Non-disclosure Agreements

Justin Madders Excerpts

Wednesday 2nd April 2025 Westminster Hall

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship in this important debate, Mr Betts.

I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on securing this debate. I remember sitting as the shadow Minister on Report of the Employment Rights Bill, listening to her speak about her amendment to the Bill in that debate. All too often, we sit in the main Chamber and listen to speeches from Members in all parts of the House that are, perhaps loosely, hung off handouts from Whips.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

By you. [Laughter.]

[Greg Smith]

I can say in response to the Minister’s quip from a sedentary position that I have never spoken with a handout from the Whips.

Sometimes, we sit there in the main Chamber listening to the usual yah-boo of party politics, but every so often there is a speech—it can come from any part of the House—that makes our ears prick up a little bit and think, “They have a point.” The Member is making a genuine case about a real grievance or a real problem out there in our country that needs resolution, almost undoubtedly via primary legislation. I therefore congratulate the right hon. Lady on her passion and dedication to this cause, and on ensuring that we continue to debate it here in Westminster Hall this morning.

The right hon. Member was absolutely right to highlight the two-tier absurdity brought about under the current law. I was particularly struck by her point that 27 states in the United States of America have passed legislation on this issue. The United States is hardly a nation that is looked to for high-end employment rights. It is a country where, for example, most people get only two weeks’ holiday a year, and where maternity and paternity rights are far short of those we have here, so the fact that those 27 states have passed laws on this issue in varying respects is something that we should reflect on.

During the debate the hon. Member for Guildford (Zöe Franklin) spoke powerfully about the creative sector; the hon. Member for Congleton (Mrs Russell) clearly brought extensive experience of this matter from her time as a solicitor; my hon. Friend the Member for Strangford (Jim Shannon) brought his usual eloquence to supporting this cause; the hon. Member for Lichfield (Dave Robertson) gave powerful examples from his experience working for a trade union—the example he gave about a school setting was particularly powerful—and the hon. Member for Newton Abbot (Martin Wrigley) powerfully cited a local case. The hon. Member for Luton North (Sarah Owen), who is Chair of the Women and Equalities Committee, gave a particularly powerful speech, reminding us that of course this issue is not about banning NDAs in their entirety, but about stopping this very particular abuse.

In fact, the hon. Lady’s most powerful point—on top of the one about self-employment, which is a subject that I will always prick my ears up about, having been self-employed myself for 15 years before I entered this House in 2015—was that people are being forced into signing these agreements at the lowest ebb of their lives, at the time when they are at their most vulnerable. We should face that fact and reflect upon it.

I am grateful for this opportunity to continue the debate on non-disclosure agreements, which have become a tool that too often is used to silence victims of harassment, discrimination and abuse in the workplace. This is not just a matter of employment law; it is a fundamental issue of justice, accountability and transparency. At their worst, NDAs allow perpetrators to escape scrutiny, enabling toxic workplace cultures to persist unchecked. Undoubtedly, some victims, facing an imbalance of power, are pressured into signing away their right to speak out in exchange for a financial settlement. This not only denies individuals the justice they deserve, but prevents organisations, and indeed our society at large, from learning from past failure and making necessary change.

Of course, we are not in any way suggesting that every single NDA out there is inherently wrong. There are legitimate reasons for their use in protecting trade secrets or commercially sensitive information. However, when they are used to cover up wrongdoing, they become a shield for bad employers and an obstacle to a fair and open working environment. Like other Members, I believe that the vast majority of employers do act in good faith and are good people, but where it goes wrong and they are acting in bad faith or—let’s say it how it is—criminally, NDAs should not be a shield for that.

The Government have said they are committed to tackling workplace discrimination and harassment. There are elements of the Employment Rights Bill that the Opposition support, but we had a particular debate about the provisions on third-party harassment. I say this in a spirit of wanting to solve this problem: we all want to see harassment stamped out, but those provisions will have the unintended consequence of what we call the “banter ban”, whereby an employee can take their employer to court if they happen to overhear something that politically offends them in a hospitality setting or whatever it might be.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair this morning, Mr Betts.

I congratulate my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) on securing this debate. As the shadow Minister said, her contribution on Report of the Employment Rights Bill was particularly powerful and certainly helped to shape some of my thinking about where we need to go on this. I am grateful, too, for all the thoughtful and considered contributions from all parts of the Chamber.

Let me pay my respects to the individuals whose stories we have heard both today and on Report—stories of awful exploitation, harassment and terrible treatment, which have been silent for far too long. As my right hon. Friend said, often we are talking about some of the most vulnerable people in the workplace, and at the most vulnerable time for them. Often, only those who have the means and the confidence to take on their employer escape the clutches of NDAs.

I wish to acknowledge the comments made by the hon. Member for Eastbourne (Josh Babarinde), who speaks for the Liberal Democrats, about the work that the hon. Member for Oxford West and Abingdon (Layla Moran) has done in this area. She has campaigned tirelessly, as have many Members, alongside organisations such as Can’t Buy My Silence to ensure that victims of sexual harassment, discrimination and bullying are able to speak up and get the help that they need.

Many of the issues that we are debating today are not new, but things have been talked about that I was not aware of, such as the classical music sector, which was mentioned by my hon. Friend the Member for Luton North (Sarah Owen). Clearly, there is widespread concern about the use of non-disclosure agreements. I recognise that this is an important issue. As we know, NDAs or confidentiality clauses are legally binding. Their intention is to keep information confidential but, as many Members have said, they also have a legitimate role in contracts to protect trade secrets, intellectual property and commercially sensitive information.

[Josh Babarinde]

Does the Minister agree that the purpose of an NDA is, for example, to protect the identity of the 11 spices that KFC uses in its chicken, and not to protect sex pests? If so, what action will he take, as soon as possible, to protect those victims and survivors over the rich and the powerful?

[Justin Madders]

I shall come on to the action that we are taking a bit later. None the less, that is an important point: there are legitimate uses for NDAs and it is important that we get that balance right, making sure that those commercial and legitimate business interests are protected while, at the same time, not deliberately silencing victims. NDAs should never be used to silence victims of harassment or any other misconduct in the workplace.

There are important legal limits to the use of NDAs in the employment context. Any clauses of an NDA that were to stop a worker from blowing the whistle, for example by making a protected disclosure to a lawyer or a prescribed person, are not enforceable. The use of an NDA by an employer could also amount to a criminal offence if it is an attempt to pervert the course of justice or conceal a criminal offence. A settlement agreement under the Employment Rights Act 1996 and any confidentiality clauses it contains would be void if the worker did not receive independent advice on the terms and effects of that agreement.

The Equality and Human Rights Commission and the Advisory, Conciliation and Arbitration Service have both published guidance on NDAs to ensure that workers and employers understand those limitations, but we have heard from many hon. Members that the guidance is not being observed in practice as much as we would expect. My right hon. Friend the Member for Sheffield Heeley mentioned the guidance from the Solicitors Regulation Authority, which has issued an updated warning notice to remind the legal profession that NDAs should never be used to try to prevent the lawful disclosure of serious misconduct or potential crime. The SRA is also clear that evidence of the use of inappropriate clauses in such agreements may lead to disciplinary action.

Nevertheless, we hear the calls to go further, and the issues raised today highlight some of the key areas that we want to further investigate. It is clear that there are still serious concerns about how employers are using NDAs to silence employees. We have heard today that victims often feel that they are left with little choice but to leave their employer, without any assurance that their employer is addressing the misconduct and dealing with the perpetrator.

[Martin Wrigley]

Does the Minister agree that we need to change the social contract for companies such that they no longer take all the benefits of limited liability and simply focus on shareholder value? Will he support my better business Bill—the Company Directors (Duties) Bill—which will have its Second Reading on 4 July, and meet me to discuss it? The Bill is backed by some 3,000 businesses, the Institute of Directors and others. As I mentioned, it would balance the responsibility of company directors with the interests of shareholders, employees and the environment; fundamentally change their basic responsibilities in how they run their companies; and therefore turn the purpose of the company to good, including that of the employees. It would prevent many of the circumstances that we are describing today.

[Justin Madders]

I have not seen the hon. Member’s Bill, and I suspect that its application is rather broader than just to the topic we are debating. We are looking at corporate governance, and in due course we intend to introduce legislation that may pick up on a number of the issues addressed by his Bill.

As we have touched on, a number of recent reports, such as the Women and Equalities Committee’s “Misogyny in music” and the Treasury Committee’s “Sexism in the City”, highlight that NDAs do not stand up in a court of law and are often used to chill victims.

The hon. Member for Guildford (Zöe Franklin) spoke about the good work of the Creative Industries Independent Standards Authority. I understand that the Culture Secretary recently met the authority to discuss how they can work together to improve workplace standards and behaviour in the creative industries. We want to support the authority moving forward; that is a matter for the Culture Secretary, and I am sure that she continues to engage with it.

[Louise Haigh]

The Minister talked about protected disclosures, including in relation to criminal offences. As my hon. Friend the Member for Congleton (Mrs Russell) said, this area of law is complex, and low-income workers in particular cannot access the kind of legal advice that she provided so authoritatively to her clients. Does the Minister agree that we therefore need to end the blanket use of NDAs so that it is much clearer that victims of abuse, harassment or discrimination cannot be silenced? It is next to impossible for them to navigate this complex area of law without specialist legal support, which they are clearly struggling to access.

[Justin Madders]

My right hon. Friend makes an important point: this is a complex area for individuals to navigate.

My hon. Friend the Member for Congleton (Mrs Russell) spoke about her experiences in the profession, with which I am familiar. Non-legally qualified consultants often simply apply boilerplate clauses to agreements, which has a practical impact on the victim’s ability to explain how their employment ended. I have seen agreements that prevent people from even confirming that they have reached a settlement, which makes it doubly difficult for them to explain that when seeking future employment prospects. My hon. Friend also talked about the financial contribution that employers provide towards that advice, which does not always cover the cost of taking proper advice, rather than going through a rubber-stamping exercise. Both those issues highlight the inequality of arms in the workplace when disputes arise.

The hon. Member for Strangford (Jim Shannon) made an excellent contribution, as always. He was absolutely right to highlight that the original intention behind NDAs has been distorted. They were about commercial confidentiality and protecting business interests, but they are being used for wider, less justifiable purposes.

My hon. Friend the Member for Lichfield (Dave Robertson) raised the terrible case of Mohammed al-Fayed. He was right to say that we do not know how many victims there are; some will not come forward because the gagging orders still prevent them from speaking out or make them feel that they cannot do so. Of course, we addressed that to some extent in the Employment Rights Bill, in which we now make it clear that a complaint of sexual harassment qualifies as a protected disclosure under the whistleblowing Act. We will never know whether that kind of protection would have prevented the atrocities committed by Mohammed al-Fayed, but it would at least have given people some reassurance that they could speak out and have additional protections.

[Mrs Russell]

As I understand it, the whistleblowing provisions in the Employment Rights Bill will let people go to the police or a regulator, but they do not automatically mean that they can go to the media, although they might be able to in some circumstances. If the Minister does not mind my saying so, what he has described is possibly not a blanket solution to the problem.

[Justin Madders]

My hon. Friend highlights some of the limitations of the whistleblowing Act, in terms of what qualifies as a protected disclosure. As I have commented previously, that legislation needs to be looked at again.

The hon. Member for Newton Abbot (Martin Wrigley) talked about the widespread use of NDAs in the NHS. That highlights that there is no sector of the economy in which such agreements are not in use.

The hon. Member for Mid Buckinghamshire (Greg Smith) talked about the use of NDAs in Government Departments. I will make inquiries about that and get back to him, and I will pass on the comments of the hon. Member for Newton Abbot to the Department of Health and Social Care.

My hon. Friend the Member for Luton North, Chair of the Women and Equalities Committee, gave an informative and well researched speech, as always. She was right that this is not just about protecting victims; there is a wider issue relating to the growth agenda. These issues are debilitating and damaging for victims and can have an impact on their ability to return to work. She made the important point that it is nearly always the victim who has to leave their employment and move on. As we have heard, they do not always have a clear explanation to give prospective employers about why they have had to leave. It is usually the man, who is often in a position of greater power, who stays in work, and sometimes advances off the back of the claim. That relates to the culture in organisations: victims are not protected and perpetrators are often supported because they are seen to be in a more powerful position in the workplace. My hon. Friend also made an important point about protecting self-employed people and contractors in particular industries. We will need to consider that further.

On the current legislation being passed, we are pressing ahead with plans to commence the provisions relevant to NDAs in the Victims and Prisoners Act 2024 and the Higher Education (Freedom of Speech) Act 2023, as a number of hon. Members, including my right hon. Friend the Member for Sheffield Heeley, mentioned. When commenced, section 17 of the Victims and Prisoners Act will ensure that clauses in NDAs cannot be legally enforced where they seek to prevent victims of crime from reporting a crime, co-operating with regulators or accessing confidential advice and support. It will provide that clauses in NDAs that seek to prevent disclosures that are necessary to access confidential advice and support needed to cope with and recover from the impact of crime are unenforceable.

The Liberal Democrat spokesperson, the hon. Member for Eastbourne, talked about a new mother’s experiences of discrimination and the consequences of that. The Employment Rights Bill will provide a new baseline of protection, enhanced dismissal protections for pregnant women and mothers, extra requirements to take all reasonable steps to prevent sexual harassment—something that has been a matter of considerable debate—and protection of workers against third-party harassment. It will also make it clear that the disclosure of information can be a protected disclosure. We think all those things will improve the workplace experience, but I hear the calls to go further.

We know that there are calls to roll out the approach in higher education to the whole economy. My right hon. Friend the Member for Sheffield Heeley provided a clear example of how the provisions in the Employment Rights Bill will not apply to an outsourced worker working in higher education. The legislation has not yet been enacted, but the Government intend to press on with it shortly. I share concerns that something needs to be done, but the changes that have been proposed through amendments to the Employment Rights Bill would need a significant amount of engagement with workers, employers and stakeholders, as well as an assessment of the impact on sectors and across the economy.

This is a complex area of policy, as we have heard today, and it is important to take a balanced approach to make sure that we reach the right end point. There are different views and opinions. There are organisations and hon. Members calling for a ban on NDAs in specific circumstances. Some advocate for a greater say for victims in when they can be legitimately used. Others warn about unintended consequences for victims who are looking to settle a claim to avoid the stress of litigation.

[Louise Haigh]

I am grateful to the Minister for being so generous with his time. I completely accept that there are different versions of the amendment that could be successful and I accept the need to consider the impact on businesses. Will the Minister meet me and other interested Members to look at a way in which this amendment could be written that would satisfy him and the Government? We have heard today that there is support from the official Opposition and the Lib Dems. There is every chance that this could receive serious cross-party support in the other place and pass into the Employment Rights Bill. Will he meet me and others to discuss exactly what the amendment could look like?

[Justin Madders]

I am always happy to meet my right hon. Friend. It would be good to get cross-party support on our Employment Rights Bill—something that has been sadly lacking in the Commons so far. The shadow Minister is grinning knowingly—I am not sure whether that means we shall ever get him on board for the whole package. I am happy to work with individual Members. I would just note that there was a consultation under the shadow Minister’s party’s watch, and a number of proposals were developed that never saw the light of day because the previous Government did not introduce an employment rights Bill. His late conversion to this cause is welcome, but he should recognise that his party perhaps did not do enough in government. Some of the recommendations made under the previous Government did not go as far as is reflected in the general mood of the Chamber today.

There is a range of issues that we need to consider to get this right, such as whether some sectors, such as the creative industries, need particular protection, and the different relationships—we have heard about self-employed people and how this would operate for those in the gig economy. We can have the debate about whether they are self-employed or workers: I am sure that will be returned to on many occasions. We also need to consider the international approach—we have heard some examples from across the pond, and Ireland recently introduced its own legislation—and how the legislation will apply to different groups with protected characteristics.

It is important to ensure that any work we do does not create a new loophole for clever lawyers to exploit, so it should be future-proofed as much as possible. We also need to ensure that any legislation includes an option for a victim to freely choose to have an NDA without pressure, if that is what they want. We need an awful lot of discussion to get that right. Hon. Members have mentioned access to justice and legal advice that is timely, correct and affordable. A cultural shift from employers is also important. Legislation can say what it wants, but unless we get employers to tackle rather than protect the perpetrators of these terrible acts, we will continue to debate these matters.

As my right hon. Friend the Member for Sheffield Heeley said, I am happy to work with hon. Members. I recognise that non-disclosure agreements are important and need looking at. I thank her for securing the debate and am happy to continue working with her and other hon. Members to get this right.

Product Regulation and Metrology Bill [Lords]

Justin Madders Excerpts

2nd reading
Tuesday 1st April 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I thank right hon. and hon. Members from across the House for what has been an interesting and, at times, informed debate on the Product Regulation and Metrology Bill.

As my right hon. Friend the Secretary of State said in opening, the Government’s primary mission is economic growth to help rejuvenate our high streets and promote innovation, and this legislation is an important element in that drive and will further cement the UK as a world-leader in product regulation and safety. The legislation will have real-world impacts that we can all relate to. As we have heard, product safety failures can have devastating consequences, and we are determined that our regulatory framework be as agile and flexible as possible in its response to new threats and complex modern supply chains but without stifling innovation.

There have been an awful lot of contributions, and I will try to cover as many of them as I can. I think it is appropriate that I start by referencing the excellent speech from my hon. Friend the Member for Erewash (Adam Thompson), which lit up the whole House. He is, of course, the first meteorologist to have spoken in this Chamber—

[Hon. Members]

Metrologist!

[Justin Madders]

Metrologist. He may well be on the Bill Committee, because he has definitely talked his way on to it with his insight into this issue. My hon. Friend the Member for Birmingham Northfield (Laurence Turner) almost matched him in terms of technical specificity, and his historical knowledge was also very important. He has just finished sitting on a Bill Committee with me, but he is talking his way on to this one as well—perhaps I should not say that, because it might encourage colleagues not to speak in future debates.

My hon. Friend the Member for Bathgate and Linlithgow (Kirsteen Sullivan) and the Liberal Democrat spokesperson, the hon. Member for Wokingham (Clive Jones), were among a number of Members who talked about the issue of e-bikes, which is a real concern. I am sure the whole House has been moved by the tragic cases of e-bike fires that we too often hear about. My right hon. Friend the Secretary of State referred to the tragic death of Sofia Duarte. I met her mother last year to talk about what we can do through this Bill to prevent such tragedies from happening again.

In the wake of the increasing number of fires associated with e-bikes and lithium-ion batteries, there have been calls from businesses, trade associations, consumer groups and parliamentarians to tighten up the law. This legislation will allow us to ensure that the UK’s product safety framework can keep up with technological developments, including on e-bikes. The powers in the Bill will allow us to update regulations to ensure the best protections for consumers and consistency with the majority of reputable retailers.

The Government are currently considering how best to use the powers in the Bill to regulate these products in an efficient and proportionate way, in particular to ensure that products that can pose a greater risk, such as lithium-ion batteries and e-bikes and e-scooters, are safe. That includes bringing forward powers in the Bill to better define online marketplaces and confer additional duties on them to help stop the sale of unsafe products, including converter kits. As my hon. Friend the Member for Worsley and Eccles (Michael Wheeler) pointed out, this is a fast-moving environment, and the Bill will give us the flexibility to tackle that.

[Clive Jones]

Does the Minister agree that if a UK manufacturer wants to produce a product for the UK market, it should produce it to UK regulations, and if it wants to export it to Europe, it is sensible to produce that product to EU regulations, which will open up a massive market on our doorstep? Keeping up with EU regulations will generally be good for the British business economy and help economic growth.

[Justin Madders]

The Liberal Democrat spokesperson tempts me to set out a statement of policy, which the Bill is not intended to do. We want to give ourselves maximum flexibility in our ability to deal with issues as they arise. He talked in his speech about online marketplaces, and my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley) talked about unsafe toys and button batteries, citing the fact that investigations have discovered that up to 90% of products purchased in online marketplaces are unsafe. Because we recognise that online marketplaces are in desperate need of regulation, the Bill will give us powers to clarify and modernise responsibilities for online marketplaces in a flexible and proportionate way, to protect consumers and create a fair playing field for law-abiding businesses. It will enable the Government to modernise the responsibilities of online supply chain actors.

While the growth of e-commerce has provided consumers with greater choice and convenience, it cannot be at the expense of consumer safety. We will continue to engage with consumer groups, businesses and online marketplaces in the development of specific online marketplace requirements to ensure that they are proportionate and to mitigate any costs to consumers. I can also confirm that it is the intention of the Government to consult on the duties for online marketplaces soon after Royal Assent and to bring forward subsequent regulations as soon as is practically possible.

My hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) spoke with his customary passion about the ceramics industry in the Potteries. I acknowledge his ideas for protecting the industry. I am not sure whether this Bill is the right vehicle for his suggestion, but I will take it away and come back to him.

It is probably worth talking about the issue that seemed to vex Opposition Members rather a lot, which is whether this Bill is in some way a reset to EU laws by the back door. It is about domestic regulation and we are not rejoining the EU by the back door. The Bill is about giving us flexibility to ensure product regulation, now and in the future, that is tailored to the needs of the UK. Of course, there will be some instances when we will want to take a similar approach to the EU, but there will be other times when we will want to take our own approach. Those decisions will be taken on a case-by-case basis in the best interests of UK businesses and consumers.

As my hon. Friend the Member for Walthamstow (Ms Creasy) said, the Retained EU Law (Revocation and Reform) Act 2023 gave significant powers to the Executive, and the Liberal Democrat spokesperson, the hon. Member for Wokingham, quoted me on that Act. It reformed 7,000 regulations, ranging across every function of society. Its regulations were far broader than those proposed in this Bill and the Delegated Powers and Regulatory Reform Select Committee called it “hyper-skeletal”, which is some way beyond the criticisms it levelled against this Bill.

Turning to the reasoned amendment tabled by the official Opposition, it is worth restating that the Bill is not about rejoining the EU. David Cameron commented that he wanted the Conservative party to

“stop banging on about Europe”,

but there seems to be some way to go before his words reach fruition, despite the fact that we left five years ago. The Bill gives us the necessary powers to ensure public regulation, now and in the future, meets the interests of the UK. The powers set out in the Bill will be used solely and exclusively in the best interests of UK businesses and consumers.

I recognise that the House of Lords Delegated Powers and Regulatory Reform Select Committee raised concerns about this being a skeleton Bill, but the Government have considered those concerns and other representations made by Members in the other place. Our existing product regulations are necessary to keep consumers safe, and to provide clarity and a level playing field for businesses. They extend to many thousands of pages and cover a huge amount of technical detail. As the noble and learned Lord Pannick said in the other place,

“the practical reality is that technical regulations of the breadth and complexity that will be produced cannot sensibly be enacted by primary legislation.”

He went on to say that if we are required to use primary legislation every time we wanted to make a regulation on product safety, there would be

“little, if any, time for anything else.”—[Official Report, House of Lords, 26 February 2025; Vol. 843, c. 1716.]

Conservative Members seem to have forgotten that since the Consumer Protection Act 1987, Governments of all stripes have recognised the need to make product safety regulations by secondary legislation. Since 1987, the Conservatives have been in power for 24 years, so they had more than enough time to find another way of dealing with product safety, but they did not choose to do that. We are taking a pragmatic approach. We have taken notice of some of the concerns raised about the powers of the Bill: we have removed a number of Henry VIII powers, introduced a consultation requirement, added additional affirmative resolution procedures and published a code of conduct that sets out the controls that we will have to ensure regulations are proportionate and evidence based. I am grateful to Members of the other place for setting out some of their concerns.

As the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), pointed out, the Conservatives did not introduce the Bill in the last Parliament; I am happy to confirm that that was the case. That shows that there was a gap in the law that needed filling and the Conservatives failed to act on it.

Some of the important consumer groups in this country, such as Which?, recognised that action was needed. Sue Davies, head of consumer rights, protections and food policy said:

“It’s encouraging that the government is prioritising a Bill that should address the huge gap in consumer protections which allows online marketplaces to facilitate the sale of unsafe and illegal products without facing repercussions.”

If Members vote for the reasoned amendment, we will not be having any of those protections. I do not think any responsible party would move an amendment along those lines.

This Government are never going to compromise on safety. The Bill is essential to strengthening the rules and regulations needed to protect consumers, businesses and the public. I therefore commend the Bill to the House.

Question put, That the amendment be made.

Double British Summer Time

Justin Madders Excerpts

Thursday 27th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I thank my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer) for securing this debate. I am grateful for her insights and remarks on this important topic, which, as she explained, impacts on everyone’s lives in one way or another. She described the clocks changing as a bit of a faff, which I think we can all appreciate. She then went on to discuss the reasons she advocates for this change in great detail. In my remarks, I will go on to explain why there are also potential negatives to what is being proposed.

As my hon. Friend mentioned, seasonal clock changes were first proposed in the early 1900s to extend daylight hours for recreation, to improve health and to save on lighting costs. At the time, clocks were set to Greenwich mean time all year round, resulting in early sunrises and sunsets in the summer. The idea gained traction during the first world war because of the need to conserve coal, which led to the adoption of changes in 1916. Biannual clock changes have continued ever since, with a brief deviation from the pattern during the second world war, when double British summer time was introduced, and between 1968 and 1972, when the clocks were put forward but not back as part of an experiment. I think those were also the first four years of my parents’ marriage, an experiment that thankfully has lasted much longer. It was eventually discontinued, however, due to inconclusive results regarding its effect on road casualties.

About 70 countries worldwide currently adopt some form of daylight saving. British summer time is the UK’s version of European summer time, which follows the same pattern by changing the clocks twice a year by one hour. This synchronisation allows for smooth transactions in trade, travel and communication across Europe.

The Government are aware that the issue of daylight saving has, at times, attracted extensive public and political debate, with suggestions to adopt British double summer time. British double summer time was introduced for a short period during the second world war, as I have mentioned. By extending daylight hours into the evening, it reduced the need for artificial lighting, thereby conserving fuel. Introducing British double summer time would result in clocks remaining one hour ahead of Greenwich mean time in the winter and moving two hours ahead in the summer.

By observing British summer time, the UK maintains a one-hour difference with European countries throughout the year. This would not be the case under British double summer time. Using Germany as an example, the time difference with it would vary between winter and summer. In winter, both the UK and Germany would be one hour ahead of GMT, resulting in no time difference. During summer, the UK would be one hour ahead of Germany.

The Government believe that the current daylight saving arrangements represent the optimal use of the available daylight across the UK. Changing the current arrangements would impact all citizens in the UK and Northern Ireland and would require public consultation and assessment of the impact on businesses across all sectors of the economy.

As my hon. Friend has mentioned, there would of course be benefits to moving to double British summer time. We know that darker hours exacerbate mental health conditions, particularly seasonal affective disorder. The shorter days and reduced natural daylight, as a result of clock changes, can worsen symptoms according to the charity Change Mental Health.

We also know that there is evidence that enforced clock changes can disrupt sleep health, especially in a forward direction such as that which currently occurs in March—and will be happening again in three days’ time. However, we also know from the British Sleep Society that natural daylight in the morning is critical for alignment of our internal body clocks. Moving to double British summer time would cause darker mornings, especially in winter.

We are also aware of some evidence that abolishing clock changes would reduce road accidents. Analysis from the RAC Foundation and Road Safety Analysis shows that between 2012 and 2017 there was a 2% increase in road accidents over the two fortnightly periods when the clock changes took place. In terms of energy use, keeping to GMT plus 1 during the winter months might be expected to reduce overall energy use, as people use less artificial light in the evenings. However, the effects are likely to be small in magnitude, and may even be uncertain—there might be no effect at all.

The most significant effects are likely to be associated with lighting demand as demand switches from the evening to the morning. While there might be some benefits, there would be a risk of the UK energy system being affected by the time zone choices of neighbouring countries with which it trades gas and electricity. For example, the time difference between the UK and France means that peak demand is staggered across the two countries and allows for interconnectors to play a role in meeting peak demand throughout the year. This results in lower energy generation required in Great Britain and lower prices for consumers. If the time difference were to change, that could have impacts across the energy system, including on the benefits assumed from interconnection.

There might also be road safety impacts. Advancing the clock in spring creates a short-term disruption in sleeping patterns, which can cause fatigue. This can lead to inattention, poor decision making and delayed reaction times, all of which are contributing factors to road traffic accidents. Summer time arrangements have led to concerns about the disrupted biorhythms of animals, with respect to changing milking and feeding schedules, although of course these impacts are expected to be reduced due to the deployment of new equipment, artificial lighting and automated technologies.

The approach to daylight saving is a complex area, given the importance of just-in-time supply chains to many industries. Many sectors and businesses, example in the aviation industry, would need considerable notice of any such change.

