Employment Rights Bill (Nineteeth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 14th January 2025 Public Bill Committees

[The Chair]

Will everyone please ensure that all their electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sittings is available in the room and on the parliamentary website. I remind hon. Members about the rules on declarations of interest, as set out in the code of conduct.

Schedule 6

Consequential amendments relating to Part 5

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

I beg to move amendment 183, in schedule 6, page 135, line 6, leave out “‘Secretary of State’.” and insert

“‘Gangmasters and Labour Abuse Authority or the Secretary of State’.”

This amendment would ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a “relevant document” that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under that Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.

It is a pleasure to see you in the Chair this morning, Mr Mundell. As is customary, I refer to my declaration of interests and to the Register of Members’ Financial Interests.

The amendment is essential to upholding legal continuity and to preventing any ambiguity or loopholes in enforcement. It will ensure that provisions under the Gangmasters (Licensing) Act 2004 remain enforceable. Without the amendment, there is a risk that any improper conduct in relation to documents issued before the abolition of the Gangmasters and Labour Abuse Authority could fall outside the scope of enforcement.

Fraudulent licences have been used to exploit vulnerable workers and to mislead employers, particularly in industries such as agriculture and food processing. The amendment will strengthen deterrence against document fraud and ensure that enforcement agencies retain the tools that they need to protect workers effectively.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell.

As the Minister has outlined, Government amendment 183 will ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a relevant document that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under the Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.

Clause 109 will abolish the Gangmasters and Labour Abuse Authority, a non-departmental public body that investigates reports of worker exploitation and illegal activity such as human trafficking, forced labour and illegal labour provision, as well as making offences under the National Minimum Wage Act 1998 and the Employment Agencies Act 1973. Significantly, the Gangmasters and Labour Abuse Authority also issues licences to employment agencies, labour providers or gangmasters who provide workers in the sectors of agriculture, horticulture, shellfish gathering and any associated processing or packaging. That is important work; we do not in any way, shape or form deviate from that.

The Government amendment will rightly ensure that providing false licences remains an offence, including where that was identified before the Bill receives Royal Assent and becomes an Act at some point this year, but I would like to be reassured about the work of the Gangmasters and Labour Abuse Authority in connection with the provisions of the Bill. For example, what will happen to the staff at the authority once it has been abolished? The Bill provides for the transfer of staff, property rights and liabilities to the Secretary of State. Does the Secretary of State envisage redundancies or envisage that the same staff will continue to do the same work under a different ultimate authority? Will the reorganisation lead to any disruption? I think we all accept that any change will bring with it some level of disruption, but how can the disruption be minimised?

Likewise, the amendment appears to ensure continuity with existing legislation once the Bill has passed. I will be grateful if the Minister can confirm that that is the case. If any new powers are being taken, please could they be explained?

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[Sir Ashley Fox]

The hon. Member makes a number of valuable points. The proposed removal of the GLAA raises concerns about how its important functions will be handled. It is imperative that a robust alternative structure be put in place to address those critical issues and to continue protecting workers’ rights and preventing exploitation.

The GLAA’s work is crucial in specific sectors in which workers are at a heightened risk of exploitation. They include agriculture, horticulture, shellfish gathering and the associated processing and packaging industries. Such sectors often rely on seasonal or temporary labour, which makes workers more vulnerable to abuse. The GLAA has been tasked with ensuring that employment agencies and gangmasters in those areas are properly licensed and comply with legal and ethical standards. Without a continued effective regulatory body, there is a risk that workers in those sectors could face greater vulnerability to exploitation. The amendment ensures that even after the GLAA is abolished, protections relating to fraudulent licences remain in place to help to prevent future abuses in those critical sectors.

