (imposition of surcharges: operating inconsistently with declaration) is amended as follows.
(2) In subsection (1)(a)—
(a) for ‘service to which this Act applies” substitute ‘relevant service’;
(b) for ‘an equivalence declaration’ substitute ‘a declaration’.
(3) In subsection (3), after ‘equivalence declaration’ insert ‘, remuneration declaration or safe working declaration (as the case may be)’;
(4) In subsection (4)(a)—
(a) for ‘service to which this Act applies’ substitute ‘relevant service’;
(b) for ‘an equivalence declaration’ substitute ‘a declaration’.
(5) In subsection (6), after ‘equivalence declaration’ insert ‘, remuneration declaration or safe working declaration (as the case may be)’.
16 In section 11 (refusal of harbour access for failure to pay surcharge), in subsection (1), for ‘service to which this Act applies’ substitute ‘relevant service’.
17 (1) Section 12 (provision of information by operators) is amended as follows.
(2) In subsection (1)—
(a) for ‘service to which this Act applies’ substitute ‘relevant service’;
(b) in paragraphs (a) and (b), for ‘an equivalence declaration’ substitute ‘a declaration’.
(3) In subsection (2)—
(a) in paragraph (b), at the beginning insert ‘for the purposes of Part 2,’;
(b) after paragraph (b) insert—
‘(c) for the purposes of Part 3—
(i) information relating to the working pattern, working conditions or training of persons working on ships providing the service;
(ii) a fatigue management plan produced by the operator of the service (see section 4E(4)(a)).’
(4) In subsection (5), for ‘service to which this Act applies’ substitute ‘relevant service’.
18 In section 13 (provision of information by harbour authorities), in subsection (2)(b), omit ‘equivalence’.
19 In section 14 (inspections), in subsection (2)—
(a) in paragraph (a), for ‘service to which this Act applies’ substitute ‘relevant service’;
(b) in paragraphs (a) and (b), for ‘an equivalence declaration’ substitute ‘a declaration’.
Part 5 of the Act: general and final provisions
20 After section 15 insert—
‘Part 5
General and final provisions’.
21 After section 16 insert—
‘16A Regulations about declarations
(1) Regulations may make provision—
(a) as to the period within which declarations are to be provided;
(b) as to the wording of declarations and the form in which they are to be provided;
(c) as to the manner in which declarations are to be provided.
(2) Regulations under subsection (1)(b) may specify a single form combining different kinds of declarations (but a requirement to provide a declaration in such a form does not require an operator of a service to provide a declaration which a harbour authority has not requested the operator to provide).’
22 In section 17 (regulations)—
(a) in the heading, at the end insert ‘: general’;
(b) in subsection (2)(a), for sub-paragraph (i) (but not the ‘or’ after it) substitute—
‘(i) relevant service,’.
23 (1) Section 19 (general interpretation) is amended as follows.
(2) After the definition of ‘the data protection legislation’ insert—
‘“declaration” (without more) means—
(a) an equivalence declaration,
(b) a remuneration declaration, or
(c) a safe working declaration;’.
(3) Omit the definition of ‘national minimum wage equivalent’.
(4) In the definition of ‘operator’, for ‘service to which this Act applies’ substitute ‘relevant service’.
(5) After the definition of ‘operator’ insert—
‘“relevant service” has the meaning given by section 1;’.
(6) In the definition of ‘relevant year’, for ‘has the meaning given by section 3(6);’ substitute ‘means—
(a) the period of 12 months beginning with a date specified in regulations, and
(b) each successive period of 12 months;’.
(7) After the definition of ‘relevant year’ insert—
‘“remuneration declaration” has the meaning given by section 4C(1);
“remuneration regulations” has the meaning given by section 4A(2);
“safe working declaration” has the meaning given by section 4G(1);
“safe working regulations” has the meaning given by section 4E(6);’.
(8) In the definition of ‘UK work’, for ‘has the meaning given by section 4(10)’ substitute ‘means work which is carried out in the United Kingdom or its territorial waters’.
Amendment of title of the Act
24 (1) The Seafarers’ Wages Act 2023 may be cited as the Seafarers (Wages and Working Conditions) Act 2023.
(2) For the words ‘Seafarers’ Wages Act 2023’ wherever they occur in any enactment substitute ‘Seafarers (Wages and Working Conditions) Act 2023’.”—(Justin Madders.)
This schedule amends the Seafarers’ Wages Act 2023 to give the Secretary of State power to make regulations specifying conditions relating to the wages and working conditions of seafarers working on ships providing services currently covered by that Act. Those conditions are enforceable in the same way as existing provisions of that Act.
Brought up, read the First and Second time, and added to the Bill.
Clause 113
Power to make consequential amendments
Question proposed, That the clause stand part of the Bill.
Justin Madders
I will be brief. The clauses are simple and standard, and they appear in most legislation.
Clause 113 will allow the Secretary of State to make consequential amendments—that is, amendments that are immediately consequent upon a provision in the Bill—to primary or secondary legislation. Consequential amendments are necessary changes to other legislation to ensure that the law works alongside the changes to the law made in the Bill. Subsection (2) will allow the power to be used to amend primary legislation where we would not expect to be burdened with further primary legislation to make changes. Subsection (4) sets out that regulations that amend primary legislation will be subject to the affirmative procedure, thus maintaining Parliament’s ability to scrutinise the provisions made under the power.
Clause 114 will allow the Secretary of State to make two types of provision. The first type is a transitional provision, which can be used specifically to assist the changeover from the state of the law before the Bill comes into force to the state of the law when it is fully in force. The second type is a saving provision, which can be used to preserve certain elements of the old law even after the new law comes into effect. They are used to maintain specific rights, obligations or legal effects that existed under the old law so that the changes will not apply in certain pre-existing cases.
We have ensured that the powers conferred on the Secretary of State to make provisions under clauses 113 and 114 are limited. As I say, the clauses are customary provisions. I commend them to the Committee.
Greg Smith
As the Minister says, the clauses are standard in a lot of legislation.
Question put and agreed to.
Clause 113 accordingly ordered to stand part of the Bill.
Clause 114 ordered to stand part of the Bill.
Clause 115
Regulations
Justin Madders
The shadow Minister’s amendment 164, as he said, would require the Secretary of State to have regard to the UK’s growth and international competitiveness when making any regulations under the Bill. As the shadow Minister knows, the Government are committed to getting growth in this country back on track and to maintaining and strengthening our international standing. I noticed that in his litany of negative economic news, he forgot to mention today’s growth figures, which show us back in positive territory.
Our employment rights framework is about ensuring that the economy works for everyone. The Government believe our plan to make work pay will bring the UK back in line internationally and tackle issues with low growth, productivity and pay. The plan is not only a core part of the mission to grow the economy, but crucial to delivering on our milestone to raise living standards across the country and to create opportunities for all. It sits alongside work on planning reform, the skills revolution, tackling inactivity and launching our vision for a modern industrial strategy. The strategy will enable the UK’s already world-leading services and manufacturing sectors to adapt and grow, seizing opportunities internationally to lead in new sectors, with high-quality, well-paid jobs. It will be grounded in long-term stability, a renewed commitment to free and fair trade, and a pro-business approach focused on reducing barriers to investment in the UK.
We have committed to full and detailed engagement with businesses and trade unions alike as we develop the detail of regulations under the Bill. Our published impact assessment evaluates a wide range of evidence and concludes that the package could have a direct and positive impact on growth. Our intention is to refine our analysis as policy development continues, including by publishing updated option assessments and impact assessments, alongside future consultations and secondary legislation, to meet our better regulation requirements. In developing the detail of regulations, our officials and Ministers will pay close heed to the potential impacts on growth, as well as to our international comparability. We are committed to ensuring that we get support across the country among workers and employers alike.
Amendment 165 would require the Secretary of State to consult, and to publish a report of consultation that has been undertaken on specific measures, before making any regulations under the Bill. As was noted by the Liberal Democrat spokesperson, the hon. Member for Torbay, those on the Conservative Benches have taken a rather vacillating approach to consultation during the passage of the Bill, but we have been clear that we are pro-business and pro-worker. That is reflected in our approach, not just in Committee but with engagement since before the Bill’s publication, to ensure that our plan to make work pay is delivered.
As the Committee knows, we have committed to full and comprehensive consultation with all stakeholders. We began in October with an initial consultation package and, as set out in the “Next Steps to Make Work Pay” document, we will consult further on the implementation of the Bill’s measures. Alongside formal consultations, we have conducted extensive engagement on how best to put our plans into practice. We have already held and attended about 40 meetings of external stakeholders related to “Make Work Pay”. Eighteen of those meetings have been specific to businesses, eight specific to trade unions, and seven held in a tripartite setting.
I have written to the shadow Minister with details of the engagement that has already taken place. The figures are not exhaustive and do not include officials’ meetings or recurring meetings with external organisations to discuss a range of topics. I therefore suggest that we are engaging and consulting fully and that the amendment is not necessary.
Greg Smith
Well, there we have it. The Government who say they are pro-growth have shown their true colours and will not back our amendment to prove their intentions towards growth. This whole Bill is a socialist charter and we know that we cannot have socialism and growth at the same time. The history books have taught us that time and again.
We deeply regret the Government’s resistance to these two amendments. We will continue to be the party that champions business, growth and getting our economy going again, while this Government do everything they can, in this Bill and in their Budget and in so many other ways, to hold our economy back.
Justin Madders
I hope the Committee will agree that, like other clauses we have debated in part 6, clause 115 is a straightforward and customary provision. It sets out various procedural aspects that are relevant to the making of regulations under the Bill by statutory instrument, with the exception of commencement regulations, which I will speak to separately as they are dealt with in clause 118.
Subsection (2) sets out that regulations made under the Bill may make different provision for different purposes, and that they may contain supplementary, incidental, consequential, transitional or saving provisions. Subsections (4) and (5) explain what is meant by references in the Bill to the negative procedure and the affirmative procedure. The delegated powers memorandum sets out each power in the Bill, as introduced, and justifies the procedure set out in the relevant clause.
Greg Smith
I reiterate that we think the clause could have been improved by our amendments, but, for the time being, that is not to be the case.
Question put and agreed to.
Clause 115 accordingly ordered to stand part of the Bill.
Clause 116
Financial provision
Question proposed, That the clause stand part of the Bill.
Justin Madders
Clause 116 simply sets out that expenditure incurred under the terms of the Bill is to be met by supplies from Parliament. Clause 117 sets out the territorial extent of the Bill as introduced. With the exception of clause 25, parts 1, 2 and 4 extend to England, Wales and Scotland; part 3 extends to England and Wales only; and clause 25 and parts 5 and 6 extend to England, Wales, Scotland and Northern Ireland. It is also worth noting that amendments or repeals made by the Bill have the same extent as the provision amended or repealed.
Clause 118 sets out the manner in which provisions of the Bill will be commenced. Subsections (1) and (2) set out which provisions come into force on Royal Assent and two months after Royal Assent respectively. In respect of all other provisions, subsection (3) allows the Secretary of State to make regulations setting out the days that such provisions come into force. Finally, clause 119 provides that the short title of the legislation will be the Employment Rights Act.
Greg Smith
I am grateful to the Minister for taking us through those standard clauses at the end of the Bill. The only thing worthy of comment, which has come up during our debates on many of the clauses, is the variable commencement timings of some of the provisions, as listed in clause 118. I appreciate that that can happen in legislation from time to time, but the variable timescale adds an element of confusion for businesses. Some provisions will be commenced immediately, some after two months, and some after longer than that.
With that, we come to the end of our debates on the clauses and will move on to decide on measures that we have already debated. As I said in response to the intervention by the hon. Member for Worsley and Eccles in the last debate, we have had a good debate in Committee. We have clearly outlined a number of areas where the two major parties in the House of Commons disagree on the approach to the Bill, but let nobody be in any doubt that we have gone through it line by line and debated it in a good level of detail.
I will end simply by saying that although clause 119 gives the short title of the Bill and says that
“This Act may be cited as the Employment Rights Act 2025”,
the Opposition’s view is that it will, in reality, be the Employment (Job Losses) Act.
Question put and agreed to.
Clause 116 accordingly ordered to stand part of the Bill.
Clause 117
Extent
Amendments made: 206, in clause 117, page 104, line 22, for
“Part 3 of this Act extends”
substitute
“Chapters 1 and 2 of Part 3 of this Act extend”.
This amendment is consequential on Amendment 207.
Amendment 207, in clause 117, page 104, line 22, at end insert—
“(ba) Chapter 3 of Part 3 of this Act extends to England and Wales, Scotland and Northern Ireland;”.
This amendment states the extent of the new Chapter proposed to be formed by NC48 and NS3.
Amendment 107, in clause 117, page 104, line 24, at end insert—
“(1A) Sections (Statutory sick pay in Northern Ireland: removal of waiting period) and (Statutory sick pay in Northern Ireland: lower earnings limit etc) (statutory sick pay in Northern Ireland) extend to Northern Ireland only.”
This amendment is consequential on amendments NC5 and NC6; it limits the extent of new clauses (Statutory sick pay in Northern Ireland: removal of waiting period) and (Statutory sick pay in Northern Ireland: lower earnings limit etc) to Northern Ireland only.
Amendment 108, in clause 117, page 104, line 27, leave out “An amendment or repeal” and insert
“Except as set out in subsection (4), an amendment, repeal or revocation”.
This amendment is consequential on NS2 and amendment 109.
Amendment 109, in clause 117, page 104, line 28, leave out “amended or repealed.” and insert
“amended, repealed or revoked.
(4) In Schedule (Increase in time limits for making claims) (increase in time limits for making claims)—
(a) the amendments made by paragraph 9(3) and (4) extend to Northern Ireland only;
(b) the amendments made by paragraphs 10, 12 and 13 extend to England and Wales and Scotland only.”—(Justin Madders.)
This amendment would limit the extent of certain amendments in NS2 so that they only extend to Northern Ireland or Great Britain (where they would otherwise extend to both). This is to ensure that the increase in time limits in those cases only applies in relation to employment tribunals in Great Britain.
Clause 117, as amended, ordered to stand part of the Bill.
Clause 118
Commencement
Amendment made: 110, in clause 118, page 105, line 17, at end insert—
“(na) section (Employment outside Great Britain) (employment outside Great Britain);”.—(Justin Madders.)
This amendment would bring NC7 into force two months after Royal Assent.
Clause 118, as amended, ordered to stand part of the Bill.
Clause 119 ordered to stand part of the Bill.
Title
Amendments made: 208, in title, line 6, after
“Adult Social Care Negotiating Body;”
insert
“to amend the Seafarers’ Wages Act 2023;”.
This amendment is consequential on NS3.
Amendment 209, in title, line 6, after
“Adult Social Care Negotiating Body;”
insert
“to make provision for the implementation of international agreements relating to maritime employment;”.—(Justin Madders.)
This amendment is consequential on NC52.
Question proposed, That the Chair do report the Bill, as amended, to the House.
Justin Madders
I wish to thank you, Sir Christopher, and the other Chairs who have presided over this lengthy Bill Committee. I also thank the Clerks, Doorkeepers and Hansard reporters. I thank all members of the Committee who have participated in what has been a healthy and engaging debate. No doubt there will be more discussions and debates to come as the Bill progresses. I also thank the officials Cal Stewart, Jack Masterman and Shelley Torey.
Laurence Turner (Birmingham Northfield) (Lab)
Thank you, Sir Christopher. All good things must come to an end, and sadly that includes this Committee. I echo the thanks given by the Minister to the workers—to everyone who has supported the Committee—and I thank our Front Benchers, who have done a sterling job and from time to time gently and appropriately warded us off our individual enthusiasms. Perhaps that was just me.
Work on what became this Bill began a long time ago. It is hard to believe that almost five years have passed since my hon. Friend the Member for Worsley and Eccles and I first became involved in the discussions. To name contributors is to commit the sin of omission. That is the case too for the staff of the Labour party, due to the party’s professional code of modesty, but I would like to place a few names on the record. They include my hon. Friends the Members for Halifax (Kate Dearden) and for Gateshead Central and Whickham (Mark Ferguson), who previously ably represented the Community and Unison unions respectively, including through the Labour party’s national policy forum. That was in itself an exhaustive process. I just say to hon. Members that if they liked this Committee, they would have loved the NPF. I am sorry to disappoint Opposition Members, but there was no smoke in those rooms, and no beer. There were occasionally sandwiches.