There have been examinations of all this in the past. Following a call for evidence, the House of Lords report “Clock changes: is it time for change?” found that the abolition of seasonal changes of time in the UK in any circumstances would require adjustments in sectors ranging from transport to energy and software development. Such adjustments would bring some transition costs, which could be burdensome for industries when scheduling, especially internationally, which would be a concern, particularly for aviation. In that report, the European Union Committee concluded that it did not receive compelling evidence to suggest that the current system of seasonal changes is problematic for the UK, while noting that there is a lack of contemporary studies on the subject.

Moving to double British summer time would create a time border between Ireland and Northern Ireland, if Ireland maintained its current approach to time. That non-alignment could cause problems for transport, particularly aviation, tourism, trade and business in general, with higher impacts if there was only a part-year alignment. This view is not only held by UK industries and representing bodies; it was also reported in EU and non-EU countries’ responses to a 2018 European Commission consultation.

In the UK, seasonal changes of time facilitate lighter evenings for over half the year and reduce morning darkness in winter. The latter effect is particularly pronounced in northern parts of the UK, especially Scotland. Double British summer time in the north of Scotland would mean no daylight in the winter before 10 am, while in the rest of Scotland sunrise would be at 9 am. Opponents of change point out that in Scotland children would have to travel to and from school in darkness. As pointed out by the Scottish Government in their written evidence to the Lords Committee, farm vehicles and other large vehicles would spend more time on the roads during the hours of darkness, further adding to the risks.

In 2012 the Department for Business, Innovation and Skills published a review of the scope, quality and robustness of available evidence regarding clock changes. The review found that there are challenges in looking at the overall picture of the impacts that might occur across a range of issues, including energy consumption and road traffic accidents.

To conclude, this Government will always listen carefully to any arguments that are put forward around how to mitigate challenges and provide support, particularly in areas such as mental health. We appreciate the concerns raised about the potential impact of clock changes on mental health and road safety, and we will always welcome views on how we can enhance our existing measures and initiatives.

As set out in our “Get Britain Working” White Paper, the Government are committed to expanding access to NHS talking therapies for adults with common mental health conditions such as depression, including seasonal affective disorder. This Government treat road safety with the utmost seriousness, and we are committed to reducing the numbers of those killed and injured on our roads. My ministerial colleagues at the Department for Transport are developing the first road safety strategy in over a decade, and will set out more details in due course.

I thank my hon. Friend the Member for Dunstable and Leighton Buzzard again for securing the debate. She has raised some interesting points, but the evidence for the case for change is not overwhelming. However, I will take this opportunity to remind everyone that the clocks go forward on Sunday, and it is also Mother’s Day.

Question put and agreed to.

Terms and Conditions of Employment

Justin Madders Excerpts

Tuesday 25th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move,

That the draft National Minimum Wage (Amendment) Regulations 2025, which were laid before this House on 4 February, be approved.

The purpose of the regulations is to increase the national living wage rate and the national minimum wage rates on 1 April 2025. The regulations were laid in draft before Parliament on 4 February and approved by the other place on 17 March.

The Government are committed to making work pay. The plan to make work pay will tackle the low pay, poor working conditions and poor job security that have been holding our economy back for far too long. Earlier this month, the House approved passage of the landmark Employment Rights Bill, which will benefit more than 10 million workers in every corner of the country and deliver the biggest upgrade to workers’ rights in a generation. Some aspects of the Bill and accompanying legislation and guidance will not come into effect for some time as the Government continue to engage with stakeholders, businesses and trade unions on its implementation. When we took office last year, however, we committed to taking immediate action where we could, and on the minimum wage we have done so.

One of the proudest achievements of the last Labour Government was the creation of the national minimum wage, which eliminated the extreme low pay that was blighting our country. We are proud to say that one of the first actions taken by this Labour Government within a month of last year’s general election was to overhaul the remit to the Low Pay Commission. For the first time, the remit now explicitly includes the cost of living as one of the key factors to be considered when making national living wage recommendations. We have begun the journey towards creating a genuine living wage, as well as extending that to all workers aged over 18 by moving towards a single adult rate.

Before turning to the precise details of the regulations, I want to extend my thanks to the Low Pay Commission. The commissioners and their officials have worked diligently and efficiently, particularly after the updates to the remit were made, and we were pleased to accept all their recommendations. That is testament to their social partnership model and expert analysis and engagement, which ensure that the Government can deliver on their ambitious agenda, but without adversely impacting on businesses, the labour market or the wider economy.

Turning to the detail of the regulations, which, after parliamentary approval, will take effect on 1 April, the national living wage rate, which currently applies to workers aged 21 and over, will increase from £11.44 to £12.21. That represents a rise of 77p or 6.7%, which is well above all measures and projections of inflation, therefore delivering real terms pay increases to an estimated 3 million workers.

We will also be delivering large increases to the other national minimum wage rates. The 18 to 20-year-old rate will increase by £1.40 from £8.60 an hour to £10 an hour. That is a record 16.3% increase for that age group. It means that a full-time worker on the 18-to-20 minimum wage rate will see their gross annual earnings increased by around £2,500 a year—a well-earned pay rise and a significant step towards parity with the headline rate. The national minimum wage rate for 18 to 20-year-olds will be equal to 82% of the national living wage in 2025, compared with 75% in 2024.

The minimum wage rate for workers above school leaving age but under 18 years old will increase from £6.40 to £7.55 an hour—a large rise of £1.15 or 18%. The same rise will apply to the apprenticeship minimum wage rate, which applies to apprentices aged under 19 or in the first year of their apprenticeship. Finally, the accommodation offset rate, which is the maximum daily amount that an employer can charge a worker for accommodation without it affecting their pay for minimum wage purposes, will increase by 6.7%, or 67p, to £10.66.

I draw Members’ attention to the comprehensive impact assessment, which the Department published alongside this legislation. As they may have noted, the impact assessment, which includes an equalities assessment, has received a green fit-for-purpose rating from the independent Regulatory Policy Committee. As I have touched on, we estimate that the increases to the minimum wage rates will deliver a direct pay increase for over 3 million workers, while an additional 4 million could benefit from the positive spill-over effects. The minimum wage has greatly reduced pay inequality in the UK, with the share of low-paid jobs in hourly terms estimated at 3.4% in 2024. That is a record low, and down from 21.9% in 1999.

But the work does not stop there, as we continue to build towards a genuine living wage and the extension of eligibility to workers aged between 18 and 20 by ending the discriminatory age bands. To that end, we will publish in due course a fresh remit to the Low Pay Commission, asking it to recommend minimum wage rates to apply from next April. As part of this, the Low Pay Commission will consult about the appropriate trajectory towards the single adult rate as we ensure that this is delivered without adverse impacts on youth employment as well as participation in training and education. Like the previous Labour Government, with their creation of the minimum wage over a quarter of a century ago, this Labour Government will be proud to leave a profound legacy for workers’ rights, because we are making work pay and we are proud to make more progress on this by supporting this instrument today. I commend the regulations to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

With the leave of the House, Madam Deputy Speaker, I will begin by addressing the many contributions that were made to what I think was, overall, a very positive debate. I welcome the support of the Liberal Democrats, and also welcome the hon. Member for Chippenham (Sarah Gibson) to the Chamber: it is good to see her back in her place. She made some important points about the social care sector. We know that the abuse of travel time reimbursement is a huge issue. The Low Pay Commission is keen to look into it, and I am sure that once the fair work agency is up and running, it will focus on it as well.

The hon. Lady’s colleague, the hon. Member for Honiton and Sidmouth (Richard Foord), also talked about the importance of that sector. Our impact assessment has established that about one in five social care workers will receive a direct pay rise as a result of the increases announced today. As would be expected, before making its recommendations the Low Commission has consulted widely with, among others, representatives of social care workers. We believe that they have been undervalued for far too long, which is why we are introducing the first ever fair pay agreement in the adult social care sector so that care professionals are recognised and rewarded for the important work that they do. While I appreciate the hon. Member’s wish for a separate rate for care workers, we think we are taking the right measures to recognise and value them. The operation of different rates brings a range of challenges relating to enforcement and to clarity for employers, which we think is important.

There were, I have to say, a number of excellent speeches from the Labour Benches. My hon. Friend the Member for Earley and Woodley (Yuan Yang) made the positive economic case and referred to the wealth of evidence in support of increases in the minimum wage. On the Labour Benches, we passionately believe that increased protections at work and increases in the minimum wage are good not just for individuals but for the wider economy. She mentioned the many young people in her constituency who will benefit from the moves to parity for the 18 to 20 age band with the adult rate.

My hon. Friend the Member for Ealing Southall (Deirdre Costigan) has great knowledge and experience in this area. She said that this is the beginning of the journey. That is right. We recognise that it will take time to achieve our ambitions for the Low Pay Commission for the people in this country, but it is a journey we are determined to finish.

My hon. Friend the Member for Blaydon and Consett (Liz Twist) took us back into the depths of history. I must declare that I am one of those who can remember what it was like before the minimum wage. When I tell my children how much I used to earn in my first jobs, they cannot believe it. But it was true: that is what the world was like before the minimum wage. She also reminded us of the doom-laden warnings we got from the Conservative Opposition at the time. We heard a small echo of that tonight, but I think history has proved that those warnings were wrong.

My hon. Friend the Member for Doncaster Central (Sally Jameson) spoke passionately about the issues with in-work poverty, which is one of the key things that we must change in this country. For too long, people have not had work pay for them. Earnings have not kept up with the cost of living and that is one of the reasons why the Low Pay Commission’s remit has changed.

[Mark Sewards (Leeds South West and Morley) (Lab)]

I am very grateful to the Minister for giving way. The Low Pay Commission previously said that about 300,000 people are not being paid the minimum wage despite being on it—they are being underpaid. Will he update the House on the Government’s progress to ensure that all people on the minimum wage are paid the minimum wage?

[Justin Madders]

My hon. Friend makes a very important point that those rights are only as good as the ability of the Government to enforce them. As we know, His Majesty’s Revenue and Customs has a very effective system to deliver on the minimum wage and we will shortly be releasing our latest round of naming and shaming of those employers who have not done the right thing. We hope that the fair work agency, when it is established, will be even more effective at delivering fairness across the country and ensuring that everyone gets the minimum wage they deserve. We know there are particular sectors where there are acute challenges.

I turn to the points made by the Scottish National party spokesperson, the hon. Member for Dundee Central (Chris Law), about the bills and costs of an 18-year-old being the same as those for an adult. That is something I absolutely understand. It is why we changed the Low Pay Commission’s remit to ensure that we eventually get parity for that age group on the full adult rate. It is also why we have changed the remit of the Low Pay Commission to move towards a real living wage for all adults. We understand that that is such an important thing for us to deliver on. He may feel that we are not quite there yet, and we must ensure we take evidence as we go along from businesses on how it impacts on particular sectors and particular parts of society, but 18 to 20-year-olds are getting a £2,500 pay rise this year as a result of the regulations. That is something I am sure he will welcome.

My hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland) raised very well the regional impacts of the wage increase in his part of the world. It is the case that the regulations will mean 140,000 workers in the north-east, or 14.5% of the total workforce in that region, will benefit from the increase. We should all be absolutely delighted about that.

My hon. Friend the Member for Kettering (Rosie Wrighting) also raised in-work poverty. That is why the remit is being changed. We want to ensure that in-work poverty is consigned to the history books.

My hon. Friend the Member for Hendon (David Pinto-Duschinsky) set out in stark terms the figures associated with the regulations. I may mention them again at some point before I finish. They are the bold numbers that will go directly into people’s pockets and that we can show as tangible proof of a Labour Government delivering for working people.

My hon. Friend also raised the matter of the empty Opposition Benches. I do not want to equate that with meaning that the Conservatives do not support these increases, as I think the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), said that they did. I do put her on notice, though, that her party leader has been less than full in her support for the minimum wage, so I hope that the shadow Minister’s support for today’s measures has not damaged her career prospects. It may well be that there is another leader in a few months anyway, and that things will be looking up. We do hope that the Conservatives continue to support the minimum wage as we move forward and that they do not change tack now that they have entered opposition.

However, the shadow Minister did raise a number of important questions, which I will now try to address. She raised the impact on public sector workers. Of course, pay for most frontline workers is set through pay review body processes, which do take account of national living wage increases as part of their processes. We do not believe that many public sector workers will be directly affected by this change, but it is something the Departments will take into account when they set their budgets.

The shadow Minister also asked about the cumulative impact of the changes. The impact assessment does show that this year’s upratings will represent a 0.14% increase in the UK-wide wage bill, which I think is incredibly good value for what we are delivering into people’s pockets. Of course, the total impact of the Employment Rights Bill is, at most, 0.4% of the total wage bill.

The hon. Lady raised questions about burdens on SMEs. The Low Pay Commission does take into account the impact on business as part of its operations. It looks at the competitiveness of individual businesses, the labour market and the wider economy, drawing on extensive labour market pay analysis and stakeholder evidence when recommending rates, and we would expect the commission to do exactly the same next year. Small businesses have, of course, had support from this Government. We have increased the employment allowance from £5,000 to £10,500, meaning that 865,000 employers will pay no national insurance contributions at all, and more than half of employers will gain or see no change from this measure. We have also extended business rates relief for the retail, hospitality and leisure sectors.

The hon. Lady raised concerns about the impact of the measures on young people. The youth guarantee will ensure that every young person has access to education or training to help them to find a job, and we are transforming the apprenticeship levy to ensure that young people get the opportunities they deserve.

The shadow Minister raised concerns about the overall labour market. I would just make the point that payroll employment is actually higher now than it was this time last year, and the latest labour force survey last week showed record numbers of people in work. Perhaps the negative headlines that we have been seeing are not actually the reality of the situation. I like to deal with facts, Madam Deputy Speaker, and the facts are that these regulations will put more money into the pockets of workers around the country—around 200,000 workers in Scotland, 160,000 workers in Northern Ireland and 150,000 workers in Wales. This will make a real difference to people: £1,400 for a full-time worker and £2,500 for someone on the 18-to-20 rate.

This is truly a worthwhile exercise, and we thank the Low Pay Commission for its work, as well as HMRC, which enforces on behalf of the Department, and ACAS, which offers impartial advice and expertise to ensure that workplace disputes can be resolved and workers’ rights can be upheld. This is a meaningful change being delivered by this Government that delivers a powerful message: this Government, and indeed this Parliament, are committed to making work pay. These real-terms increases to the minimum wage will end insecurity at work. I commend these regulations to the House.

Question put and agreed to.

Resolved,

That the draft National Minimum Wage (Amendment) Regulations 2025, which were laid before the House on 4 February, be approved.

St Patrick’s Day: UK Bank Holiday

Justin Madders Excerpts

Tuesday 18th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I congratulate the hon. Member for Strangford (Jim Shannon) on securing this Adjournment debate. I know that he is not familiar with the operation of Adjournment debates, so I am glad that he has found his way here this evening. If he wants to intervene, he will have about 10 minutes to do so—we would not want that streak to be broken, would we?

I wish the hon. Gentleman and everyone a belated but very happy St Patrick’s day. I enjoyed hearing his contribution on what St Patrick’s day means to him and to his community in Northern Ireland. I know that he has spoken very passionately about this subject on a number of occasions, as we would expect. In preparation for this debate, I contacted my family historian—my mum—to understand my Irish roots. Going back several generations, I have a fair bit over there, so I am pleased to report that I had one pint of Guinness yesterday to mark the occasion.

The Government appreciate the deep cultural and religious significance of St Patrick’s day to many nationalists and Unionists across Northern Ireland, some of whom revere St Patrick for his role in the arrival and growth of Christianity on the island. As the hon. Member for Strangford said, he is for everybody. It is also a cherished day for those who serve and have served in the Irish regiments of the British Army, with the annual presentation of the shamrock to the Irish Guards by members of the royal family. The familial relationship with Ireland and Northern Ireland is so important to people across the UK, as it is to this Government. By way of just one example, our NHS is stronger for the contributions of the many Irish nationals who serve in it today and have done since its founding. The most recent statistics, from June 2023, showed that nearly 14,000 members of NHS staff were Irish, including doctors, nurses, and of course support staff.

Following the recent general election in Ireland, the Secretary of State for Northern Ireland and the Tánaiste have discussed the strength of the bilateral relationship, our shared commitment to the Good Friday agreement, and the importance of upholding political stability in Northern Ireland. We have also increased engagement between the two Governments, especially through the new Prime Minister-Taoiseach summits. The first of those summits took place on 5 March, about a mile from where I live in my constituency, although for some reason my invite did not quite reach me—I do not know why that was. It was clear from that summit that the Prime Minister and the Taoiseach have agreed a joint vision for co-operation through to 2030, which will bring our two countries together like never before. Through the British-Irish Intergovernmental Conference and the British-Irish Council, we engage regularly with the Irish Government and the Northern Ireland Executive on matters of shared concern.

Of course, many people across the world look forward to the annual St Patrick’s day celebrations, which showcase the significant contributions of Irish people. This year, we saw parades through the cities of Belfast, Cardiff, Glasgow, Liverpool and Leeds, and here in London in Trafalgar Square.

[Jim Shannon]

Will the Minister give way?

[Justin Madders]

If the hon. Member wants to intervene, he knows how to.

[Jim Shannon]

I thought it was important that I should do so, although I wanted to do so anyway. The diaspora in England, Scotland and Wales is massive. It is not just in the NHS, as the Minister has referred to; it is also in the construction business. Whenever I come over on the plane from Belfast or return, I see workers going over to build in London and then going back on the weekend. The diaspora includes farmers and businessmen. The connections between England, Scotland, Wales, Northern Ireland and the Republic of Ireland are enormous, and may I say, Minister, that the diaspora wants to have St Patrick’s day as a UK bank holiday as well.

[Justin Madders]

I thank the hon. Member for his intervention. I am sure that if I did some polling, there would be support, but I will come on to some of the reasons why we may not be able to grant him his wish on this occasion.

During the Secretary of State for Northern Ireland’s recent visit to Washington, he participated in the annual St Patrick’s day events and engaged with the US Administration, congressional members, business leaders and key stakeholders. He promoted Northern Ireland as a fantastic place to invest, work and live, highlighting its unique access to both the UK’s internal market and the EU’s single market. I am very pleased that the Under-Secretary of State for Northern Ireland, my hon. Friend the Member for Putney (Fleur Anderson), is in the Chamber tonight. She has been very active during St Patrick’s season, attending receptions for community and business leaders in Stormont and Westminster.

[Liam Conlon (Beckenham and Penge) (Lab)]

Lá fhéile Pádraig sona daoibh go léir—happy St Patrick’s day. St Patrick’s day is a time to bring people together, often in our local pubs. Will the Minister join me in thanking Irish pub landlords up and down the country, including Michael Duffy and Joe Duffy, who run the Chancery and the Jolly Woodman in Beckenham?

[Justin Madders]

I join my hon. Friend in congratulating the Duffys on operating those pubs. I wonder whether he will be visiting them shortly to remind them of the good publicity he has given to a local business in his constituency.

Turning to the nub of the hon. Member for Strangford’s speech, St Patrick’s day is of course already a bank holiday in Northern Ireland, providing its people with the opportunity to mark that important cultural and religious occasion. The Banking and Financial Dealings Act 1971 specifies which days in each year are bank holidays, and contains provisions for appointing additional or substitute days. That Act designates 17 March as a bank holiday in Northern Ireland. The decision to create an additional bank holiday in Northern Ireland for St Patrick’s day was taken against the backdrop of Northern Ireland’s economic, social, cultural and legal systems. The current pattern of bank holidays is well established, and I am afraid that the Government do not have any plans to extend the St Patrick’s day bank holiday to other parts of the UK.

Bank holidays are devolved to the Scottish Government, so Scottish Ministers are responsible for decisions about bank holidays in Scotland. I will therefore speak about the merits of a St Patrick’s day bank holiday in Wales and England only.

An additional bank holiday in England and Wales for St Patrick’s day would benefit those who celebrate it, including members of the Irish diaspora in the UK. Certain sectors of the economy, such as pubs and restaurants, might also benefit from increased expenditure on a bank holiday. It is a significant tourism draw to Northern Ireland, too, so I would expect that extending the bank holiday would draw more visitors from England and Wales over there. However, the overall cost to the economy of an additional bank holiday is considerable.

The latest analysis estimates that the costs to the UK economy of a one-off bank holiday is around £2 billion. That estimate is derived from the impact assessment for the platinum jubilee bank holiday weekend held in 2022. An additional bank holiday would also impact on public services. Bank holidays require the closure of schools, courts and tribunals. It may disrupt certain NHS services, such as routine operations. I also point out that there is no statutory right to time off for bank or public holidays specifically. Any right to time off or extra pay for working on a bank holiday depends on the terms of an employee’s contract of employment, and like other terms and conditions of employment, it is a matter for negotiation between employers and workers. Even if the St Patrick’s day bank holiday were extended to England and Wales, not all workers would be able to take it off. For example, many NHS and emergency service workers, many of whom we have already heard are from Ireland, might still be required to work. We regularly receive requests for bank holidays to mark various historical, cultural, religious and sporting events.

[Adam Jogee]

Many people born on the island of Ireland, whether north or south, like my wife, made Newcastle-under-Lyme their home. Like many of them, I was celebrating St Patrick’s day at the weekend at the Sneyd Arms on Higherland, an excellent local pub. As the Minister has just touched on other bank holidays, will he find time at some other stage to meet me to discuss the benefits of making St George’s day a bank holiday?

[Justin Madders]

My hon. Friend tempts me to talk about another bank holiday, but I am afraid that there would be the same arguments about the economic cost, although I think we should celebrate St George’s day more in this country.

Although we have no plans for a St Patrick’s day bank holiday in England and Wales, the Government strongly encourage employers to respond flexibly to any requests for leave, be that to celebrate St Patrick’s day or any other significant religious or cultural events, whether that is Diwali, Vaisakhi, Magna Carta day, Remembrance Day or St George’s day. It is important that we can take time out to celebrate these events. I thank the hon. Member for Strangford for securing this important debate. The message of unity that he came to us with from St Patrick is one that I share with him.

Question put and agreed to.

Oral Answers to Questions

Justin Madders Excerpts

Thursday 13th March 2025 Commons Chamber

[Callum Anderson (Buckingham and Bletchley) (Lab)]

3. What steps his Department is taking to improve the regulatory environment.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The regulatory environment does not work as well as it should. Unnecessary red tape is choking competitiveness, creating unnecessary burdens for business and putting up barriers to growth. That is why we are introducing a Government-wide target to reduce the administrative costs of regulation by 25% by the end of this Parliament. That will be supported by a baselining exercise to understand the administrative costs of regulation to businesses. The Prime Minister will set out more details later today. This is just the beginning; details of our ambitious action plan to reform the regulatory landscape will be set out shortly.

[Callum Anderson]

Over eight years and four Prime Ministers, the last Conservative Government commissioned review after review into UK corporate governance and audit reform, and delivered absolutely nothing. For UK plc to be globally competitive, we need robust corporate governance frameworks which balance the needs of investors and society for information with the administrative burdens on companies. Will the Minister update the House on what progress his Department is making on bringing forward an audit reform and corporate governance Bill?

[Justin Madders]

As my hon. Friend is right to recognise, this issue has been around for some time, and the Government have announced their intention to publish a draft audit reform and corporate governance Bill for scrutiny in this Session. Investors and the public need access to truthful reporting from our most important businesses on their finances and related issues. My Department continues to progress that important work, and a timetable for the publication of the Bill will be confirmed in the usual way for draft legislation in due course.

[Wera Hobhouse (Bath) (LD)]

Since leaving the European Union, we have been diverging progressively and passively —not making an active decision to diverge because it is good for us, but because we cannot keep up with the number of regulations coming through the European Union. That has been particularly disadvantageous for energy trading. What conversations has the Minister had with Government colleagues around aligning with the EU on emissions trading?

[Justin Madders]

That is an important question. The Minister with responsibility for emissions trading, my hon. Friend the Member for Croydon West (Sarah Jones), is in charge of that matter, and it is one of the discussions we are having as part of the EU reset.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

4. What steps he is taking to support high street businesses.

--- Later in debate ---

[Tony Vaughan (Folkestone and Hythe) (Lab)]

7. What steps his Department is taking to help microbusinesses comply with the general product safety regulations.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Government are committed to supporting microbusinesses to comply with the general product safety regulation. For Northern Ireland, we have published additional guidance for businesses, and we will publish an update in the coming weeks, in the light of feedback we have received. We will continue to engage with businesses to ensure that they can trade freely across the UK. Businesses targeting the EU market may use the Government’s export support service. Since October 2024, the Department’s export academy has delivered eight free online GPSR training sessions to almost 5,000 attendees.

[Tony Vaughan]

I thank the Minister for his answer. My constituent George Stevens runs a microbusiness in Lydd making handcrafted stringed instruments; it has been running for over 30 years and he has many EU customers. He is deeply worried about Brexit-related red tape, which is holding back his EU exports. Can the Minister give him an assurance that, as a result of the proposed measures, he will now find it easier to trade with the EU?

[Justin Madders]

Microbusinesses such as that of Mr Stevens are central to the Government’s growth mission. We are committed to strengthening our relationship with the EU and to tackle trade barriers and frictions, and we regularly engage directly with businesses and their representative organisations to understand the difficulties they face. Our export support services help small and medium-sized enterprises navigate opportunities in EU markets and get the practical help they need to do so. For example, the Unlock Europe programme, which was launched in December as part of the export academy, offers practical guidance to help UK businesses enhance their exporting potential to the EU.

[Charlie Maynard (Witney) (LD)]

Our country’s very high electricity costs are another huge problem facing businesses in my constituency and nationally. Reintegrating our power markets with Europe’s through the single-day ahead coupling system would cost our country nothing, save costs for businesses, reduce carbon dioxide and make our power markets more efficient. Will the Minister take fast steps to reintegrate our electricity markets with those of our European neighbours?

[Justin Madders]

I thank the hon. Member for his tangential question relating to GPSR. He makes an important point about energy costs, and we are working closely with the EU on how to build on that, and of course the industrial strategy will also be looking very closely at how energy costs can be brought down for businesses.

[Katie Lam (Weald of Kent) (Con)]

8. If he will take steps to reduce employment regulation for businesses.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The plan to make work pay is central to our plan for change, to grow the economy, raise living standards and create opportunities for all. It will tackle low pay, poor working conditions and job insecurity, creating long-term growth and investment to support businesses. Insights gained from our ongoing engagement with businesses will help us ensure proportionate and effective policy. Our plan to make work pay will ensure a level playing field, so that employers that are trying to do the right thing are not undercut.

[Katie Lam]

I sent a survey about how the Government have treated business to every registered company in the Weald of Kent, and they are terrified. Some 80% of them—four in five—are less likely to hire following soaring taxes and the truly dire Employment Rights Bill. The Regulatory Policy Committee found the Government’s own impact assessment for the Bill not fit for purpose. Will the Minister conduct a proper assessment of the damage the Bill will do, or should I send him mine?

[Justin Madders]

I am always grateful for advice. If the hon. Lady is conducting surveys, she might look at the one that said that 76 of her constituents supported the plans in the Bill to bring in day one rights for sick pay. The importance of this Bill cannot be overstated. We have a plan to bring businesses up to a standard where work is respected and people have security and dignity. If the hon. Lady cannot understand that, then she needs to get out a bit more.

[Josh Newbury (Cannock Chase) (Lab)]

9. What steps his Department is taking to support trade union recognition in the workplace.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Government are committed to simplifying the process and law around trade union recognition so that working people have a more meaningful right to organise through trade unions—of course, I refer to my entry in the Register of Members’ Financial Interests in this respect. Through the Employment Rights Bill, we are reforming the process for statutory recognition applications; with existing thresholds presenting too high a hurdle in modern workplaces, they are increasingly fragmented. We are also taking steps to strengthen protections against unfair practices during the recognition process, which we debated at length yesterday.

[Josh Newbury]

In January, Bidfood, a food wholesaler and major employer in my constituency, announced overnight that it would derecognise the GMB and Unite the union, removing the ability of thousands of workers across the country to collectively bargain through their trade unions. The unions fear that Bidfood workers could now be left at risk of fire and rehire before protections in this Government’s Employment Rights Bill come into force. Does the Minister agree that employers should not be trying to dodge protections under the Government’s plan to make work pay, and will he join me in supporting the GMB and Unite as they seek to protect their workers at Bidfood?

[Justin Madders]

My hon. Friend will understand that I cannot comment on individual cases, but I am deeply troubled by what he has said. I can be clear that the Government are determined to reset industrial relations, so that employers and trade unions work together in partnership rather than in conflict, as we have heard. We encourage all employers to engage with unions in the spirit of co-operation and collaboration. Working in that way benefits employers and workers alike. As he knows, the Employment Rights Bill will end the unscrupulous practice of fire and rehire, which has no place in a modern economy and workplace, so if any company is thinking of doing that, it should think again.