Although the amendment will rightly ensure that the offence of providing false licences will continue, including for cases identified prior to the passage of the Bill, there remains a need for reassurance about the future of the GLAA’s core responsibilities. The work of the GLAA in investigating and responding to incidents of worker exploitation is vital. As the Bill progresses, it is crucial that there is a clear and publicly communicated plan for transferring and maintaining those functions under the new framework. The question remains of how those critical duties will be continued effectively under the new system. What mechanisms are in place to ensure that the same level of oversight and enforcement will be maintained without compromising workers’ protections?

One significant issue that arises from the abolition of the GLAA is the future of its staff. The Bill stipulates that staff, property, rights and liabilities will be transferred to the Secretary of State. However, there is a need for further clarity on the fate of staff members, who have been dedicated to the GLAA’s mission. Will there be redundancies, or will staff members be reassigned to continue their work under a new authority such as the fair work agency? In the latter case, it will be essential to understand how that transition will be managed. Will those staff members continue to do the same work, or will there be changes to their roles? Furthermore, will the reorganisation cause any disruption to the ongoing work of tackling labour exploitation and illegal labour practices? Minimising disruption in that process is crucial to ensure that there is no gap in the important regulatory and enforcement work carried out by the GLAA.

Government amendment 183 appears to be designed to ensure that existing legislation, particularly in relation to worker protections and the regulation of labour providers, continues to apply once the Bill passes. It would have been reassuring to have confirmation that the intention behind the amendment is to maintain the existing legal framework and obligations. The continuity of those provisions is critical to ensuring that workers remain protected and that the work of tackling exploitation and human trafficking continues without interruption. I would be grateful for the Minister’s confirmation that the amendment will ensure that the key elements of existing legislation remain in force.

Finally, if the Bill introduces any new powers, it is important that the need for those powers be fully explained and understood. The amendment and the Bill more broadly implement changes that could have significant implications both for employers and for their employees. It would be helpful to have clarification on whether the new powers will be used to expand the role of the Secretary of State or the fair work agency in monitoring and regulating sectors previously overseen by the GLAA. How will those new powers affect existing regulations? What safeguards will be in place to ensure that they are used appropriately and effectively?

[Justin Madders]

That was quite a lengthy debate for a technical amendment. This amendment to schedule 6 will ensure continuity of function, which was one of the main points that the shadow Minister and the hon. Member for Bridgwater made. We are alive to their concern that there is a hole through which provisions can fall: there are a number of amendments to make sure that there is continuity of legal force and in the ability to carry out the functions of the predecessor authorities.

Both hon. Members asked about redundancies. It is premature to talk about operational matters of that nature. The impact assessment is being carried out on the basis of the existing budgets of the relevant agencies. No reduction in staff members is anticipated, but as we move forward, efficiencies and duplications may become apparent when the agencies are merged, which may lead to other changes to the way in which matters are carried out, and those will clearly be dealt with.

There was a concern that the reorganisation could lead to disruption, which is certainly not our intention. We expect the agencies to be able to continue to carry out existing investigations—indeed, many of the amendments are being made with that in mind to ensure that continuity is preserved. I remind Opposition Members that the purpose of the fair work agency is to ensure that intelligence is shared and resources are pooled so that we can be more effective in our labour market abuse enforcement mechanisms. That has been widely supported across the entire group of stakeholders.

In terms of oversight, there will be an advisory board, reports and strategies and the Secretary of State will be answerable to Parliament for the work of the fair work agency. We will no doubt return to that on a number of occasions as the detail is fleshed out. I commend the amendments to the Committee.

Amendment 183 agreed to.

Amendments made: 102, in schedule 6, page 137, line 13, at end insert—

“(3A) In the italic heading before paragraph 10, omit “of Authority”.”

This amendment makes a minor drafting correction.

Amendment 103, in schedule 6, page 137, line 15, leave out “the heading and”.—(Justin Madders.)

This is consequential on amendment 102.

[Justin Madders]

I beg to move amendment 104, in schedule 6, page 140, line 26, leave out “and (4)” and insert “, (4), (8) and (9)”.