I would be in error if I did not personally thank Jaden Wilkins in my office and the staff of the TUC for their consistently excellent research publications. I also thank some of the GMB figures who made critical contributions during that time, including the national political officers during that period—Tom Warnett, Caitlin Prowle and Gavin Sibthorpe, who put in more hours than anyone—the national legal officer, Barry Smith, and the staff of the research and policy department, Anna Barnes, Ross Holden and Cassie Farmer. Finally, I would like to mention the staff of the Trade Union and Labour Party Liaison Organisation: Robbie Scott, Kieran Maxwell and Helen Pearce—the best political organiser in the labour movement, who herded cats and moved mountains.
Employment Rights Bill (Nineteeth sitting)
Justin Madders ExcerptsTuesday 14th January 2025
(2 weeks, 4 days ago)
Public Bill CommitteesRead Full debate Employment Rights Bill 2024-26 View all Employment Rights Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 14 January 2025 - (14 Jan 2025)
The Chair
Will everyone please ensure that all their electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sittings is available in the room and on the parliamentary website. I remind hon. Members about the rules on declarations of interest, as set out in the code of conduct.
Schedule 6
Consequential amendments relating to Part 5
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I beg to move amendment 183, in schedule 6, page 135, line 6, leave out “‘Secretary of State’.” and insert
“‘Gangmasters and Labour Abuse Authority or the Secretary of State’.”
This amendment would ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a “relevant document” that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under that Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.
It is a pleasure to see you in the Chair this morning, Mr Mundell. As is customary, I refer to my declaration of interests and to the Register of Members’ Financial Interests.
The amendment is essential to upholding legal continuity and to preventing any ambiguity or loopholes in enforcement. It will ensure that provisions under the Gangmasters (Licensing) Act 2004 remain enforceable. Without the amendment, there is a risk that any improper conduct in relation to documents issued before the abolition of the Gangmasters and Labour Abuse Authority could fall outside the scope of enforcement.
Fraudulent licences have been used to exploit vulnerable workers and to mislead employers, particularly in industries such as agriculture and food processing. The amendment will strengthen deterrence against document fraud and ensure that enforcement agencies retain the tools that they need to protect workers effectively.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to serve under your chairmanship once more, Mr Mundell.
As the Minister has outlined, Government amendment 183 will ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a relevant document that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under the Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.
Clause 109 will abolish the Gangmasters and Labour Abuse Authority, a non-departmental public body that investigates reports of worker exploitation and illegal activity such as human trafficking, forced labour and illegal labour provision, as well as making offences under the National Minimum Wage Act 1998 and the Employment Agencies Act 1973. Significantly, the Gangmasters and Labour Abuse Authority also issues licences to employment agencies, labour providers or gangmasters who provide workers in the sectors of agriculture, horticulture, shellfish gathering and any associated processing or packaging. That is important work; we do not in any way, shape or form deviate from that.
The Government amendment will rightly ensure that providing false licences remains an offence, including where that was identified before the Bill receives Royal Assent and becomes an Act at some point this year, but I would like to be reassured about the work of the Gangmasters and Labour Abuse Authority in connection with the provisions of the Bill. For example, what will happen to the staff at the authority once it has been abolished? The Bill provides for the transfer of staff, property rights and liabilities to the Secretary of State. Does the Secretary of State envisage redundancies or envisage that the same staff will continue to do the same work under a different ultimate authority? Will the reorganisation lead to any disruption? I think we all accept that any change will bring with it some level of disruption, but how can the disruption be minimised?
Likewise, the amendment appears to ensure continuity with existing legislation once the Bill has passed. I will be grateful if the Minister can confirm that that is the case. If any new powers are being taken, please could they be explained?
Sir Ashley Fox
The hon. Member makes a number of valuable points. The proposed removal of the GLAA raises concerns about how its important functions will be handled. It is imperative that a robust alternative structure be put in place to address those critical issues and to continue protecting workers’ rights and preventing exploitation.
The GLAA’s work is crucial in specific sectors in which workers are at a heightened risk of exploitation. They include agriculture, horticulture, shellfish gathering and the associated processing and packaging industries. Such sectors often rely on seasonal or temporary labour, which makes workers more vulnerable to abuse. The GLAA has been tasked with ensuring that employment agencies and gangmasters in those areas are properly licensed and comply with legal and ethical standards. Without a continued effective regulatory body, there is a risk that workers in those sectors could face greater vulnerability to exploitation. The amendment ensures that even after the GLAA is abolished, protections relating to fraudulent licences remain in place to help to prevent future abuses in those critical sectors.
Although the amendment will rightly ensure that the offence of providing false licences will continue, including for cases identified prior to the passage of the Bill, there remains a need for reassurance about the future of the GLAA’s core responsibilities. The work of the GLAA in investigating and responding to incidents of worker exploitation is vital. As the Bill progresses, it is crucial that there is a clear and publicly communicated plan for transferring and maintaining those functions under the new framework. The question remains of how those critical duties will be continued effectively under the new system. What mechanisms are in place to ensure that the same level of oversight and enforcement will be maintained without compromising workers’ protections?
One significant issue that arises from the abolition of the GLAA is the future of its staff. The Bill stipulates that staff, property, rights and liabilities will be transferred to the Secretary of State. However, there is a need for further clarity on the fate of staff members, who have been dedicated to the GLAA’s mission. Will there be redundancies, or will staff members be reassigned to continue their work under a new authority such as the fair work agency? In the latter case, it will be essential to understand how that transition will be managed. Will those staff members continue to do the same work, or will there be changes to their roles? Furthermore, will the reorganisation cause any disruption to the ongoing work of tackling labour exploitation and illegal labour practices? Minimising disruption in that process is crucial to ensure that there is no gap in the important regulatory and enforcement work carried out by the GLAA.
Government amendment 183 appears to be designed to ensure that existing legislation, particularly in relation to worker protections and the regulation of labour providers, continues to apply once the Bill passes. It would have been reassuring to have confirmation that the intention behind the amendment is to maintain the existing legal framework and obligations. The continuity of those provisions is critical to ensuring that workers remain protected and that the work of tackling exploitation and human trafficking continues without interruption. I would be grateful for the Minister’s confirmation that the amendment will ensure that the key elements of existing legislation remain in force.
Finally, if the Bill introduces any new powers, it is important that the need for those powers be fully explained and understood. The amendment and the Bill more broadly implement changes that could have significant implications both for employers and for their employees. It would be helpful to have clarification on whether the new powers will be used to expand the role of the Secretary of State or the fair work agency in monitoring and regulating sectors previously overseen by the GLAA. How will those new powers affect existing regulations? What safeguards will be in place to ensure that they are used appropriately and effectively?
Justin Madders
That was quite a lengthy debate for a technical amendment. This amendment to schedule 6 will ensure continuity of function, which was one of the main points that the shadow Minister and the hon. Member for Bridgwater made. We are alive to their concern that there is a hole through which provisions can fall: there are a number of amendments to make sure that there is continuity of legal force and in the ability to carry out the functions of the predecessor authorities.
Both hon. Members asked about redundancies. It is premature to talk about operational matters of that nature. The impact assessment is being carried out on the basis of the existing budgets of the relevant agencies. No reduction in staff members is anticipated, but as we move forward, efficiencies and duplications may become apparent when the agencies are merged, which may lead to other changes to the way in which matters are carried out, and those will clearly be dealt with.
There was a concern that the reorganisation could lead to disruption, which is certainly not our intention. We expect the agencies to be able to continue to carry out existing investigations—indeed, many of the amendments are being made with that in mind to ensure that continuity is preserved. I remind Opposition Members that the purpose of the fair work agency is to ensure that intelligence is shared and resources are pooled so that we can be more effective in our labour market abuse enforcement mechanisms. That has been widely supported across the entire group of stakeholders.
In terms of oversight, there will be an advisory board, reports and strategies and the Secretary of State will be answerable to Parliament for the work of the fair work agency. We will no doubt return to that on a number of occasions as the detail is fleshed out. I commend the amendments to the Committee.
Amendment 183 agreed to.
Amendments made: 102, in schedule 6, page 137, line 13, at end insert—
“(3A) In the italic heading before paragraph 10, omit “of Authority”.”
This amendment makes a minor drafting correction.
Amendment 103, in schedule 6, page 137, line 15, leave out “the heading and”.—(Justin Madders.)
This is consequential on amendment 102.
Justin Madders
I beg to move amendment 104, in schedule 6, page 140, line 26, leave out “and (4)” and insert “, (4), (8) and (9)”.
This amendment, and amendments 105 and 106, make further minor amendments of section 114B of the Police and Criminal Evidence Act 1984 as a result of the replacement of labour abuse prevention officers by enforcement officers under Part 5 of the Bill.
Justin Madders
Schedule 6 outlines consequential amendments to other legislation and will ensure consistency with the provisions introduced by the Bill. It will also ensure that our legislative framework is cohesive and functional.
The amendments will make essential technical adjustments to section 114B of the Police and Criminal Evidence Act 1984 to reflect the replacement of labour abuse prevention officers with enforcement officers, as defined in part 5 of the Bill. They will update references, revise definitions and ensure consistency between this Bill and existing legislation. The amendments will avoid confusion and ensure that our statutory framework functions effectively. I commend these minor technical amendments to the Committee.
Greg Smith
I am grateful to the Minister for explaining these further minor amendments to section 114B of the Police and Criminal Evidence Act, being made as a result of the replacement of labour abuse prevention officers with enforcement officers under part 5 of the Bill. The amendments are another consequence of centralising the different enforcement agencies that operate under the auspices of the fair work agency.
I would be grateful to have the Minister’s reassurance that all current enforcement work will still be able to be carried out to the same standard during the period of reorganisation. In the previous debate, he indicated that he did not expect disruption; I gently put it to him that that is probably on the optimistic end of the scale. No matter the good intention behind any reorganisation, or the will, endless planning and everything that goes into it from a lot of good people putting in a lot of hard work, the reality is that any reorganisation can cause disruption, either in its own right or through unexpected events.
I will give a parallel closer to home. In my constituency, Buckinghamshire unitary council was created to go live just as the pandemic was starting. Four district councils and a county council were put together at the point at which we were all sent home, so everyone was working from home and having to rise to a local authority’s duties to put in place resilience measures to support people through the pandemic.
Sir Ashley Fox
Amendments 104 to 106 propose minor but necessary changes to section 114B of the Police and Criminal Evidence Act 1984, arising from the changes introduced under part 5 of the Bill, particularly the replacement of labour abuse prevention officers by enforcement officers. The intention behind the change is to streamline and update the regulatory framework in response to the restructuring of enforcement roles. By introducing enforcement officers under the new structure, the Government aim to enhance the effectiveness of labour abuse prevention while ensuring that there is no gap in oversight and enforcement. These minor amendments are crucial to align existing legislation with the nearly structured responsibilities and authority of enforcement officers, who will now take on the duties previously held by labour abuse prevention officers.
The centralisation of enforcement agencies under the fair work agency is part of a broader effort to centralise and co-ordinate the various enforcement agencies that currently operate. By bringing the enforcement bodies together under a single umbrella, the Government aim to create a more co-ordinated, efficient and consistent approach to tackling labour abuses and ensuring that workers’ rights are upheld across different sectors. The centralisation process is designed to improve the effectiveness of enforcement and simplify the regulatory landscape for both businesses and workers, but as we move through the reorganisation period, it is essential that all enforcement activities continue to be carried out seamlessly, without any disruption or decrease in the standard of oversight. That is particularly important as the new system is put in place, as workers rely on enforcement mechanisms to protect their rights.
I seek reassurance on the continuity of enforcement standards during the reorganisation. Given the significant structural changes involved, I ask the Minister to assure me that all current enforcement work will continue to be carried out to the same high standard during the transition period. The centralisation of enforcement agencies is a significant undertaking, and it is vital that the effectiveness of enforcement operations is not compromised during the restructuring process. Workers and businesses must be confident that the protections afforded by the existing enforcement framework will remain intact, and that enforcement officers will have the tools, resources and authority that they need to address breaches of the law effectively. I would appreciate clarification on how the Government plan to ensure that no enforcement gaps occur during the reorganisation, and that current and future enforcement work will be conducted at the same high level of competence.
Justin Madders
It seems we have a little double act developing on the Opposition Front Bench. It reminds me a little bit of Waldorf and Statler, without the puns. Both the hon. Member for Mid Buckinghamshire and the hon. Member for Bridgwater sought similar and important assurances that the work of the agencies would be able to be carried out effectively during this period of transition. I note what the hon. Member for Mid Buckinghamshire mentioned about the Mid Buckinghamshire reorganisation.
Justin Madders
All of Buckinghamshire, yes—with the hon. Member right in the middle where he truly belongs. I do recall that the previous Government decided to set up the UK Health Security Agency in the middle of the pandemic, which was a challenging time to do that. It has been shown that the people doing the job day to day can continue to do it while the institutional reform carries on, making it more likely that they will be effective in carrying out their work through the sharing of resources, evidence and expertise, as well as, hopefully, a more unified approach to enforcement. Clearly, we want those doing the day-to-day work to be able to carry on doing that and a number of these amendments enable them to do that. We hope that, as the agency forms and more joint working is developed, they will become more effective.
Amendment 104 agreed to.
Amendments made: 105, in schedule 6, page 140, line 26, at end insert—
‘(4A) In subsection (10), for “Any other” substitute “A”.’
See the explanatory statement for amendment 104.
Amendment 106, in schedule 6, page 140, line 27, leave out sub-paragraph (5) and insert—
‘(5) For subsection (11) substitute—
“(11) In this section—
“enforcement officer” has the meaning given by section 72(3)
of the Employment Rights Act 2025;
“labour market offence” has the same meaning as in Part 5 of that Act (see section 112(1) of that Act).”’—(Justin Madders.)
See the explanatory statement for amendment 104.
Justin Madders
I beg to move amendment 184, in schedule 6, page 141, line 7, at end insert—
“Employment Tribunals Act 1996
70A In section 19A of the Employment Tribunals Act 1996 (conciliation: recovery of sums payable under settlements), omit subsection (10A).”
This amendment provides for a minor consequential amendment relating to Part 5 of the Bill.
Justin Madders
Schedule 6 makes consequential amendments to existing legislation to ensure consistency with the new provisions introduced by the Bill. The amendments make essential technical adjustments to the Employment Tribunals Act 1996 and the Small Business, Enterprise and Employment Act 2015, updating references and ensuring consistency between the Bill and existing legislation.
Government amendment 184 omits section 19A(10A) of the Employment Tribunals Act 1996, which makes provision for the disclosure of settlement terms to an enforcement officer appointed under section 37M of the same Act. Section 37M is repealed by the Bill, as it has been superseded by the new provisions of the Bill on the appointment of fair work agency officers. Clauses 98 and 99(1) of the Bill provide gateways for the disclosure of information to fair work agency officers. Government amendment 184 repeals section 19A(10A), as the provision is no longer required in the light of the new provisions introduced by the Bill. Government amendment 188 is consequential to Government amendment 184. The amendment prevents confusion and ensures our statutory framework continues to function effectively.
Greg Smith
For the next part of the double act —I will casually ignore the Minister’s comparison—I will speak to Government amendments 184 and 188. Amendment 184 is a minor amendment relating to part 5 of the Bill and amendment 188 is consequential on amendment 184. As the Minister said, amendment 184 removes section 19A(10A) of the Employment Tribunals Act 1996. Section 19A concerns the
“recovery of sums payable under settlements”
and subsection (10A) provides that the court may make provision as to the time within which an application to the county court for a declaration under subsection (4) is to be made. Subsection (4) states:
“A settlement sum is not recoverable under subsection (3) if—
(a) the person by whom it is payable applies for a declaration that the sum would not be recoverable from him under the general law of contract, and
(b) that declaration is made.”
Notwithstanding the Minister’s explanation, it is still not entirely clear to the Committee, or indeed to the whole House, why it is necessary to delete subsection (10A) from the Employment Tribunals Act 1996. I am sure there is a very convoluted reason for it out there somewhere, but it seems to us that the will of the Government in putting this legislation before Parliament does not need that deletion in order to function. I would be grateful if the Minister gave a fuller explanation of the need for that deletion in his summing-up.