[Jim Shannon (Strangford) (DUP)]

I very much welcome the Minister’s response. After I worked in my mum and dad’s shop, I joined the firm Henry Denny and I was required to join the union. I was not sure about joining, but when I did so I found out that the union backed me as a worker against the employers whenever they were bringing in things that were wrong. So I encourage everybody who joins a workforce to join a union, because it will protect them whenever they need help.

[Justin Madders]

The hon. Member could not have put it better. He has explained the benefits of trade union membership, which is something that Members on the Conservative Benches clearly do not understand.

[Mr Speaker]

I call the Father of the House.

--- Later in debate ---

[Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)]

T7. The big six supermarkets are acting like a cartel, forcing unfair prices on farmers and pursuing unscrupulous practices such as farm washing. Does the Minister agree with me that we should look again at the Groceries Code Adjudicator and consider whether it is fit for purpose?

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I thank my hon. Friend for her question. The Groceries Code Adjudicator’s annual survey shows high levels of compliance by the supermarkets. However, a statutory review will actually commence next month, and I would encourage her and all stakeholders to contribute to it.

[Mr Speaker]

Now it is Chris Law’s turn.

--- Later in debate ---

[Lauren Edwards (Rochester and Strood) (Lab)]

The invest in women taskforce aims to drive investment in female-powered businesses at every stage. That includes putting more money in the hands of female investors, as we know that women back women. Does the Minister agree that one solution to tackling the gender disparity in investment decision-making roles is to set a minimum level of female representation for all investment committees that receive British Business Bank funding?

[Justin Madders]

My hon. Friend is absolutely right. There is a strong correlation between the proportion of women on an investment committee and the proportion of female founders receiving investment. My Department leads on the investing in women code, whose 270 signatories commit to supporting female entrepreneurship. One of the key metrics we check is the gender balance on investment committees and investment teams. I am pleased to say that the code signatories significantly outperform the wider market in their support for female founders. Investment funds backed by the British Business Bank are expected to sign up to the code and the bank itself is a signatory.

Employment Rights Bill

Justin Madders Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

Brought up, and read the First time.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

With this it will be convenient to discuss the following:

Government new clause 40—Political funds: requirement to pass political resolution.

Government new clause 41—Industrial action ballots: support thresholds.

Government new clause 42—Notice of industrial action ballot and sample voting paper for employers.

Government new clause 43—Period after which industrial action ballot ceases to be effective.

Government new clause 44—Power to give notice of underpayment.

Government new clause 45—Calculation of the required sum.

Government new clause 46—Period to which notice of underpayment may relate.

Government new clause 47—Notices of underpayment: further provision.

Government new clause 48—Penalties for underpayment.

Government new clause 49—Further provision about penalties.

Government new clause 50—Suspension of penalty where criminal proceedings have been brought etc.

Government new clause 51—Appeals against notices of underpayment.

Government new clause 52—Withdrawal of notice of underpayment.

Government new clause 53—Replacement notice of underpayment.

Government new clause 54—Effect of replacement notice of underpayment.

Government new clause 55—Enforcement of requirement to pay sums due to individuals.

Government new clause 56—Enforcement of requirement to pay penalty.

Government new clause 57—Power to bring proceedings in employment tribunal.

Government new clause 58—Power to provide legal assistance.

Government new clause 59—Recovery of costs of legal assistance.

Government new clause 60—Power to recover costs of enforcement.

New clause 8—Prison officers: inducements to withhold services—

“In section 127 of the Criminal Justice and Public Order Act 1994 (Inducements to withhold services or to indiscipline)—

(a) in subsection (1), omit paragraph (a);

(b) omit subsection (1A);

(c) omit subsection (7).”

This new clause would repeal provisions in the Criminal Justice and Public Order Act 1994 that prohibit inducing a prison officer to take (or continue to take) any industrial action.

New clause 9—Inducement of prison officers: exempted persons—

“After section 127A of the Criminal Justice and Public Order Act 1994 (inducements to withhold services or to indiscipline), insert—

“Section 127B: Prison officers and trade unions: exempted persons

Section 127 (inducements to withhold services or to indiscipline) does not apply to—

(a) Any listed trade union representing prison officers, or

(b) any person acting on behalf of a listed trade union representing prison officers.””

This new clause would repeal, with respect to trade unions representing prison officers, provisions that prohibit the inducement of industrial action or indiscipline by a prison officer.

New clause 19—Right to be accompanied—

“(1) Section 10 of the Employment Relations Act 1999 (right to be accompanied) is amended as follows.

(2) In subsection (3), after paragraph (b) insert—

“(ba) person who has been reasonably certified in writing by a Professional Body as having experience of, or as having received training in, acting as a worker’s companion at disciplinary or grievance hearings, or”

(3) After subsection (7) insert—

“(8) In this section, “Professional Body” means any organisation which is authorised by a regulation made by the Secretary of State pursuant to subsection (9).

(9) The Secretary of State may make a regulation or regulations authorising any organisation as a Professional Body for the purposes of this section.””

This new clause would expand the right to be accompanied by a certified companion at disciplinary and grievance hearings.

New clause 28—Enforcement against companies subject to insolvency or voluntary liquidation—

“(1) A Labour Market Enforcement Strategy under section 81 must include—

(a) the Secretary of State’s assessment of—

(i) the scale and nature of non-compliance with employment tribunal awards due to insolvency or voluntary liquidation during the period of three years ending immediately before the strategy period;

(ii) the scale and nature of such non-compliance involving phoenixing during the same period; and

(iii) the likely scale and nature of such non-compliance during the strategy period;

(b) a proposal for the strategy period setting out how enforcement functions of the Secretary of State are to be exercised in relation to such non-compliance.

(2) An annual report under section 82 must include―

(a) an assessment of the effect of the applicable strategy on the scale and nature of non-compliance with employment tribunal awards, including non-compliance due to insolvency or voluntary liquidation, and

(b) an assessment of the effect of the applicable strategy on the scale and nature of non-compliance involving phoenixing.

(3) For the purposes of this section, “phoenixing” means the practice of dissolving or otherwise closing a business and establishing a new one with a similar purpose, with the effect of avoiding the enforcement of employment tribunal awards or other debts.”

This new clause would require the Secretary of State to include, in the Labour Market Enforcement Strategy and annual reports under this Bill, information about non-compliance with employment tribunal awards by, and enforcement against, companies ordered to pay such awards that have been subject to insolvency or voluntary liquidation, including in instances in which the directors go on to set up a similar company to avoid enforcement.

New clause 29—Trade union representatives: right not to suffer career detriment—

“(1) In Part V of the Employment Rights Act 1996 (Protection from suffering detriment in employment), after section 47(1A), insert—

“(1B) This section applies where the detriment in question relates to matters of internal promotion or progression.”

(2) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended in accordance with subsections (3) to (6).

(3) In the italic title before section 137, after “Access to employment”, add “and career progression”.

(4) After section 138, insert—

“138A Career progression

(1) An employer must ensure that any employee undertaking trade union representative duties does not experience detriment in matters of internal career progression as a result of the employee’s trade union activities.

(2) Where an employee who is a trade union representative has not been appointed to a more senior role, in circumstances in which the employee met the minimum criteria for the role and demonstrated that criteria through the application, the employer must provide a written statement.

(3) The written statement under subsection (2) must include evidence to demonstrate that the decision not to appoint the employee was not affected by the employee’s trade union activities.

138B Career progression: support for trade union representatives

An employer must have in place a policy to support the career progression of employees who are trade union representatives. The policy must set out―

(a) how the employees will be supported in matters of internal progression and promotion; and

(b) how the employer will consider trade union experience in assessing applications for more senior roles.””

(5) In section 140(1), after “section 138” insert “or 138A”.

(6) In section 142(1), after “section 138” insert “or 138A”.””

This new clause would enhance protections to trade union representatives, extending them to cover detriment in matters of career progression, and would require employers to demonstrate that they have not denied promotion to trade union representatives as a result of their trade union activities. It would also require employers to have a policy in place to support the career progression of employees who are trade union representatives.

New clause 31—Removal of secondary action provisions—

“In the Trade Union and Labour Relations (Consolidation) Act 1992, omit section 224 (secondary action).”

New clause 64—Duties of trade unions—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) In section 219 (protection from certain tort liabilities), after subsection (4) insert—

“(5) But subsection (4) does not have effect in relation to any act in contemplation or furtherance of a trade dispute which relates wholly or mainly to proposals by an employer to vary terms and conditions of employment of two or more employees accompanied by the threat (explicit or implied) of dismissal if that variation is not agreed.””

New clause 65—Personal Liability for breach of tribunal orders—

“(1) Where, in relation to a body corporate—

(a) a financial order made by an employment tribunal or agreed by the claimant and the body corporate; or

-(b) an order of reinstatement or re-engagement made by an employment tribunal or agreed by the claimant and the body corporate

has not been fulfilled by the date specified in the order or agreement, without reasonable excuse, and that failure is proved—

(a) to have been committed with the consent or connivance of an officer of the body, or

(b) to be attributable to any neglect on the part of such an officer,

that officer shall be personally liable to reimburse the claimant in whose favour the order had been made or agreed.

(2) An officer found liable for reimbursement under subsection (1) may be disqualified as a director or prevented from becoming a director.”

New clause 66—Public sector contracting: trade union recognition—

“(1) The Procurement Act 2023 is amended as follows.

(2) In Part (2) (principles and objectives), after section 14A insert—

“14B Obligations of contractors to recognise trade unions

(1) The Secretary of State has a duty to ensure that any contract entered into by a—

(a) government department;

(b) executive agency of government;

(c) non departmental public body; or

(d) non Ministerial department,

is compliant with the requirements set out in subsection (2).

(2) A contract under subsection (1) must─

(a) recognise an independent trade union for the purposes of collective bargaining, and

(b) take steps to ensure that any sub-contractor to the contractor which carries out any obligation under the public contract recognises an independent trade union for the purposes of collective bargaining.

(3) For the purposes of this section, “recognises”, “independent trade union” and “collective bargaining” have the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992.

(4) An independent trade union may make a complaint against a contracting authority, which is a party to a public contract, that it or a contractor or sub-contractor which carries out any obligation under the public contract is in breach of the term in subsection (2).

(5) The complaint may be made to the Central Arbitration Committee.

(6) If the Central Arbitration Committee finds the complaint to be well founded, it shall grant a declaration to that effect.

(7) Where the Central Arbitration Committee makes a declaration in accordance with subsection (6), it shall order that the respondent contracting authority shall take whatever steps appear to the Central Arbitration Committee as necessary to ensure that the contracting authority and every contractor or sub-contractor which carries out any obligation under the public contract comply with the implied term in subsection (2).

(8) The steps that may be taken under subsection (7) include termination of the contract, which shall not be regarded as a breach of contract by the contracting authority concerned if a principal reason for the termination is compliance with an order of the Central Arbitration Committee under (7).

(9) An appeal lies on a point of law to the Employment Appeal Tribunal by either party to proceedings brought under subsection (5).””

New clause 67—Sectoral collective bargaining: 80 per cent coverage—

“(1) The Secretary of State must, within six months of the passing of this Act, lay before Parliament an action plan to achieve, within five years, that the principal terms and conditions of employment of at least 80 percent of workers in the United Kingdom are determined by collective agreement.

(2) The action plan under subsection (1) must be informed by consultation with organisations representing employers and trade unions.”

New clause 68—Sectoral collective bargaining: other sectors—

“(1) Regulations under this Act may include regulations for collective bargaining in other sectors of the economy.

(2) Regulations made under subsection (1)—

(a) may only be made following consultation with representatives of workers and employers in those sectors; and

(b) may provide that agreements reached by such collective bargaining shall apply to the workers and employers in the relevant sector save to the extent that a previous or subsequent collective agreement has provided a more favourable term or condition.”

New clause 69—Statement of trade union rights—

“Every employee, worker and self-employed person has the right—

(a) to join an independent trade union of his choice, subject only to its rules;

(b) to take part in the activities of an independent trade union at an appropriate time, subject only to its rules.”

New clause 70—Right of Trade Unions to Access Workplaces—

“In part 1 of the Trade Union and Labour Relations (Consolidation) Act 1992 (trade unions), before Chapter 5A, insert—

“Chapter 5ZA

RIGHT OF TRADE UNIONS TO ACCESS WORKPLACES

70ZA Right of access

(1) A designated official of an independent trade union shall have a right to enter premises occupied by an employer in order to access a workplace or workplaces, subject to the conditions set out below.

(2) An employer shall not—

(a) refuse entry to a designated trade union official seeking to exercise his or her right of access under sub-section (1), or

(b) otherwise obstruct such an official in the exercise of his or her right of access under sub-section (1).

(3) A “designated trade union official” means a person nominated by the trade union to exercise the right of access on its behalf.

70ZB Access purposes

(1) The right of access may be exercised for the access purposes.

(2) The access purposes are to—

(a) meet, represent, recruit or organize workers (whether or not they are members of a trade union); and

(b) facilitate collective bargaining.

70ZC Notice to employer

(1) The right of access may be exercised only after the designated official of an independent trade union has given notice of an intention to do so to the employer whose premises it is proposed to enter for the purposes of access to a workplace or workplaces.

(2) The notice must be—

(a) in writing; and

(b) given at least 24 hours before it is intended to exercise the right of access;

(3) The notice required to be given under subsection (2) shall—

(a) specify the purpose for which entry is sought; and

(b) identify the workers or categories of workers the designated official intends to meet, represent, recruit or organize.

(4) The right of access may be exercised without giving notice where there are exceptional circumstances such as to justify access without prior notice.

(5) Whether circumstances are exceptional shall be determined by having regard to the relevant provisions of a Code of Practice issued by ACAS.

70ZD Access conditions

(1) The right of access is subject to the following conditions.

(2) The right of access may be exercised—

(a) only at a reasonable time, and

(b) subject to reasonable conditions imposed by the employer.

(3) What is reasonable for the purposes of subsection (2) shall be determined by having regard to the relevant provisions of a Code of Practice issued by ACAS.

70ZE Dwellings

(1) The right of access does not apply to any part of premises which are used exclusively as a dwelling.

(2) Where sub-section (1) applies and only where sub-section (1) applies, the employer shall provide a reasonable, suitable, and alternative venue to enable the right of access to be exercised.

(3) What is reasonable and suitable for the purposes of subsection (2) shall be determined by having regard to the relevant provisions of a Code of Practice issued by ACAS.

70ZF Enforcement of right of access

(1) Where an employer refuses or obstructs access contrary to section 70ZA, a complaint may be made to the CAC by the trade union of which the designated official is a representative.

(2) Where the CAC finds the complaint to be well-founded it shall make a declaration to that effect and may make an order requiring the employer to comply with section 70ZA, subject to such conditions as the CAC may determine.

(3) If the CAC makes a declaration under subsection (2) the trade union may, within the period of three months beginning with the date on which the declaration is made, make an application to the Employment Appeal Tribunal for a penalty notice to be issued.

(4) Where such an application is made, the Employment Appeal Tribunal shall issue a written penalty notice to the employer requiring the employer to pay a penalty to the trade union in respect of each refusal or obstruction of access unless satisfied, on hearing representations from the employer, that the refusal or obstruction of access resulted from a reason beyond the employer’s control or that the employer has some other reasonable excuse.

(5) If the CAC makes an order under subsection (2) the order shall be recorded in the High Court and on being recorded may be enforced as if it were an order of the High Court.

70ZG Penalty notice

(1) A penalty notice issued under section 70ZF(4) shall specify—

(a) the amount of the penalty which is payable;

(b) the date before which the penalty must be paid; and

(c) the failure and period to which the penalty relates.

(2) A penalty set by the Employment Appeal Tribunal under section 70ZF(4) may not exceed a prescribed amount.

(3) Matters to be taken into account by the Employment Appeal Tribunal when setting the amount of the penalty shall include—

(a) the gravity of each refusal or obstruction of access;

(b) the period of time over which each refusal or obstruction of access occurred;

(c) the number of occasions on which each refusal or obstruction of access occurred;

(d) the reason for each refusal or obstruction of access;

(e) the number of workers affected by each refusal or obstruction of access; and

(f) the number of workers employed by the undertaking.

(4) The Employment Appeal Tribunal shall also take into account any previous refusal or obstruction of access to a designated official of the independent trade union to which the application relates.

(5) If the specified date in a penalty notice for payment of the penalty has passed and—

(a) the period during which an appeal may be made has expired without an appeal having been made; or

(b) such an appeal has been made and determined, the trade union may recover from the employer, as a civil debt due to it, any amount payable under the penalty notice which remains outstanding.

(6) The making of an appeal suspends the effect of a penalty notice pending the outcome of the appeal.

70ZH Other provisions relating to trade union access

(1) Sections 70ZA-70ZG are in addition and without prejudice to any other provisions relating to trade union access to workers.

(2) For the avoidance of doubt, the latter include but are not confined to—

(a) Section 188(5A) of this Act

(b) Sections 198A and 198B of this Act;

(c) Schedule A1, paragraphs 26 and 118 of this Act;

(d) ACAS Code of Practice on time off for trade union duties and activities issued under section 199 of this Act, for the time being in force; and

(e) Any collective agreement which makes more favourable provision.””

New clause 82—Fair Work Agency: review of resourcing—

(1) The Secretary of State must conduct a review of the resources available to the Fair Work Agency.

(2) The review must be published and laid before Parliament within six months of this section coming into force.”

This new clause asks the Secretary of State to review the resources available to the Fair Work Agency to ensure that enforcement of provisions in the Act are effective.

New clause 88—Rules as to political fund—

(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) In subsection (1) of section 84 (Contributions to political fund from members of the union), after subsection (1), insert—

“(1A) An opt-in notice under subsection (1) must include the member of the trade union’s consent to annual renewal of the contribution to the political fund (a “renewal opt-in”).

(1B) The renewal opt-in must be sent by the member of the trade union─ (a) within six months of the initial opt-in and every six months thereafter, or (b) each time payment is due, at least 28 days before payment is taken, whichever is longer.

(1C) If the member of the trade union does not provide a renewal opt-in, the trade union must provide a date by which the member must notify the trade union of their consent to continued contribution towards the political fund, which must be no earlier than 28 days before the next payment to the political fund is due.

(1D) If the member has not—

(a)opted into an arrangement under subsection (1A) or (1B), or

(b) given notification of their consent to continued contributions by the date specified under subsection (1C),

their payments to the political fund must cease before the renewal date.””

This new clause will ensure that trade union members are asked whether they wish their contribution to the political fund to renew automatically and would require that, if the member does not wish to renew their contribution, the union must provide a date by which the member has to confirm they wish to continue to contribute.

New clause 89—Certification Officer: growth duty—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) In section 254 (The Certification Officer), after subsection (2), insert—

“(2A) In discharging the functions of the Certification Office, the Certification Officer must, so far as reasonably possible, act in such a way as to advance the following objectives—

(a) the international competitiveness of the economy of the United Kingdom; and

(b) economic growth of the United Kingdom in the medium to long term.””

This new clause would require the Certification Officer to advance the objectives of the international competitiveness of the economy and its growth in the medium to long term.

New clause 90—Regulations under Part 4—

“When making regulations under Part 4 of this Act, the Secretary of State must have regard to the following objectives—

(a) the international competitiveness of the economy of the United Kingdom; and

(b) the economic growth of the United Kingdom in the medium to long term.”

This amendment would require the Secretary of State, when making regulations under Part 4 of the Bill, to have regard to the objective of the international competitiveness of the economy and its growth in the medium to long term.

New clause 98—Pressure to impose union recognition requirement—

“In the Trade Union and Labour Relations (Consolidation) Act 1992, omit section 225 (Pressure to impose union recognition requirement).”

This new clause would remove section 225 from the Trade Union and Labour Relations (Consolidation) Act 1992 on pressure to impose union recognition requirement.

New clause 99—Electronic balloting—

“(1) The Secretary of State must, within six months of the passing of this Act, lay before Parliament a statutory instrument containing an order under section 54 of the Employment Relations Act 2004.

(2) That order must specify that—

(a) permissible means may, in the case of any description of ballot or election, include (or consist of) electronic voting; and

(b) any ballot or election including (or consisting of) electronic voting must be conducted pursuant to section 230 (Conduct of ballot) of the Trade Union and Labour Relations (Consolidation) Act 1992.

(3) The Secretary of State must not make an order under this section until a consultation with the Trades Union Congress and the Certification Officer has been conducted.

(4) An order under this section may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause requires the Secretary of State to make an order for electronic voting in a ballot or election pursuant to section 54 of the Employment Relations Act 2004 within six months of the passing of this Act, and following consultation with the TUC.

New clause 100—Notice to employers of industrial action: amendment—

“In section 234A of the Trade Union and Labour Relations (Consolidation) Act 1992, omit subsections (3) to (9) and insert—-

“(3) For the purposes of this section a relevant notice is one in writing which—

(a) identifies—

(i) the day or the first of the days on which, at the time of the service of the relevant notice, the union proposes to call industrial action; and

(ii) the categories of employee the union intends to call on to take industrial action; and

(b) must be provided to the employer as early as practicable after the ballot result is known and the decision to take industrial action in furtherance of it has been taken.

(4) If the industrial action relates to an event which has already taken place, no relevant notice shall be required.””

This new clause replaces the provisions in section 234A of the Trade Union and Labour Relations (Consolidation) Act 1992 to define a relevant notice for industrial action, when one must be provided and when one is not required.

New clause 103—Public sector contracting: trade union recognition—

“(1) The Procurement Act 2023 is amended as follows.

(2) In Part (2) (principles and objectives), after section 14A insert—

“14B Obligations of contractors to recognise trade unions

(1) The Secretary of State has a duty to ensure that any contract entered into after the coming into force of this Act by a—

(a) government department;

(b) executive agency of government;

(c) non departmental public body; or

(d) non Ministerial department,

is compliant with the requirements set out in subsection (2).

(2) A contract under subsection (1) must require the contractor to such a contracting authority to—

(a) recognise an independent trade union for the purposes of collective bargaining, and

(b) take steps to ensure that any sub-contractor to the contractor which carries out any obligation under the public contract recognises an independent trade union for the purposes of collective bargaining.

(3) For the purposes of this section, “recognises”, “independent trade union” and “collective bargaining” have the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992.

(4) An independent trade union may make a complaint against a contracting authority, which is a party to a public contract, that it or a contractor or sub-contractor which carries out any obligation under the public contract is in breach of the term in subsection (2).

(5) The complaint may be made to the Central Arbitration Committee.

(6) If the Central Arbitration Committee finds the complaint to be well founded, it shall grant a declaration to that effect.

(7) Where the Central Arbitration Committee makes a declaration in accordance with subsection (6), it shall order that the respondent contracting authority shall take whatever steps appear to the Central Arbitration Committee as necessary to ensure that the contracting authority and every contractor or sub-contractor which carries out any obligation under the public contract comply with the implied term in subsection (2).

(8) The steps that may be taken under subsection (7) include termination of the contract, which shall not be regarded as a breach of contract by the contracting authority concerned if a principal reason for the termination is compliance with an order of the Central Arbitration Committee under subsection (7).

(9) An appeal lies on a point of law to the Employment Appeal Tribunal by either party to proceedings brought under subsection (5).””

This new clause is designed to ensure that all public contractors comply with the duty to recognise a trade union for the purposes of collective bargaining and that such contractors take steps to ensure that any sub-contractors do the same. The terms “contracting authority” and “public contract” are defined in section 2 and 3 of the Procurement Act.

New clause 106—Collective bargaining—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) In section 209, after “industrial relations” insert—

“and in particular to encourage the extension of collective bargaining and the development and, where necessary, reform of collective bargaining machinery.””

This would add duties around collective bargaining to the general duty of ACAS.

New clause 107—Whether agreement intended to be a legally enforceable contract—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) For section 179, substitute—

“179 Whether agreement intended to be a legally enforceable contract

(1) A collective agreement shall be conclusively presumed to have been intended by the parties to be a legally enforceable contract unless the agreement—

(a) is in writing, and

(b) contains a provision which (however expressed) states that the parties do not intend that the agreement shall be a legally enforceable contract.

(2) A collective agreement which satisfies those conditions shall be conclusively presumed not to have been intended by the parties to be a legally enforceable contract.

(3) If a collective agreement is in writing and contains a provision which (however expressed) states that the parties intend that one or more parts of the agreement specified in that provision, but not the whole of the agreement, shall not be a legally enforceable contract, then—

(a) the specified part or parts shall be conclusively presumed not to have been intended by the parties to be a legally enforceable contract, and

(b) the remainder of the agreement shall be conclusively presumed to have been intended by the parties to be such a contract.

(4) A part of a collective agreement which by virtue of subsection (3)(a) is not a legally enforceable contract may be referred to for the purpose of interpreting a part of the agreement which is such a contract.””

This new clause replaces Section 179 on whether agreement intended to be a legally enforceable contract in the Trade Union and Labour Relations (Consolidation) Act 1992

New clause 108—Industrial action: workers’ rights—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) After section 219, insert—

“219A Right to strike

Every worker shall have the right to take industrial action, whether or not in breach of any contract, subject to the provisions of this Part.”

(3) Omit section 223 (Action taken because of dismissal for taking unofficial action).”

This new clause would establish a clearer right to strike and remove provisions from the Trade Union and Labour Relations (Consolidation) Act 1992 that make strike action unlawful on the grounds that it turns out (retrospectively) that the action the worker took was unofficial.

New clause 109—Industrial action and ballots—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) Omit—

(a) section 224 (Secondary action)

(b) 225 (Pressure to impose union recognition requirement)

(c) 226A (Notice of ballot and sample voting paper for employers)

(d) 228 (Separate workplace ballots), and

(e) 228A (Separate workplaces: single and aggregate ballots).

(3) In section 234 (Period after which ballot ceases to be effective), omit subsections (1) to (5) and substitute:

“(1) Industrial action that is regarded as having the support of a ballot shall cease to be so regarded when─

(a) the dispute which gave rise to it ceases, or

(b) the union has taken no steps to pursue the dispute for a period of six months.”

(4) In subsection (1) of section 244, (Meaning of “trade dispute" in Part V)—

(a) omit “a dispute between workers and their employer” and substitute “a dispute between workers and one or more employers”.

(b) omit “which relates wholly or mainly to” and substitute “connected with”.

(5) In subsection (5) of section 244, omit “a worker employed by that employer” and substitute “a worker employed by an employer”.”

This new clause would remove provisions that ban all forms of secondary action; make changes to the definition of “trade dispute”; enable industrial action to be taken to achieve recognition for collective bargaining; remove obligation on a TU to provide a ballot paper to the employer; give TUs more freedom to choose which constituencies they will ballot; and remove an obligation on the union in a long running dispute to re-run the ballot every six months.

New clause 110—Review into the impact on small businesses—

“(1) The Secretary of State must, within three months of the passage of this Act, lay before Parliament a review on the impact of Part 4 (Trade Unions and Industrial Action, etc) of this Act on small and medium-sized enterprises.

(2) The review under subsection (1) must have regard to—

(a) administrative costs;

(b) legal costs; and

(c) tax changes affecting small and medium-sized enterprises taking effect from the 2025-26 financial year.

(3) For the purposes of this section, small and medium-sized enterprises are businesses employing 250 or fewer employees.”

This new clause would require the Secretary of State to publish a review on the impact of Part 4 of this Bill, on Trade Unions and Industrial Action, on SMEs within 3 months of the passage of this Act.

New clause 111—Legal aid in employment tribunals—

“(1) The Secretary of State must, within three months of the passage of this Act, lay before Parliament a report on the options for expanding the right to legal aid in employment tribunals.

(2) The report under subsection (1) must consider—

(a) the impact employers' compliance with measures contained within this Act; and

(b) the impact on employees’ personal finances.”

This new clause would require the Secretary of State to report on the impact of expanding the right to legal aid in employment tribunals within 3 months of the passage of this Act.

New clause 112—Review of single enforcement body—

“(1) The Secretary of State must, within three months of the passage of this Act, lay before Parliament a review on the impact of a single enforcement body as provided for under Part 5.

(2) The review under subsection (1) must assess the impact of the single enforcement body with the impact between 2019 and 2025 of the following four enforcement bodies—

(a) Gangmasters and Labour Abuse Authority (GLAA)

(b) Employment Agencies Standards Inspectorate (EAS)

(c) His Majesty’s Revenue and Customs (HMRC)

(d) Health and Safety Executive (HSE)

(3) The review under subsection (1) must have regard to—

(a) business compliance costs

(b) Employers’ compliance with employment law

(c) the number of employees seeking support in relation to employment disputes.”

This new clause would require the Secretary of State to review the impact of a single enforcement body compared with separate enforcement bodies within 3 months of the passage of this Act.