This amendment, and amendments 105 and 106, make further minor amendments of section 114B of the Police and Criminal Evidence Act 1984 as a result of the replacement of labour abuse prevention officers by enforcement officers under Part 5 of the Bill.

[The Chair]

With this it will be convenient to discuss Government amendments 105 and 106.

[Justin Madders]

Schedule 6 outlines consequential amendments to other legislation and will ensure consistency with the provisions introduced by the Bill. It will also ensure that our legislative framework is cohesive and functional.

The amendments will make essential technical adjustments to section 114B of the Police and Criminal Evidence Act 1984 to reflect the replacement of labour abuse prevention officers with enforcement officers, as defined in part 5 of the Bill. They will update references, revise definitions and ensure consistency between this Bill and existing legislation. The amendments will avoid confusion and ensure that our statutory framework functions effectively. I commend these minor technical amendments to the Committee.

[Greg Smith]

I am grateful to the Minister for explaining these further minor amendments to section 114B of the Police and Criminal Evidence Act, being made as a result of the replacement of labour abuse prevention officers with enforcement officers under part 5 of the Bill. The amendments are another consequence of centralising the different enforcement agencies that operate under the auspices of the fair work agency.

I would be grateful to have the Minister’s reassurance that all current enforcement work will still be able to be carried out to the same standard during the period of reorganisation. In the previous debate, he indicated that he did not expect disruption; I gently put it to him that that is probably on the optimistic end of the scale. No matter the good intention behind any reorganisation, or the will, endless planning and everything that goes into it from a lot of good people putting in a lot of hard work, the reality is that any reorganisation can cause disruption, either in its own right or through unexpected events.

I will give a parallel closer to home. In my constituency, Buckinghamshire unitary council was created to go live just as the pandemic was starting. Four district councils and a county council were put together at the point at which we were all sent home, so everyone was working from home and having to rise to a local authority’s duties to put in place resilience measures to support people through the pandemic.

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[Sir Ashley Fox]

Amendments 104 to 106 propose minor but necessary changes to section 114B of the Police and Criminal Evidence Act 1984, arising from the changes introduced under part 5 of the Bill, particularly the replacement of labour abuse prevention officers by enforcement officers. The intention behind the change is to streamline and update the regulatory framework in response to the restructuring of enforcement roles. By introducing enforcement officers under the new structure, the Government aim to enhance the effectiveness of labour abuse prevention while ensuring that there is no gap in oversight and enforcement. These minor amendments are crucial to align existing legislation with the nearly structured responsibilities and authority of enforcement officers, who will now take on the duties previously held by labour abuse prevention officers.

The centralisation of enforcement agencies under the fair work agency is part of a broader effort to centralise and co-ordinate the various enforcement agencies that currently operate. By bringing the enforcement bodies together under a single umbrella, the Government aim to create a more co-ordinated, efficient and consistent approach to tackling labour abuses and ensuring that workers’ rights are upheld across different sectors. The centralisation process is designed to improve the effectiveness of enforcement and simplify the regulatory landscape for both businesses and workers, but as we move through the reorganisation period, it is essential that all enforcement activities continue to be carried out seamlessly, without any disruption or decrease in the standard of oversight. That is particularly important as the new system is put in place, as workers rely on enforcement mechanisms to protect their rights.

I seek reassurance on the continuity of enforcement standards during the reorganisation. Given the significant structural changes involved, I ask the Minister to assure me that all current enforcement work will continue to be carried out to the same high standard during the transition period. The centralisation of enforcement agencies is a significant undertaking, and it is vital that the effectiveness of enforcement operations is not compromised during the restructuring process. Workers and businesses must be confident that the protections afforded by the existing enforcement framework will remain intact, and that enforcement officers will have the tools, resources and authority that they need to address breaches of the law effectively. I would appreciate clarification on how the Government plan to ensure that no enforcement gaps occur during the reorganisation, and that current and future enforcement work will be conducted at the same high level of competence.