Sir Ashley Fox
Amendment 184 proposes the removal of subsection (10A) from section 19A of the Employment Tribunals Act 1996, which deals with the recovery of sums payment under settlements, specifically addressing situations in which a party seeks a declaration from the court regarding the recoverability of a settlement sum.
Under subsection (10A), the court has the discretion to make provisions regarding the timeframe within which an application must be made to the county court for a declaration under subsection (4). Subsection (4) essentially provides that a settlement sum will not be recoverable if the person liable to pay the sum seeks a declaration from the court that, under general contract law, the sum is not recoverable from them. The removal of subsection (10A) raises important questions about the implications of the timing and procedure of such applications.
Given that the removal of subsection (10A) may have significant consequences for how significant settlement sums are handled and claims are processed in the future, will the Minister explain why this provision is being deleted? Understanding the reasoning behind the change is important for assessing its potential impact on workers and employers. Will the removal of this provision simplify the process for parties seeking a declaration regarding the recoverability of settlement sums or will it introduce new challenges or delays in the legal process? Furthermore, how will this change affect the ability of individuals to seek a fair resolution in cases where disputes over settlement sums arise? Clarification from the Minister on these points would be appreciated as it would help ensure that stakeholders fully understand the intended effects.
Justin Madders
Hopefully, I can put Opposition Members’ minds at rest about the need for the amendment. It is about simplifying the legislative framework. Section 19A(10A) of the 1996 Act is about disclosure of settlement terms to enforcement officers who are appointed under section 37M of that Act. As that is now being repealed by and superseded by the provisions in this Bill, particularly clauses 98 and 99, that provision is no longer required in the 1996 Act. That is why it is being removed; the current arrangements remain in place, but they will all be in one place, in this Bill. We hope that will provide clarity and certainty for those who wish to avail themselves of the rights and obligations under this legislation.
Amendment 184 agreed to.
Justin Madders
I beg to move amendment 185, in schedule 6, page 141, line 33, leave out from “2025)” to end of line 2 on page 142 and insert
“acting in the exercise of functions conferred on them by virtue of section 114B of the Police and Criminal Evidence Act 1984;”;”.
This amendment is consequential on amendment 186.
Justin Madders
The amendments make essential adjustments to the Employment Rights Bill ensuring that there is a process for appropriate oversight of police powers used by officers within the fair work agency. There will be a subsection of enforcement officers within the fair work agency who will be able to use police powers under the Police and Criminal Evidence Act. It is important that there is appropriate oversight of officers using these powers as part of their investigations.
This is not a new power. Currently, Labour abuse prevention officers within the Gangmasters and Labour Abuse Authority are able to use these Police and Criminal Evidence Act powers. Any complaints or allegations of misconduct are investigated by the Independent Office for Police Conduct, thereby ensuring that enforcement officers use their powers responsibly and within legal boundaries. The amendments ensure that the existing oversight arrangements with the IOPC can continue with the fair work agency on abolition of the GLAA. On that note, I hope the Committee will accept amendments 185, 186 and 187.
Sir Ashley Fox
Amendments 186 and 187 propose important changes that would grant the Secretary of State the power to make regulations enabling the director general of the Independent Office for Police Conduct to handle complaints and misconduct related to enforcement officers who exercise police powers. This would involve granting the IOPC the authority to oversee complaints regarding enforcement officers as they carry out their duties, particularly when acting within the scope of the powers given to them under section 114B of the Police and Criminal Evidence Act 1984.
Amendment 185 is consequential to those changes, ensuring that the necessary legislative framework aligns with the proposed regulations. Specifically, amendment 186 outlines that the Secretary of State will have the authority to make regulations that will confer specific functions on the director general of the IOPC. Those functions would relate to enforcement officers when they exercise powers granted to them through section 114B of the 1984 Act, which provides enforcement officers with certain powers, and this amendment ensures that there are appropriate mechanisms in place to address any complaints or allegations of misconduct arising from their use of these powers.
I would be grateful if the Minister provided further clarification on the scope of these regulations. Specifically, it would be helpful to understand what types of function the Secretary of State is likely to impose on the director general of the IOPC. For instance, will the regulations specify procedures for investigating complaints, the methods of oversight, or protocols for handling disciplinary actions against enforcement officers? What types of misconduct or complaint are anticipated to fall within this framework? Moreover, how do the Government envisage the IOPC’s role evolving, with the additional responsibility for overseeing enforcement officers under these amendments?
Understanding the intended use of these powers will help stakeholders anticipate the practical effects of these changes and their potential impacts on enforcement officers’ accountability. A key concern is whether the IOPC will be granted greater powers under this proposed framework. The IOPC’s current remit covers complaints and misconduct relating to police officers, but the introduction of enforcement officers who possess police powers raises important questions about whether the IOPC will have the authority to investigate misconduct claims against those officers in a similarly robust manner. Will the IOPC be granted expanded investigatory powers to ensure that complaints involving enforcement officers are handled thoroughly and impartially?
Additionally, will the IOPC have the authority to impose sanctions on enforcement officers found to have committed misconduct? If sanctions are available, it would be useful to understand what types of action the IOPC could take, such as recommending disciplinary measures, issuing fines or referring cases for criminal prosecution.
Providing clarity on the scope of the IOPC’s powers in relation to enforcement officers will be crucial for ensuring that those officers remain accountable for their actions while exercising their police powers.
Justin Madders
I am grateful to Opposition Members for raising those questions. I can reassure them that this is not about creating new powers, either for enforcement officers or for the IOPC. It is about transferring the existing responsibility that the IOPC has for designated officers with police-style powers to the fair work agency. The discussions have been on the basis that there would not be any additional resource implications for the IOPC. Obviously, if that were to change in due course, when the fair work agency is under way, there would be discussions about that. It is simply about the existing powers under section 114B of the Police and Criminal Evidence Act being applicable to the enforcement officers of the fair work agency on exactly the same basis as they are now. I hope that that has put Opposition Members’ minds at rest. On that note, I commend the amendments to the Committee. ‘Employment Rights Act 2025 section 90 labour market enforcement order labour market offence within the meaning of Part 5 of that Act.’”
Amendment 185 agreed to.
Amendments made: 187, in schedule 6, page 142, line 3, after “(3)” insert “—
(i) after paragraph (bc) insert—
‘(bca) any regulations under section 26CA of this Act (enforcement officers appointed under Employment Rights Act 2025);’;
(ii)”.
See the explanatory statement for amendment 186.
Amendment 186, in schedule 6, page 142, line 3, at end insert—
“(2A) After section 26C insert—
‘26CA Enforcement officers appointed under Employment Rights Act 2025
(1) The Secretary of State may make regulations conferring functions on the Director General in relation to enforcement officers acting in the exercise of functions conferred on them by virtue of section 114B of the Police and Criminal Evidence Act 1984.
(2) In this section “enforcement officer” means a person appointed by the Secretary of State under section 72 of the Employment Rights Act 2025.
(3) Regulations under this section may, in particular—
(a) apply (with or without modifications), or make provision similar to, any provision of or made under this Part;
(b) make provision for payment by the Secretary of State to, or in respect of, the Office or in respect of the Director General.
(4) The Director General and the Parliamentary Commissioner for Administration may jointly investigate a matter in relation to which—
(a) the Director General has functions by virtue of this section, and
(b) the Parliamentary Commissioner for Administration has functions by virtue of the Parliamentary Commissioner Act 1967.
(5) The Secretary of State or an enforcement officer may disclose information to the Director General, or to a person acting on the Director General’s behalf, for the purposes of the exercise by the Director General, or by any person acting on the Director General’s behalf, of a relevant complaints function.
(6) The Director General and the Parliamentary Commissioner for Administration may disclose information to each other for the purposes of the exercise of a function—
(a) by virtue of this section, or
(b) under the Parliamentary Commissioner Act 1967.
(7) Regulations under this section may, in particular, make—
(a) further provision about the disclosure of information under subsection (5) or (6);
(b) provision about the further disclosure of information that has been so disclosed.
(8) A disclosure of information authorised by this section does not breach—
(a) any obligation of confidence owed by the person making the disclosure, or
(b) any other restriction on the disclosure of information (however imposed).
(9) But this section does not authorise a disclosure of information that—
(a) would contravene the data protection legislation (but in determining whether a disclosure would do so, the power conferred by this section is to be taken into account), or
(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.
(10) In this section—
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“relevant complaints function” means a function in relation to the exercise of functions by enforcement officers.’”
This amendment and amendment 187 would enable the Secretary of State to make regulations enabling the Director General of the Independent Office for Police Conduct to deal with complaints and misconduct relating to enforcement officers who are exercising police powers.
Amendment 188, in schedule 6, page 143, line 19, leave out “subsection” and insert “subsections (4) and”.
This amendment is consequential on amendment 184.
Amendment 189, in schedule 6, page 144, line 10, at end insert—
“Sentencing Act 2020
92A In section 379(1) of the Sentencing Act 2020 (other behaviour orders etc), after the entry for the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023 insert—
—(Justin Madders.)
This amendment makes a consequential amendment to the Sentencing Act 2020 to include labour market enforcement orders in the list of orders that may be made on conviction by a criminal court but are not dealt with in that Act.
Justin Madders
I beg to move amendment 190, in schedule 6, page 144, line 10, at end insert—
“Police, Crime, Sentencing and Courts Act 2022
92B In Part 2 of Schedule 3 to the Police, Crime, Sentencing and Courts Act 2022 (extraction of information from electronic devices: authorised persons in relation to all purposes within section 37), after the entry relating to section 15 of the Gangmasters (Licensing) Act 2004 insert—
‘A person who is an enforcement officer for the purposes of Part 5 of the Employment Rights Act 2025.’”
This amendment would authorise enforcement officers under Part 5 of the Bill to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.
Government amendment 190 is another technical amendment to ensure continuity and effectiveness of the enforcement power under section 37 of the Police, Crime, Sentencing and Courts Act 2022. The Bill provides the building blocks for us to set up the fair work agency, which involves transferring enforcement functions that are currently split between multiple bodies, including the Gangmasters and Labour Abuse Authority. The GLAA office currently exercises its power across the UK under section 37 of the 2022 Act. Without this amendment, enforcement officers in England, Wales and Scotland would not have access to critical investigatory powers under that Act. Only officers enforcing the Gangmasters (Licensing) Act 2004 in Northern Ireland would retain those powers, creating an unjustifiable enforcement gap.
Investigations increasingly rely on access to electronic data, such as payroll records and communication logs. Excluding fair work agency officers from these powers would severely hinder their ability to obtain critical information, leaving them ill-equipped to tackle non-compliance and labour exploitation effectively.
The amendment ensures that enforcement powers remain consistent across England, Wales, Scotland and Northern Ireland, aligning with the policy aim of the fair work agency to deliver robust and uniform enforcement. Fair work agency officers would exercise the section 37 power in relation to labour market offences. That expands the scope of the power, as currently the power is exercised by GLAA officers only in connection with enforcement of the 2004 Act.
This amendment would mean that the power is used by fair work agency officers to enforce the broader range of legislation under their remit, which means that the power could be exercised in relation to any labour market offence, instead of just offences under the 2004 Act. That will prevent any disparity in enforcement capabilities that could undermine efforts to protect vulnerable workers and uphold compliance.
This amendment corrects a minor technical oversight during the drafting process, ensuring that the legislation accurately reflects operational needs. It aligns with the overarching policy intention to ensure that there is no reduction in enforcement capability as enforcement bodies transfer into the fair work agency, and it directly addresses concerns and strengthens the Bill’s overall effectiveness. In conclusion, this amendment is essential to prevent enforcement gaps, ensure parity across jurisdictions, and equip enforcement officers with the tools that they need to combat exploitation in the modern economy.
Greg Smith
As the Minister outlined in his opening remarks, Government amendment 190 would authorise enforcement officers, under part 5 of the Bill, to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.
As I understand it, the power conferred by section 37 of the 2022 Act may be exercised only for the purposes of preventing, detecting, investigating or prosecuting crime; helping to locate a missing person; or protecting a child or at-risk adult from neglect or physical, mental or emotional harm. How often does the Minister envisage that that power would be needed when enforcing employment law?
It is a very important power in the cases that I have outlined—not least for the critical work of protecting children and at-risk adults from neglect or physical, mental or emotional harm—but, I repeat, how often does the Minister envisage that it will be needed in employment law? What safeguards will be in place to prevent an inappropriate or intrusive use of the power? It seems an odd fit in this Bill.
Those matters are all rightly—I have double underlined that word—covered in other parts of legislation and enforced daily by the police and other agencies. His Majesty’s loyal Opposition salute everyone involved in the prevention of harm and the prosecution of its perpetrators, but I repeat that the power seems an odd fit with this Bill.
Sir Ashley Fox
The amendment would grant enforcement officers, under part 5 of the Bill, the authority to exercise the powers outlined in section 37 of the Police, Crime, Sentencing and Courts Act 2022. Specifically, it would enable those officers to extract information from electronic devices in certain circumstances. Of course, everyone now carries one of those electronic devices.
The amendment is designed to support enforcement officers in carrying out their duties, including the investigation and enforcement of employment laws, particularly in cases that may involve criminal activities, such as exploitation, trafficking or financial misconduct. The ability to access electronic devices and retrieve relevant data will aid in gathering evidence and conducting thorough investigations, especially when digital evidence is critical to uncovering illegal practices.
To clarify the scope of that power, section 37 of the 2022 Act limits the use of the power to specific purposes. The powers can be exercised for the following objectives: preventing crime, which could include investigating cases of worker exploitation, trafficking or other forms of criminal behaviour related to employment law; detecting criminal activity, such as fraudulent schemes or illegal practices by employers; investigating crimes, especially where there is a digital trail or evidence related to labour abuse, fraud or similar issues that could be crucial to the case; prosecuting crime and ensuring that the evidence gathered can be used in legal proceedings to hold perpetrators accountable; locating missing persons, which could be relevant in situations involving forced labour or human trafficking; and protecting vulnerable individuals, such as children or at-risk adults, from harm, including neglect or physical, mental or emotional abuse in the workplace.
Those strict conditions are in place to ensure that the powers are used appropriately and only when there is a legitimate and necessary reason to extract information from electronic devices. While that power can be extremely valuable in investigating serious crimes, it is important to consider how often such powers will be needed when enforcing employment law specifically. The nature of employment law enforcement does not always require the same level of investigation into criminal activities as, for example, police work or national security investigations. Thus, I would appreciate an insight from the Minister regarding the frequency with which the power is likely to be used in the enforcement of employment laws. Is the power expected to be a routine tool, or will it be reserved for exceptional circumstances where there is significant evidence suggesting the need for such an intrusive measure?
Additionally, it is crucial to ensure that safeguards are in place to prevent any inappropriate or intrusive use of the power. Given the sensitivity of extracting data from electronic devices, there is a need for strict guidelines and oversight to ensure that the power is not abused. How will the Government ensure that the power is used proportionately and responsibly? What measures will be put in place to prevent overreach and protect the privacy of individuals who are not involved in criminal activity? For example, will there be a requirement for judicial authorisation before enforcement officers can access private data? Will there be any independent oversight to review the use of these powers and prevent misuse?
I would be grateful if the Minister outlined the safeguards and controls that will be implemented to ensure that the power is not used excessively or for purposes outside its intended scope. Furthermore, what will the procedures be for ensuring accountability and transparency in the use of this power?
Justin Madders
The shadow Minister and the hon. Member for Bridgwater asked me the “how long is a piece of string?” question—that is, how often the powers will be used. The best thing I can do is to come back to both of them with how often they have been used in recent times because, of course, there is an existing power with the Gangmasters and Labour Abuse Authority.
I was asked various questions about the use of powers, oversight and so on. Clauses 78 and 79 set out the powers that officers have. As we have discussed, we expect that these things will be the culmination of an ongoing dialogue between a particular business and the fair work agency. When there is non-compliance, these powers can be used as a last resort. Clause 83 sets out some of the oversight provisions.
Nick Timothy
Government amendment 190 is about the powers in section 37 of the Police, Crime, Sentencing and Courts Act 2022, which relate to the voluntary provision of a device for an enforcement officer to access. If there is not agreement, I am not sure what arises. The Minister just said that the proposal is about dealing with a situation whereby a negotiation between the fair work agency and the company has not led to a resolution. What happens if there is not agreement?
Justin Madders
As I said, if there is not agreement, the provisions in clauses 78, 79 and 83, which we debated last week, will come into play.