Amendment 270, page 61, line 14 leave out clause 50.

New clause 70 is intended to replace clause 50.

Government amendments 162 to 164.

Amendment 282, clause 50, page 61, line 31, after “workplace” insert, or

“(b) the right to use to any digital communications tools used by workers in the workplace.”

This amendment aims to ensure that access for unions to workplaces includes digital means of communication with workers.

Government amendments 165 to 185.

Amendment 271, clause 51, page 69, line 18, at end insert—

“(2A) In paragraph 22 (collective bargaining: recognition)—

(a) leave out sub-paragraph (1)(b) and insert—

“the CAC has evidence, which it considers to be credible, that a majority of workers constituting the bargaining unit want the union (or unions) to conduct collective bargaining on their behalf’.”

(b) leave out subparagraphs (3), (4) and (5).

(2B) In paragraph 25 (collective bargaining: recognition)—

(a) in sub-paragraph (3)(a) leave out “20 working days” and substitute “10 working days”, and

(b) leave out sub-paragraph (3)(b).

(c) after sub-paragraph (4)(a) insert “(aa) by secure electronic voting,”

(d) in sub-paragraph (4)(c) leave out “and b” and substitute “to (c)”

(e) after sub-paragraph (4)(c) insert—

“(d) only amongst those who are employed in the proposed bargaining unit and were so employed at the time the application was made”.

(2C) In paragraph 26 after sub-paragraph (4) insert—

“(3A) In the event that the union (or unions) consider that such access has been unreasonably refused, it (or they) may apply to the CAC for a declaration and order that access be granted and in the event that such a declaration or order is made and the union (or unions) consider that such a declaration or order has been breached it (or they) may apply to the High Court for relief.”

(2D) In paragraph 26 after sub-paragraph (4B) insert—

“(4BA) The sixth duty is to refrain from any act or omission, direct or indirect, likely to encourage a union member or members to resign from union membership or likely to discourage a person from joining a union or any particular union.

(4BB) It shall be unlawful to compel a worker or workers by threat of detriment or dismissal to attend any meeting in which the employer, its servants or agents expresses the view directly or indirectly that—

(a) membership of a union or any union; or

(b) recognition for the purposes of collective bargaining of a union or any union by the employer,

is undesirable.”

(2E) In paragraph 27B(2) leave out “must be made on or before the first working day after” and substitute “must be made within 20 working days after”.

(2F) In paragraph 29 (collective bargaining: recognition) leave out sub-paragraph (3)(b).

(2G) In paragraph 35(1) leave out “a collective agreement under which a union (or unions) are recognised as entitled to conduct collective bargaining” and substitute “a collective agreement under which an independent union (or independent unions) are recognised as entitled to conduct collective bargaining”.

(2H) In paragraph 35(1) after “in the rules” insert “‘in relation to all pay, hours and holidays”.

(2I) In paragraph 39(2)(a) leave out “years” and substitute “months”.

(2J) In paragraph 40(2)(a) leave out “years” and substitute “months”.

(2K) In paragraph 41(2)(a) leave out “years” and substitute “months”.

This amendment makes changes to the Trade Union and Labour Relations (Consolidation) Act 1992 regarding union recognition and balloting.

Amendment 291, page 71, line 1, leave out clause 52.

Amendment 292, clause 52, page 71, line 6, at end insert—

“(2A) In subsection (1) of section 82 (Rules as to political fund), after paragraph (d) insert—

“(e) that trade union members who have not opted out of the political fund must signal, in writing, their agreement to continue contributing to the fund at the end of a period of 12 months after last opting into the fund, and

(f) that trade union members must be given an annual notice about their right to opt out of the political fund.

(1B) A notice under subsection (1)(f) must include a form that enables the member to opt out of the fund.””

This amendment would require trade unions to notify their members every year of their right to opt out of the political fund, and to obtain an annual opt-in to the political fund from their members.

Government amendments 186 to 191.

Amendment 293, page 73, line 6, leave out clause 54.

Amendment 294, page 74, line 14, leave out clause 55.

Amendment 296, clause 55, page 75, line 3, after “employee”, insert—

“, and

(c) in relation to a public sector employer, the performance condition is met.

(3A) The performance condition is met if the Secretary of State is satisfied that the public sector employer is meeting any performance standards set out in a relevant enactment.”

This amendment prevents facility time for equality representatives from being provided unless the relevant public sector organisation is meeting its statutory targets for performance.

Amendment 295, page 78, line 5, leave out clause 56.

Amendment 299, page 78, line 30, leave out clause 58.

Government amendments 192 to 199.

Amendment 315, page 79, line 28, leave out clause 60.

This amendment would leave out Clause 60 on electronic balloting for industrial action. NC99 is intended to replace clause 60.

Government amendments 200 to 201.

Amendment 297, clause 61, page 80, line 6, leave out “seventh” and insert “fourteenth”.

This amendment would increase, from seven to 14 days, the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action.

Government amendment 202.

Amendment 348, page 80, line 9, at end insert—

“(3) The Trade Union and Labour Relations (Consolidation) Act 1992 is also amended as follows.

(4) In section 231 (Information as to result of ballot), omit from “shall” to after “told” and insert—

“display, reasonably prominently on its website, on a webpage reasonably easy to find and which is freely accessible to the general public—”

(5) Omit section 231A.”

This amendment would change the requirements for notification about the results of a union ballot.

Amendment 346, clause 62, page 80, line 19, at end insert—

“(3) In section 220 (Peaceful picketing)—

(a) in subsection (1), after “attend”, insert “a place of work”;

(b) omit subsections (1)(a) and (1)(b); and

(c) omit subsections (2) to (4).”

This amendment, along with amendment 348, would remove the restriction confining pickets to a worker’s place of work.

Amendment 300, clause 63, page 83, line 9, at end insert—

“236E Actions short of a strike: exemption

(1) The right of a worker not to be subjected to detriment under section 236A does not apply in cases where the worker is involved in one or more of the following activities—

(a) intimidation at picket lines;

(b) protests organised by trade unions in furtherance of a dispute—

(i) at the premises of a company;

(ii) at the private residences of senior managers; or

(iii) at the premises of other organisations that are connected with the dispute;

(c) harassment or bullying of non-striking workers, or those who are covering for striking workers;

(d) victimisation or harassment of senior managers; or

(e) action aimed at damaging property or disrupting business contingency planning.

(2) The Secretary of State must ensure that the circumstances under subsection (1), in which the right of a worker not to be subjected to detriment do not apply, are set out in a code of practice.”

This amendment would disapply the right not to suffer detriment as a result of industrial action in certain circumstances.

Government amendments 203 to 226 and 236 to 239.

Government new schedule 2—Trade union recognition.

Government amendments 247, 249, 251 to 261.

New clause 77—Employment Law: Scotland Act—

“(1) The Scotland Act 1998 is amended as follows—

(2) In Schedule 5 of the Scotland Act 1998, omit section H1 (Employment and industrial relations).”

This new clause would remove matters related to employment from the list of the reserved matters that remain the responsibility of the UK Parliament alone and would enable the Scottish Parliament to legislate on those matters.

[Justin Madders]

I refer to my entry in the Register of Members’ Financial Interests and declare my membership and financial interests in trade unions, as I have done throughout the passage of the Bill.

I thank Members from both sides of the House for their contributions to yesterday’s debate. I look forward to another good debate today as we work together to ensure that the Bill works in practice for workers and businesses of all sizes across the whole country. Similarly to yesterday, I will use my opening remarks to explain to the House the amendments put forward by the Government in parts 4 and 5 of the Bill.

The Government are moving a number of amendments that represent a significant step forward in modernising our industrial framework. Amendments to clause 50 will strengthen the provisions of trade union access rights. They will ensure that the framework functions effectively and delivers on our commitment to modernise working practices. They will streamline access provisions by allowing a single Central Arbitration Committee member to make a fast-track decision on whether access should take place. In making a decision about whether it is a single person or a panel that will consider the application, the CAC will be required to have regard to the complexity of the case, as well as whether the proposed terms of the agreement are model terms. Various criteria will be prescribed in secondary legislation following consultation.

The amendments will also clarify that supporting a worker is a legitimate purpose for access, and they will provide a power to bring forward secondary legislation to make further provision as to how the CAC is to determine the level of penalty fines for non-compliance with access agreements. They will expand access rights, enabling access agreements to cover communicating with workers in ways that do not involve entering premises—for example, connecting digitally using technology—therefore modernising our antiquated industrial relations framework.

New clause 39, new schedule 2 and associated amendments insert new provisions into the Bill, replacing clause 51, and will address unfair practices and access arrangements in the recognition and derecognition process. The amendments will extend the application of unfair practice protections to the point at which the CAC accepts an application for recognition or derecognition, and will ensure that employers cannot increase the size of the bargaining unit for the purposes of the recognition application after the application is made. That will end the deliberate gaming of the system that we have seen in recent years.

The amendments will also delete the second test for determining an unfair practice complaint, which currently requires the CAC to consider how an alleged unfair practice may have affected workers’ votes in the recognition, or derecognition, ballots. They will extend the time limit in which unfair practices can be reported after the ballot closes to five working days. They will ensure that an employer cannot recognise a non-independent trade union after receiving a request for voluntary recognition from an independent trade union as a means of thwarting the independent trade union’s subsequent application to the CAC for statutory recognition.

We will bring forward and formalise the process for agreeing access arrangements between the employer and the union during the recognition and derecognition process. These amendments will streamline the recognition process, reduce opportunities for unfair practices to occur, and ensure that unions that seek recognition have a fair and transparent statutory route to enable them to do so.

Today’s amendments on industrial action rules will reduce the costly, complex and bureaucratic requirements on unions in relation to industrial action and ballot notices, while ensuring that employers have the necessary notice and information to prepare for industrial action. New clause 42 will simplify notice to employers of industrial action ballots and industrial action, reducing the chance of spurious challenge and making the information required more proportionate. New clause 43 will extend industrial action mandates from six to 12 months, reducing the need for repeated ballots. Amendments to clause 61 will mean that the notice period for industrial action will be set at 10 days, giving businesses time to prepare and safeguarding workers’ rights. Amendments to clause 58 will mean that the 50% ballot turnout threshold repeal will be subject to commencement on a date to be set in secondary legislation.

Turning to political fund ballots, new clause 40 and associated amendments remove the requirement for unions to hold a ballot every 10 years on maintaining a political fund. Instead, unions will provide reminders about members’ right to opt out every 10 years, ensuring transparency without imposing costly and time-consuming ballots.

The Bill will bring together the various agencies and enforcement bodies that enforce employment rights in the new Fair Work Agency, so that where employers are not doing what is right, a simplified and strengthened enforcement system will protect workers and ensure justice in the workplace. The Fair Work Agency needs the right tools to do the job. A series of amendments form a package that will give the Fair Work Agency the tools that it needs to hold all employers to account more effectively. That is fair for workers and businesses.

The Government are moving amendments to introduce new powers that are key to the Fair Work Agency’s core enforcement role. New clauses 44 to 56 create a civil penalty regime. Under the regime, enforcement officers will be able to issue notices of underpayment, and impose a penalty on employers who have underpaid individuals, in breach of statutory pay rights that are within the remit of the Fair Work Agency. As a result, the agency may be able to help workers get the money they are owed more quickly than if they had to go through an employment tribunal. Where proceedings before the tribunal are necessary, we want the Fair Work Agency to be able to support individuals and ensure that the tribunal’s time is used as effectively as possible. New clause 57 does that by enabling the agency to bring proceedings before the employment tribunal if individuals are unwilling or unable to. Under clause 58, the agency can also offer advice and assistance to individuals bringing employment-related cases before the courts or tribunals.

The Government are also moving amendments to upgrade the powers that the Fair Work Agency will need to tackle labour abuse effectively. The Bill Committee heard from stakeholders, including Eleanor Lyons, the UK Independent Anti-Slavery Commissioner, about bad practices in the social care sector. The Gangmasters and Labour Abuse Authority is prevented from investigating many cases because they do not meet the modern slavery threshold. The Fraud Act 2006 covers situations that amount to labour abuse but fall short of being modern slavery. Today we are bringing forward two amendments that will deliver the Government’s commitment to give the Fair Work Agency the strong powers that it needs to tackle labour exploitation. We will enable Fair Work Agency enforcement officers to use their powers to investigate such cases, helping the agency to protect the most vulnerable in the workforce. We will also give enforcement officers the ability to issue special warnings following arrests. In practice, that means telling suspects that if they refuse to answer questions about certain items or their whereabouts, that could be used against them in court.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

Only 21 employers have been prosecuted for national minimum wage violations since 2007. The measures that the Minister is bringing forward will improve enforcement. He touched on the Modern Slavery Act 2015, but he did not address the points made in the debate yesterday. Will he use this opportunity to say more about the Government’s intention to update the Modern Slavery Act?

--- Later in debate ---

[Justin Madders]

I am grateful for the Chair of the Select Committee’s intervention. We accept that there are gaps between the modern slavery network enforcement processes and current employment rights enforcement. We are working with the Home Office and the GLAA to improve that. These are things we can continue to work on as we develop the scope and remit of the Fair Work Agency.

As well as reforming and strengthening the powers, the Government are moving amendments to expand the remit of the Fair Work Agency to ensure effective enforcement of statutory sick pay and holiday pay. Today’s amendments will bring Northern Ireland SSP legislation into the scope of the Fair Work Agency, and will introduce a requirement for the Secretary of State to obtain the consent of the Northern Ireland Executive before bringing any further devolved legislation in scope. Further amendments will bring within the agency’s scope the duty in the working time regulations for employers to retain records relating to holiday pay and annual leave for six years. It is the Government’s intention for the Fair Work Agency to take on enforcement of new protections relating to zero-hours contracts. That is subject to a consultation on the detail, and to the outcome of the spending review.

New clause 60 gives the Fair Work Agency the power to recover the cost of taking enforcement action from businesses that are found to be non-compliant with the law. That is in recognition of the “polluter pays” principle. It is similar to how other regulators operate, such as the Health and Safety Executive. We will consider carefully and discuss the matter with businesses as appropriate before exercising that power, but it is an important principle that where there is wrong, the person in the wrong makes some contribution towards the cost to the taxpayers of enforcing the law.

To sum up—I know many people are eager to speak in the debate—the Bill will ensure that workplace rights are fit for a modern economy, empower working people and contribute to economic growth. I urge hon. Members to support the Bill and the amendments that we are moving today, which show that we are pro-business, pro-worker, pro-family and pro-growth.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Greg Smith]

My right hon. Friend makes a superb point, as she always does. Every single small business that I have talked to in my constituency is very concerned about the measures in this—

[Justin Madders]

On that point, will the shadow Minister give way?

[Greg Smith]

I will if, 24 hours on, he can name a small business that supports the Bill.

[Justin Madders]

I am asking the shadow Minister to give way, but the right hon. Member for Aldridge-Brownhills (Wendy Morton) could have intervened on me during my speech. One of the reasons why there is so much confusion about the definition of a small business is that the shadow Minister moved an amendment in Committee that said that a small business

“means an organisation or person employing 500 or fewer employees”.––[Official Report, Employment Rights Public Bill Committee, 3 December 2024; c. 177.]

So if there is any confusion, it is on the Conservative Benches.

[Greg Smith]

Twenty-four hours later, the Minister still cannot name a small business that supports the Bill. That shows how out of their depth this trade union Government are when it comes to supporting businesses in this land. In the words of the Chancellor, this Bill is

“choking off innovation, investment and growth.”

To pretend otherwise would be taking the public for fools.

On new clauses 89 and 90, almost everything this Government have done is contradictory to the objective of growth, if that remains their objective this week. Whether it is the national insurance jobs tax, the changes to business rates or this Bill, everything they do seemingly goes against growing the economy. It is little surprise that, under Labour, the economy is flatlining.

The Prime Minister said earlier this year that everything the Government do will be subject to a “growth test”. However, the details of that test have been sparse, at best—so sparse, in fact, that people may well think it does not exist.

--- Later in debate ---

[Steve Yemm]

As a small business founder and someone who has grown a business, I recognise the need for balance. I am grateful to the right hon. Member for raising that point. In my concluding remarks, I put on the record how proud I am of my unions, the GMB and Unite, for the work that they have done with this Government to help deliver this groundbreaking legislation. I will therefore be voting with pride to support the Bill in the Lobby later today.

[Justin Madders]

We have had another excellent debate. We might have to deal with a few misconceptions, but I am conscious that we need to move on to Third Reading, so I apologise if I do not address every single contribution we have heard today. I will start with the Chair of the Select Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), and his new clause 82. The Bill already requires the Secretary of State to produce an annual report for employment rights enforcement, as well as an enforcement strategy every three years. Both documents will be laid before Parliament, allowing for parliamentary scrutiny. We are committed to giving the Fair Work Agency the resources it needs to do its job effectively. I agree with him that the number of prosecutions for minimum wage violations has been pitifully small in recent years. We should never tolerate lawbreakers in the business world. We should ensure that responsible and well-performing businesses are never allowed to be undercut by minimum wage violations.

My right hon. Friend’s amendment 282 would include digital means of communication with workers in unions’ rights of access to workplaces. I appreciate the good intentions behind the amendment, but the Government are already committed to modernising working practices and moving away from a reliance on ad hoc access arrangements. We recognise the importance of providing for a digital right of access, in addition to the physical access for which the Bill already provides. That is why we have amended the Bill to expand access rights, allowing for access agreements to include communication with workers other than by means of physical access to a workplace, such as digital means.

My hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) talked about procurement. His new clause would amend the Procurement Act 2023 to place a duty on the Secretary of State to ensure that any contract entered into by either a Government Department, an executive agency of Government, a non-departmental public body or a non-ministerial department must comply with certain requirements relating to the recognition of trade unions. We recognise that the recognition of trade unions for collective bargaining was an important feature of the previous two-tier code on workforce matters. The Bill contains powers to reinstate and strengthen the code by way of regulations and a statutory code, so I assure the House that the Government are committed to strengthening trade union recognition and collective bargaining rights.

New clause 77, in the name of the hon. Member for Dundee Central (Chris Law), would result in a change to the Scotland Act 1998 by removing employment law from the list of reserved matters, thereby bringing it within the competence of the Scottish Parliament. While his perseverance on this issue is not unnoticed, it would come as no surprise to him, were he here, that the Government have no intention of devolving employment law to the Scottish Parliament. Previous Scotland Acts have already created one of the most powerful devolved Parliaments in the world. When there were considerably more SNP Members here during the last Parliament, there was a ten-minute rule Bill on this very subject, and the SNP could not even get a majority of its own Members to support it, so why on Earth would we support such a measure now? I do not know.

I will turn to the amendments from my right hon. Friend the Member for Hayes and Harlington (John McDonnell) on prison officers’ right to strike. I thank him for his persistence and his active engagement on behalf of prison officers. As he said, prison officers are prevented from taking industrial action under current legislation. Their pay is governed by the independent Prison Service pay review body process, which acts as a compensatory mechanism for that restriction. There is limited contingency to deal with industrial action, and during such incidents the reliance is on a narrow pool of operational managers with some potential for very limited support from the police and Army in limited circumstances. That creates operational risks and is not sustainable for any period of time.

My right hon. Friend the Member for Hayes and Harlington referred to what he classed as disrespect to prison officers during that debate in Committee. I just put on record that there was certainly no disrespect shown by those on the Government Benches; we value and respect the work that prison officers do. I know that he will continue to pursue this matter, and I suggest that he contacts the Ministry of Justice, which has the remit. I hope it will be able to engage on the matter in future.

Let me now deal with some of the Liberal Democrat new clauses and amendments. The hon. Member for St Albans (Daisy Cooper) spoke about new clause 19, which would give the Secretary of State the power to set out and define in regulations the professional bodies that could represent employees at disciplinary meetings. It is unclear to us where the demand for that would come from, and I would expect it to benefit some businesses that have raised the prospect with successive Governments. What is clear, however, is that expanding the types of organisations that could be involved in representing workers at such meetings could lead to hearings requiring legal representation for both the worker and the employer. That would increase the cost of holding a hearing, would escalate matters, and would potentially decrease the chance of an amicable resolution as both parties became entrenched in dispute. We believe that trade unions are best placed to represent employees in disciplinary and grievance hearings in the workplace, and statutory provisions are already in place to enable them to do that.

The hon. Member for St Albans also tabled new clause 111, which relates to legal aid for employment disputes. I am committed to ensuring that workers are able to enforce their employment rights, and we are working closely with the Ministry of Justice to ensure that happens, looking into what further improvements we can make to the way in which ACAS and employment tribunals operate. A key benefit of moving enforcement to the Fair Work Agency is that it will make it easier and quicker for workers to secure justice, without the need for additional legal representation or legal aid. I hope that gives the hon. Lady some reassurance that we are looking seriously at the issue.

New clause 110, also tabled by the hon. Member for St Albans,

“would require the Secretary of State to publish a review on the impact of Part 4 of the Bill…on SMEs within 3 months of the passage of this Act.”

In the impact assessment, the Government have set out our initial plan for monitoring an evaluation of the impacts of the Bill, as well as some secondary legislation. I say this with the greatest respect to the hon. Lady: she has expressed concern about the burden on business, but if we had accepted all her party’s amendments yesterday, that would have added several billion pounds to the costs of businesses. The Liberal Democrats will have to decide, ideally tonight, whether they are in favour of workers’ rights or not.

Let me now deal with some of the amendments from the official Opposition. Amendment 297 seeks to

“increase, from seven to 14 days, the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action.”

Our consultation on the creation of a modern framework for industrial relations sought views on what an appropriate notice period would be, recognising that the repeal of the Trade Union Act 2016 would reduce the notice period from 14 to seven days. The Government have listened carefully to the concerns expressed by respondents to the consultation who feared that a seven-day notice period would not provide enough time for unions to prepare for industrial action in some important sectors, such as transport, healthcare and education, with possible knock-on impacts on other services. The Government believe that employers should be given enough time to mitigate the most severe effects of industrial action, and acknowledge responses to the consultation arguing that seven days’ notice was insufficient.

Of course, we did have seven days’ notice between 2010 and 2016 under the Tory Government. The Tories’ lack of understanding of the Bill is clear from the number of times we heard that it would take us back to the 1970s, whereas in fact it will take us back to 2015, when an earlier version of the Bill was introduced. The Government’s view is that 10 days provides the appropriate balance in enabling employers to mitigate the impact of industrial action and reduce disruption and the knock-on impacts of strikes, while also respecting the right to strike.

Amendment 291 seeks to remove clause 52, which deals with political funds and which, I think, prompted the most heated debate. It is notable that when it comes to reducing Tory red tape, it is only trade unions that do not receive the same benefits as everyone else. There has, I think, been a fundamental misunderstanding of what a trade union is. It is a member-based, democratic organisation designed to protect those who are part of it. Comparisons with Netflix subscriptions and insurance contracts are bogus, because they are not the same thing at all. Membership of a trade union and a political fund is not a subscription that people sign up to for a fixed period; it is membership of a democratically organised and independent trade union, which they are free to leave at any time. Members have control of the organisation because it is democratically organised, and they can decide as a union whether to have a political fund at all. People cannot email the chief executive of Netflix and demand that it makes a programme starring their favourite actor, but if people are unhappy with a trade union, they have the opportunity to get involved and change it.

It should be noted that in the 40 years that we have had political fund ballots, no union has disaffiliated from the Labour party. There has been no closure of political funds, so it is very clear that this is simply red tape. Of course, it is not all about funding the Labour party, because nearly half of all unions that have a political fund are not affiliated with the Labour party. If Conservative Members are not satisfied with that, they should read the Bill that is before them, because the clause that they want to remove—clause 52—sets out in subsection (3) how members can opt out of a political fund. It even sets out the ways they can do so: by post, email or electronic means. Some of the patronising comments we have heard about people being trapped into something that they do not wish to be in does not reflect the reality of the situation or the ability of trade union members to make up their own minds and exercise their democratic rights. Had any Conservative Members ever been members of a trade union, they would understand that.

The repeated insinuations from Conservative Members that I or any anyone else on the Labour Benches have brought forward this Bill because we have been paid by the trade unions to do so is offensive and wrong in equal measure. They might think money buys you the chance to write the law, but that says far more about their approach to legislation than it does about ours. On the Labour Benches, we do these things because we believe in them. We believe that everyone deserves fair treatment at work, and this Bill delivers that. It is delivering on our values.

In conclusion, the Bill represents a generational shift in protection, a long-overdue reinforcement of workers’ rights in this country, and tangible proof of how a Labour Government can bring meaningful benefit to people’s lives. For many of us, it is fundamental to why we are in the Labour party, so now is not the time to shy away from our efforts. Now is not the time to talk about what might have been; it is the time to be bold, to be loud and to be proud that this Labour Government are delivering by putting fairness, dignity and security back into the workplace.

Question put, That the clause be read a Second time.

Employment Rights Bill

Justin Madders Excerpts

Tuesday 11th March 2025 Commons Chamber

[Catherine Atkinson (Derby North) (Lab)]

I draw attention to my entry in the Register of Members’ Financial Interests and the fact that I am a proud trade union member. I give my full support to the measures in this landmark Bill.

In Derby we make things, from nuclear reactors that power submarines to the trains, cars and aeroplane engines that get people and goods where they need to go, and food production operations that help put food on our tables. We do not just have large companies with big economies of scale; we also have thousands of small and medium-sized companies. Many businesses that I have visited—large and small—are investing in their workforce, want to pay them properly and want to provide stable, secure work that enables their employees to build lives and families, but they want a level playing field so that they are not undercut by competitors that do not play by the rules, that avoid their responsibilities and that exploit those who work for them.

When people are stuck in insecure, low-paid work, planning for their future is impossible. It is wrong that so many people have no idea whether they will have five hours of work or 50 in a week, wrong that they have no idea whether they will earn enough to pay their bills, and wrong that they can have paid for childcare, be on a bus to work and get a call saying they are no longer needed. What is shocking is that we have 2.4 million people in irregular work, such as those on zero-hours or low-hours contracts, or in agency jobs. I am proud that this Government, through this Bill, are taking action to end exploitative zero-hours contracts, and that amendments 32 and 33 will ensure that agency workers are also protected.

On Second Reading of this groundbreaking Bill, I spoke about the importance of enforcement. A right is not worth the paper it is written on unless it is enforced; and the provisions that we make, the guidance that we set and the laws that we pass are only as strong as the enforcement.

For part of my career as a barrister, I had the honour of representing working people, but I always knew that for the many who did seek justice through tribunals, there were many who did not feel able to take action. The Low Pay Commission has found that low-paid and exploited workers can be reluctant to speak out about abuses of their rights. Last year we celebrated the 25th anniversary of a Labour Government bringing in the national minimum wage, but the Low Pay Commission estimates that one in five workers receiving it were not provided with the correct pay in 2022.

On Second Reading, I called for the strengthening of the Fair Work Agency, which will enforce the national minimum wage, statutory sick pay and a wide range of rights, such as holiday pay, so that everyone plays by the same rules. I am hugely pleased to see that new clauses have been tabled that would strengthen the powers of the Fair Work Agency. As we will talk about tomorrow, new clause 57 would give the agency powers to bring proceedings to an employment tribunal on behalf of workers. That could make a huge difference for workers, and it helps protect businesses from being undercut by acting as a real deterrent. The sooner that these measures are in place, the sooner enforcement can begin and justice can be delivered, and this will bring us better protections, better productivity and better growth.

[Justin Madders]

First, I think I need to mention that my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) is celebrating his 40th birthday today, and what a great way to spend his birthday. He is one of the people who have worked tirelessly over many years in different guises to help us get where we are today.

Given the number of speeches and contributions, it is just not going to be possible to pay tribute to everyone in the time I have, or indeed to reference every speech and every amendment, but I will do my best to cover as much as possible.

I will start with my hon. Friend the Member for Nottingham East (Nadia Whittome), whose new clause 73 relates to significant structural changes to the statutory sick pay system. I thought she made a very personal and persuasive speech, and I agree with her that phased returns to work are an effective tool in supporting people to stay in or return to work, helping to reduce the flow into economic inactivity and the cost to businesses of sickness absence. By removing the waiting period, employees will be entitled to statutory sick pay for every day of work missed. This better enables phased returns to work—for example, by supporting someone who normally works five days a week to work a three-day week, being paid SSP for the other two days. That simply would not have been possible under the existing system. We are committed to continuing to work closely with employees and employers to develop and implement a system that is fair, supportive and effective in kick-starting economic growth and breaking down barriers to opportunity, and we will continue to have conversations about that.