[Justin Madders]

It seems we have a little double act developing on the Opposition Front Bench. It reminds me a little bit of Waldorf and Statler, without the puns. Both the hon. Member for Mid Buckinghamshire and the hon. Member for Bridgwater sought similar and important assurances that the work of the agencies would be able to be carried out effectively during this period of transition. I note what the hon. Member for Mid Buckinghamshire mentioned about the Mid Buckinghamshire reorganisation.

[Greg Smith]

All of Buckinghamshire.

[Justin Madders]

All of Buckinghamshire, yes—with the hon. Member right in the middle where he truly belongs. I do recall that the previous Government decided to set up the UK Health Security Agency in the middle of the pandemic, which was a challenging time to do that. It has been shown that the people doing the job day to day can continue to do it while the institutional reform carries on, making it more likely that they will be effective in carrying out their work through the sharing of resources, evidence and expertise, as well as, hopefully, a more unified approach to enforcement. Clearly, we want those doing the day-to-day work to be able to carry on doing that and a number of these amendments enable them to do that. We hope that, as the agency forms and more joint working is developed, they will become more effective.

Amendment 104 agreed to.

Amendments made: 105, in schedule 6, page 140, line 26, at end insert—

‘(4A) In subsection (10), for “Any other” substitute “A”.’

See the explanatory statement for amendment 104.

Amendment 106, in schedule 6, page 140, line 27, leave out sub-paragraph (5) and insert—

‘(5) For subsection (11) substitute—

“(11) In this section—

“enforcement officer” has the meaning given by section 72(3)

of the Employment Rights Act 2025;

“labour market offence” has the same meaning as in Part 5 of that Act (see section 112(1) of that Act).”’—(Justin Madders.)

See the explanatory statement for amendment 104.

[Justin Madders]

I beg to move amendment 184, in schedule 6, page 141, line 7, at end insert—

“Employment Tribunals Act 1996

70A In section 19A of the Employment Tribunals Act 1996 (conciliation: recovery of sums payable under settlements), omit subsection (10A).”

This amendment provides for a minor consequential amendment relating to Part 5 of the Bill.

[The Chair]

With this it will be convenient to discuss Government amendment 188.

[Justin Madders]

Schedule 6 makes consequential amendments to existing legislation to ensure consistency with the new provisions introduced by the Bill. The amendments make essential technical adjustments to the Employment Tribunals Act 1996 and the Small Business, Enterprise and Employment Act 2015, updating references and ensuring consistency between the Bill and existing legislation.

Government amendment 184 omits section 19A(10A) of the Employment Tribunals Act 1996, which makes provision for the disclosure of settlement terms to an enforcement officer appointed under section 37M of the same Act. Section 37M is repealed by the Bill, as it has been superseded by the new provisions of the Bill on the appointment of fair work agency officers. Clauses 98 and 99(1) of the Bill provide gateways for the disclosure of information to fair work agency officers. Government amendment 184 repeals section 19A(10A), as the provision is no longer required in the light of the new provisions introduced by the Bill. Government amendment 188 is consequential to Government amendment 184. The amendment prevents confusion and ensures our statutory framework continues to function effectively.

[Greg Smith]

For the next part of the double act —I will casually ignore the Minister’s comparison—I will speak to Government amendments 184 and 188. Amendment 184 is a minor amendment relating to part 5 of the Bill and amendment 188 is consequential on amendment 184. As the Minister said, amendment 184 removes section 19A(10A) of the Employment Tribunals Act 1996. Section 19A concerns the

“recovery of sums payable under settlements”

and subsection (10A) provides that the court may make provision as to the time within which an application to the county court for a declaration under subsection (4) is to be made. Subsection (4) states:

“A settlement sum is not recoverable under subsection (3) if—

(a) the person by whom it is payable applies for a declaration that the sum would not be recoverable from him under the general law of contract, and

(b) that declaration is made.”