On the existing framework, the powers that we have set out are already in use. The Bill will make them available to all enforcement officers. They will be used only by people who have sufficient training and oversight within the organisation.
I was asked whether the code of practice will be updated. We are engaging with the Home Office on that. That is something that needs to be considered, given that the agency is being formed.
The hon. Member for West Suffolk was right to ask about proportionality. We do not see that there will be any change in how the system works on an operational basis as a result of these amendments. They really are about transposing the existing powers and safeguards into the Bill.
Amendment 190 agreed to.
Question proposed, That the schedule, as amended, be the Sixth schedule to the Bill.
Justin Madders
Part 5 of the Bill lays the groundwork for the creation of the fair work agency. It involves abolishing the Gangmasters and Labour Abuse Authority and the Director of Labour Market Enforcement, and transferring their functions to the Secretary of State.
Schedule 6 sets out consequential amendments that we are making to various Acts of Parliament as a result of these reforms. Part 1 of the schedule covers the consequential amendments to existing powers under relevant pieces of labour market legislation. Part 2 sets out the changes required to other Acts. The schedule is necessary to deliver a functioning and cohesive statute book and to deliver the policy intention of upgrading enforcement of workers’ rights.
Steve Darling
I echo the shadow Minister, who sits to my right—in more ways than one. Definitely, further clarity from the Minister would be welcome.
Justin Madders
I understand what the Opposition Members are saying. They seek reassurance that there will be no disruption to the good work that goes on already, and clearly, that is our intent. We will keep a close eye on how this works when the Bill has passed and received Royal Assent. A lot of the operational questions that have been asked will emerge during that time. Whether the hon. Member for Mid Buckinghamshire remains my shadow—either of us could of course be moved on at any point—it would be perfectly reasonable for us to keep the Opposition updated on operational decisions and how the fair work agency emerges. There will of course be further parliamentary opportunities for scrutiny as more detail emerges.
Question put and agreed to.
Schedule 6, as amended, accordingly agreed to.
Schedule 7
Transitional and saving provision relating to Part 5
Justin Madders
I beg to move amendment 191, in schedule 7, page 146, line 19, after “by” insert “or in relation to”.
This amendment and amendment 192 ensure that things done in relation to existing enforcement officers, for example, before the coming into force of Part 5 of the Bill continue to have effect as if done in relation to the Secretary of State.
The Chair
With this it will be convenient to discuss Government amendments 192, 197 and 200.
Justin Madders
The schedule sets out transitional and savings provisions. It ensures a smooth changeover from the existing enforcement framework to the new provisions introduced by the Bill. That is of course important because it makes our legislative framework cohesive and functional.
Government amendment 191 is a necessary technical provision to ensure that the transition of enforcement responsibilities under part 5 of the Bill is well ordered. By clarifying that actions taken not just “by” but “in relation” to enforcement officers will continue to have effect as if done in relation to the Secretary of State, we are safeguarding a continuity in enforcement processes and ensuring no disruption to ongoing cases or decisions, which I am sure Members will be relieved to hear.
Government amendment 192 makes a consequential change to align with Government amendment 191, and Government amendments 197 and 200 make minor drafting changes in schedule 7. They do not affect the substance of the Bill, but they improve its clarity and accuracy. I hope that hon. Members will support what I imagine are uncontroversial amendments and support achieving the aim of ensuring continuity and cohesiveness as we move forward. On that note, I commend the amendments to the Committee.
Greg Smith
Government amendments 191 and 192 ensure that things done “in relation to” existing enforcement officers—for example, before part 5 of the Bill comes into force—continue to have effect as if done “in relation to” the Secretary of State. I fully accept that Government amendments 197 and 200 make minor drafting changes, which look as though they ensure legal continuity—that would be the case, based on the Minister’s opening remarks—and therefore seem sensible, given the policy direction.
I can conclude my comments on the amendments only by asking the usual question, which I have asked many times in Committee and fear I will ask a few more times during the debate over the remainder of today, Thursday and next Tuesday: should the amendments have been included in the Bill on its introduction? This is yet another example of why it is foolish to rush anything, particularly getting a Bill out in 100 days and its consideration in Committee.
Sir Ashley Fox
Government amendments 191 and 192 are designed to ensure legal continuity for actions and decisions made regarding existing enforcement officers prior to the implementation of part 5 of the Bill. They stipulate that any actions or procedures carried out “in relation to” enforcement officers before the new provisions come into force, such as appointments, disciplinary actions or administrative functions, will continue to have the same legal effect as if they had been made “in relation to” the Secretary of State. That is important, because it prevents any disruption or confusion in the legal standing of prior actions, ensuring that they are not rendered ineffective by the changes introduced by the Bill. Essentially, the amendments provide a mechanism to ensure that the transition to the new legal framework does not invalidate or interfere with prior administrative or operational activities.
The rationale behind the amendments is straightforward: it is legal continuity. As enforcement officers are brought under a new regulatory framework, it is crucial that past actions related to their roles, such as those conducted before the Bill takes effect, are preserved and do not need to be revisited or re-executed under the new provisions. That ensures that there is no disruption in the functioning of enforcement operations and that any ongoing matters involving enforcement officers continue seamlessly under the authority of the Secretary of State. The amendments clarify that past decisions and procedures will be treated as if they were made under the authority of the new system, which will help to avoid any potential legal challenges or confusion.
Amendments 197 and 200 involve relatively minor drafting changes. Although the specifics of those changes may not substantially alter the substance of the Bill, they are important for clarity, consistency and precision in the text. These types of amendments typically address technical issues, such as language inconsistencies, ambiguities or minor adjustments to improve the readability and legal accuracy of the provisions. Although they do not represent major shifts in policy, such amendments are crucial in ensuring that the Bill’s provisions are clear, unambiguous and legally sound. Even small drafting changes play an important role in improving the overall functionality and effectiveness of the legislation.
Amendments 197 and 200 help to fine-tune the Bill’s language, ensuring that there are no interpretive uncertainties that could arise during its application. By addressing potential issues in the drafting, the amendments help to streamline the implementation process and reduce the risk of legal challenges or confusion in future interpretations of the law.
Taken together, the amendments—particularly amendments 191 and 192—help to ensure that there is no legal disruption when the provisions in part 5 of the Bill come into effect. That is an essential part of the legislative process, as it guarantees that previous actions remain valid and that transition to a new regulatory framework is smooth. In addition, the minor drafting changes provided by amendments 197 and 200 contribute to legal clarity, ensuring that the Bill’s language is precise and consistent, which will help to avoid any future complications in the application of the law.
Although these changes are reasonable and sensible, in the light of the Bill’s policy objectives, it is worth noting that they should ideally have been included at the time of the Bill’s introduction. The legal continuity ensured by amendments 191 and 192, as well as the technical refinements in amendments 197 and 200, could have been addressed earlier in the drafting process, to ensure that the Bill was as comprehensive and clear as possible from the outset. None the less, these changes at this stage still serve to enhance the legal robustness and practical application of the Bill, which will ultimately contribute to more effective enforcement and smoother implementation.
Justin Madders
I think both Opposition Members who spoke were supportive of the amendments, although they raised legitimate questions about why they were necessary. As the shadow Minister pointed out, we had an ambitious timetable—a manifesto commitment—to issue the Bill within 100 days. Even when Bills are many years in gestation, there are often amendments in Committee to clarify issues, and to ensure that the Bill does what it says on the tin and is legally coherent. These amendments are an example of that process. I am sure Members appreciate how important it is that the amendments are passed, so that we can ensure that everything carries on and is as effective as possible.
Amendment 191 agreed to.
Amendment made: 192, in schedule 7, page 146, line 24, after “by” insert “or in relation to”.—(Justin Madders.)
See the explanatory statement for amendment 191.
Justin Madders
I beg to move amendment 193, schedule 7, page 147, line 2, at end insert—
“( ) an officer acting for the purposes of Part 2A of the Employment Tribunals Act 1996;”
The effect of this amendment is that the transitional provision in paragraph 6 of Schedule 7 to the Bill would apply in relation to officers acting for the purposes of Part 2A of the Employment Tribunals Act 1996 (which relates to the enforcement of employment tribunal awards). The functions of such officers are being transferred to the Secretary of State by the Bill.
Justin Madders
Government amendment 193 makes transitional provision in relation to the transfer of functions of officers acting for the purposes of part 2A of the Employment Tribunals Act 1996 to the Secretary of State. That transitional provision will ensure that anything done by those officers acting for the purposes of part 2A of that Act, relating to enforcement of financial awards by employment tribunals, will continue to have effect. As such, the amendment allows for the continuity of enforcing employment rights once the Bill has passed.
Amendment 194 facilitates a minor drafting change as a consequence of Government amendment 195. Amendment 195 ensures that officers of the Gangmasters and Labour Abuse Authority, acting under any enactment other than the Gangmasters (Licensing) Act 2004, are within the scope of schedule 7. That ensures that things done by them before commencement of the Bill continue to have effect after commencement. I am sure hon. Members will appreciate that the effect of the amendments is solely to ensure that the legislation is clear and unambiguous and that any activity will continue on that basis.
Sir Ashley Fox
Amendment 193 addresses the need for a seamless transition in the enforcement of employment tribunal awards. It specifically ensures that the transitional provision in paragraph 6 of schedule 7 to the Bill will apply to officers acting under part 2A of the 1996 Act, which governs the enforcement of employment tribunal awards. This is an important step as the enforcement of the tribunal awards will now fall under the responsibility of the Secretary of State, as stipulated in the Bill. By making the provision, the amendment ensures that the functions previously handled by officers enforcing tribunal awards will continue smoothly during the transition, even as the legal authority for enforcement shifts.
The inclusion of the amendment is crucial for legal continuity. It guarantees that actions taken by officers acting under the 1996 Act will still have legal effect even as their functions are transferred to the Secretary of State and the fair work agency. The amendment essentially ensures that any ongoing enforcement activities related to employment tribunal awards remain valid, preventing legal confusion or disruption during the reorganisation. It also ensures that the change in responsibility from individual enforcement officers to the Secretary of State does not cause any delay or interruption in enforcement actions. This will help to maintain confidence in the process, both for workers seeking to enforce their tribunal awards and businesses affected by these decisions.
Justin Madders
Opposition Members raise the same point as before about why we have had to introduce this amendment now. I refer the shadow Minister to my previous comments on that matter; no doubt I may do so again.
Both Opposition Members have rightly raised the concern about ensuring continuity when the body is instigated. Clearly, what we would expect and hope is that the day-to-day operations of enforcement officers on the ground are not impinged or affected by the creation of the agency. The Bill and a number of amendments are about ensuring that their functions continue smoothly.
Amendment 193 agreed to.
Amendments made: 194, in schedule 7, page 147, leave out line 6.
See the explanatory statement for amendment 195.
Amendment 195, in schedule 7, page 147, line 11, at end insert—
“( ) an officer of the Gangmasters and Labour Abuse Authority acting for the purposes of any other enactment.”—(Justin Madders.)
This amendment and amendment 194 make a minor drafting change.
Justin Madders
I beg to move amendment 196, in schedule 7, page 147, line 11, at end insert—
“(4A) Sub-paragraphs (1) to (3) are subject to the remaining provisions of this Schedule (and see also section 114, which confers power to make transitional or saving provision).”
This amendment makes it clear that the general provision in paragraph 6 of Schedule 7 is subject to any more specific provision in that Schedule.
Justin Madders
Amendment 196 will ensure that there is a smooth transition in the frameworks. Amendment 198 is a transitional provision ensuring that anything done by a labour abuse prevention officer before the abolition of the GLAA continues to have effect as if done under the fair work agency. Amendment 199 is another transitional provision for warrants that have been granted under the Gangmasters (Licensing) Act 2004, but not yet executed. It allows those warrants to have the same effect as before. It is a continuation of the amendments we have debated this morning, ensuring that enforcement officers have continuity when delivering their functions.
Greg Smith
Amendment 196 makes it clear that the general provision in paragraph 6 of schedule 7 is subject to any more specific provision in that schedule. Amendment 198 makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under section 114B of the Police and Criminal Evidence Act 1984.
Amendment 199 makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act, which is being re-enacted for England, Wales and Scotland, with some changes, through clause 83. In particular, proposed new paragraph 7C of schedule 7 of the Bill provides that, where a warrant issued under section 17 of the 2004 Act has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill that would not have applied if the warrant had been executed under section 17 —in particular the additional requirements in part 3 of new schedule 1—are disapplied.
On the face of it, these are sensible amendments to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. A number of Government amendments of this nature have been considered by the Committee. This set of amendments therefore leaves me slightly nervous, not about the intention, but about whether anything else has been missed. I would appreciate the Minister’s reassurance on that point.
Sir Ashley Fox
Amendment 196 seeks to clarify the applicability of general and specific provisions and the relationship between the general provision outlined in paragraph 6 of schedule 7 and any more specific provision within that schedule. The amendment ensures that, in the event of a conflict or overlap between general and specific provisions, the more detailed or specific provisions will take precedence. This is an important measure for maintaining legal clarity and consistency in the application of the Bill. By prioritising specific provisions where applicable, the amendment prevents any unintended gaps or inconsistencies in the legal framework, ensuring that enforcement activities and related actions are governed by the most precise and relevant rules.
Amendment 198 introduces a transitional provision designed to ensure that actions taken by or in relation to labour abuse prevention officers prior to the abolition of the Gangmasters and Labour Abuse Authority will continue to be recognised as valid. Specifically, it ensures that any activities, decisions or functions performed by those officers before the GLAA’s dissolution will have the same legal effect as if they had been carried out by or in relation to enforcement officers who have been granted equivalent powers under section 114B of the Police and Criminal Evidence Act 1984. This is critical because it provides a seamless transition as enforcement responsibilities are transferred, making certain that actions taken by the GLAA’s officers before the abolition of the agency are not rendered void or ineffective.
The amendment is vital for legal continuity. It guarantees that there will be no disruption in enforcement activities during the transition period. Officers who previously worked under the authority of the GLAA, particularly those involved in tackling labour abuse, will carry out their roles without interruption, as their actions will be treated as if undertaken by enforcement officers with the equivalent legal powers. The measure strengthens the overall framework for worker protection and labour abuse prevention, ensuring that the enforcement of relevant laws continues smoothly as the responsibility shifts to new authorities.
Amendment 199 focuses on the transitional provision for warrants issued under section 17 of the 2004 Act, which is being re-enacted in a revised form as clause 83 of the Bill. The amendment introduces new paragraph 7C, which addresses the scenario where a warrant issued under section 17 has not yet been executed at the time of the change. In such cases, the warrant will be treated as if it were issued under the new provisions in clause 83, but with a critical distinction. Any changes introduced by the Bill that would not have applied under section 17, such as the additional requirements in part three of new schedule 1, will be disapplied.
The purpose of the amendment is to ensure that any ongoing enforcement actions involving warrants issued under the old regime are not hindered or invalidated by the transition to the new framework. By allowing the warrants to be treated as though they were issued under the new clause, the amendment facilitates a smoother enforcement process and reduces the risk of legal challenges or procedural delays. This is an important safeguard for the enforcement of labour laws and ensures that the power to execute warrants continues without disruption, regardless of the legislative changes.
Justin Madders
I sense that the Opposition Members are supportive of the amendments. The shadow Minister challenged me on whether there will be any more minor or consequential amendments. I cannot give him an absolute guarantee on that; it is always an iterative process when Bills are issued; we take notice of what stakeholders say in their feedback, as well as other Government Departments. Of course, it is important that we get these things done before the Bill becomes law, by which time it is too late. I hope the Committee is reassured that there is an ongoing process to ensure that there is certainty and coherence in the legislation as we prepare for Report.
Amendment 196 agreed to.
Amendments made: 197, in schedule 7, page 147, line 25, after “repeal” insert “of that provision”.
This amendment makes a minor drafting change.
Amendment 198, in schedule 7, page 147, line 27, at end insert—
“Labour abuse prevention officers
7A (1) Anything which—
(a) was done by or in relation to a labour abuse prevention officer in, or in connection with, the exercise of a function conferred on the officer by virtue of section 114B of the Police and Criminal Evidence Act 1984 (“PACE”), and
(b) is in effect immediately before the day on which paragraph 67 of Schedule 6 comes into force (“the relevant day”),
has effect, on and after that day, as if done by or in relation to a relevant enforcement officer.