Turning to new clause 102 from my hon. Friend the Member for Bradford East (Imran Hussain), I pay tribute to him for his work as a shadow Minister in this area. The changes we are bringing in through this Bill mean that up to 1.3 million low-paid employees will now be entitled to statutory sick pay, and all eligible employees will be paid from the first day of sickness absence, benefiting millions of employees. The new percentage rate is consistent with the structure used for other statutory payments. It is simple to understand and implement, and with the removal of waiting periods, the internal modelling from the Department for Work and Pensions shows that most employees, even those who may nominally earn less per week, will not be worse off over the course of their sickness absence.

I believe the speech by my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) was her first from the Back Benches, and I do not think she will be on them for very long if she continues to make such contributions. I thought it was an excellent speech, and the way she spoke about her constituent Mr B really hammered home the importance of tackling non-disclosure agreements. I would like to pay tribute to her ongoing efforts to ensure that victims of misconduct and bullying can speak up about their experiences, and get the help and support they need.

I want to thank the hon. Member for Oxford West and Abingdon (Layla Moran) for originally tabling the amendment, and for meeting me last week to share, sadly, another horrific story about the abuse of NDAs. I also thank the hon. Member for Bath (Wera Hobhouse) for her contribution in this area.

There are legitimate uses of NDAs, but I want to be clear—we have heard too many examples of this today—that they should not be used to silence victims of harassment or other misconduct. I understand that hon. Members want to ensure equal protection in relation to NDAs concerning harassment across the economy, and I absolutely hear what they have said. However, we have to acknowledge that this would be a far-reaching change, and it would be to take a significant step without properly engaging with workers, employers and stakeholders, and assessing the impact on sectors across the economy. I want to reiterate that I recognise that non-disclosure agreements are an important question that warrants further consideration, and we will continue to look at the issues raised. My right hon. Friend the Member for Sheffield Heeley said that she wants me to go further, and I look forward to engaging with her and with organisations such as Can’t Buy My Silence.

New clause 30, in the name of the hon. Member for Bridgwater (Sir Ashley Fox), would give employees who are special constables the right to time off work to carry out their voluntary police duties. I join him in paying tribute to special constables, who make an invaluable contribution to policing across the country. It would not be appropriate, however, to support additional legislation on this matter without a comprehensive analysis on the impact such a change could bring to policing. As the hon. Gentleman knows, we debated it in Committee and my officials have been in discussion with colleagues at the Home Office to learn more about the topic. Further engagement is continuing with the staff association for special constables and the Association of Special Constabulary Officers. I recognise that the legislation is now half a century old and needs a considerable look. We cannot support the amendment tonight, but I am glad that there is at least one Member on the Conservative Benches who supports increasing employment rights.

Turning to new clause 7, tabled by my hon. Friend the Member for Walthamstow (Ms Creasy), I want to start by recognising the key role that paternal leave plays in supporting working families. The arrival of a child is transformative for all parents. The Government understand and value the vital role that fathers and partners play in raising children, and we want to support them to do that. I commend my hon. Friend for her work in this area.

We already have a statutory framework in place that guarantees eligible employed fathers and partners a protected period of paternity leave, ensuring that they cannot be required to work while claiming that leave, or be discriminated against by their employer for taking it. However, I recognise what my hon. Friend the Member for Darlington (Lola McEvoy) said about the limitations on those protections. I also pay tribute to her for her work on this issue.

Paternity leave is available to the father of the child or the mother’s partner irrespective of their gender, and the leave can be taken by the father or partner at any point in the first year following the child’s birth or adoption. I acknowledge the wider point made by my hon. Friend the Member for Darlington, which is that we need to do more to ensure that the parental leave system as a whole supports working families. As a Government, we have committed to doing that. I recently met The Dad Shift, Pregnant then Screwed and Working Families to discuss that very issue.

Through the Bill, we are making paternity leave and unpaid parental leave day one rights, meaning that employees will be eligible to give notice of their intent to take leave from their first day of employment, removing any continuity of service requirement. That brings them both into line with maternity leave and adoption leave, simplifying the system. We are also committed to reviewing the parental leave system. The review will be conducted separately from this Bill. Work is already under way across Government on planning for its delivery and will commence before Royal Assent. We are scoping the work already under way across the Department for Work and Pensions, the Department for Business and Trade, and the Ministry of Housing, Communities and Local Government. We of course want and expect to engage widely with stakeholders as part of that review process, and I would expect my hon. Friend the Member for Walthamstow to engage with us in that respect.

New clause 6, tabled by my hon. Friend the Member for Leeds East (Richard Burgon), would partially reinstate, to the Equality Act 2010, a similar measure that was sponsored by the previous Labour Government. This Government continue to have sympathy with its aims. We all know that the statutory questionnaire was sometimes found to be a helpful, informative tool. While the Government will not support new clause 6, we will be giving close consideration to the impact of the repeal of the statutory questionnaire and any steps that may be needed during this Parliament.

[Ms Creasy]

I am very pleased to hear confirmation that the review into parental rights, which I understand will begin in June, will go ahead. The Minister talks about stakeholders. Will he confirm whether they will include our trade union colleagues, because many of us are very happy to withdraw our amendments tonight on the basis that working people can be part of the conversation?

[Justin Madders]

I would fully expect us to consult with all relevant parties, so I do not think my hon. Friend need have any worries in that respect.

I pay tribute to two people who have been instrumental in shaping our thoughts on this issue: my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) and my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne). They tabled amendments on employment status. It is important to say that we are taking action in respect of those who work for umbrella companies. We have been clear that some reforms in the plan to make work pay will take longer to undertake and implement. We see consulting on a simpler two-part framework as a longer-term goal, but I assure them both that I remain committed to that. I also hear what my hon. Friend the Member for Middlesbrough and Thornaby East says in relation to his concerns about fire and rehire. We will be looking very closely at how our reforms work in practice.

New clause 17 seeks to create a legal definition of kinship care to be used to establish eligibility for kinship care leave. New clause 18 aims to establish a new kinship care leave entitlement for employed kinship carers, with a minimum of 52 weeks of leave available for eligible employees. I am pleased to say that the Government’s Children’s Wellbeing and Schools Bill will, for the first time, create a legal definition of kinship care for the purposes of specific measures in the Bill. By defining kinship care in law, the legislation will ensure that all local authorities have a clear and consistent understanding of what constitutes kinship care. I am also pleased to say that the Government have recently announced a £40 million package to trial a new kinship allowance. This is the single biggest investment made by this Government in kinship care to date and will enable children to be raised within their communities by their extended families.

New clause 10—another Liberal Democrat new clause tabled by the hon. Member for Torbay (Steve Darling)—which we debated in Committee, would commit the Government to introducing an entitlement for employees with caring responsibilities to be paid their usual wage while taking carer’s leave. While we have stressed the Government’s commitment to supporting employed unpaid carers and I have been engaging with Ministers and relevant bodies on the matter, the Carer’s Leave Act 2023 only recently gave employed carers a new right to time off work to care for a dependant with a long-term care need, so we are reviewing this measure and considering whether further support is required.

I recognise that many of their amendments and new clauses come from a good place, but the Liberal Democrats have to decide whether they are going to be Manchester United or Manchester City; their speeches were littered with concerns about the increase in costs from the Bill, yet every new clause and amendment seems only to add to those costs. I understand that they are coming from a good place, but they have to decide whether or not they support the Bill. I hope they can make that decision before tomorrow night. At least the Liberal Democrats are here, unlike the new kids on the block, who are absent from the Benches behind them—I pay tribute to them for actually turning up today.

I will now address the points raised by the Opposition on harassment, as set out in amendments 288 and 289, in the name of the hon. Member for Arundel and South Downs (Andrew Griffith). Those amendments seek either to exclude the hospitality sector and sports venues from the Bill’s obligations for employers not to permit the harassment of their employees by third parties or to remove clause 18 altogether, thus depriving employees of protection from all types of harassment by third parties under the Equality Act. Let us be clear: this Government are committed to making workplaces and working conditions free from harassment, and we must therefore protect employees from third-party harassment.

I want to underline two important points in relation to clause 18. First, on the expectations it places on employers, I would like to assure the House that employers cannot and are not expected to police or control every action of third parties; instead, employers simply need to do what is reasonable. What is reasonable will, of course, depend on the specific circumstances of the employer. Further, the steps that an employer can reasonably take in respect of the actions of third parties in its workplace are clearly more limited than the steps it can take in respect of its employees, and employment tribunals will, of course, take that into account when considering the facts of the case.

The second point relates to the threshold for what constitutes harassment. Far too often, I have heard objections to clause 18 implying that employers will be liable if their staff are offended by comments made by third parties, which is not the case at all—a fact reflected, I think, by the Conservatives supporting a similar measure in the previous Parliament. In his opening remarks, the shadow Minister asked what evidence there was that this clause was needed. The NHS staff survey for 2023 revealed that a quarter of all staff had suffered harassment, bullying or abuse from patients or service users, while a Unite survey said that 56% of its members had suffered third-party harassment. Presumably that is why UKHospitality, in its written evidence to the Bill Committee, said that it supported the measures in principle. I will work with them to ensure that we protect everyone in the sector, because I believe that everyone who works in this country deserves protection from harassment. I think it is incredible that the Opposition cannot see a problem with arguing against that.

I will turn to new clause 105 on substitution clauses, which was tabled by the hon. Member for West Suffolk (Nick Timothy). I think it is fair to say that we are aware of the risks. I have been working closely with the Minister for Border Security on illegal working by irregular migrants in the gig economy and the role that substitution clauses play in facilitating that. We will continue to work closely with the Home Office on this issue.

The Opposition also tabled new clause 87, which seeks to require the Secretary of State to have regard to the UK’s international competitiveness and economic growth when making any regulations under parts 1 and 2 of the Bill. The Government are already laser-focused on this key objective. Our plan to make work pay is a pro-growth package and sets out an ambitious agenda to deliver our plan for change by ensuring that employment rights are fit for a modern economy, empower working people and contribute to economic growth.

The plan will bring the UK back into line with our international competitors and directly address our low-growth, low-productivity and low-pay economy. [Interruption.] Conservative Members may be laughing, but they are the people who delivered that economy for so many years. International competitors and growth are at the heart of what we do. We will pay close attention to the potential impacts as we develop regulations to implement the measures in the Bill.

On small business support, I remind Members that I had a meeting with representatives from Inkwell, who said that introducing these changes will help create a happy and productive workplace and create a level playing field for employers. That is exactly what we want to achieve with the Bill. We understand that the best businesses want to look after their staff and that treating them well is good for business, good for workers and good for the wider economy. The Opposition’s narrow view seems to be that anything that is good for workers is automatically bad for businesses. We absolutely reject that analysis.

In conclusion, giving people a baseline of security and respect at work is fundamental. It is clear that we need a change from the system where people do not know what hours they will get from one week to the next, where people with caring responsibilities never get the same benefits of flexibility as their employers, where a minority of rogue employers can fire and rehire at will, and where care workers and teaching assistants have all been undervalued for far too long. It is time to end these injustices. It is time to make work pay.

“Chapter 4A

Justin Madders Excerpts

Tuesday 11th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following:

Government new clause 33—Collective agreements: contracting out.

Government new clause 34—Collective redundancy consultation: protected period.

Government new clause 35—Duty to keep records relating to annual leave.

Government new clause 36—Extension of regulation of employment businesses.

Government new clause 37—Power to establish Social Care Negotiating Body.

Government new clause 38—Agency workers who are not otherwise “workers”.

New clause 1—Domestic abuse victims’ leave—

“(1) Within twelve months of the passage of this Act, the Secretary of State must make regulations entitling a worker who is a victim of domestic abuse to be absent from work on leave under this section.

(2) For the purposes of this section, “domestic abuse” is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.

(3) The regulations must include provision for determining—

(a) the extent of a worker's entitlement to leave under this section; and

(b) when leave under this section may be taken.

(4) Provision under subsection (3)(a) must secure that, where a worker is entitled to take leave under this section, that worker is entitled to―

(a) at least ten working days’ leave; and

(b) the benefit of the terms and conditions of employment which would have applied but for the absence.

(5) The regulations may―

(a) make provision about how leave under this section is to be taken;

(b) make different provision for different cases or circumstances; and

(c) make consequential provision.”

This new clause would require the Secretary of State to provide for statutory leave for victims of domestic abuse, with regulations providing for a minimum of ten days’ leave.

New clause 2—Domestic abuse: right not to suffer detriment—

“In Part V of the Employment Rights Act 1996 (Rights not to suffer detriment), after section 47G, insert new section 47H—

‘Domestic abuse

(1) A worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by their employer done on the ground that the worker has been, or is suspected to have been―

(a) a victim of domestic abuse; or

(b) affected directly by domestic abuse.

(2) For the purposes of this section, “domestic abuse” is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.’”

This new clause would amend the Employment Rights Act 1996 to protect workers from adverse treatment on the grounds that they are, or are suspected to be, a person affected by domestic abuse.

New clause 3—Dismissal for reasons related to domestic abuse—

“In Part 10 of the Employment Rights Act 1996, after section 99, insert—

‘99B Domestic abuse

(1) A worker who is dismissed shall be regarded for the purposes of this Part as having been unfairly dismissed if the reason for the dismissal is that the worker has been, or is suspected to have been―

(a) a victim of domestic abuse; or

(b) affected directly by domestic abuse.

(2) For the purposes of this section, “domestic abuse” is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.’”

This new clause would amend the Employment Rights Act 1996 to protect workers from dismissal on the grounds that they are, or are suspected to be, a victim or a person affected by domestic abuse.

New clause 4—Employers to take all reasonable steps to prevent domestic abuse—

“After section 40A of the Equality Act 2010 (employer duty to prevent sexual harassment of workers), insert—

‘40B Employer duty to prevent workers from experiencing domestic abuse

(1) An employer (A) must take all reasonable steps to prevent their workers from experiencing domestic abuse in the course of their employment.

(2) For the purposes of this section, “domestic abuse” is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.’”

This new clause would require employers to take all reasonable steps to prevent their workers from experiencing domestic abuse.

New clause 5—Employers to take all reasonable steps to prevent domestic abuse (contract workers)—

“After section 41 of the Equality Act 2010 (contract workers), insert—

‘41A Employer duty to prevent workers from experiencing domestic abuse

(1) An employer (A) must take all reasonable steps to prevent a contract worker working for or on behalf of (A) from experiencing domestic abuse in the course of their engagement.

(2) For the purposes of this section, “domestic abuse” is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.’”

This new clause would require employers to take all reasonable steps to prevent contract workers from experiencing domestic abuse.

New clause 6—Workplace contravention of Equality Act: obtaining information—

“(1) In this section—

(a) P is a worker who thinks that a contravention of the Equality Act 2010 has occurred in relation to P’s employment or working practices;

(b) R is P’s employer and P thinks that R is responsible for the contravention mentioned in paragraph (a).

(2) A Minister of the Crown must by order prescribe—

(a) forms by which P may question R on any matter which is or may be relevant to subsection (1);

(b) forms by which R may answer questions by P.

(3) A question by P or an answer by R is admissible as evidence in proceedings under this Act (whether or not the question or answer is contained in a prescribed form).

(4) A court or tribunal may draw an inference from—

(a) a failure by R to answer a question by P before the end of the period of 8 weeks beginning with the day on which the question is served;

(b) an evasive or equivocal answer.

(5) Subsection (4) does not apply if—

(a) R reasonably asserts that to have answered differently or at all might have prejudiced a criminal matter;

(b) R reasonably asserts that to have answered differently or at all would have revealed the reason for not commencing or not continuing criminal proceedings;

(c) R’s answer is of a kind specified for the purposes of this paragraph by order of a Minister of the Crown;

(d) R’s answer is given in circumstances specified for the purposes of this paragraph by order of a Minister of the Crown;

(e) R’s failure to answer occurs in circumstances specified for the purposes of this paragraph by order of a Minister of the Crown.

(6) The reference to a contravention of the Equality Act 2010 includes a reference to a breach of an equality clause or rule, insofar as it relates to employment or working practices.

(7) A Minister of the Crown may by order—

(a) prescribe the period within which a question must be served to be admissible under subsection (3);

(b) prescribe the manner in which a question by P, or an answer by R, may be served.

(8) This section—

(a) does not affect any other enactment or rule of law relating to interim or preliminary matters in proceedings before a county court, the sheriff or an employment tribunal, and

(b) has effect subject to any enactment or rule of law regulating the admissibility of evidence in such proceedings.”

This new clause would reintroduce, for workers in relation to employers, the right to statutory Discrimination Questionnaires pursuant to the Equality Act 2010 regarding age, disability, sex, race, sexual orientation, pregnancy and maternity, gender reassignment, religion or belief and marriage and civil partnership discrimination.

New clause 7—Protected paternity or parental partner leave—

“(1) Within six months of the passage of this Act, the Secretary of State must consult on the introduction of protected paternity or parental partner leave for all employees.

(2) A consultation under subsection (1) must consider―

(a) the minimum duration for a period of protected paternity or parental partner leave;

(b) how best to ensure that protected paternity or parental partner leave is protected, non-transferable and does not result in discrimination against the employee taking that leave;

(c) how best to ensure that protected paternity or parental partner leave reduces the risk of employees experiencing discrimination as a result of being eligible for ordinary maternity leave; and

(d) the extent to which the costs to employers of protected paternity or parental partner leave should be reimbursed, in full or in part, and the manner in which this should be achieved.

(3) Following a consultation under subsection (2), within twelve months of commencing the consultation, the Secretary of State must by regulations―

(a) introduce protected paternity or parental partner leave, ensuring that it is paid, protected and non-transferable;

(b) define the length of any period of protected paternity or parental partner leave under subsection (3)(a); and

(c) make provision for any other matters the Secretary of State considers relevant to the matters under subsections (3)(a) and (3)(b).

(4) For the purposes of this section—

(a) “protected” leave means leave during which an employer must not permit an employee who satisfies prescribed conditions to work; and

(b) “parental partner leave” means leave taken for the purposes of caring for a child, with the exception of maternity leave taken under sections 71 to 73 of the Employment Rights Act 1996.

(5) For the purposes of subsections (2)(b) and (2)(c), “discrimination” is defined according to sections 13 to 19 of the Equality Act 2010.”

This new clause would require the Secretary of State to consult on a period of protected paternity or parental partner leave, and require them to introduce protected paternity or parental partner leave by regulations at a subsequent date.

New clause 10—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” includes—

(a) matters connected with an employee’s employment whether or not they arise under the contract of employment, and

(b) terms and conditions about remuneration.””

This new clause would make Carer’s Leave a paid entitlement.

New clause 12—Rates of statutory maternity pay, etc—

“(1) In regulation 6 of the Statutory Maternity Pay (General) Regulations 1986 (prescribed rate of statutory maternity pay) for “£184.03” substitute “£368.06”.

(2) In the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 2002—

(a) in regulation 2(a) (weekly rate of payment of statutory paternity pay) for “£184.03” substitute “£368.06”; and

(b) in regulation 3(a) (weekly rate of payment of statutory adoption pay) for “£184.03” substitute “£368.06”.

(3) In regulation 40(1)(a) of the Statutory Shared Parental Pay (General) Regulations 2014 (weekly rate of payment of statutory shared parental pay) for “£184.03” substitute “£368.06”.

(4) In regulation 20(1)(a) of the Statutory Parental Bereavement Pay (General) Regulations 2020 (weekly rate of payment) for “£184.03” substitute “£368.06”.”

This new clause sets out rates of Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay.

New clause 13—Publication of information about parental leave policies: regulations—

“(1) The Secretary of State must make regulations to require any employer with more than 250 employees to publish information on the internet about the employer’s policies on parental leave and pay for parental leave.

(2) Regulations under subsection (1) must be published within one year of this Act being passed.

(3) Regulations under this section are subject to the affirmative regulation procedure.”

This new clause would require companies with more than 250 employees to publish information about their parental leave and pay policies.

New clause 14—Entitlement to paternity leave—

“(1) The Employment Rights Act 1996 is amended as follows.

(2) In section 80A (entitlement to paternity leave: birth)—

(a) in subsection (3), for “two” substitute “six”,

(b) in subsection (4), for “56 days” substitute “52 weeks”.

(3) In section 80B (entitlement to paternity leave: adoption)—

(a) in subsection (3), for “two” substitute “six”

(b) in subsection (4), for “56 days” substitute “52 weeks”.”

This new clause sets out an entitlement to paternity leave.

New clause 15—Whistleblowers: protected disclosures—

“In Part X of the Employment Rights Act 1996, for section 103A, substitute—

“103A Protected disclosure

An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or one of the reasons) for the dismissal is that the employee made a protected disclosure.””

This new clause would slightly extend the circumstances in which an employee is considered as unfairly dismissed after making a protected disclosure.

New clause 16—Adoption pay: self-employed persons—

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations enable statutory adoption pay to be payable to persons who are—

(a) self-employed, or

(b) contractors.

(2) For the purposes of subsection (1), the meaning of “self-employed” and “contractors” shall be set out in regulations under this section.”

This new clause extends statutory adoption pay to the self-employed and contractors.

New clause 17—Meaning of “kinship care”—

“(1) This section defines “kinship care” for the purposes of sections 80EF to 80EI of the Employment Rights Act 1996 (inserted by section (Kinship care leave) of this Act).

(2) Kinship care describes an arrangement where a child is raised by a friend, relative or extended family member other than a parent.

(3) Subsections (4) to (9) set out the arrangements that are recognised as being types of kinship care.

(4) An arrangement where a child is adopted (within the meaning of Chapter 4 of the Adoption and Children Act 2002) by a friend, relative or extended family member (“kinship adoption”).

(5) An arrangement where—

(a) a child is looked after by a local authority (within the meaning of section 22 of the Children Act 1989), and

(b) a friend, relative or extended family member of that child is approved by the local authority to be a foster carer for that child (“kinship foster care”).

(6) An arrangement created by a special guardianship order pursuant to section 14A of the Children Act 1989 (“special guardianship”).

(7) An arrangement created by a child arrangements order pursuant to section 8 of the Children Act 1989 where the court orders that a child is to live predominantly with a friend, relative or extended family member of that child (“kinship child arrangement”).

(8) An arrangement where a child is fostered privately (within the meaning of section 66 of the Children Act 1989) by a friend or extended family member (“private fostering arrangement”).

(9) Any other arrangement where a child is cared for, and provided with accommodation in their own home—

(a) by a relative of the child, other than—

(i) a parent of the child; or

(ii) a person who is not a parent of the child but who has parental responsibility for the child; and

(b) where the arrangement has lasted, or is intended to last, for at least 28 days (“private family arrangement”).”

This new clause is subsequent to the new clause about kinship care leave.

New clause 18—Kinship care leave—

“(1) The Employment Rights Act 1996 is amended as follows.

(2) After section 80EE insert—

“Chapter 5

Kinship care leave

80EF Kinship care leave

(1) The Secretary of State must make regulations entitling an employee to be absent from work on leave under this section if the employee satisfies conditions specified in the regulations as to an eligible kinship care arrangement with a child.

(2) The regulations must include provision for determining—

(a) the extent of an employee’s entitlement to leave under this section in respect of a child;

(b) when leave under this section may be taken.

(3) Provision under subsection (2)(a) must secure that—

(a) where only one employee is entitled to leave under this section in respect of a given child, the employee is entitled to at least 52 weeks’ leave;

(b) where more than one employee is entitled to leave under this section in respect of the same child, those employees are entitled to share at least 52 weeks’ leave between them.

(4) An employee is entitled to leave under this section only if the eligible kinship care arrangement is intended to last—

(a) at least one year, and

(b) until the child being cared for attains the age of 18.

(5) For the purposes of this Chapter, “eligible kinship care arrangement” means—

(a) special guardianship,

(b) a kinship child arrangement,

(c) a private fostering arrangement, or

(d) a private family arrangement

within the meaning given by section [Meaning of ‘kinship care’] of the Employment Rights Act 2024.

(6) The regulations may make provision about how leave under this section is to be taken.

(7) In this section—

(a) “special guardianship”, “kinship child arrangement”, “private fostering arrangement” and “private family arrangement” have the same meanings as in section [Meaning of ‘kinship care’] of the Employment Rights Act 2024.

(b) “week” means any period of seven days.

80EG Rights during and after kinship care leave

(1) Regulations under section 80EF must provide—

(a) that an employee who is absent on leave under that section is entitled, for such purposes and to such extent as the regulations may prescribe, to the benefit of the terms and conditions of employment which would have applied but for the absence,

(b) that an employee who is absent on leave under that section is bound, for such purposes and to such extent as the regulations may prescribe, by obligations arising under those terms and conditions (except in so far as they are inconsistent with subsection (1) of that section), and

(c) that an employee who is absent on leave under that section is entitled to return from leave to a job of a kind prescribed by regulations, subject to section 80EH.

(2) The reference in subsection (1)(c) to absence on leave under section 80EF includes, where appropriate, a reference to a continuous period of absence attributable partly to leave under that section and partly to any one or more of the following—

(a) maternity leave,

(b) paternity leave,

(c) adoption leave,

(d) shared parental leave,

(e) parental leave,

(f) parental bereavement leave.

(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, but

(b) does not include terms and conditions about remuneration.

(4) Regulations under section 80EF may specify matters which are, or are not, to be treated as remuneration for the purposes of this section.

(5) Regulations under section 80EF may make provision, in relation to the right to return mentioned in subsection (1)(c), about—

(a) seniority, pension rights and similar rights;

(b) terms and conditions of employment on return.

80EH Special cases

(1) Regulations under section 80EF may make provision about—

(a) redundancy during or after a period of leave under that section, or

(b) dismissal (other than by reason of redundancy) during a period of leave under that section.

(2) Provision by virtue of subsection (1) may include—

(a) provision requiring an employer to offer alternative employment;

(b) provision for the consequences of failure to comply with the regulations (which may include provision for a dismissal to be treated as unfair for the purposes of Part 10).

80EI Chapter 5: supplemental

(1) Regulations under section 80EF may—

(a) make provision about notices to be given, evidence to be produced and other procedures to be followed by employees and employers;

(b) make provision requiring employers or employees to keep records;

(c) make provision for the consequences of failure to give notices, to produce evidence, to keep records or to comply with other procedural requirements;

(d) make provision for the consequences of failure to act in accordance with a notice given by virtue of paragraph (a);

(e) make special provision for cases where an employee has a right which corresponds to a right under section80EF and which arises under the person’s contract of employment or otherwise;

(f) make provision modifying the effect of Chapter 2 of Part 14 (calculation of a week’s pay) in relation to an employee who is or has been absent from work on leave under section 80EF;

(g) make provision applying, modifying or excluding an enactment, in such circumstances as may be specified and subject to any conditions which may be specified, in relation to a person entitled to take leave under section 80EF;

(h) make different provision for different cases or circumstances;

(i) make consequential provision.

(2) The cases or circumstances mentioned in subsection (1)(h) include—

(a) more than one child being subject to the same eligible kinship care arrangement, and

(b) a child being subject to an eligible kinship care arrangement on two or more separate occasions, and regulations may, in particular, make special provision regarding the applicability and extent of the entitlement to leave in such circumstances.

(3) The Secretary of State may by regulations make provision for some or all of a period of kinship care leave to be paid.””

This new clause sets out an entitlement to kinship care leave.

New clause 20—Duty to prevent violence and harassment in the workplace—

“(1) Section 2 of the Health and Safety at Work etc. Act 1974 is amended as follows.

(2) After subsection (2)(e) insert—

‘(f) the adoption of proactive and preventative measures to protect all persons working in their workplace from violence and harassment, including—

(i) gender-based violence;

(ii) sexual harassment;

(iii) psychological and emotional abuse;

(iv) physical and sexual abuse;

(v) stalking and harassment, including online harassment;

(vi) threats of violence.’

(3) After subsection (3) insert—

‘(3A) It shall be the duty of every employer to prepare, and as often as may be appropriate revise, an assessment to identify potential risks of violence and harassment in the workplace and implement policies and procedures to eliminate these risks so far as is reasonably practicable.

(3B) It shall be the duty of every employer to provide training to all employees on recognising and preventing violence and harassment in the workplace, with a focus on gender-responsive approaches.

(3C) In subsection (3B) a “gender-responsive approach” means taking into account the various needs, interests, and experiences of people of different gender identities, including women and girls, when designing and implementing policies and procedures.

(3D) In this section, “persons working in the workplace” includes—

(a) employees;

(b) full-time, part-time, and temporary workers; and

(c) interns and apprentices.

(3E) In subsection (2)(f) and subsections (3A) and (3B), a reference to the workplace includes remote and hybrid work environments.’”

This new clause will amend the Health and Safety at Work etc. Act 1974 to place a duty on employers to protect all those working in their workplace from gender-based violence and harassment.

New clause 21—Expanded duties of the Health and Safety Executive—

“In the Health and Safety at Work etc. Act 1974, after section 11 (functions of the Executive) insert—

‘11ZA Duties of the Executive: health and safety framework on violence and harassment

(1) It shall be the duty of the Executive to develop, publish and as often as may be appropriate revise a health and safety framework on violence and harassment in the workplace.

(2) This framework shall include specific provisions relating to—

(a) the prevention of gender-based violence and harassment of those in the workplace including the prevention of physical, emotional, and psychological abuse;

(b) the duty of employers to create safe and inclusive workplaces and the preventative measures they must adopt; and

(c) the use of monitoring and enforcement mechanisms to ensure compliance with the duty of the employer in relation to violence and harassment (see section 2(2)(f)).

(3) The Executive shall work with other relevant bodies, including the Equality and Human Rights Commission and law enforcement agencies, to develop and revise this framework.

11ZB Duties of the Executive: guidance for employers

The Executive shall, in consultation with such other persons as it considers to be relevant, issue guidance for employers about the protection of those facing violence and harassment on the basis of gender in the workplace by—

(a) implementing workplace policies to prevent violence and harassment;

(b) establishing confidential reporting mechanisms to allow victims to report incidents;

(c) conducting risk assessments and ensuring compliance with the health and safety framework (see section 11ZA);

(d) reporting and addressing incidents of violence and harassment; and

(e) supporting victims of violence and harassment, including making accommodations in the workplace to support such victims.’”

This new clause will create a duty on the Health and Safety Executive to develop a health and safety framework on violence and harassment and to issue guidance for employers about the protection of those facing violence and harassment on the basis of gender in the workplace.

New clause 22—Duty of employer to prepare domestic abuse policy—

“(1) It is the duty of every employer to develop, publish and as often as may be appropriate revise a written statement of its general policy with respect to the support it provides to workers who are victims of domestic abuse.

(2) The Secretary of State must by regulations make provision for determining—

(a) the scope of a domestic abuse policy;

(b) the form and manner in which a domestic abuse policy is to be published;

(c) when and how frequently a domestic abuse policy is to be published or revised;

(d) requirements for senior approval before a domestic abuse policy is published.

(3) The regulations may make provision for a failure to comply with subsection (1)—

(a) to be an offence punishable on summary conviction—

(i) in England and Wales by a fine;

(ii) in Scotland or Northern Ireland by a fine not exceeding level 5 on the standard scale;

(b) to be enforced, otherwise than as an offence, by such means as may be prescribed.

(4) The regulations may not require an employer to revise the policy more frequently than at intervals of 24 months.

(5) For the purposes of this section, ‘domestic abuse’ is defined in accordance with sections 1 and 2 of the Domestic Abuse Act 2021.

(6) This section does not apply to an employer who has fewer than 5 employees.

(7) Regulations under this section must be made no later than twelve months after the passage of this Act.”

This new clause would create a duty on employers with 5 or more employees to have a policy outlining the support they provide to workers who are victims of domestic abuse.

New clause 23—Prescribed rate of statutory maternity pay—

“In regulation 6 of the Statutory Maternity Pay (General) Regulations 1986, delete ‘is a weekly rate of £184.03’ and insert ‘is a rate of £12.60 per hour in the UK and £13.85 per hour in London’.”

This new clause would increase the current rate of statutory maternity pay, bringing it in line with the “real Living Wage”.

New clause 25—Working Time Council—

“(1) The Secretary of State must, within six months of the passage of this Act, establish a Working Time Council (‘the Council’) to provide advice and make recommendations to the Secretary of State on the matters specified in subsection (4).

(2) The members of the Council—

(a) are to be appointed by the Secretary of State, and

(b) must include representatives of—

(i) trade unions;

(ii) businesses;

(iii) government departments; and

(iv) experts on matters relating to employment.

(3) Each member of the Council must hold and vacate office in accordance with the terms and conditions of the member’s appointment.

(4) The Council must provide advice and make recommendations on how a transition could be made from a five-day working week to a four-day working week with no impact on pay, including—

(a) how such a transition would affect employers and employees, and

(b) how businesses, public bodies and other organisations should approach such a transition.

(5) The Secretary of State may pay such remuneration or allowances to members of the Council as the Secretary of State may determine.”

This new clause would require the Secretary of State to establish a Working Time Council to provide advice and recommendations on the transition from a five-day working week to a four-day working week.

New clause 27—Flexible working duties: reports on compliance—

“(1) The Secretary of State must, once every six months, report on compliance with the duties under section 80G of the Employment Rights Act 1996 (employer’s duties in relation to application for change to working hours, etc).

(2) The first report must be published and laid before Parliament within six months of this Act being passed.

(3) Each further report must be published and laid before Parliament within six months of the last such report being published.”

This new clause would require the Government to report on employers’ compliance with the flexible working duties set out in this Bill.

New clause 30—Special constables: right to time off for public duties—

“(1) The Employment Rights Act 1996 is amended is follows.

(2) In section 50 (Right to time off for public duties), after subsection (1) insert—

‘(1A) An employer shall permit an employee who is a special constable, appointed in accordance with section 27 of the Police Act 1996, section 9 of the Police and Fire Reform (Scotland) Act 2012 or section 25 of the Railways and Transport Safety Act 2003, to take time off during the employee’s working hours for the purpose of performing their duties.

(1B) In section (1A), “duties” means any activity under the direction of a chief officer of police.’”

This new clause gives employees who are special constables the right to time off to carry out their police duties.

New clause 61—Status of Workers—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) Omit section 145F(3).

(3) Omit section 151(1B).

(4) Omit sections 295 (meaning of employee and related expressions) and 296 (meaning of worker and related expressions) and insert—

‘295 Meaning of worker and related expressions

(1) In this Act—

(a) “worker” and “employee” both mean an individual who—

(i) seeks to be engaged by another to provide labour,

(ii) is engaged by another to provide labour, or

(iii) where the employment has ceased, was engaged by another to provide labour, and is not, in the provision of that labour, operating a business on the employee or worker’s own account;

(b) an “employer” in relation to a worker or employee is─

(i) every person or entity who engages or engaged the worker or employee, and

(ii) every person or entity who substantially determines terms on which the worker or employee is engaged at any material time;

(c) “employed” and “employment mean engaged as an “employee” or as a “worker” under subsection (1)(a);

(d) “contract of employment” means a contract or employment relationship, however described, whereby an individual undertakes to do or perform any labour, work or services for another party to the contract or employment relationship whose status is not by virtue of the contract or employment relationship that of a client or customer of any profession or business undertaking carried on by the individual, and any reference to the contract or employment relationship of an employee or a worker shall be construed accordingly;

(e) The ascertainment of the existence of a contract of employment or employment relationship shall be guided primarily by the facts relating to the performance of work, irrespective of how the contract or employment relationship is designated in any contractual or other arrangement by one or more of the parties involved;

(f) In ascertaining the existence of a contract of employment or employment relationship, all relevant facts may be taken into consideration but the following facts, if found, may be considered indicative of the existence of a contract of employment and the presence of any such fact shall raise the rebuttable presumption that the arrangement is a contract of employment—

(i) the use, by a person other than the putative worker, of automated monitoring systems or automated decision-making systems in the organisation of work;

(ii) the work is carried out according to the instructions and under the control of another entity;

(iii) the work involves the integration of the worker in the organisation of another entity;

(iv) the work is performed solely or mainly for the benefit of another entity;

(v) the work is to be done, or is in fact done, predominantly by the worker personally;

(vi) the work involves the provision of tools, materials and equipment by an entity other than the worker;

(vii) the worker is to a significant extent subordinated to and economically dependent on the entity for which the work is done;

(viii) the determination of the worker’s rate of remuneration and other significant terms and conditions is wholly or mainly that of an entity other than the worker and, in any event, significantly outweighs the power of the worker to determine his or her rate of remuneration and other significant terms and conditions;

(ix) the worker’s remuneration and other terms and conditions are not determined by collective bargaining;

(x) the financial risks of the entity for which the work is done are not to any significant extent those of the worker beyond his or her interest in securing further remunerated work;

(xi) the worker has no significant capital investment in the entity for which the work is done beyond the provision of tools and equipment necessary for the worker to perform the work;

(xii) the remuneration for the work done constitutes the worker's sole or one of their principal sources of income;

(xiii) part of the remuneration is in kind, such as food, lodging or transport.

(2) It is for a person who is claimed to be the employer and contests that claim to demonstrate in any legal proceedings that—

(a) they are not the employer, or

(b) the person providing the work is not an employee or a worker.

(3) Subsections (1) and (2) apply to all employment of a government department, except for members of the armed forces.

(4) A person undertaking the work of a foster carer shall be treated as a ‘worker’ for the purposes of this Act.

(5) An entitlement on the part of a person to substitute the labour of another for his or her own labour shall be ignored in determining whether he or she is a worker or employee.

(6) Where a worker or employee provides labour through a personal service company the employer is the third party for whom the labour is performed.

(7) A “personal service company” means a company—

(a) in which the worker or employee is a director, or a substantial shareholding is held by the worker or employee, by themself or by or with a member of the family of the worker or employee, or by or with a third party for whom the labour is or was performed, or a nominee or nominees of such a third party; and

(b) which has contracted with the worker or employee to provide their labour to a third party or parties nominated by the company; and

(c) in relation to which the terms and conditions on which the worker or employee is or was engaged to perform the labour are or were substantially determined by any third party for whom the labour is or was to be performed, by itself or jointly with another person or entity; and

(d) in which the status of any third party for whom the labour is or was to be performed is not in practice that of a client or customer of the profession or business undertaking carried on by the worker or employee.

(8) An employer that employs, or proposes to engage, an individual to carry out work must not represent to the individual that the contract under which the individual is, or would be, engaged by the employer is a contract for services under which the individual performs, or would perform, work as an independent contractor if that is not the case.

(9) Subsection (8) does not apply if the employer demonstrates that, when the representation was made, the employer reasonably believed that the contract was a contract for services.

(10) In determining, for the purpose of subsection (9), whether the employer's belief was reasonable, regard must be had to all relevant circumstances including the size and nature of the employer's enterprise.

(11) The Secretary of State may by regulations designate as “workers” other persons engaged in work, and designate as “employers” other entities engaged in the provision of work, after consultation with organisations which appear to the Secretary of State to represent such persons and entities and any such regulations must be made by statutory instrument,

(12) A statutory instrument containing regulations under sub-paragraph (11) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.(12) This section has effect subject to sections 68(4), 116B(10) and 235.'”

New clause 62—Procedure for handling dismissal and re-engagement—

“(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended as follows.

(2) After Chapter I (collective bargaining), insert—

“Chapter 1A

Procedure For Handling Dismissal and Re-Engagement

187A Duty of employer to consult representatives

(1) This section applies to an employer where, in an undertaking or establishment with 50 or more employees, in the light of recent events or information and the economic situation affecting the employer, there is a threat to continued employment within the undertaking, and one or both of the following matters apply—

(a) decisions may have to be taken to terminate the contracts of or more employees for reasons other than conduct or capability, or

(b) anticipatory measures are envisaged which are likely to lead to substantial changes in work organisation or in contractual relations affecting or more employees.

(2) The employer shall consult with a view to reaching an agreement to avoid decisions being taken to terminate contracts of employment, or to introduce changes in work organisation or in contractual relations.

(3) The consultations under subsection (2) shall take place with all the persons who are appropriate representatives of any of the employees who are or may be affected by those matters that apply.

(4) The consultation shall begin as soon as is reasonably practicable and in good time for any agreement to be reached so as to avoid decisions being taken to terminate contracts of employment or introduce changes in work organisation or in contractual relations.

(5) The employer shall allow the appropriate representatives access to the affected employees and shall afford to those representatives such accommodation and other facilities as may be appropriate.

(6) In this section, “appropriate representatives” has the same meaning as in section 188(1B) (and the requirements for the election of employee representatives in section 188A apply).

(7) If there are special circumstances which render it not reasonably practicable for the employer to comply with a requirement of this section, the employer shall take all such steps towards compliance with that requirement as are reasonably practicable in those circumstances.

(8) Where the threat to continued employment emanates from a person controlling the employer (directly or indirectly), or a decision leading to the termination of the contract of an employee for reasons other than conduct or capability or a decision leading to substantial changes in work organisation or in contractual relations is that of a person controlling the employer (directly or indirectly), a failure on the part of that person to provide information to the employer shall not constitute special circumstances rendering it not reasonably practicable for the employer to comply with such a requirement.

187B Duty of employers to disclose information

(1) An employer to which section 187A applies shall, for the purposes of the consultation provided for in section 187A, disclose to the appropriate representatives, on request, the information required by this section.

(2) The information to be disclosed is all information relating to the employer's undertaking (including information relating to use of agency workers in that undertaking) which is in the employer’s possession, or that of an associated employer, and is information—

(a) without which the appropriate representatives would be to a material extent impeded in carrying on consultation with the employer, and

(b) which it would be in accordance with good industrial relations practice that the employer should disclose for the purposes of the consultation.

(3) A request by appropriate representatives for information under this section shall, if the employer so requests, be in writing or be confirmed in writing.

(4) In determining what would be in accordance with good industrial relations practice, regard shall be had to the relevant provisions of any Code of Practice issued by ACAS, but not so as to exclude any other evidence of what that practice is.

(5) Information which an employer is required by virtue of this section to disclose to appropriate representatives shall, if they so request, be disclosed or confirmed in writing.

(6) The employer is not required to disclose any information or document to a person for the purposes of this section where the nature of the information or document is such that, according to objective criteria, the disclosure of the information or document would seriously harm the functioning of, or would be prejudicial to, the undertaking.

(7) If there is a dispute between the employer and an employee or an appropriate representative as to whether the nature of the information or document which the employer has failed to provide is such as is described in subsection (6), the employer, employee or appropriate representative may apply to the Central Arbitration Committee for a declaration as to whether the information or document is of such a nature.

(8) If the Committee makes a declaration that the disclosure of the information or document in question would not, according to objective criteria, be seriously harmful or prejudicial as mentioned in subsection (5) the Committee shall order the employer to disclose the information or document.

(9) An order under subsection (8) shall specify—

(a) the information or document to be disclosed;

(b) the person or persons to whom the information or document is to be disclosed;

(c) any terms on which the information or document is to be disclosed; and

(d) the date before which the information or document is to be disclosed.

187C Complaint to Central Arbitration Committee

(1) An appropriate representative may present a complaint to the Central Arbitration Committee that an employer has failed to comply with a requirement of section 187A or section 187B. The complaint must be in writing and in such form as the Committee may require.

(2) If on receipt of a complaint the Committee is of the opinion that it is reasonably likely to be settled by conciliation, it shall refer the complaint to ACAS and shall notify the appropriate representative and employer accordingly, whereupon ACAS shall seek to promote a settlement of the matter. If a complaint so referred is not settled or withdrawn and ACAS is of the opinion that further attempts at conciliation are unlikely to result in a settlement, it shall inform the Committee of its opinion.

(3) If the complaint is not referred to ACAS or, if it is so referred, on ACAS informing the Committee of its opinion that further attempts at conciliation are unlikely to result in a settlement, the Committee shall proceed to hear and determine the complaint and shall make a declaration stating whether it finds the complaint well-founded, wholly or in part, and stating the reasons for its findings.

(4) On the hearing of a complaint any person who the Committee considers has an interest in the complaint may be heard by the Committee, but a failure to accord a hearing to a person other than the appropriate representative and employer directly concerned does not affect the validity of any decision of the Committee in those proceedings.

(5) If the Committee finds the complaint wholly or partly well-founded, the declaration shall specify─

(a) each failure in respect of which the Committee finds that the complaint is well-founded

(b) the steps that should be taken by the employer to rectify each such failure, and

(c) a period or periods (not being less than one week from the date of the declaration) within which the employer ought to take those steps.

(6) On a hearing of a complaint under this section a certificate signed by or on behalf of a Minister of the Crown and certifying that particular information could not be provided except by disclosing information the disclosure of which would have been against the interests of national security shall be conclusive evidence of that fact. A document which purports to be such a certificate shall be taken to be such a certificate unless the contrary is proved.

187D Application for injunction pending rectification of failure

(1) This section applies if a declaration of the Central Arbitration Committee under section 187C finds a complaint wholly or partly well-founded.

(2) An appropriate representative may apply to the Court for an injunction to subsist until the employer can satisfy the Committee that the steps under section 187C(5)(b) have been completed within the specified period or periods under section 187C(5)(c)—

(a) to compel the employer to take those steps within the period or periods, or

(b) to render void any dismissal or changes in work organisation or in contractual relations.

187E Complaint to employment tribunal

(1) This section applies where an employer—

(a) offers or proposes to offer re-engagement on different terms to an employee—

(i) it has dismissed or proposes to dismiss for reasons other than conduct or capability, or

(ii) in relation to whom it has made or proposes to make substantial changes in work organisation or in contractual relations; or

(b) has failed to comply with any of the obligations set out in sections 187A or 187B.

(2) Any affected employee or their appropriate representative may make a complaint to the employment tribunal.

(3) If the tribunal finds the complaint well-founded it shall make a declaration to that effect.

187F Award of compensation

(1) An employee, or the appropriate representative of an employee, whose complaint under section 187E has been declared to be well-founded may make an application to an employment tribunal for an award of compensation to be paid by the employer.

(2) The amount of compensation awarded shall, subject to the following provisions, be such as the employment tribunal considers just and equitable in all the circumstances having regard any loss sustained by the complainant which is attributable to the dismissal or substantial changes in work organisation or in contractual relations to which the complaint related.

187G Duty of employer to notify Secretary of State in certain circumstances

(1) This section applies to an employer to which section 187A applies in relation to 50 or more employees at one establishment or undertaking.

(2) The employer shall notify the Secretary of State, in writing, of the matters under section 187A(1) that apply and any related proposals not later than the end of whichever is the longer of—

(a) 45 days, or

(b) the notice period necessary to terminate lawfully the employment of all those employees who may be affected by any such matter before any decision to put into effect that matter is reached.

(3) A notice under this section shall—

(a) be given to the Secretary of State by delivery or by sending it by post, at such address as the Secretary of State may direct in relation to the establishment where employees who may be affected are employed,

(b) where there are representatives to be consulted under section 187A(2), identify them and state the date when consultation with them under that section began or will begin, and

(c) be in such form and contain such particulars, in addition to those required by paragraph (b), as the Secretary of State may direct.

(4) After receiving a notice under this section from an employer the Secretary of State may by written notice require the employer to give them such further information as may be specified in the notice.

(5) Where there are representatives to be consulted under section 187A(2) the employer shall give to each of them a copy of any notice given under subsection (3). The copy shall be delivered to them or sent by post to an address notified by them to the employer, or (in the case of representatives of a trade union) sent by post to the union at the address of its head or main office.

(6) If in any case there are special circumstances rendering it not reasonably practicable for the employer to comply with any of the requirements of subsections (1) to (5), the employer shall take all such steps towards compliance with that requirement as are reasonably practicable in the circumstances. Where the decision regarding the matters is that of a person controlling the employer (directly or indirectly), a failure on the part of that person to provide information to the employer shall not constitute special circumstances rendering it not reasonably practicable for the employer to comply with any of those requirements.

187H Failure to notify

(1) An employer who fails to give notice to the Secretary of State in accordance with section 187G commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(2) Proceedings in England or Wales for such an offence shall be instituted only by or with the consent of the Secretary of State or by an officer authorised for that purpose by special or general directions of the Secretary of State. An officer so authorised may prosecute or conduct proceedings for such an offence before a magistrates' court.

(3) Where an offence under this section committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person purporting to act in any such capacity, that person as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.

(4) Where the affairs of a body corporate are managed by its members, subsection (3) applies in relation to the acts and defaults of a member in connection with their functions of management as if they were a director of the body corporate.”

New clause 63—Protection of contracts of employment—

“(1) The Employment Rights Act 1996 is amended as follows.

(2) After Part IIA (zero hours workers) insert—

“Part 2AA

Protection of Contracts of Employment

27BA

(1) Any variation to an employment contract is void if it—

(a) was obtained under the threat of dismissal, and

(b) is less favourable to the employee than the pre-existing provision, unless the employer has complied with all its obligations under, and arising from, sections 187A to 187G of the Trade Union and Labour Relations (Consolidation) Act 1992 in relation to any person employed under the contract.

(2) In subsection (1)(b), the definition of “less favourable” shall be determined by the perception of a reasonable employee in the position of the affected employee.

27BB Unilateral variation of employment contracts

(1) Any provision in an agreement (whether an employment contract or not) is void in so far as it purports to permit the employer to vary unilaterally one or more terms within an employment contract where the variation is less favourable to the employee that the pre-existing provision.

(2) In subsection (1), the definition of “less favourable” shall be determined by the perception of a reasonable employee in the position of the affected employee.

(3) In Chapter I (right not to be unfairly dismissed), after section 104G insert—

(3) In Chapter I (right not to be unfairly dismissed), after section 104G insert—

“104H Refusal of variation of contractual terms

(1) In relation to an employee who claims to have been unfairly dismissed in circumstances in which the reason (or, if more than one, the principal reason) for the dismissal is that the employee has refused to agree to a variation of contractual terms—

(a) section 98(1)(b) shall not apply save that it shall be for the employer to show that the reason for the dismissal fell within section 98(2);

(b) section 108(1) shall not apply.

104I Matters for consultation under section 187C of the Trade Union and Labour Relations (Consolidation) Act 1992

(2) An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if—

(a) the Central Arbitration Committee has made a declaration under section 187C of the Trade Union and Labour Relations (Consolidation) Act 1992 in respect of the employer and employee, and the employer has not complied with the steps in that declaration, or

(b) the employer has failed, in respect of the employee, to comply with a provision of a collective agreement applicable to a matter for consultation under section 187A of the Trade Union and Labour Relations (Consolidation) Act 1992.”

(4) In section 116 (unfair dismissal: choice of order and its terms), after subsection (3) insert—

“(3A) If an employee has been unfairly dismissed and the reason (or, if more than one, the principal reason) the dismissal is unfair is one specified under section 104H or 104I, the tribunal may only find that it is not practicable for—

(a) the employer to comply with an order for reinstatement under subsection (1)(b), or

(b) the employer (or a successor or an associated employer) to comply with an order for re-engagement if the employer (or if appropriate a successor or an associated employer) would be likely to become insolvent within three months if such an order was made.”

(5) In section 128(1)(a)(i) (interim relief pending determination of complaint), for “or 103A” substitute “103A, 104H or 104I”.

(6) In section 129(1)(a)(i) (procedure on hearing of application and making of order), for “or 103A” substitute “103A, 104H or 104I”.”

New clause 71—Review of Statutory Sick Pay costs—

“(1) Within three months of the passage of this Act, the Secretary of State must consult on how the Government can best support small employers with Statutory Sick Pay costs.

(2) The consultation under subsection (1) must consider the economic effects of increasing Statutory Sick Pay for small employers with 250 employees or less, including the effects on—

(a) productivity;

(b) long-term illness;

(c) benefit spending; and

(d) economic growth & tax revenue.

(3) Following a consultation under subsection (2), within twelve months of commencing the consultation, the Secretary of State must report to Parliament on actions taken to implement the findings of the report of the consultation.”

This new clause would require the Government to consult on how best to support small employers with statutory sick pay costs while taking into account the wider economic effects of increasing it.

New clause 72—Duty on employers to investigate protected disclosures—

“(1) Part 4A of the Employment Rights Act 1996 (protected disclosures) is amended in accordance with subsections (2) to (4).

(2) In section 43C (Disclosure to employer or other responsible person), after subsection (2) insert―

“(3) Employers must take reasonable steps to investigate any disclosure made to them under this section.

(4) Employers with―

(a) 50 or more employees;

(b) an annual business turnover or annual balance sheet total of £10 million or more;

(c) operations in financial services; or

(d) vulnerabilities in other respects to money laundering or terrorist financing,

must establish internal channels and procedures for reporting and managing qualifying disclosures.

(5) The calculation of the number of employees under subsection (4)(a) includes employees of all franchises, subsidiaries and associated employers as defined under section 231 of this Act.

(6) The Secretary of State must, within six months of the commencement of this provision, set out in statutory guidance what “reasonable steps” under subsection (3) should include.”

(3) In section 48 (Complaints to employment tribunals), after subsection (1B), insert―

“(1C) A worker may present a complaint to an employment tribunal that the worker’s employer has failed to comply with the duty in section 43C (Duty to investigate protected disclosures).”

(4) In section 49 (Remedies), after subsection (1A), insert―

“(1B) Where an employment tribunal is satisfied that an employer has contravened the duty set out in section 43C (duty to investigate), the tribunal―

(a) shall make a declaration to that effect, and

(b) may make an award of compensation to be paid by the employer to the complainant in respect of the failure and may increase any award payable to the complainant by no more than 25%.””

This new clause would create a duty on employers to investigate whistleblowing concerns, to establish internal channels for reporting and managing whistleblower disclosures, and enable tribunal claims with respect to contravention of those duties.

New clause 73—Hourly statutory sick pay—

“(1) Part 11 of the Social Security Contributions and Benefits Act 1992 (statutory sick pay) is amended as follows.

(2) After section 151 (Employer’s liability), insert—

“151A Hourly statutory sick pay

(1) Where an employee has an hour of incapacity for work in relation to his contract of service with an employer, that employer shall, if the conditions set out in sections 153 and 154 are satisfied, be liable to make him, in accordance with the following provisions of this Part of this Act, a payment (to be known as “hourly statutory sick pay”) in respect of that hour.

(2) For the purposes of this section an hour of incapacity for work in relation to a contract of service means an hour during which the employee concerned is, or is deemed in accordance with regulations to be, incapable by reason of some specific disease or bodily or mental disablement of doing work which he can reasonably be expected to do under that contract.

(3) The Secretary of State must by regulations make any amendment to this Part that is necessary to enable the operation of a system of hourly statutory sick pay.””

This new clause introduces a new defined term “hourly statutory sick pay”, enabling pro rata payment of statutory sick pay by the hour. This will give employers greater flexibility in SSP payment, which can currently only be paid in whole days.

New clause 74—Non-disclosure agreements: harassment—

“(1) The Secretary of State must, within six months of the passing of this Act, make changes by regulation to ensure that an agreement to which this section applies is void insofar as it purports to preclude the worker from making a relevant disclosure.

(2) This section applies to any agreement between a worker and the worker's employer (whether a worker’s contract or not), including—

(a) any proceedings for breach of contract;

(b) a non-disclosure agreement; or

(c) a non-disparagement agreement.

(3) Regulations made under this section―

(a) must not prevent a worker from being granted confidentiality protections associated with a settlement agreement, if those protections are made at the worker’s request; and

(b) must replicate or enhance the protections offered to workers by section 1 of the Higher Education (Freedom of Speech) Act 2023, with respect to non-disclosure agreements and harassment, but must apply those protections to all workers.

(4) For the purposes of this section—

(a) “relevant disclosure” means any disclosure of information which, in the reasonable belief of the worker making the disclosure, shows that harassment has been committed, is being committed or is likely to be committed, by a fellow worker or a client of the employer;

(b) “harassment” means any act of harassment as defined by section 26 of the Equality Act 2010.”

This new clause would require the Secretary of State to make regulations to void any non-disclosure agreement insofar as it prevents the worker from making a disclosure about harassment (including sexual harassment), with relevant exceptions at the worker’s request.

New clause 75—Statutory sick pay: consultation on rate—

“(1) Within three months of the passage of this Act, the Secretary of State must consult on the rate of Statutory Sick Pay.

(2) A consultation under subsection (1) must conclude within six months of its commencement.

(3) A consultation under subsection (1) must consider―

(a) the rate at which Statutory Sick Pay should be set to ensure that employees are able to—

(i) cover their basic needs without falling into negative budgets;

(ii) recover from an illness; and

(iii) remain in work while managing their disability or long-term health condition;

(b) how best to phase in increases to Statutory Sick Pay over a five year period;

(c) the support that the Government could offer small businesses for longer-term absences or to improve the health of their workforce; and

(d) the support that the Government could offer to encourage better insurance protections for businesses to manage staff absences.”

This new clause would require the Secretary of State to hold a consultation on the rate of Statutory Sick Pay.

New clause 76—Statutory sick pay: gradual increases—

“(1) The Secretary of State must, within six months of the passage of this Act, commence a five year period of annual increases to the rate of Statutory Sick Pay.

(2) At the end of the five year period under subsection (1), the rate of Statutory Sick Pay must be no less than 80% of the National Living Wage.

(3) The annual increases under subsection (1) must be incremental, with each annual increase representing at least 10% of the overall increase required over the five year period.”

This new clause would gradually increase the rate of Statutory Sick Pay over the next five years, taking it to at least 80% of rate of the National Living Wage.

New clause 78—Access to employment rights: workers on temporary visas—

“(1) The Secretary of State must, within six months of this Act being passed, commission an independent report on the extent to which workers on temporary visas are able to assert their rights under employment law.