(2) Anything which—
(a) relates to a function conferred on a labour abuse prevention officer by virtue of section 114B of PACE, and
(b) immediately before the relevant day, is in the process of being done by or in relation to such an officer,
may be continued, on and after that day, by or in relation to a relevant enforcement officer.
(3) In this paragraph—
“labour abuse prevention officer” has the meaning given by section 114B of PACE (as that section had effect immediately before the relevant day);
“relevant enforcement officer” , in relation to a function conferred by virtue of section 114B of PACE, means an enforcement officer on whom that function is conferred by virtue of that section (as it has effect on and after the relevant day).”
This amendment makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under the Police and Criminal Evidence Act 1984 by virtue of section 114B of that Act.
Amendment 199, in schedule 7, page 147, line 27, at end insert—
“Warrants
7B (1) This paragraph applies to an application for a warrant under section 17 of the Gangmasters (Licensing) Act 2004 (“the 2004 Act”) which—
(a) is made in England and Wales or Scotland before the day on which paragraph 42 of Schedule 6 comes into force, and
(b) is not determined or withdrawn before that day.
(2) The application is to be treated, on and after that day, as an application made by an enforcement officer for a warrant under section 83 of this Act.
7C (1) This paragraph applies to a warrant under section 17 of the 2004 Act which—
(a) is issued under that section before the day on which paragraph 42 of Schedule 6 comes into force, and
(b) is not executed before that day.
(2) The warrant is to be treated for the purposes of section 83 of this Act as if it had been issued under that section.
(3) That section applies in relation to the warrant as if—
(a) in subsection (4)(a) , after “bring” there were inserted “any persons or”, and
(b) after subsection (4) there were inserted—
“(4A)On leaving any premises which an enforcement officer is authorised to enter by a warrant under this section, the officer must, if the premises are unoccupied or the occupier is temporarily absent, leave the premises as effectively secured against trespassers as the officer found them.”
(4) Section (Warrants) and Schedule (Warrants under Part 5: further provision) do not apply in relation to the warrant.”
This amendment makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act 2004, which is being re-enacted for England and Wales and Scotland (with some changes) as clause 83. In particular, new paragraph 7C provides that, where a warrant issued under section 17 has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill which would not have applied if the warrant had been executed under section 17 (in particular, the additional requirements in Part 3 of NS1) are disapplied.
Amendment 200, in schedule 7, page 147, line 40, leave out “that person” and insert “the enforcing authority”.—(Justin Madders.)
This amendment makes a minor drafting change.
Justin Madders
I beg to move amendment 201, in schedule 7, page 148, line 16, at end insert—
“8A “(1) This paragraph applies to information which—
(a) was obtained in the course of—
(i) exercising the powers conferred by section 9 of the Employment Agencies Act 1973 (“the 1973 Act”), or
(ii) exercising powers by virtue of section 26(1) of the Immigration Act 2016, and
(b) immediately before the coming into force of paragraph 2 of Schedule 6, is held by an officer acting for the purposes of the 1973 Act.
(2) On the coming into force of that paragraph, information to which this paragraph applies vests in the Secretary of State.”
See the explanatory statement for Amendment 202.
Justin Madders
Existing enforcement bodies will have obtained information prior to the creation of the fair work agency. This information may be needed by the Secretary of State once part 5 of the Bill comes into force. Schedule 7 therefore provides for transitional and saving provisions to enable that. Amendments 201 and 202 provide that information obtained by officers acting under existing legislation prior to the coming into force of part 5 of the Bill, and which is held by the Secretary of State, can be used or disclosed in accordance with clause 98.
Greg Smith
Amendments 201 and 202 provide that information that was obtained before the coming into force of part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98. These are sensible amendments on the face of it, to make sure nothing falls through the cracks as the enforcement functions transfer to the fair work agency—very similar to the previous set of amendments that we have just considered. It is part of a continuing theme of amendments of this nature that we as a Committee are being asked to consider.
I heard the Minister’s response to the previous debate about this being an iterative process and about the need to listen and best understand concerns or practical points raised by those being asked to prepare for and ultimately do this work. It remains a legitimate point of nervousness that there will be more such cracks that need repairing as part of this Bill. Accepting the Minister’s good faith in his explanation on the previous set of amendments, I put on record that we remain a little nervous that more cracks will need that legislative repair as the Bill goes forward.
We urge the Government to get on at pace with the conversations necessary to ensure that they have best understood where any further edits may be required—preferably before Report stage in the House of Commons, but if it does have to bleed into the time when the Bill goes to the other place, so be it. However, I think it would a far more satisfactory position if we were able to consider at our end of the building any further amendments that may be required before we ask their lordships to consider the Bill.
Sir Ashley Fox
My hon. Friend makes a valuable point. The reason that the Bill is in such poor condition is that the Labour party was under a political obligation to its trade union friends to bring it forward within 100 days. Had it waited a month or two, we would not have needed such detailed scrutiny and so many Government amendments. Occasionally one hears a tut or a groan from Government Members as we try to scrutinise the Bill, but really it is entirely the Government’s fault for bringing forward such a poorly drafted piece of legislation.
As I was saying, without amendments 201 and 202, confusion or legal obstacles could prevent the use of such information, creating gaps in the enforcement process. By making it clear that the Secretary of State has the authority to use and disclose such information under clause 98, the amendments ensure that the enforcement process remains uninterrupted, effective and legally coherent.
Overall, the amendments are sensible and necessary to guarantee that nothing falls through the cracks as the responsibilities for enforcing labour laws transition from existing structures to the fair work agency. As the Bill centralises enforcement functions, it is essential that any information collected under the old system remains accessible and usable by the new agency. That is particularly important given the potential impact on ongoing investigations, compliance checks and prosecutions. By ensuring that previously collected information can still be used effectively, the amendments will help to prevent disruptions or delays in enforcement, safeguarding both workers and businesses.
It is worth noting that the transition to a new enforcement structure can often be fraught with challenges. The Bill will alter not only the bodies responsible for enforcement, but the way in which information and data are managed. The amendments will help address the practical aspects of the transition, ensuring that the fair work agency has the resources and information it needs to continue performing its duties effectively. In doing so, they will create a smoother handover of powers and responsibilities from the previous enforcement regime to the new framework.
Throughout the Committee’s proceedings, we have debated many Government amendments of a similar nature. Amendments 201 and 202 are necessary to fine-tune the Bill and ensure that all aspects of the transition are fully addressed, but the sheer volume of amendments at this stage leaves me with some concern, as it suggests that the Bill may not have fully accounted for all the transitional issues at the outset, and there may still be elements that have not been addressed. Given the complexity of centralising such a significant portion of the enforcement process, it is natural to be cautious about whether any areas may have been overlooked. While these amendments are clearly intended to provide clarity and ensure continuity, the volume of amendments suggests that there may still be unanswered questions or unforeseen gaps in the transition process, which leaves me somewhat nervous that issues may have been missed in the initial drafting of the Bill. We have certainly seen that happen often enough thus far. It is crucial that all challenges or concerns relating to the transfer of enforcement powers are adequately addressed before the Bill passes. As such, I believe it is important to consider whether there are any outstanding issues that might affect the long-term success of the transition.
Given the number of amendments and the complexity of the transition, I would appreciate the Minister’s reassurance that there is a comprehensive understanding of the full scope of the changes and that no essential elements have been left unaddressed. Are the Government confident that all necessary steps have been taken to ensure a smooth and effective transition? In particular, can the Minister assure us that the fair work agency will be fully equipped to handle its new responsibilities, including that it will be able to utilise critical information from the prior enforcement system without any disruptions? I would also like to hear about the monitoring processes that will be in place to oversee the transition period and ensure that any unforeseen issues are quickly addressed, which is vital for maintaining business confidence and worker protections throughout the period of change.
While the amendments are crucial for ensuring that enforcement activities continue smoothly during the transition, they should ideally have been made earlier in the process to avoid the need for these later clarifications. Having a more comprehensive and cohesive framework in place at the outset would have reduced uncertainty and provided greater assurance to all parties involved. Never-theless, the amendments go a long way to addressing the issues that could arise during the handover of enforcement responsibilities, and ensuring that the transition to the fair work agency will be as smooth and effective as possible.
Justin Madders
The shadow Minister asked whether it is our intention to have the Bill shipshape before we send it to the other place. That is absolutely our intention, and the amendments that have been debated today are part of that.
The criticism from the hon. Member for Bridgwater about the number of Government amendments has been noted. It was important that we kept to our manifesto commitment to issue the Bill within 100 days, but I have to say that when I was an Opposition Member I do not think I ever sat on a Bill Committee where the Government did not introduce their own amendments. If he is able to come up with some examples, I would be delighted to hear from him. I am afraid he will probably have to sit on a few more Bill Committees, and he will see that that is perfectly normal in the way these things work. After a Bill is published, it has more eyes on it; other stakeholders, Government Departments and agencies get to see it, and they offer views and feedback. It is right that we take account of those views and make what are often technical and minor amendments to make sure that the Bill has the intended legal effect.
The hon. Member asked whether any other essential elements have been omitted. The amendments we are debating are about ensuring that the fair work agency is functioning and effective from Royal Assent. I cannot give him a guarantee that there will not be other things that come out, but we have been doing a considerable amount of work, as can be seen by the number of amendments, to make sure that the Bill will be fully operational and that there will be no effect on the day-to-day running of the work of the enforcement officers and the creation of the fair work agency.
Amendment 201 agreed to.
Amendment made: 202, in schedule 7, page 148, line 19, leave out from “to” to end of line 20 and insert “—
(a) any information which the Secretary of State obtains by virtue of paragraph 8A;
(b) any information which, immediately before the coming into force of paragraph 20 of Schedule 6, the Secretary of State holds by virtue of section 15(2) of the National Minimum Wage Act 1998;
(c) any information which, immediately before the coming into force of paragraph 21 of that Schedule, the Secretary of State holds by virtue of section 16(2) of that Act;
(d) any information which the Secretary of State obtains by virtue of a property transfer scheme under paragraph 2 of this Schedule.”—(Justin Madders.)
This amendment and Amendment 201 would provide that information which was obtained before the coming into force of Part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98.
Justin Madders
I beg to move amendment 203, in schedule 7, page 148, line 20, at end insert—
“9A The repeal of section 9 of the Employment Agencies Act 1973 (inspection) by paragraph 3 of Schedule 6 does not prevent the use in evidence against a person, in criminal proceedings taking place on or after the day on which that repeal comes into force, of a statement made before that day by the person in compliance with a requirement under that section (subject to subsection (2B) of that section).”
Section 9(3) of the Employment Agencies Act 1973 provides that a statement made by a person in compliance with a requirement made under that section to provide information may be used in evidence in criminal proceedings against the person. This amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.
Schedule 7 sets out transitional and savings provisions ensuring a smooth changeover from the existing enforcement framework to the new provisions. That is important, as Members have debated at length already. Amendment 203 addresses the repeal of section 9 of the Employment Agencies Act 1973 and the evidentiary treatment of statements obtained under that provision. The amendment will ensure that such statements can continue to be used in criminal proceedings post repeal, subject to existing protections against self-incrimination under section 9(2B). This is a targeted, proportionate and necessary amendment, which safeguards the integrity of enforcement proceedings during a period of legislative transition. On that basis, I commend the amendment to the Committee.
Greg Smith
As the Minister outlined, Government amendment 203 relates to section 9 of the Employment Agencies Act 1973, which provides that a statement made by a person in compliance with a requirement under that section to provide information may be used in evidence in criminal proceedings against the person. The amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.
Similar to the previous two groups of amendments we have considered, this is a sensible amendment to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. It is all part of a continuing theme, and the points that I made in the previous debate apply as much to amendment 203 as they did to the previous amendments.
I understand what the Minister said about every Bill being subject, during its passage, to a number of technical amendments by Governments of all different political compositions. I gently it put back to him that this Bill seems to have had an extremely high number of technical Government amendments, and that all tracks back to the unnecessary speed with which it was presented to Parliament.
Government amendment 204 contains transitional provision to ensure that once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015—
Sir Ashley Fox
Government amendment 203 seeks to address an important transitional issue arising from the repeal of section 9 of the Employment Agencies Act 1973 by the Bill. Section 9 currently stipulates that a statement made by an individual in compliance with a requirement to provide information under that section may be used as evidence in criminal proceedings against them. The amendment ensures that any statements made under the provisions of section 9 prior to its repeal can still be used in criminal proceedings that occur after the repeal takes effect.
The amendment is a necessary adjustment to maintain the integrity of the legal process. It will ensure that evidence obtained while section 9 was in effect remains valid and admissible in criminal cases, even after the section’s formal removal from the statute. Without the amendment, there could be ambiguity and potential legal challenges regarding the admissibility of evidence, which could undermine ongoing enforcement efforts and hinder the administration of justice. By making this provision, the Government ensure that no gaps are created in the legal framework, preserving continuity and clarity in the application of the law.
As we transition enforcement functions to the fair work agency, such amendments are vital to ensure the process is as seamless as possible. The purpose of amendment 203, and others like it, is to safeguard that critical aspects of the previous legal framework remain intact, even as the functions are reassigned or modified under the Bill. The changeover to the fair work agency is a significant shift, and these amendments are an important step in maintaining enforcement consistency. Given the complexity of transferring powers and responsibilities between agencies, the amendments ensure that no legal actions or evidence will fall through the cracks during the transition. They will ensure that enforcement remains robust, and that any evidence gathered or actions taken before the changeover still hold legal weight under the new system.
Although the adjustments are sensible and necessary, the number of Government amendments made in Committee leaves me with some concern about whether every possible issue has been addressed. The amendments we have seen so far have been well intentioned and critical for ensuring legal continuity, but I would appreciate the Minister’s reassurance that nothing has been overlooked in this important process.
As we know, the task of realigning enforcement powers can be complex, and with numerous provisions being amended or repealed, the risk of something slipping through the cracks is a valid concern. Opposition Members are asking for clarity that even with these detailed and helpful amendments, the transition to the fair work agency will not inadvertently create gaps or unintended consequences. I urge the Minister to provide additional assurances that all potential legal or procedural pitfalls have been anticipated, and that the Government have taken every necessary step to guarantee that the work of enforcement officers and the legal process will continue without interruption. Although the amendments are certainly a step in the right direction, we must remain vigilant to ensure that the full scope of the transition is properly managed and that the system continues to protect the rights of workers effectively.
Justin Madders
I believe I have already addressed the concerns raised by the hon. Member for Bridgwater on several occasions this morning, although I take his points.
Amendment 203 agreed to.
Justin Madders
I beg to move amendment 204, in schedule 7, page 148, line 28, at end insert—
“10A (1) Where—
(a) a slavery and trafficking prevention order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 19 of the Modern Slavery Act 2015 (“the 2015 Act”), and
(b) immediately before the day on which paragraph 53 of Schedule 6 comes into force, that requirement has not been complied with,
that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.
(2) On and after the coming into force of paragraph 54 of Schedule 6, the reference in section 20(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking prevention order made on an application under section 15 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.
(3) In this paragraph “slavery and trafficking prevention order” has the same meaning as in the 2015 Act.
10B (1) Where—
(a) a slavery and trafficking risk order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 26 of the Modern Slavery Act 2015 (“the 2015 Act”), and
(b) immediately before the day on which paragraph 56 of Schedule 6 comes into force, that requirement has not been complied with,
that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.
(2) On and after the coming into force of paragraph 57 of Schedule 6, the reference in section 27(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking risk order made on an application under section 23 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.
(3) In this paragraph “slavery and trafficking risk order” has the same meaning as in the 2015 Act.”
This amendment contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended.
The amendment is essential to ensure the seamless and effective operation of the Modern Slavery Act 2015 during the transition of functions from the Gangmasters and Labour Abuse Authority to the Secretary of State. At its core, it is about continuity and clarity. Slavery and trafficking prevention and risk orders are critical tools in the fight against modern slavery. They impose important requirements on individuals for the purpose of protecting people from being victims of modern slavery, including requirements to notify enforcement authorities, and those obligations must remain enforceable.