(2) In commissioning the report, the Secretary of State must arrange for the report to meet the requirements set out in subsections (3) to (5).

(3) The report must examine the extent to which workers on temporary visas feel unable to assert their employment rights because they are dependent on their employers to sponsor their visas.

(4) The report must make recommendations to the Secretary of State about how the Secretary of State can support workers on temporary visas in the assertion of their employment rights.

(5) The report must be completed within three months of being commissioned.

(6) The Secretary of State must, as soon as is practicable after receipt of the report, publish the report and lay it before both Houses of Parliament.

(7) The Secretary of State must, within three months of receipt of the report—

(a) respond to the recommendations in the report, and

(b) publish the response and lay it before both Houses of Parliament.”

This new clause would require the Secretary of State to commission a report ensuring that workers on temporary visas are able to assert their rights under employment law in order to prevent abusive practices.

New clause 79—Duty to prevent and monitor sexual harassment in the workplace—

“(1) Section 2 of the Health and Safety at Work etc. Act 1974 is amended as follows.

(2) After subsection (2)(e) insert—

“(f) the adoption of proactive and preventative measures to protect all persons working in their workplace from sexual harassment; and

(g) the monitoring of sexual harassment in the workplace.”

This new clause would require the Health and Safety Executive to prevent and monitor sexual harassment in the workplace.

New clause 80—Single status of worker: review—

“(1) The Secretary of State must conduct a review of Government policy on the single status of worker, and how it affects the ability to access the rights provided for by this Act.

(2) The review must be published and laid before Parliament within six months of this section coming into force.”

This new clause calls on the Secretary of State to review the Government’s policy on the single status of workers within 6 months of this section coming into force.

New clause 81—Modern slavery in UK workplaces: review—

“(1) The Secretary of State must conduct a review of—

(a) the extent to which employees in UK workplaces are subject to modern slavery as a result of the actions of their employer, and

(b) the effectiveness of employment rights in preventing modern slavery in UK workplaces.

(2) The review must be published and laid before Parliament within six months of this section coming into force.”

This new clause asks the Secretary of State to conduct a review of modern slavery to ensure that the employment rights granted in the Act are effective in preventing modern slavery.

New clause 83—Impact on employment tribunals: sections 1 to 6—

“(1) The Secretary of State must conduct a review of—

(a) the impact of sections 1 to 6 on the operation of employment tribunals, and

(b) the ability of employment tribunals to manage any increase in applications resulting from those sections.

(2) The Secretary of State must lay the review made under subsection (1) and the Government’s response to the review before Parliament.”

This new clause would require the Secretary of State to conduct a review of the impact on the employment tribunals of the Bill’s provisions on zero hours workers.

New clause 84—Consultation and assessment on the right to request flexible working—

“(1) The Secretary of State must carry out an assessment of the likely impact of the right to request flexible working provided for in section 7 of this Act.

(2) As part of the assessment, the Secretary of State must carry out a consultation on the proposed right to request flexible working.

(3) The assessment must—

(a) include labour market and broader macroeconomic analysis;

(b) examine the impact of the measures in section 7 on employment, wages and economic output;

(c) consider the likelihood of the costs of flexible working measures being passed on to employees through lower wages; and

(d) examine the likely effect of the right to request flexible working on—

(i) productivity

(ii) wage growth

(iii) equality of opportunity

(iv) job security

(v) economic activity, and

(vi) employment.

(4) A report setting out the findings of the assessment must be laid before each House of Parliament no sooner than 18 weeks after the consultation has been initiated.”

This new clause requires the Secretary of State to assess the impact of the provisions of Clause 7.

New clause 85—Employer duties on harassment: impact assessment—

“(1) The Secretary of State must carry out an assessment of the likely impact of section 18 of this Act on employers.

(2) The assessment must—

(a) report on the extent to which the prevalence of third-party harassment makes the case for the measures in section 18;

(b) include an assessment of the impact of section 18 on free speech;

(c) include an assessment of the likely costs to employers of section 18;

(d) include—

(i) an assessment of which occupations might be at particular risk of third-party harassment through no fault of the employer, and

(ii) proposals for mitigations that can be put in place for employers employing people in such occupations.

(3) The Secretary of State must lay a report setting out the findings of the assessment before each House of Parliament.”

This new clause requires the Secretary of State to assess the impact of the provisions in Clauses 18.

New clause 86—Unfair dismissal: impact assessment—

“(1) The Secretary of State must carry out an assessment of the likely impact of section 21 and Schedule 2 of this Act on—

(a) employers, and

(b) the economy.

(2) The assessment must—

(a) include labour market and broader macroeconomic analysis;

(b) examine the impact of the measures in section 21 and Schedule 2 of this Act on employment, wages and economic output;

(c) consider the likelihood the dismissal measures leading to lower employment, and greater use of temporary contracts; and

(d) examine the likely effect of section 21 and Schedule 2 of this Act on—

(i) productivity

(ii) wage growth

(iii) equality of opportunity

(iv) job security

(v) economic activity, and

(vi) employment, including levels of youth employment.

(3) The Secretary of State must lay a report setting out the findings of the assessment before each House of Parliament.”

This new clause requires the Secretary of State to assess the impact of the provisions of Clause 21 and Schedule 2.

New clause 87—Regulations under Part 1 and 2—

“When making regulations under Parts 1 and 2 of this Act, the Secretary of State must have regard to the following objectives—

(a) the international competitiveness of the economy of the United Kingdom; and

(b) the economic growth of the United Kingdom in the medium to long term.”

This new clause would require the Secretary of State, when making regulations under Part 1 and 2 of the Bill, to have regard to the objective of the international competitiveness of the economy and its growth in the medium to long term.

New clause 91—Use of positive action in the workplace—

“(1) In this section—

(a) “P” is a public sector worker who reasonably thinks that the application by P’s employer, in relation to P’s employment or a working practice, of sections 158 and 159 of the Equality Act 2010 has caused or risks causing detriment to P; and

(b) “R” is P’s public sector employer; and

(c) P reasonably thinks that R is responsible for the detriment in subsection (1)(a).

(2) A Minister of the Crown must by regulations make provision for—

(a) forms through which P may anonymously question R on any matter relevant to subsection (1);

(b) forms through which R may answer questions by P; and

(c) such forms to be made publicly available.

(3) Within six months of the passing of this Act and every three months thereafter, R must publish a report to set out―

(a) the number of forms received under subsection (2), and

(b) a summary of the nature of the complaints to which they relate.

(4) A Minister of the Crown may by regulations require R to report on the use of sections 158 and 159 of the Equality Act.

(5) This section does not apply to activities undertaken by R under paragraph 1 of Schedule 9 of the Equality Act.”

New clause 92—Rolled-up holiday pay for irregular hours workers and part-year workers—

“In the Working Time Regulations 1998, omit regulation 16A (Rolled-up holiday pay for irregular hours workers and part-year workers).”

This new clause would remove regulation 16A from the Working Time Regulations, which gives employers the ability to pay irregular hours workers and part-year workers their holiday pay by way of ‘rolled-up pay’, i.e. an uplift to their weekly or monthly pay.

New clause 93—Working Time Regulations 1998: records—

“In Regulation 9 (Records) of the Working Time Regulations 1998, omit paragraphs (2) and (3) and substitute—

“(2) The records referred to in paragraph (1)(a) must be created, maintained and kept in such manner and format as the Secretary of State may prescribe.””

This new clause would remove the discretion given to employers in 2023 to keep records in any form they choose (or not at all) in relation to each worker’s daily working hours.

New clause 94—Annual report on application of changes to employment rights to seafarers—

“(1) The Secretary of State must lay before each House of Parliament an annual report on the extent to which the relevant employment rights changes made by this Act apply to seafarers.

(2) Each annual report must describe—

(a) so far as appropriate, whether each relevant employment rights change applies or is intended to apply at the time of its commencement to seafarers on a relevant service within the meaning given by section 1 of the Seafarers (Wages and Working Conditions) Act 2023;

(b) any proposals by the Secretary of State to apply any relevant employment rights change to such seafarers subsequent to commencement;

(c) the extent to which the application of changes to employment rights to seafarers is affected by any change or prospective change to the Maritime Labour Convention, adopted on 23 February 2006 by the International Labour Organisation.

(3) The first annual report under this section must be laid before each House of Parliament within three months of the passing of this Act.

(4) In this section, “relevant employment rights changes made by this Act” means the provisions of—

(a) Part 1 of this Act,

(b) sections 25, 28 and 29.”

This new clause requires the Secretary of State to produce an annual report on the application of employment rights provisions to seafarers.

New clause 95—Annual report on provisions relating to seafarers—

“(1) The Secretary of State must lay before each House of Parliament an annual report on the extent to which the provisions of sections 26, 47 and 48 of, and Schedule 3 to, this Act improve the working conditions and employment rights of seafarers.

(2) The first annual report under this section must be laid before each House of Parliament within three months of the passing of this Act.”

New clause 97—Rights of employer and employee to minimum notice—

“(1) Section 86 of the Employment Rights Act 1996 (Rights of employer and employee to minimum notice) is amended as follows.

(2) In subsection (1)—

(a) omit “for one month or more”;

(b) for both instances of “one week’s notice”, substitute “one month’s notice”; and

(c) for “twelve weeks’ notice”, substitute “twelve months’ notice”.”

This new clause would change the minimum notice period for termination of contract to a day one right, and would increase the notice period to: one month for an employee who has been employed for up to twelve years; and twelve months for an employee who has been employed for over twelve years.

New clause 101—Duty to establish a regulatory body for foster carers—

“(1) The Secretary of State must, within six months of the passing of this Act, make a report to Parliament on progress made to date on establishing a regulatory body for the employment rights and remuneration of foster carers.

(2) Any regulatory body established pursuant to the Secretary of State’s activities under subsection (1) must include—

(a) representatives of employers and foster care workers;

(b) independent members; and

(c) representatives of individuals with lived experience in foster care; and

(3) A regulatory body established pursuant to subsection (1) must consider—

(a) the establishment of a central registration system for foster carers;

(b) the expansion of employment rights for foster carers;

(c) remuneration rates for foster caring; and

(d) any other matters which the Secretary of State deems appropriate.”

This new clause would require the Secretary of State to establish a regulatory body for foster carers for the purposes of consideration the remuneration and the expansion of employment rights for foster carers.

New clause 102—Statutory sick pay: report to Parliament—

“(1) The Secretary of State has a duty to ensure that any regulations made under section 157 (rates of payment) of the Social Security Contributions and Benefits Act 1992 do not result in an employee receiving a lower rate of statutory sick pay than the employee would have received prior to the passing of this Act.

(2) Within three months of the passing of this Act, the Secretary of State must report to Parliament on how the prescribed percentage of weekly earnings specified in section 9 of this Act will ensure that all employees receive an increase to their eligible rate of statutory sick pay.”

This new clause would ensure that the Bill’s changes to statutory sick pay do not result in any employees receiving a reduced rate, compared with current rates.

New clause 105—Substitution clauses: duties of company directors—

“(1) The director of a relevant company has a duty to ensure that the company keeps a register of all dependent contractors.

(2) The director must supply details of the register under subsection (1) with the Secretary of State within 12 months of the passing of this Act and every 12 months thereafter, subject to the provisions of the Data Protection Act 2018.

(3) The Secretary of State may by regulations make provision about what information must be supplied in the register of dependant contractors.

(4) For the purposes of this section―

(a) a “relevant company” is a company that―

(i) provides services in relation to postal and courier activities, food and beverage service activities or taxi operation;

(ii) has more than 250 employees in the UK and overseas; and

(iii) includes provision within the company’s contracts with contractors which allow the contractor to send another qualified person (a "substitute") to complete the work in the contractor’s place if the contractor is unable to complete the work;

(b) a “director” includes any person occupying the position of director, by whatever name called; and

(c) “dependent contractor” means a person who—

(i) performs work or services for the relevant company;

(ii) is paid according to tasks performed rather than hours of work;

(iii) depends partially or primarily on the relevant company for employment and income;

(iv) is not required to perform services for the relevant company; and

(v) is not specified as an employee or worker for the relevant company within a statement of employment particulars or a contract of employment.”

This new clause requires certain company directors to keep a register of the people carrying out work for the company under so-called ‘substitution clauses’, which allow companies to permit their suppliers – including some delivery couriers – to appoint a substitute to supply services on their behalf.

Amendment 275, in clause 1, page 2, line 30, leave out from “period” to the end of line 32.

This amendment aims to take out reference to low hours.

Amendment 276, page 2, leave out lines 36 and 37.

This amendment is linked to amendment 275.

Government amendment 8.

Amendment 277, page 3, line 20 leave out “with the specified day” and insert “12 weeks after the commencement”.

This amendment proposes that the reference period for offering guaranteed hours to workers previously on a zero-hours contract be 12 weeks.

Government amendment 9.

Amendment 264, page 3, line 39, at end insert—

“(11) In this section an agency worker is a qualifying worker”.

Government amendments 10 to 15.

Amendment 265, page 5, line 4, leave out from “event” to the end of line 7.

Government amendment 16.

Amendment 266, page 5, line 14, leave out from “contract” to “, and” in line 15.

Government amendment 17.

Amendment 267, page 5, line 25, leave out lines 25 to 42.

Government amendment 18.

Amendment 328, page 8, leave out lines 10 and 11.

Amendment 269, page 11, line 24, at end insert—

“(c) the length of the response period which shall not be less than one week.”

Government amendments 19 to 28.

Amendment 278, in clause 2, page 16, line 22, leave out “a specified amount of time” and insert “2 weeks and ideally one month”.

This amendment, and amendments 279 to 281, aim to set time limits for workers to be given notice of shifts, when shifts are moved and when compensation should be paid.

Government amendment 29.

Amendment 279, page 17, line 16, leave out “a specified amount of time” and insert “2 weeks and ideally one month”.

This amendment is linked to amendment 278.

Government amendments 30 to 37.

Amendment 280, in clause 3, page 21, line 29, at end insert “provided that the notice is at least 10 days in advance of the original planned shift”.

This amendment is linked to amendment 278.

Amendment 281, page 21, line 39, leave out “a specified amount of time” and insert “a week”.

This amendment is linked to amendment 278.

Government amendments 38 to 50 and 79.

Amendment 7, in clause 9, page 29, leave out from line 34 to line 3 on page 30 and insert—

“(1) The weekly rate of statutory sick pay that an employer must pay to an employee is the higher of—

(a) the National Living Wage; or

(b) the prescribed percentage of the employee’s normal weekly earnings.

(1A) For the purposes of subsection (1)(a), the “National Living Wage” is defined in accordance with regulation 4 of the National Minimum Wage Regulations 2015.”

This amendment brings the rate of Statutory Sick Pay into line with the National Living Wage.

Amendment 272, page 29, leave out from line 34 to line 3 on page 30 and insert—

“The weekly rate of statutory sick pay that an employer must pay to an employee is the higher of—

(a) £116.75; and

(b) 65% of the employee’s normal weekly earnings.”

This amendment would make the rate of statutory sick pay 65% of an employee’s earnings or £116.75 a week, whichever is higher.

Government amendments 80 to 85.

Amendment 1, in clause 16, page 33, line 8, at end insert—

“( ) after subsection (2) insert—

“(2A) The conditions specified under subsection (2) must be framed so as to ensure that a “bereaved person” includes those bereaved by pregnancy loss.

(2B) In subsection (2A) “pregnancy loss” includes—

(a) a pregnancy that that ends as a result of—

(i) a miscarriage;

(ii) an ectopic pregnancy;

(iii) a molar pregnancy;

(iv) a medical termination conducted in accordance with section 1 of the Abortion Act 1967;

(b) an unsuccessful attempt at in vitro fertilisation due to embryo transfer loss.””

This amendment requires that any regulations made under section 80EA of the Employment Rights Act 1996 (as amended by the Bill) must include conditions framed by reference to those bereaved by pregnancy loss.

Amendment 2, page 33, line 11, at end insert—

“( ) in subsection (5), after “child” insert “or as a result of pregnancy loss.”

This amendment amends section 80EA(5) of the Employment Rights Act 1996 to ensure that the two week leave period is made available to those bereaved as a result of pregnancy loss.

Amendment 3, page 34, line 8, at end insert—

“( ) In section 171ZZ6 of the Social Security Contributions and Benefits Act 1992 (entitlement to statutory pregnancy loss pay), after subsection (3) insert—

“(3A) The conditions specified under subsection (2) must be framed so as to ensure that a “bereaved parent” includes those bereaved by pregnancy loss.

(3B) In subsection (3A) “pregnancy loss” includes—

(a) a pregnancy that that ends as a result of—

(i) a miscarriage;

(ii) an ectopic pregnancy;

(iii) a molar pregnancy;

(iv) a medical termination conducted in accordance with section 1 of the Abortion Act 1967;

(b) an unsuccessful attempt at in vitro fertilisation due to embryo transfer loss.””

This amendment amends the Social Security Contributions and Benefits Act 1992 to ensure that the entitlement to statutory pregnancy loss pay extends to those bereaved by pregnancy loss.

Amendment 288, page 34, line 32, leave out clause 18.

Amendment 289, in clause 18, page 35, line 7, at end insert—

“(1D) Subsection (1A) does not apply to the hospitality sector or to sports venues.”

This amendment would exclude hospitality providers and sports venues from the Bill’s duties for employers not to permit harassment of their employees.

Amendment 287, page 36, line 10, leave out clause 21.

Government amendments 86 to 89.

Amendment 329, in clause 24, page 37, line 30, at end insert―

“(3A) For the purposes of this section, any provision in an agreement (whether a contract of employment or not) is void in so far as it purports to confer on the employer or a third party the power to vary, unilaterally, the terms of the agreement.”

This amendment would render void, for the purposes of a case of unfair dismissal in relation to failing to agree to a variation of contract, any provision enabling an employer to vary a contract unilaterally.

Government amendment 90.

Amendment 316, in clause 25, page 39, line 8, omit subsection (2)(a) and insert—

“(a) in subsection (1), omit “at one establishment” and insert “or more than 10% of the employer’s employees, whichever is the smaller number,”;”

This amendment would require an employer to consult with representatives of affected employees when proposing to dismiss as redundant 20 or more employees or at least 10% of their employees, whichever is the smaller number.

Amendment 317, page 39, line 9, at end insert—

“(2A) After section 189 (complaint and protective award), insert—

“189A Failure to comply with section 188 or 188A

Where the employer has failed to comply with the requirements under section 188 or section 188A, any proposal to dismiss employees as redundant shall be void and of no effect.””

This amendment would increase the sanction for failing to consult with representatives of affected employees by rendering the dismissal ineffective.

Government amendment 91.

Amendment 318, page 39, line 15, at end insert—

“(3A) In section 189(4), omit “but shall not exceed 90 days””

This amendment would remove the cap on the length of a protected period for which an employer is ordered to pay remuneration in protective awards.

Government amendments 92 to 97.

Amendment 302, in clause 26, page 40, line 26, leave out “120” and insert “52”.

This amendment applies the provisions for collective redundancy notices for ships’ crew to ships providing a service entering a harbour in Great Britain on at least 52 occasions in the relevant period.

Amendment 303, page 40, line 31, leave out “10” and insert “5”.

Amendment 273, in clause 28, page 46, line 28 at end insert―

“(ii) a public authority specified in Part 3 of Schedule 19,”.

This amendment would apply this section to public authorities in Scotland.

Amendment 4, page 47, line 3, at end insert—

“(c) supporting employees who provide or arrange care for a dependant with a long-term care need, as defined by the Carer’s Leave Act 2023.”

Government amendment 98.

Amendment 330, in clause 31, page 49, line 11, leave out from "Body" to the end of subsection (2)(b) and insert—

“that person being selected by agreement between officials of the trade unions and employers’ representatives who are members of the Negotiating Body and, in the event of a failure to agree chosen by the Central Arbitration Committee.”

This amendment would require the Chair of the Negotiating Body to be appointed by agreement between trade union and employers’ representatives or the Central Arbitration Committee rather than by regulations by the Secretary of State.

Government amendments 99 and 100.

Amendment 331, page 49, line 26, leave out sub-paragraphs (i) and (ii) and paragraph (b) and insert—

“equal numbers of persons nominated by—

(i) trade unions that represent the interests of social care workers; and

(ii) employers’ associations representing the interests of employers of social care workers.”

This amendment would require the regulations to establish the Adult Social Care Negotiating Body to provide for equal numbers of trade union representatives and employers’ representatives to be appointed to the Negotiating Body.

Government amendment 101.

Amendment 332, in clause 32, page 49, line 40, leave out from “are” to the end of paragraph (b) and insert—

“matters relating to or connected with matters in Section 178(2) of the Trade Union and Labour Relations No. 332, (Consolidation) Act 1992.”

This amendment would extend the remit of the negotiating body to the list of matters for collective bargaining set out in Section 178 of the Trade Union and Labour Relations (Consolidation) Act 1992.

Government amendments 102 to 107.

Amendment 333, page 50, line 4, at end insert—

“(d) the training of social care workers;

(e) career progression of social care workers;

(f) a procedure for the resolution of disputes at employer, regional and national level which may refer a dispute to ACAS for conciliation and mediation and, if not then resolved, shall be entitled to refer the matter to the Central Arbitration Committee to resolve the dispute, the decision of the latter being binding;

(g) discipline and grievance procedures;

(h) any other matter agreed to be the subject of negotiation by the members of the Negotiating Body.”

This amendment would add additional matters to those within the Negotiating Body’s remit; namely, the training and career progression of social care workers, dispute resolution procedures and discipline and grievance procedures and other matters agreed by members of the Negotiating Body.

Government amendments 108 and 109.

Amendment 334, in clause 33, page 50, line 8, leave out from “means” to the end of subsection (1) and insert—

“an individual who, as paid work, provides social care for an adult, including an individual who, as paid work, supervises or manages individuals providing such care or is a director or similar officer of an organisation which provides such care.”

This amendment would bring the definition of social care worker in line with the definition of a “care worker” in Section 20(3) of the Criminal Justice and Courts Act 2015.

Government amendments 110 to 114.

Amendment 335, in clause 34, page 50, line 23, leave out subsections (1), (2) and (3) and insert—

“The Secretary of State may by regulations make provision requiring the Negotiating Body, if it reaches an agreement about a matter within its remit, to submit the agreement to the Secretary of State.”

This amendment would remove almost all of Section 34 on the consideration of matters by the Negotiating Body, retaining the power in the regulations that agreements on matters by the Negotiating Body be referred to the Secretary of State.

Government amendments 115 to 126.

Amendment 336, in clause 35, page 51, line 22, leave out paragraphs (c) to (f).

This amendment removes the provisions about what happens where an agreement is referred back to the Negotiating Body in paragraphs (c) to (f) of Section 35(3).

Government amendments 127 to 129.

Amendment 337, page 51, line 36, leave out clause 36.

This amendment would remove Clause 36 on cases where the Negotiating Body is unable to reach an agreement about a matter

Government amendments 130 to 138.

Amendment 338, in clause 38, page 52, line 17, leave out from “remuneration” to the end of line 18 and insert—

“the worker’s remuneration is to be no less than that determined and paid in accordance with the agreement.”

This amendment relates to an agreement on a social care worker’s remuneration and is in line with sectoral collective bargaining by which a local agreement can be more but not less favourable than the national agreement.

Government amendments 139 and 140.

Amendment 339, page 52, line 25, leave out clause 39.

This amendment would remove Clause 39 on the power of the Secretary of State to deal with matters referred to the Negotiating Body.

Government amendments 141 to 153.

Amendment 340, page 55, line 16, leave out clause 45.

This amendment would remove Clause 45 which prevents agreements reached by the Negotiating Body being regarded as collective bargaining.

Government amendments 154 to 161.

Government new schedule 1—Agency workers: guaranteed hours and rights relating to shifts.

Government amendments 51 to 78 and 240.

Amendment 324, in schedule 2, page 127, line 14, at end insert—

“(1A) In section 98 of Part 10, in subsection (4)(b), at end insert “in the view of the employment tribunal”.”

This amendment would focus the determination of the question on whether a dismissal is fair or unfair on the judgment of the employment tribunal.

Amendment 325, page 127, line 14, at end insert—

“(1A) In section 98 of Part 10, in subsection (4), at end insert—

“(c) the tribunal shall take into account, in accordance with the rules of natural justice, whether or not there has been a fair investigation and a fair appeal.””

This amendment requires the employment tribunal to have regard to the rules of natural justice when determining whether or not a dismissal is fair.

Amendment 327, page 127, line 14, at end insert—

“(1A) In section 98, in subsection (1)(b) after “reason” insert “relating to the employee””

Amendment 5, page 127, line 37, leave out from “period” to the end of line 38 and insert—

“of not less than 3 months and not more than 9 months from the day on which the employee starts work.”

This amendment will ensure that the initial period of employment is between 3 and 9 months.

Amendment 326, page 127, line 38, at end insert—

“(4A) The initial period of employment specified in, or determined in accordance with the regulations shall in relation to a contract for a fixed or reasonably ascertainable term not be longer than ten percent of the duration of that term.”

Government amendment 241.

Amendment 319, page 129, line 29, at end insert—

“(5A) In section 139 (Redundancy), after subsection (1)(b) insert—

“(c) the fact that the requirements of that business—

(i) for employees with their existing contractual entitlements to carry out work of a particular kind, or

(ii) for employees with their existing contractual entitlements to carry out work of a particular kind in the place where the employee was employed by the employer,

have ceased or diminished.””

This amendment would provide for workers dismissed by a process of fire and rehire to reduce wages or other terms and conditions to be treated as redundant.

Amendment 320, page 129, line 29, at end insert—

“(5A) Omit section 155 (Qualifying period of employment).”

This amendment removes the qualifying period of two years of continuous employment for the right to a redundancy payment.

Amendment 321, page 129, line 29, at end insert—

“(5A) In section 162 (Amount of a redundancy payment), in subsection (2), for every reference to “week”, substitute “month”.”

This amendment would increase the calculation of the appropriate amount of redundancy pay for each specified period of employment.

Amendment 322, page 129, line 29, at end insert—

“(5A) In section 162 (Amount of a redundancy payment), omit subsection (3).”

This amendment would remove the 20-year cap on entitlement to a redundancy payment.

Amendment 323, page 129, line 29, at end insert—

“(5A) In section 162 (Amount of a redundancy payment), after subsection (3) insert—

“(4) For the purposes of this section, “year of employment” means “year of employment or part year of employment”.”

This amendment clarifies that, when redundancy pay is calculated, each part year worked is treated as a full year of employment.

Government amendments 242 and 243.

Amendment 343, in schedule 3, page 131, leave out lines 13 to 29.

This amendment would remove section 148B from Schedule 3 relating to matters within the remit of the School Support Staff Negotiating Body.

Amendment 290, page 131, leave out from the beginning of line 14 to the end of line 29 and insert—

“(1) In the case of staff employed under section 148C, matters within the SSNB’s remit are limited to the establishment of a framework to which employers of school support staff must have regard when discharging their functions.

(2) A framework under subsection (1) must include information on—

(a) the remuneration of school support staff;

(b) the terms and conditions of employment of school support staff;

(c) the training of school support staff;

(d) career progression for school support staff; and

(e) related matters.”

(3) In the case of staff employed under subsection (3)(a) of section 148C, the matters within the SSSNB’s remit are matters relating to the following—

(a) the remuneration of school support staff;

(b) terms and conditions of employment of school support staff;

(c) the training of school support staff;

(d) career progression for school support staff.

(4) The Secretary of State may by regulations provide that, for the purposes of subsection 5—

(a) a payment or entitlement of a prescribed kind is, or is not, to be treated as remuneration;

(b) a prescribed matter is, or is not, to be treated as relating to terms and conditions of employment of school support staff;

(c) a prescribed matter is, or is not, to be treated as relating to the training of school support staff;

(d) a prescribed matter is, or is not, to be treated as relating to career progression for school support staff.”

This amendment would change the matters within the SSNB’s remit, limiting it to the creation of a framework to which school employers should have regard but do not need to follow.

Amendment 341, page 131, line 15, leave out from “are” to the end of line 19 and insert—

“matters relating to or connected with matters in Section 178(2) of the Trade Union and Labour Relations (Consolidation) Act 1992.”

This amendment would extend the remit of the School Support Staff Negotiating Body to the list of matters for collective bargaining set out in Section 178 of the Trade Union and Labour Relations (Consolidation) Act 1992.

Amendment 342, page 131, line 19, at end insert—

“(e) a procedure for the resolution of disputes at employer, regional and national level, including the power to refer a dispute to ACAS for conciliation and mediation and, if not then resolved, entitlement to refer the matter to the Central Arbitration Committee to resolve the dispute, the decision of the latter being binding;

(f) Any other matter agreed to be the subject of negotiation by the parties.”

This amendment would add a dispute resolution procedure to the matters within the remit of the the School Support Staff Negotiating Body.

Government amendments 244 and 245.

Amendment 344, page 139, leave out lines 3 to 34.

This amendment would remove section 148Q from Schedule 3 relating to guidance issued by the School Support Staff Negotiating Body.

Amendment 304, in schedule 4, page 144, line 22, at end insert—

“(ia) for “120 occasions” substitute “52 occasions”;”

This amendment applies the requirement for national minimum wage equivalence declarations to ships providing a service entering a harbour on more than 52 occasions during a relevant year.

Amendment 305, page 145, leave out from the beginning of line 35 to the end of line 3 on page 146 and insert “52 occasions”.

This amendment applies the requirement for remuneration declarations to ships providing a service entering a harbour on more than 52 occasions during a relevant year.

Amendment 306, page 149, leave out lines 15 to 18 and insert “52 occasions”.

This amendment applies the requirement for safe working declarations to ships providing a service entering a harbour on more than 52 occasions during a relevant year.

Amendment 307, page 150, line 26, at end insert—

“Regulations relating to other working conditions

4H Regulations relating to other working conditions

(1) Regulations may specify conditions relating to other working conditions of seafarers who carry out work relating to the provision of a relevant service, including conditions about the provision of—

(a) sick pay,

(b) holiday pay

(c) pensions,

(d) training on matters other than those specified in section 4E(5).

(2) In this Act, regulations under subsection (1) are referred to as “regulations relating to other working conditions”.

(3) Regulations relating to other working conditions may impose requirements on the operator of a relevant service.

(4) Regulations relating to other working conditions may apply to—

(a) all relevant services, or

(b) one or more relevant services of a specified description.

(5) For the purposes of subsection (5)(b), a service may be described by reference to (among other things) the route operated by the service.

Declarations relating to other working conditions

4I Request for declaration relating to other working conditions

(1) Subsection (2) applies where a harbour authority has reasonable grounds to believe that ships providing a service to which regulations relating to other working conditions apply will enter, or have entered, its harbour on at least 52 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 declaration relating to other working conditions 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.

4J Nature of declaration relating to other working conditions

(1) A declaration relating to other working conditions 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 relevant 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 relevant 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 relevant working conditions have been met in relation to the service in so much of the relevant year as has already occurred, and

(b) the relevant 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 relevant working conditions were met in relation to the service in the relevant year.

(6) For the purposes of this section the relevant working conditions are met in relation to a service at a particular time if at that time the service is operated in compliance with regulations under section 4H(1) 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.”

This amendment inserts an additional power to make regulations and matching declaration requirements for a broader range of working conditions of seafarers.

Amendment 308, page 151, line 17, at end insert—

“(iv) section 4J(4) or (5),”.

This amendment is consequential on Amendment 307.

Amendment 309, page 151, line 39, at end insert—

“(iv) within subsection (3) of section 4J (and not also within subsection (4) of that section),”.

This amendment is consequential on Amendment 307.

Amendment 310, page 152, line 7, leave out “or safe working declaration” and insert—

“safe working declaration or declaration relating to other working conditions”.

This amendment is consequential on Amendment 307.

Amendment 311, page 152, line 12, leave out “or safe working declaration” and insert “safe working declaration or declaration relating to other working conditions”.

This amendment is consequential on Amendment 307.

Amendment 312, page 152, line 30, at end insert—

“(iii) information relating to matters that are the subject of regulations relating to other working conditions.”

This amendment is consequential on Amendment 307.

Amendment 313, page 153, line 27, at end insert “or

“(d) a declaration relating to other working conditions;

“declaration relating to other working conditions” has the meaning given by section 4J(1);”.”

This amendment is consequential on Amendment 307.

Amendment 314, page 153, line 31, at end insert—

“regulations relating to other working conditions has the meaning given by section 4H(2);”

This amendment is consequential on Amendment 307.

New clause 96—Annual report on application of changes in Parts 4 and 5 to seafarers—

“(1) The Secretary of State must lay before each House of Parliament an annual report extent to which the changes provided for in Parts 4 and 5 of this Act (“the relevant changes”) apply to seafarers.

(2) Each annual report must describe—

(a) so far as appropriate, whether each relevant change applies or is intended to apply at the time of its commencement to seafarers on a relevant service within the meaning given by section 1 of the Seafarers (Wages and Working Conditions) Act 2023;

(b) any proposals by the Secretary of State to apply any relevant change to such seafarers subsequent to commencement;

(c) the extent to which the application of the relevant changes to seafarers is affected by any change or prospective change to the Maritime Labour Convention, adopted on 23 February 2006 by the International Labour Organisation.

(3) The first annual report under this section must be laid before each House of Parliament within three months of the passing of this Act.”

Government amendments 227 to 235.

Amendment 6, in clause 129, page 119, line 25, at end insert—

“(aa) section [Working Time Council];”.

This amendment is consequential on NC25.

Amendment 301, page 120, line 11, at end insert—

“(q) section [Annual report on application of changes to employment rights to seafarers];

(r) section [Annual report on provisions relating to seafarers]

(s) section [Annual report on application of changes in Parts 4 and 5 to seafarers]”

This amendment provides for the coming into force of NC94, NC95 and NC96 two months after the passing of the Act.

Amendment 283, page 120, line 13, at end insert—

“(3A) But no regulations under subsection (3) may be made to bring into force sections 1 to 6 of this Act until the findings of the report under section [Impact on employment tribunals: sections 1 to 6] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”

This amendment would prevent the Bill’s provisions on zero hours workers coming into force until the review of the impact on the employment tribunals of the Bill’s provisions on zero hours workers had been assessed and approved by Parliament.

Amendment 284, page 120, line 13, at end insert—

“(3A) But no regulations under subsection (3) may be made to bring into force section 7 of this Act until the findings of the report under section [Consultation and assessment on the right to request flexible working] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”

Amendment 285, page 120, line 13, at end insert—

“(3A) But no regulations under subsection (3) may be made to bring into force section 18 of this Act until the findings of the report under section [Employer duties on harassment: impact assessment] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”

Amendment 286, page 120, line 13, at end insert—

“(3A) But no regulations under subsection (3) may be made to bring into force section 21 and Schedule 2 of this Act until the findings of the report under section [Unfair dismissal: impact assessment] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”

Government amendments 246, 248 and 250.

Amendment 274, in schedule 10, page 190, line 36, leave out paragraph 17 and insert—

“(17) In section 123 of the Equality Act 2010 (discrimination etc at work), in subsection (1)(a)―

(a) for “3” substitute “6”; and

(b) at end insert―

“(ab) for cases involving sexual harassment, the period of 12 months starting with the date of the act to which the complaint relates, or””.

This amendment would increase to 12 months the time limit for bringing employment tribunal claims relating to sexual harassment.

Government amendments 262 and 263.

[Justin Madders]

I start by referring to my entry in the Register of Members’ Financial Interests, as I have done throughout the passage of the Bill. I thank Members in all parts of the House for their valuable contributions throughout the passage of the Bill to date, and in particular my hon. Friend the Member for Llanelli (Dame Nia Griffith) for her assistance in taking the Bill through Committee, and the other members of the Public Bill Committee for providing substantial debate and scrutiny.

The Government’s plan to make work pay is a core part of our mission to grow the economy, raise living standards across the country and create opportunities for all. It will tackle the low pay, poor working conditions and poor job security that have been holding our economy back. The Bill is the first phase of delivering our plan to make work pay, supporting employers, workers and unions by raising the minimum floor of employment rights, raising living standards across the country and levelling the playing field for those businesses that are engaged in good practice.

This is a landmark Bill that, once implemented, will represent the biggest upgrade in employment rights for a generation. It is therefore important that we get the detail right. The amendments being put forward by the Government directly demonstrate our commitment to full and comprehensive consultation on the detail of the plan to make work pay. On 4 March, we published five consultation responses relating to key areas of the Bill. That package represents the first phase of formal public consultations on how best to put our plans into practice. We have also undertaken extensive engagement with more than 150 stakeholder organisations, in addition to the formal consultations.

We have made great efforts to listen to the range of views from businesses, trade unions, representative organisations, civil society and others. The insights gained have been invaluable in informing the amendments to ensure the Bill works in practice, both for workers and for businesses of all sizes across the whole country. The amendments will strengthen the Bill, providing further detail and clarity on measures and ensuring such measures can be implemented in a straightforward way.

I turn to the detail of the amendments. The Government have tabled a range of amendments in relation to zero-hours measures. These amendments will help ensure that the zero-hours contract reforms work for workers and employers, supporting a culture where secure work and prosperous growth go hand in hand. Amendments in relation to clause 1, covering the right to guaranteed hours, will clarify requirements where a worker works for an employer under more than one contract at the same time; clarify that under a guaranteed hours offer, if it is accepted, work must be provided by the employer for the hours set out and that those hours must be worked by the worker; and enable a worker to take a case to an employment tribunal on the ground that an employer deliberately structured the worker’s hours or offered work in such a way as to make a reduced guaranteed hours offer or to avoid having to make an offer at all.

[Sir Edward Leigh (Gainsborough) (Con)]

Given the urgent necessity to promote growth, surely the acid test of a Bill such as this is whether it will actually make it more attractive for entrepreneurs to create jobs. What is the answer?

[Justin Madders]

The answer is in the Department’s press release, which cites Simon Deakin, professor of law at the University of Cambridge, no less. He has said:

“The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity. Labour laws also help ensure that growth is more inclusive and that gains are distributed more widely across society.”

I am sure that the right hon. Member wants to see that happen.

Amendments in relation to the rights in clauses 2 and 3 to reasonable notice of shifts and payment for short-notice cancellation, curtailment and movement of shifts will ensure that the rights work appropriately for workers whose contracts specify the timing of at least some of their shifts; provide that a worker is entitled to a payment from their employer only for a shift cancelled, moved or curtailed at short notice if they reasonably believed they would be needed to work the shift; and allow employers to disclose personal information about a worker in notices of exceptions, where appropriate and in accordance with data protection law, and ensure that the usual burden of proof applies where it is alleged that such a notice is untrue.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

The Minister will have seen the appalling evidence that the Business and Trade Committee took from McDonald’s, where the BBC investigation exposed allegations from hundreds of young workers who were suffering harassment, and even allegations from one worker of managers soliciting them for sex in return for scheduling shifts. The tightening up that he proposes is very welcome. When does he think he will set out the detail—[Interruption.] When will he set out the detail of, for example, the period of time that someone must work before being offered a zero-hours contract?

[Justin Madders]

I thank the Chairman of the Select Committee for his question. We are aiming to work on this once the Bill has passed this stage, and consultation will take place in due course. I have to say that the chuntering from those on the Conservative Benches really shows how they fail to appreciate the power imbalance that there is in some workplaces and the exploitation and harassment that arise from that.

Our measures on guaranteed hours, reasonable notice of shifts, and payment for short-notice cancellations seek to ensure that workers, often in fragmented sectors with little voice of their own, do not bear all the risk of uncertain demand. However, we recognise that there are cases where unions and employers, working together, may want to agree more tailored rights than the provisions allow, which would benefit both the workers and the employer given the unique context of that particular sector. Unions, businesses and trade associations have made a case for that flexibility in their meetings with us. We want to allow for that, while also providing a baseline for sectors where unionisation is uncommon or agreement cannot be reached. New clause 33 and associated amendments will allow employers and unions to collectively agree to modify or opt out of the zero-hours contract measures.

Like the other workers covered by this part of the Bill, agency workers deserve a baseline of security and access to a contract that reflects their regular hours. Many agency workers have a preference for guaranteed hours, according to survey evidence. We know that 55% of agency workers requested a permanent contract with their hirer between January 2019 and September 2020, according to the Department for Business and Trade’s agency worker survey. We are keen not to see a wholesale shift from directly engaged workers to agency workers as a way for employers to avoid the zero-hours provisions in the Bill.

New clause 32, new schedule 1 and associated amendments will narrow the broad power currently in the Bill and instead include provisions for similar rights to be extended to agency workers. Hirers, agencies and agency workers can then be clear where responsibilities will rest in relation to the new rights. These amendments reflect the call for clarity from stakeholders in their response to the Government’s public consultation on this issue. Given the important role that agency work plays in businesses and public services, we recognise the need to work with the recruitment sector, employers and trade unions to design detailed provisions for regulations that work—that is, regulations that achieve the policy objective of extending rights to agency workers without unintended consequences for employment agencies and hirers—and we will work on that in due course.

The Government have also tabled amendments in relation to dismissal and redundancy practices. This Bill will help employers to raise standards in relation to these practices, so that the vast majority of businesses that do the right thing by their workers will no longer be undercut by those with low standards.

[Sir Ashley Fox (Bridgwater) (Con)]

I had the good fortune to serve with the Minister for 21 sessions in Committee, and at the end of that we had a Bill 192 pages long. We now have 270 pages of amendments, most of which come from the Government. Why are they tabling so many amendments and giving them just two days’ scrutiny? Are these just more union demands?

[Justin Madders]

I have literally just explained how we have been consulting with businesses and trade unions and put down amendments as a result. Of course, if the hon. Member is concerned about the length of the amendment paper, he can withdraw his own amendment, which we will no doubt be debating later on.

We are tabling some technical amendments to clause 21 on unfair dismissal that will update cross-references in other legislation to “the sum”, which is the existing cap on the compensation that can be awarded by an employment tribunal in most unfair dismissal cases.

--- Later in debate ---

[Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)]

I apologise if the Minister has moved on a bit; I was just waiting to hear what he said. The Minister may correct me, but I do not believe the provisions around menstrual health—the menopause strategy and so on—include endometriosis, which can be crippling for people in the workplace. I may not have seen it in the Bill, but does the Minister have any plans to ensure that this becomes a protected area of sick leave? Endometriosis is devastating for many women, but at the moment, they are struggling to get this terrible disease recognised in the workplace.

[Justin Madders]

I am grateful to the right hon. Member for raising this important point. It was touched on in Committee, but there are not any amendments dealing with that specific issue today.

Returning to holiday pay, where an employer does not keep adequate records, a Fair Work Agency enforcement officer may seek a labour market enforcement undertaking from the employer to ensure future compliance. Where the employer refuses to give a labour market enforcement undertaking, or fails to comply with one, the FWA enforcement officer may apply to the appropriate court for a labour market enforcement order.

[Chris Law (Dundee Central) (SNP)]

I apologise to the Minister because he has moved on, but I want to come back to the new level of statutory sick pay, which is £118.75 or 80% of an employee’s weekly earnings. An employee with weekly earnings of £125 would at present get £116.75, but under the new model, they would receive only £100. Is that correct?

[Justin Madders]

Yes, but the hon. Member forgets the fact that we are removing the waiting days. With the provisions on the lower earnings limit going, 1.3 million people will be accessing statutory sick pay. We think that that is the right balance and that it will leave people in a much better position. Of course, it is something that we will always continue to review.

Moving on to umbrella companies, we are aware of non-compliance in this market, where umbrella companies can be responsible for denying employment rights to those who work through them. New clause 36 will allow for the regulation of umbrella companies and for enforcement by the Employment Agency Standards Inspectorate, and subsequently the Fair Work Agency. The specific requirements on umbrella companies will be set out in the relevant regulations, which set out the minimum standards of conduct for employment agencies and employment businesses. We will consult before amending these regulations, and we are committed to working with the sector to ensure that future regulation works effectively for umbrella companies. The amendment marks an important step towards ensuring non-compliant umbrella companies are no longer able to deny workers the rights they are owed.

The Government are moving a range of amendments in relation to part 3 of the Bill, which covers the adult social care negotiating body and the school support staff negotiating body. On the SSSNB, the Government are moving two technical amendments to correct incorrect cross-references. The body is an important part of delivering both the Government’s “Plan to Make Work Pay” and our opportunity mission. The Government will today commit to consult in the summer on whether agency workers should be brought into scope of the SSSNB in future legislation to support those missions.

[Munira Wilson (Twickenham) (LD)]

Could the Minister clarify for the House whether the provisions on the school support staff negotiating body will provide a ceiling as well as a floor on pay, or will it just be a floor? There are certainly a number of school and academy leaders who say they want to pay above what the Government might recommend for support staff and that this may limit them from doing so.

[Justin Madders]

That was debated in detail in Committee. My understanding is that there will be a floor, but there will not be a ceiling. If I am wrong about that, I will come back to that. We absolutely think that a floor is needed given some of the issues with low pay in this country.

Amendments to the adult social care negotiating body provisions will remove clause 42, thereby removing the power to make stand-alone enforcement provision in respect of the agreements reached by negotiating body. Enforcement of pay terms under agreements will instead be in the remit of the new Fair Work Agency under schedule 4.

[Wendy Morton (Aldridge-Brownhills) (Con)]

The Minister is rattling off a whole list of amendments that appear to have come after the legislation has gone through Committee. Does he not understand that that creates a massive burden on many businesses? Would it not be better to accept that the Government have gone a little overboard with the Bill and to start afresh with proper consultation with businesses at ground level?

[Justin Madders]

The reason why we are putting so many amendments down is because we have been consulting and working with businesses, and that is why we have so much to say today. It was a Labour party commitment to launch an Employment Rights Bill within 100 days of taking office, and I am proud that we have delivered on that commitment and that we have this Bill here today.

[Sir Desmond Swayne (New Forest West) (Con)]

In that consultation, how many small businesses expressed their support for the Bill?

[Justin Madders]

I refer the right hon. Member to our departmental press release, where at least half a dozen business representatives and businesses have expressed support, and of course, there are many more businesses out there. Indeed, I visited one only recently that supported the Bill.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

Would the Minister be kind enough to name one of those businesses on the press release? [Interruption.] He had better look at the press release just to check.

[Justin Madders]

There is the Co-op—quite a big business—Richer Sounds, Centrica and the British Chambers of Commerce. These are not bit-part players at all, are they?

New clause 38 seeks to ensure that agency workers in the adult social care sector who do not have a “worker’s contract”, within the meaning of employment legislation, would nevertheless be able to bring a claim in the employment tribunals or in civil proceedings where a fair pay agreement has been breached. It does that by deeming a contract to exist for this purpose between the worker and the party that pays them. That will allow such workers to bring an unlawful deduction of wages claim or breach of contract claim for a breach of fair pay agreement terms.

New clause 37 and associated amendments will enable the Scottish and Welsh Ministers to establish their own separate negotiating bodies and associated framework, and to enable their negotiating bodies and the resulting agreements to cover social care workers in both adult and children’s social care. Care policy, funding and commissioning is delivered together in both Wales and Scotland. In England, the two workforces, and therefore the policies and delivery, are distinct. As such, it is right for Scotland and Wales to have the powers to set up negotiating bodies that can provide for their systems and workforces as they are now. These amendments and associated consequential amendments will allow the devolved Ministers to exercise certain powers in this chapter of the Bill with the consent of the Secretary of State, ensuring that the Secretary of State retains oversight of regulations relating to the reserved matters of employment and industrial relations.

Amendment 151 to clause 41 supplements the power to make regulations in relation to record keeping. It will enable those regulations to apply to section 49 of the National Minimum Wage Act 1998 in order to prevent employers from trying to contract out of their new record keeping obligations.

--- Later in debate ---

[Jerome Mayhew (Broadland and Fakenham) (Con)]

When my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths) asked a moment ago which businesses support the Bill, the Minister mentioned the British Chambers of Commerce. I have just visited its website, which states:

“The British Chambers of Commerce has used an evidence session on the Employment Rights Bill to highlight businesses’ serious concerns about the legislation and the speed and detail of consultation.”

Will the Minister withdraw his comment?

[Justin Madders]

I am glad that the hon. Member has access to the internet. I direct him to the Department’s webpage, where he will see that Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said:

“There is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual”.

That was in response to the amendments, so it is a much more up-to-date comment than the one the hon. Member mentioned.

Returning to the important issue of violence against women and girls, it is incumbent on every part of Government to work together to tackle violence against women and girls. That is not a task for a single Department or Minister. The Government are steadfastly committed to delivering our manifesto commitment to halving violence against women and girls, and we will publish a cross-Government strategy shortly. I intend to work with colleagues to ensure that our Department does its bit in that respect.

I also take this opportunity to note the amendments tabled by my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) and the hon. Member for Oxford West and Abingdon (Layla Moran) on non-disclosure agreements. I have met advocates on that issue and I understand the significant problems that they have highlighted in relation to the misuse of non-disclosure agreements in some circumstances. That important issue warrants further consideration. The Government are pressing ahead with plans to implement the provisions relevant to NDAs in the Victims and Prisoners Act 2024 and the Higher Education (Freedom of Speech) Act 2023. We take NDA misuse seriously and will continue to look into it to see what we can do.

[Sir Julian Smith (Skipton and Ripon) (Con)]

New clause 72, in the name of the hon. Member for Leeds Central and Headingley (Alex Sobel), focuses on whistleblowing and protected disclosures. That area has been so important in recent public scandals, including the Post Office-Fujitsu scandal and the Lucy Letby case. May I urge the Minister to consider that new clause? Imposing a duty on bigger employers to look at and investigate protected disclosures is a vital way of moving forward on that key legislation.

[Justin Madders]

I have begun to consider it, as that legislation is now a quarter of a century old and needs looking at in the light of experiences in a number of the scandals that have been mentioned. We are considering where we go next on whistleblowing legislation.

To conclude, Britain’s working people and businesses are the driving force of the UK economy, and the Bill will help to create a labour market that delivers for both. It will deliver significant benefits to the UK, including better working conditions, more secure work, reduced inequalities and improved industrial relations. I appreciate that I have outlined a lot of detail today, but it is important to remember that, as is typical with any legislation of this nature, many of the policies will be provided for through regulations and, in some cases, through codes of practice. We expect further consultations on these reforms to begin later in the year, when we will seek significant input from stakeholders.

I am grateful for Members’ efforts to improve the Bill, and for their scrutiny and debate so far. I look forward to hearing further debate this afternoon.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

Department for Business and Trade

Justin Madders Excerpts

Wednesday 5th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

First, I thank my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), and indeed the hon. Member for Dumfries and Galloway (John Cooper), for securing the debate, and for the work that they do on the Business and Trade Committee. The hon. Member for Dumfries and Galloway littered his speech with football analogies, to the extent that I wondered whether you were going to show him a red card, Madam Deputy Speaker, but you did not. He made many criticisms of the Government, but all I would say is that we are not even at half-time yet. Let us wait until we get to the end of the match. There were a number of important and interesting contributions to the debate. I will try to address as many of them as I can in the time that I have.

It is clear that the Department is central to driving economic growth, ensuring that we remain competitive on the global stage, and making work pay for everyone. The Government’s growth mission has been our top priority since day one of taking office, because we understand that without economic growth we cannot invest in public services, nor can we raise living standards for hard-working families. To secure the growth that we need, we are guided by four key principles: building long-term stability; renewing our commitment to free and fair trade; easing the investor journey; and being a strategic, growth-focused state. We have wasted no time in getting to work on that, and in fixing the foundations of the economy. My Department has been at the forefront of those efforts, and I will try to explain the things that we have done as I answer the points raised during the debate.

I start with the comments of the Select Committee Chair, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North. I was pleased to hear that he found terrific unity of purpose on the Government’s ambitions for growth. I join him in paying tribute to the civil servants who are helping us to deliver on those ambitions. He raised a number of important points. He talked about getting the right workforce, as did my hon. Friend the Member for Tamworth (Sarah Edwards). We will have a levy-funded growth and skills offer that will deliver greater flexibility for learners and employers. That will be aligned with our industrial strategy, creating routes into good, skilled jobs in growing industries.

As a first step, we will ensure shorter duration and foundation apprenticeships in targeted sectors. That will help more people to learn high-quality skills at work, fuelling innovation in businesses across the country and providing high-quality entry pathways for young people. We will, through legislation, reduce the minimum duration of apprenticeships to eight months, so that shorter apprenticeships are possible from August 2025. Trailblazer apprenticeships in green energy, healthcare and film and TV production will be among the first to take advantage of that new offer. Also, in response to calls from employers, assessment plans will be less burdensome, focusing on the must-haves for occupational competency, rather than testing every knowledge, skill or behaviour.

The Select Committee Chairman made an important point on an issue that I have been looking at carefully: how we harmonise regulation, make sure that we do not have different Departments talking to different people and saying different things, streamline, and ensure a cohesive environment in which businesses can invest and grow. He will be pleased to know that I have been meeting colleagues from other Departments, and particularly Lord Vallance, the Minister of State for science, research and innovation, who is looking at innovation in this area. We also now have Government growth boards, which are looking at this Government’s missions to ensure that that cross-departmental grip on matters.

The Select Committee Chair, along with my hon. Friends the Members for Dudley (Sonia Kumar) and for Tamworth, asked how we can use the British Business Bank to help businesses access finance. We are looking very closely at that. The bank is operationally independent, but we are working with it to ensure that businesses can navigate the market better and have clearer information and options available to them. There is also a package for encouraging tech adoption among SMEs, and we hope that the British Growth Partnership will get that pension fund investment into some of the UK’s fastest growing companies.

The Select Committee Chair asked about the figure of £126.7 million. My understanding is that it is the result of a revaluation of the Department’s investment portfolio. That is a standard process, and I am happy to put him in touch with officials for a more detailed explanation of that, if he requires it.

My hon. Friend the Member for Livingston (Gregor Poynton) asked about the Grangemouth refinery. It is deeply regrettable that we have had to step in and put plans in place there. There is £100 million for the Falkirk and Grangemouth growth deal, which will help boost the local economy. There is a £1.5 million project to look at credible, long-term industrial options for the site, which we expect to report in the spring. The National Wealth Fund will also provide nearly £200 million of growth opportunities for the area.

My hon. Friend the Member for Portsmouth North (Amanda Martin) highlighted the devastating impact that a lack of a strategy can have on a community in her constituency. I join Opposition Members in thanking her son for his service in the defence of our nation. She will be pleased to know that our industrial strategy Green Paper, “Invest 2035: the UK’s modern industrial strategy”, sets out the eight key growth-driving sectors into which we want to channel investment and support in the long term. We want to unleash the full potential of those priority sectors to spur growth, spread wealth and drive up employment across all four nations of the UK. Each of the industries will have its own sector plan, setting out how we intend to support businesses, build on existing successes and unlock new opportunities. Those sector plans are being designed in partnership with business, devolved Governments, regions and other key parties. The industrial strategy, alongside sector plans for the growth-driving sectors, will be published later this year, and will be aligned with the multi-year spending review.

[Gareth Snell]

The Minister is making an excellent speech setting out this Government’s ambitious plans. While he is looking at the industrial strategy and those eight high-growth areas, can I make a pitch for him to remember those foundational industries that sit below them, including ceramics? Without ceramics, refractories and those foundational industries, delivering the growth that the Department wants in those eight high-growth areas will simply be impossible.

[Justin Madders]

I thank my hon. Friend for that intervention. I knew as soon as he rose that he would raise the subject of the ceramics industry, such is his record of championing it. I will certainly pass his comments back to the relevant Minister.

[Tom Collins (Worcester) (Lab)]

Working in industry, I have personally experienced the power of partnership between Government and industry when the Government set clear, powerful goals, and then collaborate with industry on delivering them. That has, in my experience, really fuelled innovation and is key to delivering the growth that we desire. Does the Minister agree that a partnership with industry, in which the Government set goals and we work together to deliver them, is key to delivering a successful industrial strategy?

[Justin Madders]

I absolutely agree with my hon. Friend, and that is what we are attempting to deliver with our industrial strategy. Engagement with businesses is continuing on that. Publication will, I believe, be in the late spring, and we will ensure that it is a very successful launch.

I will draw my comments to a conclusion, but I want to acknowledge Conservative Members’ barrage of criticism for the Employment Rights Bill. I refer the House to my entry in the Register of Members’ Financial Interests, just to make sure that the shadow Minister is not disappointed. No doubt we will debate the Bill in more detail next week, but I do hope that Conservative Members will have actually read it by then. They kept talking about going back to the 1970s, but the legislation that the Bill repeals is from 2023 and 2016, so we are going back to 2015 at best. I hope that they get some better lines before Report.

In conclusion, we are making the UK a more attractive and easier place in which to invest and do business through our expanded Office for Investment. Our sectors of the future are being emboldened through our modern industrial strategy, which will ensure that we have the right environment and skills for them to innovate, invest and create clean growth. Small and medium-sized businesses are being supported with the capital and conditions that they need to thrive, and millions of employees are being afforded greater protections at work, so that they can support their family and enjoy a higher standard of living, because we are determined to end the race to the bottom. I thank all Members for contributing to the debate, and I am grateful for the important work of the Business and Trade Committee. I look forward to continuing to work with it. I commend these estimates to the House.