Without the amendment, there is a clear risk that existing legal obligations could become unclear, creating loopholes for offenders to exploit. The amendment ensures that notification requirements transfer seamlessly to the Secretary of State, safeguarding our ability to hold individuals accountable and protect victims of exploitation. It also ensures that where an application is made to vary, renew or discharge a slavery and trafficking order, the courts can treat orders originally made by the GLAA as if they had been made by the Secretary of State. That provides legal certainty for courts, enforcement agencies and affected individuals alike.
This is a technical but vital amendment that protects the integrity of the legal framework and ensures continuity.
Greg Smith
Apologies for my premature comments on amendment 204, Mr Mundell; I accidently believed it had been grouped with the previous amendment.
Amendment 204 contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended. I would be grateful for the Minister’s assessment of how the creation of the fair work agency will allow for more effective identification and prevention of modern slavery offences. As we debate the amendment, it is important that we are fully appraised of the detail and the assessment that the Minister, the wider Department for Business and Trade and the Government have made. This is an important matter that all Committee members, and Members of the wider House of Commons, take incredibly seriously, and I urge the Minister to do so.
Live Events Ticketing: Resale and Pricing Practices
Justin Madders Excerpts(2 weeks, 5 days ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The UK has a world-leading music and live events sector, which plays an important role in our national life and supports economic growth across the country. However, the Government are concerned that tickets for many live events have become inaccessible to fans due to highly inflated ticket prices on the resale market. In addition, new practices within the live events sector, such as dynamic pricing, are presenting challenges for fans when buying tickets, particularly around transparency.
We want to put fans first, ensure that they are treated fairly and, in so doing, support an economically successful live events sector.
To support these objectives, the Department for Business and Trade and the Department for Culture, Media and Sport have published a consultation on the resale of live events tickets and a call for evidence on pricing practices in the live events sector, which are available on www.gov.uk.
Consultation on the resale of live events tickets
The Government recognise that a well-functioning ticket resale market can play an important role: helping to redistribute tickets between genuine fans; and allowing those who cannot attend an event to give an opportunity to others to get a ticket, while recouping some or all of their costs. However, it appears that professional ticket touts are systematically buying up tickets on the primary market and then reselling them to fans at often hugely inflated prices, with none of the profits going back to the performer, venue or the live events sector more generally. To address these issues, the Government are seeking views on a range of possible options, including:
Limits on ticket resale, such as via a price cap, making it illegal for tickets to be resold at more than a certain percentage above the original price, and fixed limits on the number of tickets that a seller can resell;
Increasing the accountability of secondary ticketing platforms by placing a duty on them to ensure that information provided by sellers is accurate;
Supporting the enforcement of existing consumer protection laws by updating provisions in the Consumer Rights Act 2015 to make enforcement more efficient and effective, including a licensing regime focused on resale platforms; and
Encouraging industry-led actions to improve the transparency and accessibility of ticket sales, for example by phasing ticket distribution.
Call for evidence on pricing practices in the live events sector
The live events sector has adopted new approaches to selling tickets, including pricing strategies using new technologies. These practices are changing both how the system works and the experiences of fans when they purchase tickets. It is important that fans are treated fairly and openly with timely, transparent and accurate information being presented ahead of sales, particularly when demand is high.
The call for evidence is seeking views to determine if there is a case for future intervention, specifically examining:
How the ticketing market works in the UK, when and how tickets are sold using dynamic pricing, and other technologies used to sell tickets;
If and how consumers have been impaired by a lack of transparency, for example the transparency and timeliness of information provided to inform purchasing decisions, and the extent of hidden fees, tiered pricing or pressure selling; and
Whether the current legal framework provides sufficient protection, including whether gaps exist or if there is potential for new harms arising from emerging trends.
Next steps
The consultation and call for evidence will be open for 12 weeks. We encourage all interested stakeholders, including fans, ticketing platforms and the wider live events sector, to respond.
I am placing a copy of the consultation and the call for evidence in the Libraries of both Houses.
[HCWS359]
Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024
Draft Unique Identifiers (Application of Company Law) Regulations 2024
Justin Madders Excerpts(2 weeks, 5 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I beg to move,
That the Committee has considered the draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.
The Chair
With this it will be convenient to discuss the draft Unique Identifiers (Application of Company Law) Regulations 2024.
Justin Madders
It is a pleasure to see you in the Chair, Mr Stringer. The registrar regulations were laid before the House in draft on 22 May 2024, and the unique identifiers regulations were laid before the House in draft on 31 October 2024. They form part of a programme to implement the Economic Crime and Corporate Transparency Act 2023.
The 2023 Act is a landmark piece of legislation that delivers the most significant reforms to Companies House in more than 180 years, in order to protect the public from fraud and deliver real benefits to the business community. There has already been much progress since the Act was passed, including the introduction of stricter rules and checks to help Companies House to cleanse the register. The two sets of regulations before us will help to implement perhaps the most important changes to the UK’s company registration framework in the Act, requiring identity verification for those setting up, running and controlling companies. The 2023 Act amended the Companies Act 2006 to establish two ways in which an individual can verify their identity: either directly with Companies House or via an authorised corporate service provider, which I will refer to as an ACSP. The providers must be supervised for anti-money laundering purposes and registered with Companies House.
I will set out specifically what the two instruments do. The draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 set out the legal framework that underpins identity verification. The identity verification procedure will involve an individual delivering specific information to the registrar or to an ACSP, which must include their name, date of birth and any further information specified in the registrar’s rules, which are a form of tertiary legislation.
Given the technical and increasingly evolving mechanisms for identity verification, it would be inappropriate to list every single identity document that must be provided to the registrar or an ASCP, or every single step that an individual must take in the regulations. Instead, the registrar is enabled to specify the requirements in a more suitable form and adapt or tweak the detail quickly where necessary. Companies House has produced a draft version of the registrar’s rules—I hope that they are in the Committee Room for Members to see—which I hope will provide some examples of the kind of information that might be required from applicants. When the registrar or ACSP receives all the correct information from an applicant, they will grant the identity verification application if they are satisfied that the information provided is true. That is the broad legal process for identity verification.
In practice, Companies House will use the gov.uk One Login platform to deliver its identity verification service. One Login is a cross-government verification platform that enables users to have a single login and verified identity for multiple government services. An individual will create an account and can verify their identity using a range of evidence, such as a passport or driving licence, or through knowledge-based verification questions based on their credit record or banking information. The process also includes checks to ensure that the individual matches the picture on their photo ID. For most people completing the purely digital route, the process will take a matter of minutes. Individuals can also complete the process in person at a post office.
If an individual decides to verify via an ACSP, the ACSP must follow the legal procedure established in these regulations and in the registrar’s rules. Companies House will issue guidance to ACSPs to explain how the procedure should be applied in practice and what checks they must perform on the information received. That will ensure that both routes achieve the same level of assurance in identity verification. Once an ACSP verifies an applicant’s identity, it will deliver a verification statement to Companies House to confirm that it has followed the correct procedure. The verification statement will be published alongside the applicant’s appointments on the register to maximise transparency. Alongside this verification statement, ACSPs must give the registrar information about the evidence they relied on to verify an individual’s identity. That means that Companies House will not lose access to crucial identity data if someone uses an ACSP and will also be provided with an assurance that the identity checks have been completed correctly.
The regulations add other checks and balances to the ACSP regime. ACSPs will be required to maintain records relating to the identity verification for seven years from the date they determined the identity verification request. The registrar can suspend and de-authorise an ACSP if they do not consider it to be fit and proper to carry out the functions of an ACSP. Finally, the registrar can perform spot checks on ACSPs and ask them to provide information about their identity verification obligations. All those provisions combined ensure that Companies House has the tools at its disposal to ensure that the ACSP regime is as effective and robust as possible.
I now turn briefly to the second set of regulations, the draft Unique Identifiers (Application of Company Law) Regulations 2024. These are technical and apply provisions on unique identifiers contained in the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 to other entities. A key mechanism underpinning the operation of identity verification is the use of a unique identifier or personal code, which we use to identify individuals who have had their identity verified, as well as registered ACSPs.
The first set of regulations we covered will enable allocation of unique identifiers to individuals associated with companies. These regulations give the registrar the power to allocate unique identifiers to ACSPs and individuals associated with other entities, namely limited partnerships, limited liability partnerships, companies authorised to register, unregistered companies, and Scottish qualifying partnerships. Identity verification requirements will eventually apply to other entities registered at Companies House, so it is necessary that we make these regulations relating to unique identifiers to ensure these requirements can operate in practice.
Finally, I want to update the Committee on the timings of identity verification. Companies House published its outline transition plan last October, which confirmed that it aims to start requiring identity verification from autumn of this year. In a few weeks, ACSPs will be able to register and individuals will be able to voluntarily verify their identity with Companies House, giving people lots of time to complete the process before legal requirements actually start.
Justin Madders
I am pleased to hear that the shadow Minister has already started using the acronym ACSP, which is very encouraging—I am sure it will enter the vernacular shortly.
In terms of the cost to businesses of individual identity verification, it will be free to businesses to log in. It is estimated that on average it will cost £10.50 to verify an individual’s identity and £2.10 to confirm verification for each appointment held. It is estimated in the impact assessment that the annual cost to UK businesses will be about £19.5 million in ongoing operational expenses. It should be said that we believe that this measure will be of benefit to legitimate businesses, enabling them to move forward with confidence that they are who they say they are. Of course, the companies register is estimated to be worth up to £3 billion to the UK economy each year, due to the amount of information that is available free to the public.
The hon. Gentleman also asked about the cost to Companies House. He will be aware that incorporation fees have been increased in recent times. Indeed, an economic crime levy has also been apportioned to Companies House, to recognise the fact that there are substantial new demands on it, and there are not substantial numbers of new staff that have been recruited to undertake these activities. However, there is no intention to increase the cost to the Treasury; rather, it is expected that these costs will be generally recovered through Companies House activities.
My understanding is that the second set of regulations would not have attracted an impact assessment due to the estimated cost to individual businesses. I will double-check that point for the hon. Gentleman and write to him if that proves to be incorrect, but I think it is normally the case that there is a £5 million floor on impact assessments, and my understanding is that these regulations did not exceed that; therefore, no impact assessment was required. On that note, I thank hon. Members for their time, and I commend the regulations to the Committee.
Question put and agreed to.
DRAFT UNIQUE IDENTTIFIERS (APPLICATION OF COMPANY LAW) REGULATIONS 2024
Resolved,
That the Committee has considered the draft Unique Identifiers (Application of Company Law) Regulations 2024.—(Justin Madders.)
Employment Rights Bill (Seventeenth sitting)
Justin Madders ExcerptsThursday 9th January 2025
(3 weeks, 2 days ago)
Public Bill CommitteesRead Full debate Employment Rights Bill 2024-26 View all Employment Rights Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 9 January 2025 - (9 Jan 2025)
The Chair
Thank you, Sir Ashley, for giving notice of that point of order. The issue you have raised is obviously on the record. It will be raised with the Scrutiny Unit and there will be a report back to the Committee on the outcome of that inquiry.
Clause 72
Enforcement of labour market legislation by Secretary of State
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I beg to move amendment 84, in clause 72, page 79, line 15, at end insert—
“(4A) Accordingly, in the case of the exercise by an enforcement officer of an enforcement function of the Secretary of State, any reference in an enactment to the Secretary of State in connection with that function is to be read as, or as including, a reference to that officer or any other enforcement officer.”
This amendment ensures that, where an enforcement officer is exercising an enforcement function of the Secretary of State by virtue of clause 72(4), references in legislation to the Secretary of State in connection with that function will include references to enforcement officers, so that the legislation will apply in relation to the enforcement officer as it would apply to the Secretary of State if the Secretary of State were exercising the function.
It is a pleasure to see you in the Chair this morning, Mr Mundell. I start by making the customary reference to my declaration in the Register of Members’ Financial Interests.
Clause 72 is the first in relation to the fair work agency, and it is one of the building blocks of the agency. I will explain the main elements of the clause, as that will help us to understand the amendment. The clause confers an overarching function on the Secretary of State to enforce certain legislation set out in part 1 of schedule 4, which the clause introduces. The clause provides flexibility for the Secretary of State in how to deliver that overarching enforcement function. It enables them to appoint enforcement officers to carry out the function on their behalf, and it provides that enforcement officers will be able to exercise any of the enforcement functions of the Secretary of State and will have the enforcement powers conferred on them as set out in the terms of their appointment by the Secretary of State.
As I said, the Secretary of State has the function of enforcing the legislation set out in part 1 of schedule 4. The legislation contains references to the Secretary of State having functions and powers in connection with the enforcement of the rights set out in that legislation. It is important that those references can be read as references to the enforcement officers the Secretary of State appoints to act on their behalf; otherwise, enforcement officers may not be able to properly exercise the enforcement functions of the Secretary of State. That would make their appointment, and potentially their enforcement activity, less effective.
Government amendment 84 inserts a new subsection after clause 72(4) to ensure that references to the Secretary of State are read as references to enforcement officers where necessary. The practical effect is that the legislation will apply to enforcement officers as it would to the Secretary of State. This is a technical change, but I hope that Members will see that it is necessary.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to see you in the Chair once more, Mr Mundell.
Government amendment 84 looks to us like a drafting correction. We will not rehearse the arguments we have had so many times in the Committee about drafting corrections, but I would be grateful if the Minister could confirm whether the powers in the Bill, which are directly related to the amendment, for enforcement officers to enter and search business premises are any wider in scope than current enforcement powers and, if so, how and why.
Justin Madders
I am grateful to the shadow Minister for not rehearsing the arguments, as we may end up having them every five minutes, given the number of technical amendments we will deal with today. He raises an important question about the enforcement powers and powers of entry. There are a number of clauses that deal with that. My initial understanding is that, generally speaking, we are not seeking to widen the remit of current enforcement powers. I will endeavour to write to him if there are any changes or exceptions to that. It may be something that becomes apparent when we debate the clauses in question.
Amendment 84 agreed to.
Question proposed, That the clause, as amended, stand part of the Bill.
Justin Madders
Clause 72 is important, as it sets out the principles of a major part of the Bill. The UK’s labour market enforcement system is fragmented. The enforcement of core rights such as the minimum wage, domestic agency regulations and the gangmasters licensing scheme is split between three different agencies. That often means that workers do not know where to go when they think they might not have received what they are due. That makes enforcement ineffective. It is not fair for workers or businesses.
Clause 72 is a vital building block in the creation of the fair work agency. It is worth noting from the outset that the FWA will be established as an executive agency of the Department for Business and Trade, which means that it will not have its own distinct identity in legislation. The Bill therefore vests responsibility for enforcement of labour market legislation in the Secretary of State. The Secretary of State intends to discharge those responsibilities through the fair work agency, which will be created in administrative documents.
Clause 72(1) places responsibility for enforcing a set list of labour market legislation on the Secretary of State and introduces part 1 of schedule 4, which sets out the list of relevant labour market legislation that the Secretary of State will be responsible for enforcing. There is a general power in clause 118(3) to make regulations that commence different aspects of the Bill at different points. Exactly when the Secretary of State will take on responsibility for enforcement will depend on the detail of those commencement regulations. However, creating the fair work agency is about more than simply moving things around; the agency will also take on the ability to enforce workers’ right to paid holiday and their entitlement to statutory sick pay.
Clause 72(2) explains that part 5 of the Bill confers powers on the Secretary of State and enforcement officers to carry out the purpose of enforcing the labour market legislation in schedule 4. Clause 72(3) makes it clear that an enforcement officer includes anyone whom the Secretary of State has appointed to carry out enforcement of that legislation on his behalf, and clause 72(5) clarifies that enforcement officers appointed by the Secretary of State have only the powers conferred on them when they are appointed. Practically speaking, that means that whether the Secretary of State or an enforcement officer is carrying out this work, they will have the enforcement and investigatory powers they need to do the job effectively. Those powers are set out in later clauses.
Clause 72(5) is also a particularly important safeguard. As I have already said, the responsibility for enforcing legislation and the powers to carry it out will be vested in the Secretary of State, and the Secretary of State will then confer them on the enforcement officers he appoints. However, the FWA’s remit will also include the serious issue of modern slavery and labour abuse, for which certain specially trained enforcement officers will have extensive police-style powers, as set out in section 114B of the Police and Criminal Evidence Act 1984. Certain officers in the Gangmasters and Labour Abuse Authority are trained to use those powers, which are subject to additional oversight, including by the Independent Office for Police Conduct. The powers should continue to be reserved for tackling the most serious issues handled by the FWA. That is why we have included clause 72(5), through which the Secretary of State will specify what powers enforcement officers will have access to when appointing them. We will ensure that powers are conferred only on officers who are sufficiently qualified to use them and who genuinely need them to do their job.
Sir Ashley Fox
The Minister is talking about granting officials of the state extensive powers currently reserved to police officers. Can he tell us how many additional officials will be granted those additional powers?
Justin Madders
What we are doing is transferring existing powers and responsibilities from the existing agency. There are no new police-style powers being created for these officers; it is simply a transfer over to the fair work agency.
Clause 72 is key to delivering the much-needed upgrade to the enforcement of workers’ rights so that it is more effective and fair for workers and businesses. It brings together enforcement functions currently split between several different enforcement agencies and gives the fair work agency the flexibility to respond to a rapidly changing labour market. I commend the clause to the Committee.
Greg Smith
A lot of the detail is in the clauses that follow this one; as the Minister said, this is very much a building-block clause. Although I totally understand and appreciate the rationale for taking enforcement powers that are currently fragmented across multiple different agencies and consolidating them into one, the devil is always in the detail.
Although it might seem sensible to consolidate the powers that are currently so spread out into one agency, this is very much a centralisation of power. The crux of clause 72 is about directly providing the Secretary of State with the overall function of enforcing labour market legislation. Whenever I see such provisions in any legislation, I cannot help but be reminded of the late, great President Reagan’s famous quote about the nine most terrifying words in the English language:
“I’m from the Government, and I’m here to help.”
As my hon. Friend the Member for Bridgwater suggested in his intervention on the Minister, the serious detail is about the practical workings of the fair work agency as it is set up. What will be the total number of enforcement officers, employees and ancillary staff required—admittedly, some will be brought across from other agencies—to form it? What will be the cost to the taxpayer of putting that together? How many people are we actually talking about? I think that, as opposed to the powers that they will hold, was the crux of my hon. Friend’s intervention.
As I said, we accept the rationale for bringing these powers together under one agency, but whenever such powers are granted to a Secretary of State, no matter what the field, there is always uncertainty and scope for never-ending expansion of the new agency, and of the size of the state, to do what is, in many cases, important enforcement work—I do not doubt that. Given the presumption that the Bill will become an Act of Parliament and that the agency will be set up in the way envisaged in clause 72, it would be good to have clarity about the plan for just how big the agency will be and whether the Secretary of State will put any cap on that from the get-go. How far does the Minister envisage the agency going?
Nick Timothy (West Suffolk) (Con)
I want to add my support in principle for the idea of a single labour market regulator. I have written about that in the past in different ways and can claim a small amount of credit for the commissioning of the Taylor review into the gig economy when I was working in 10 Downing Street. These issues are very important to me. Hopefully that will reassure the Minister and Labour Members of my cross-party credentials when that might be necessary.
We can all think of ways in which different kinds of labour market exploitation—non-payment of the national minimum wage or living wage; breaches of terms and conditions, health and safety or holiday rights; and illegal working, among many other examples—can be difficult to address if the laws are tough but the enforcement is poor. Those on both sides of the Committee can agree on that.
I want to add to the questions that have already been raised. I think the Minister said that the idea is that no additional powers will be granted and that this is just a consolidation. My understanding is that the fair work agency will not be a single monolithic agency; it is more about different strands of work being brought under a single leadership. If that is the case, presumably the different agencies that exist will do so until this legal change comes into effect. Presumably, the powers of the officers in each of those agencies differ in certain ways. Will that remain the case under the one body, or will there be interoperability and transfer of officers within the different sections under the single regulator? Or is the idea that the officers across those different entities will all assume the maximum powers that exist at the moment so that they can operate across all the different responsibilities of the new agency? I think that would still mean a net increase in powers across those people. What work has been done in the Department to give us an idea of the numbers we are talking about? If the Minister could answer that and then write to us with some more detail and statistics, I would be grateful.
Justin Madders
It is pleasing to hear generally broad support for this measure. As my hon. Friend the Member for Birmingham Northfield pointed out, and as the hon. Member for West Suffolk will know better than most, this was previously a Conservative party manifesto commitment, and we are pleased to be able to move it forward.
Some detailed operational questions were asked. At this stage, how the agency will work in practice is still being fleshed out. The current understanding in the impact assessment is that this is about the consolidation of existing resources and having a single point of leadership. Members will recall that, in her evidence to the Committee, Margaret Beels, the Director of Labour Market Enforcement, talked about how her role would be much easier if she were able to combine the powers of different agencies.
The shadow Minister asked whether we will require extra staff. That will be part of discussions with the Treasury. As he will know, there is a spending review on the horizon and Departments have been asked to look at savings. Clearly, we hope that the combining of resources will lead to some efficiencies, but there is certainly a view from a number of stakeholders that enforcement is not at the level it ought to be—
Greg Smith
I fully acknowledge and appreciate the Minister’s point about negotiation with the Treasury, but even if we take it as read that it is right to bring powers into a single enforcement agency, there is always a cost to creating anything new, even if it is a consolidation. Surely, the Department for Business and Trade has a cost for that. There is legislation live, in front of us right now, that seeks to create the agency, so surely he must know the broad cost of setting it up and consolidating those powers.
Justin Madders
Yes, the impact assessment sets out the one-off set-up costs. I am sure the shadow Minister can spend the lunch break looking at the detail. In terms of the current enforcement framework, as I say, there is a view that more needs to be done. Of course, we will be adding holiday pay and social security to that, and there is a power to add further areas. We know that generally, when resources are combined, we can deliver more—the sum is greater than the parts.
The Liberal Democrat spokesperson, the hon. Member for Torbay, asked about the critical friend. This Government are always ready to have critical friends—more on the “friend” side than the “critical” side. We will come shortly to a clause about an advisory board, which will have a broad range of stakeholders able to take that role.
Greg Smith
Does the Minister not agree that for any power held by any Secretary of State in any Department, the critical friend is a very simple concept? It is called Parliament—it is all of us.
Justin Madders
Indeed it is, and the usual parliamentary scrutiny will apply, but I was talking specifically about the role of the fair work agency. There will be that role, and no doubt as more detail emerges there will be more parliamentary opportunities to talk about the role and functions of the agency.
My hon. Friends the Members for Worsley and Eccles and for Birmingham Northfield talked about the broad support for the agency’s establishment, as indeed did the hon. Member for West Suffolk. I have a list of all the supportive witnesses at the oral evidence sessions, and it is a broad and impressive cast. It includes the CBI, the British Chambers of Commerce, the British Retail Consortium, the Chartered Institute of Personnel and Development, the Recruitment and Employment Confederation, the Food and Drink Federation, the Co-op, Margaret Beels, and of course all the trade unions. There is support across the board for this single enforcement body.
Mr Peter Bedford (Mid Leicestershire) (Con)
It is a pleasure to serve under your chairmanship, Mr Mundell. There are a few points about the creation of the agency that I would like the Minister to address. I am broadly supportive of synergies and of the rationalisation of public bodies, particularly to ensure that the taxpayer is getting value for money, but have the Government considered the cost of this new body and whether it will result in savings for the taxpayer? Will they consider locating it outside London so that it is more broadly reflective of the country at large?
Justin Madders
As a regional MP—a north-west Member—I am always looking to see where we can get more Government agencies out into the rest of the country. It is probably too early to say, but those kinds of decisions are being looked at.
At the moment, His Majesty’s Revenue and Customs deals with minimum wage enforcement. Moving such a specific task across to another body will take some time, so there may well be a period during which HMRC continues to undertake that work, albeit that it is within the remit of the fair work agency. Such operational details will be discussed and dealt with in due course.
The hon. Member for West Suffolk made a point about the powers of individual officers. Initially, we envisage that officers will move into, effectively, their existing roles. It will be a matter for operational consideration in due course whether it is beneficial to extend people’s remits. It will not be required of anyone without sufficient training and safeguards in place, but as the agency develops, it may well be considered advantageous to broaden the role of enforcement officers. One of the rationales for the body is that there are often several aspects to an employer’s breach of obligations, so we want the fair work agency to be able to tackle these things as a whole. However, that is an operational matter that will be dealt with in due course. I commend the clause to the Committee.
Question put and agreed to.
Clause 72, as amended, accordingly ordered to stand part of the Bill.
Schedule 4
Legislation subject to enforcement under part 5
Justin Madders
I beg to move amendment 169, in schedule 4, page 127, line 29, leave out paragraph 3 and insert—
“3 Section 151(1) of the Social Security Contributions and Benefits Act 1992 (employer’s liability to pay statutory sick pay).
3A Regulations under section 153(5)(b) of that Act (requirement to provide statement about entitlement).”
This amendment clarifies the specific obligations relating to the payment of statutory sick pay which will be enforceable under Part 5 of the Bill.
Justin Madders
As we have discussed, the current enforcement system for workers’ rights is fragmented. By creating the fair work agency, we intend to bring enforcement into one place. We have been clear that we also want the fair work agency to enforce individual rights to statutory sick pay, because we want to upgrade the enforcement of workers’ rights and stand up for the most vulnerable in our workforce, including those who are unable to work owing to sickness. That is why part 1 of schedule 4 to the Bill, as introduced on 10 October 2024, includes part 11 of the Social Security Contributions and Benefits Act 1992—one of the main pieces of legislation setting out the statutory sick pay regime—in the body of relevant labour market legislation. Government amendment 169 further clarifies the obligations concerning the payment of statutory sick pay under the Act and regulations made under it, which will be enforceable under part 5 of the Bill.
However, there is a wider body of statutory sick pay legislation containing details about the entitlements bestowed on workers and the duties of employers. After further work, we noted that some of those provisions needed to be included under the fair work agency. That led us to amendment 170, which will add the following legislation to part 1 of schedule 4: regulations made under section 5 of the Social Security Administration Act 1992, in so far as they relate to statutory sick pay, which deal with claims for, and payment of, benefits; section 14(3) of the Act, which establishes the duty on employers to provide employees with certain information about their sick pay entitlement; and regulations made under section 130 of the Act, in so far as they relate to statutory sick pay. Those provisions will be considered relevant labour market legislation, which makes them part of the Secretary State’s enforcement function. We will proceed with them once the fair work agency is ready to enforce them effectively. Amendments 169 and 170 are therefore necessary for the fair work agency to deliver its remit on statutory sick pay.
Greg Smith
Amendment 169 clarifies the specific obligations relating to the payment of statutory sick pay that are enforceable under part 5. Similarly, amendment 170 will ensure that those additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under part 5. This goes back to our old friend, drafting errors being corrected that should really have been sorted out before the Bill was presented to Parliament in the first place.
Justin Madders
We will probably have this conversation a number of times. It is probably a little harsh to say that this was an error, but it would be fair to say that, given the complexity of social security legislation, not every provision was identified when the Bill was first introduced.
Amendment 169 agreed to.
Amendment made: 170, in schedule 4, page 127, line 30, at end insert—
“Social Security Administration Act 1992
3B Regulations under section 5 of the Social Security Administration Act 1992 (regulations about claims for and payments of benefit), so far as relating to statutory sick pay.
3C Section 14(3) of that Act (duty of employers to provide certain information to employees in relation to statutory sick pay).
3D Regulations under section 130 of that Act (duties of employers), so far as relating to statutory sick pay.”—(Justin Madders.)
This amendment ensures that additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under Part 5 of the Bill.
Greg Smith
I rise to speak to amendments 117, 118 and 119 and new clause 20, which stand in my name and in the name of my hon. Friends on the Committee. I make it clear that they are probing amendments; it will become clear over the next couple of minutes why we seek to probe the Government on the issue.
The amendments would repeal the working time directive within one year of the Bill’s coming into force. Our reason for tabling them is not that we intend to abolish entitlement to holidays, lunch breaks and so on—far from it, and nobody is suggesting that. However, the working time directive has had a troubled history. One example is the difficulties that occurred between the Commission and member states when the Court of Justice of the European Union ruled that employers—all of them public health and emergency services—did not calculate time spent on call as working time, when they should have done. The CJEU consistently declared that practice incompatible with the directive, arguing that inactive time spent at the disposal of the employer must be counted in its entirety as working time. Then, in 2019, the Court ruled:
“Member States must require employers to set up an objective, reliable and accessible system enabling the duration of time worked each day by each worker to be measured.”
The result of that judgment was never formally brought into British law, but as a result of the European Union (Withdrawal) Act 2018, it became part of retained EU law.
Last year, the Conservative Government legislated to clarify that businesses do not have to keep a record of the daily working hours of their workers if they are able to demonstrate compliance without doing so; to amend the WTR so that irregular hours and part-year workers’ annual leave entitlement is pro-rated to the hours that they work; to introduce an accrual method for calculating holiday entitlement for certain workers; to revoke the covid regulations—it seems odd that we are still saying that—and to introduce rolled-up holiday pay for irregular hours and part-year workers. Consultation requirements under the Transfer of Undertakings (Protection of Employment) Regulations 2006 to allow smaller businesses to consult directly with employees would be another measure. That is just the start of how it might be possible to simplify the working time directive. I would be grateful to hear the Minister’s thoughts on how well the working time regulations are working, and on whether any further changes might be made for the benefit of businesses to enable growth in this country.
Justin Madders
The working time regulations have had a relatively long history in our legal framework. They provide vital rights: a maximum working week of 48 hours, rest breaks of 20 minutes every six hours, rest periods of 11 hours each day and at least 24 hours each week, and 28 days of annual leave each year. The regulations implement the EU working time directive; the then Government deliberately designed them to provide maximum flexibility for both employers and workers. For example, workers can choose to opt out in writing from the 48-hour week maximum. We believe that the regulations have benefited millions of workers and their families over the years. They afford workers a better balance between work and other responsibilities, as well as improvements in health and wellbeing.
A 2014 review by the previous Government of the impact of the working time regulations on the UK labour market found that since 1998 there had been a decline in long-hours working in the UK and a general trend towards shorter working hours, which is probably not a surprise. The findings also suggested that the impact of the regulations was mainly through increased employment of workers doing shorter working weeks, rather than through a reduction in total hours worked. Annual leave entitlements have increased since the introduction of the working time regulations; many workers now enjoy a more generous leave entitlement than is prescribed by law.
Limitations on working hours and entitlement to a minimum number of days’ holiday can contribute to improvements in health and safety. Most employers accept that a minimum holiday entitlement contributes to physical and psychological wellbeing. Reductions in stress and fatigue caused by excess hours can provide many benefits, including less pressure on health services and better performance at work, with fewer accidents. By establishing minimum standards, the working time regulations also support a level playing field that discourages competition that relies on poor working conditions and a race to the bottom.
New clause 20 would revoke the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018, which provide for adequate rest for seafarers and support the management of onboard fatigue and the wellbeing of seafarers. Revoking the regulations would negatively affect the ability of the Maritime and Coastguard Agency to enforce safe and healthy working conditions for seafarers.
The new clause would also revoke the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004, which require the UK to implement the International Labour Organisation’s work in fishing convention, which underpins the safe operation of vessels. Fishing is one of the most dangerous sectors in the UK, with 50 injuries per 100,000 workers compared with a UK average of 0.4. We believe that the 2004 regulations are critical to ensuring that workers take the appropriate hours of rest to prevent fatigue-related incidents.
The new clause would also revoke the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003. The Maritime and Coastguard Agency is in the process of conducting a post-implementation review of those regulations. The initial responses to the consultation have indicated a generally positive view from stakeholders.
The new clause would also revoke the Cross-border Railway Services (Working Time) Regulations 2008, which provide enhanced rights and worker protections for those engaged in cross-border rail services, such as train crew for Eurostar services through the channel tunnel. The revocation of the regulations would erode those enhanced protections.
The Government believe that the minimum standards in the Working Time Regulations 1998 and other sector-specific working time regulations have supported millions of workers and their families by enabling them to better balance work and other responsibilities. The Government have no plans to revoke the working time regulations or any of the other sector-specific regulations.
I understand what the shadow Minister says about whether we consider the regulations to be beneficial to businesses, but he will know that there was ample time under his Government to undertake those reviews. Indeed, one was undertaken just over a decade ago, as I said. We have no plans to erode workers’ rights in this area; indeed, one of the fair work agency’s main functions will be to enforce rights to holiday pay, which evidence to the Committee suggests are not being enforced properly.
The shadow Minister says that he has no intention of revoking the working time regulations and that his amendment is probing, but I can only speak to what is before the Committee. If he had tabled an amendment seeking a review of the operation of the working time regulations, that might have been more appropriate in the circumstances. This feels to me like a dog-whistle amendment, so I am pleased to hear that he will not be pressing it.
Greg Smith
I am always pleased to delight the Minister in these debates. It was a probing amendment, and I can confirm that we will not be pressing amendments 117 to 119 or new clause 20 to a Division. However, I will briefly comment on the Minister’s response. I entirely respect him for it, but it was a full-throated defence of the status quo.
Something that goes deep within my view of politics, of government and of public administration is there is always room for improvement in pretty much everything. I say that as much about measures passed by previous Conservative Governments as about those passed by current or past Labour Governments. I refuse to accept that something is as good as it possibly can be and is working as well as it possibly can in the interests of businesses and workers alike. There is some disappointment from the official Opposition that the Government do not seem to want to look again.
Justin Madders
Does the shadow Minister not accept that his party undertook this exercise, which is why regulations were introduced last year to amend the working time regulations?
Greg Smith
I fully and totally accept that, but it is our job as the official Opposition, here and now in January 2025, to press the current Government on further measures that could be taken to work in the interests of everybody in our country—workers and businesses alike. Perhaps I accept the Minister’s point; perhaps we could have tabled an amendment to call for a review. Who knows? Perhaps on Report we might. But the fundamental position that I come back to is one that does not just accept the status quo, but is always challenging, always reviewing and always seeking to make things better in the interests of everyone.
When the Minister goes back to the Department and prepares for the remaining stages of the Bill in the main Chamber and in the other place, may I gently urge him to consider in the round, with the Opposition’s support, whether there are tyres to be kicked and measures to be improved in the operation of the working time directive? May I also urge him to ensure—now that we are a sovereign country once more, having left the European Union—that this Parliament can make improvements should it so wish? I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Justin Madders
I beg to move amendment 85, in schedule 4, page 128, line 13, at end insert—
“( ) regulations 13 to 15E (entitlement to annual leave, etc);”
This amendment would enable the Secretary of State to enforce the entitlements to annual leave conferred by the Working Time Regulations 1998.
Government amendment 85 will add to schedule 4 the additional holiday pay and entitlement regulations: regulations 13, 13A, 14, 15, 15A, 15B, 15C, 15D and 15E of the Working Time Regulations 1998. It will enable the fair work agency to take enforcement action in relation to incorrect payment or non-payment of a worker’s holiday pay and incorrect payment or non-payment in lieu of annual leave entitlement, ensuring that a wider range of complaints can be dealt with more effectively. I commend it to the Committee.
The Chair
With this it will be convenient to discuss new clause 23—Review of the effectiveness of enforcement of labour market legislation—
“(1) The Secretary of State must establish an independent review providing for—
(a) an assessment of the effectiveness of enforcement of, and compliance with, relevant labour market legislation requirements as specified in Part 1 of Schedule 4 of this Act;
(b) an assessment of the performance and effectiveness of following bodies in enforcing labour market legislation—
(i) Gangmasters and Labour Abuse Authority;
(ii) Employment Agencies Standards Inspectorate;
(iii) His Majesty’s Revenue and Customs; and
(iv) Health and Safety Executive; and
(c) recommendations on strengthening labour market legislation enforcement.
(2) The Secretary of State must lay before Parliament a report of the review in subsection (1) not more than 18 months after the day on which this Act is passed and before a new single labour market enforcement body is established.”
This new clause would require the Secretary of State to establish a review of enforcement of labour market legislation and to report findings to Parliament before a new labour market enforcement body is established.
Justin Madders
The UK’s labour market enforcement system is fragmented, as we know. The enforcement of core rights such as the minimum wage, the domestic agency regulations and the gangmaster licensing scheme is split between three different agencies, so workers often do not know where to go when they think they might not have received what they are due. That makes enforcement ineffective.
Clause 72 is a vital building block of the fair work agency. Clause 72(1) will place on the Secretary of State a responsibility to enforce a set list of labour market legislation. It introduces part 1 of schedule 4, which sets out the list of relevant labour market legislation that the Secretary of State will be responsible for enforcing— the national minimum wage, domestic agency regulations, the gangmasters licensing scheme, parts 1 and 2 of the Modern Slavery Act 2015 and the administration of the unpaid employment tribunal award penalty scheme.
Creating the fair work agency is about more than simply moving things around. That is why we have also taken steps to enforce workers’ rights to paid holiday and statutory sick pay. We tabled two sets of amendments to part 1 of schedule 4 to ensure that the fair work agency delivers the policy intent in relation to enforcing holiday pay and statutory sick pay. As we have discussed, our amendment on holiday pay will ensure that the FWA can take action in relation to incorrect payment or non-payment of a worker’s holiday pay and incorrect payment or non-payment in lieu of annual leave entitlement; our amendment on statutory sick pay will ensure that all relevant statutory sick pay provisions that contain entitlements for workers or impose duties on employers are in scope of enforcement.
Part 2 of schedule 4 grants the Secretary of State a delegated power to make affirmative regulations to add new legislation to part 1 of the schedule. The Secretary of State can use the power to bring in scope legislation that relates to the rights of employees and workers, the treatment of employees and workers and requirements on employers, and legislation on trade unions and labour relations. It is a broad power but a necessary one: if we are to deliver the policy intent of genuinely upgrading enforcement, the fair work agency needs to be able to respond to changes in the labour market. We believe that a power to make affirmative regulations, which Parliament will of course have to approve, will ensure proper parliamentary scrutiny for any further changes.
New clause 23 is well intentioned, but it is unnecessary and would be counterproductive. It would impose a lengthy and redundant review process that largely duplicated the statutory duties that are already undertaken by the director of labour market enforcement. She already oversees the enforcement landscape and provides an annual strategy and annual report on the effectiveness of the activities of the bodies that will make up the fair work agency. New clause 23 would do nothing to add to those mechanisms. In fact, it would slow down the creation of the fair work agency.
I turn to clause 75—
Justin Madders
Okay. I have nothing further to say, except that the shadow Minister’s new clause 23 is a duplication of existing requirements that would add nothing to the process.
Greg Smith
I hear what the Minister says about slowing things down, but it would be remiss of me not to comment that if the Government had perhaps taken their time a bit on the drafting of the Bill, we would not be spending so much time in this Committee considering the absolute deluge of Government amendments that tidy things up that should have been right in the first place. Sometimes it is best not to rush things. Sometimes it is better not to dive in head first and just go for the first thing available, but to be cautious, to review and to fully understand all the implications that new legislation such as this will have in the real world.
That is what new clause 23, which stands in my name and those of my hon. Friends, seeks to double-check. It seeks to ensure that the Government are getting this right—not in our interests or those of anyone in the House of Commons, but in the interests of businesses and workers in the real world, trying to get on with their daily lives, get their jobs done and get their businesses growing and providing the growth and prosperity that we all want to see in the country.
As I have said previously, we do not have a problem in principle with the establishment of a new body to oversee the enforcement of labour market legislation. I have made that clear, and hon. Friends who have spoken have made it crystal clear. But we also made a challenge in the previous debate, and that is what new clause 23 is all about. It is about ensuring that we fully understand the scope, cost and effectiveness of this new body.
Any new body, be it a Government body or in the private sector—although the creation of new bodies in the public sector tends to be slower and often cost more than the private sector would manage—will take time and resources, and we would like to be reassured that this is a good use of time and resources. I repeat that our instinct is that it probably is. Our instinct is that it does seem to make sense, but we can never rely on instinct or on that which might look good on paper as the absolute cast-iron test. It is about the real evidence.
Sir Ashley Fox
I want to speak in support of new clause 23 and to ask the Minister whether he is familiar with Parkinson’s law. It states that the number of workers in any public administration will tend to grow over time, regardless of the quantity of work done. The corollary is that work expands to fill the time available for its completion.
Although Conservative Members are in favour of the creation of the fair work agency, there is a risk that, over time, it will seek to have more staff and more power, will consume a great deal more of taxpayers’ money and resources, and will impose more on employers’ time, without great result. That is why a review is necessary. We want to ensure that any new authority is lean and efficient. We also want the Government to take the same approach to regulations.
Unfortunately, the Bill is a hefty document. It will impose £5 billion-worth of costs on employers, which will probably result in fewer people being employed, higher inflation and lower growth. It is therefore perfectly reasonable for the Opposition to ask the Government to reflect after 18 months and ascertain whether they can find anything in this weighty tome that they could do better or more efficiently.
The working time directive is immensely complicated and imposes burdensome record keeping on employers. In the past, it has resulted in retained firefighters in rural areas having to count the time when they sit at home, not doing anything, as working time. It has been a difficult and troublesome measure, and perhaps my party should have done more to simplify it when we were in office, but that is not an excuse for the Government to say, “Because you didn’t do enough, we intend to do nothing.” It is reasonable for us to ask the Government, at the end of 18 months, to take another look and see whether they can do anything to reduce the burden on businesses.
Justin Madders
I am beginning to wonder whether the Opposition’s support for the fair work agency is as strong as I thought. They now appear to want to make sure that creating it is the right thing do, despite its featuring regularly in Conservative manifestos and despite the support of the breadth of stakeholders who gave evidence to the Committee. The current Director of Labour Market Enforcement made it clear in her evidence to the Committee that the creation of the fair work agency would make her role much easier and more effective. She spoke about the recommendations in her most recent report:
“The ones that relate to having a better joined-up approach, to greater efficiency and to better sharing of information among bodies are the things that I think the fair work agency will do a lot better.” ––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 153, Q159.]
I think that almost half of the recommendations from her most recent report contained an element of that.
Justin Madders
Clause 73 specifies which functions are considered enforcement functions of the Secretary of State for the purposes of part 5 of the Bill. It defines enforcement functions widely and then carves out certain functions that are not enforcement functions.
Clause 73(1) specifies that the enforcement functions of the Secretary of State include the following: any functions granted under part 5 of the Bill; functions in the relevant labour market legislation that they are responsible for enforcing; and any other functions that they perform to support enforcing labour market legislation.
Clause 73(2) goes on to set out exceptions. It lists specific functions that are not enforcement functions for the purposes of part 5 of the Bill. These are generally functions that relate to the arrangements for state enforcement of labour market legislation, and the overall governance of the fair work agency. These overarching governance functions include: appointing officers under clause 72; delegating functions under clause 74; setting up the advisory board under clause 75; publishing the annual reports and enforcement strategies under clauses 76 and 77; providing for transfer schemes to move staff into the Department under part 1 of schedule 7; and powers to make subordinate legislation.
The effect of clause 73 becomes clear when it is read in conjunction with clause 72. First, the enforcement functions that are listed in clause 73(1) can be performed by enforcement officers appointed under clause 72. Under clause 72(4), the powers of an enforcement officer include the power to exercise any enforcement function. Those powers can be limited further by the terms of the appointment of those officers.
Clause 74 gives the Secretary of State flexibility about how they carry out the functions of labour market enforcement. It provides the option to delegate functions to another public authority. Clause 74(1) gives the Secretary of State the power to make arrangements with the public authority so that it can exercise the delegable function. It also enables the Secretary of State to make arrangements to appoint a public authority’s staff as enforcement officers. The Secretary of State can delegate the enforcement functions listed in clause 73(1), all of which have been highlighted already. Those functions relate to arrangements for state enforcement of labour market legislation or the overall governance of the fair work agency. The Secretary State can also delegate powers relating to the licensing of gangmasters under sections 7 or 11 of the Gangmasters (Licensing) Act 2004. The arrangements the Secretary of State makes with public authorities can also include an agreement to make payments in respect of the performance of any function by either the public authority or their staff.
Clause 74(5) means that delegating an enforcement function does not strip the Secretary of State of responsibility or control in enforcing labour market legislation. The Secretary of State can still carry out functions even when they have arranged for another public authority to do that on their behalf.
The Bill is about bringing enforcement and employment legislation into one place in order to make enforcement more effective and efficient by ensuring the better use of resources. It is about creating the right powers to carry out investigations and take enforcement action where necessary. However, it does not set out a specific approach to implementing that more joined-up enforcement, because operational flexibility will be the key to the success of the fair work agency. The clause helps to provide that flexibility by enabling the Secretary of State to delegate certain functions to other public authorities or to make arrangements for staff of other bodies to be appointed as enforcement officers. Both clauses are integral to the effective functioning of the fair work agency in the future.
Greg Smith
On the face of it, the clauses are not problematic: they are quite clear, and it is important that those things that are considered as enforcement functions are clearly defined. That is all well and good—until we get to clause 74(5), which states:
“Arrangements under this section do not prevent the Secretary of State from performing a function to which the arrangements relate.”
Therefore, a body with certain powers—admittedly in the Secretary of State’s name—is created; essentially, a quango is put in place, and people are given the clear job of carrying out the enforcement functions in the Bill. However, if the Secretary of State is not prevented from performing one of those functions, what is the mechanism by which they can overrule the quango they themselves set up to perform them? Of course, the ultimate buck must stop with the Secretary of State, but it is a pretty established convention that where a quango is set up and has powers delegated to it—I think of Natural England within the Department for Environment, Food and Rural Affairs and many other quangos—it is very rare for a Secretary of State to intervene, overrule and perhaps come to a different conclusion from that quango.
We will not oppose the clauses, but I would be grateful if the Minister could reflect on the circumstances in which he believes clause 74(5) would come into effect, to make clear the procedures a Secretary of State would need to follow to bring that subsection into effect.
Justin Madders
I hear what the shadow Minister says. He is possibly over-egging the pudding or taking us on a ride on the ghost train in terms of what clause 74(5) means. It simply means that if the Secretary of State delegates powers to another body, they are still the responsible person for the overall operation. This is not about overruling different bodies; it is about where the final responsibility lies. I hope I have put the hon. Gentleman’s mind at rest to some extent.
Question put and agreed to.
Clause 73 accordingly ordered to stand part of the Bill.
Clause 74 ordered to stand part of the Bill.
Clause 75
Advisory Board
Question proposed, That the clause stand part of the Bill.
Justin Madders
I know you have been eagerly awaiting this clause, Mr Mundell. It concerns an important part of the fair work agency, and something that the Liberal Democrat spokesperson touched on earlier. The agency has a big job on its hands to restore trust among workers that they will get the rights that they are entitled to and that Parliament has laid down. It also important that the agency is trusted by businesses, and that they know they will be treated fairly and that if they follow the law, they will not be undercut by those who seek to avoid it. That is an important job for the fair work agency and it is important that we get it right. It must reflect the concerns of businesses and workers.
The Low Pay Commission has served the country well since the last Labour Government created it to advise on the national minimum wage. That is because it is a social partnership, comprising equal voices of workers, businesses and independent experts, and can reflect the perspectives of all those bodies when making recommendations. We want the FWA to replicate that success.
The clause requires the Secretary of State to create an advisory board for the fair work agency. Subsection (2) specifies that the board must consist of at least nine members appointed by the Secretary of State. Subsection (3) provides that board members must hold and vacate their position in accordance with the terms and conditions of their appointment. Subsection (4) provides for the advisory board to have a social partnership model, requiring equal representation of businesses, trade unions and independent experts.
We know this is a complex area that is constantly changing, but we believe that the model and approach that has proved so successful with the Low Pay Commission should be replicated here. I therefore commend the clause to the Committee.
Greg Smith
I hear what the Minister says in his explanation of the clause. Often, advisory boards are perfectly good and useful bodies, but I return to my earlier point that where a power rests with a Secretary of State, the accountable body to which any Secretary of State must submit themselves is the House of Commons, where they are a Member, or the House of Lords, in the rare case that they sit in the other place. Parliament is the advisory body—the critical friend—that the Secretary of State should submit themselves to.
However, accepting that an advisory board is going to be established, I want to ask the Minister about its make-up. While the Bill seems to be quite clear, there are some gaps, and some unanswered questions that the public, businesses, employees and the trade union movement will no doubt wish to have answered.
Probably the clearest definition in clause 75(4) is that in paragraph (a):
“persons appearing to the Secretary of State to represent the interests of trade unions”.
I think we can all understand that that means representatives of the trade union movement.
Greg Smith
I am grateful to the hon. Gentleman for his intervention and for what appears to be his support for the British egg industry. I encourage him to eat as many British eggs as possible and to support our farmers.