 

Notwithstanding the Minister’s explanation, it is still not entirely clear to the Committee, or indeed to the whole House, why it is necessary to delete subsection (10A) from the Employment Tribunals Act 1996. I am sure there is a very convoluted reason for it out there somewhere, but it seems to us that the will of the Government in putting this legislation before Parliament does not need that deletion in order to function. I would be grateful if the Minister gave a fuller explanation of the need for that deletion in his summing-up.

[Sir Ashley Fox]

Amendment 184 proposes the removal of subsection (10A) from section 19A of the Employment Tribunals Act 1996, which deals with the recovery of sums payment under settlements, specifically addressing situations in which a party seeks a declaration from the court regarding the recoverability of a settlement sum.

Under subsection (10A), the court has the discretion to make provisions regarding the timeframe within which an application must be made to the county court for a declaration under subsection (4). Subsection (4) essentially provides that a settlement sum will not be recoverable if the person liable to pay the sum seeks a declaration from the court that, under general contract law, the sum is not recoverable from them. The removal of subsection (10A) raises important questions about the implications of the timing and procedure of such applications.

Given that the removal of subsection (10A) may have significant consequences for how significant settlement sums are handled and claims are processed in the future, will the Minister explain why this provision is being deleted? Understanding the reasoning behind the change is important for assessing its potential impact on workers and employers. Will the removal of this provision simplify the process for parties seeking a declaration regarding the recoverability of settlement sums or will it introduce new challenges or delays in the legal process? Furthermore, how will this change affect the ability of individuals to seek a fair resolution in cases where disputes over settlement sums arise? Clarification from the Minister on these points would be appreciated as it would help ensure that stakeholders fully understand the intended effects.

[Justin Madders]

Hopefully, I can put Opposition Members’ minds at rest about the need for the amendment. It is about simplifying the legislative framework. Section 19A(10A) of the 1996 Act is about disclosure of settlement terms to enforcement officers who are appointed under section 37M of that Act. As that is now being repealed by and superseded by the provisions in this Bill, particularly clauses 98 and 99, that provision is no longer required in the 1996 Act. That is why it is being removed; the current arrangements remain in place, but they will all be in one place, in this Bill. We hope that will provide clarity and certainty for those who wish to avail themselves of the rights and obligations under this legislation.

Amendment 184 agreed to.

[Justin Madders]

I beg to move amendment 185, in schedule 6, page 141, line 33, leave out from “2025)” to end of line 2 on page 142 and insert

“acting in the exercise of functions conferred on them by virtue of section 114B of the Police and Criminal Evidence Act 1984;”;”.

This amendment is consequential on amendment 186.

[The Chair]

With this it will be convenient to discuss Government amendments 187 and 186.

[Justin Madders]

The amendments make essential adjustments to the Employment Rights Bill ensuring that there is a process for appropriate oversight of police powers used by officers within the fair work agency. There will be a subsection of enforcement officers within the fair work agency who will be able to use police powers under the Police and Criminal Evidence Act. It is important that there is appropriate oversight of officers using these powers as part of their investigations.

This is not a new power. Currently, Labour abuse prevention officers within the Gangmasters and Labour Abuse Authority are able to use these Police and Criminal Evidence Act powers. Any complaints or allegations of misconduct are investigated by the Independent Office for Police Conduct, thereby ensuring that enforcement officers use their powers responsibly and within legal boundaries. The amendments ensure that the existing oversight arrangements with the IOPC can continue with the fair work agency on abolition of the GLAA. On that note, I hope the Committee will accept amendments 185, 186 and 187.

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[Sir Ashley Fox]

Amendments 186 and 187 propose important changes that would grant the Secretary of State the power to make regulations enabling the director general of the Independent Office for Police Conduct to handle complaints and misconduct related to enforcement officers who exercise police powers. This would involve granting the IOPC the authority to oversee complaints regarding enforcement officers as they carry out their duties, particularly when acting within the scope of the powers given to them under section 114B of the Police and Criminal Evidence Act 1984.

Amendment 185 is consequential to those changes, ensuring that the necessary legislative framework aligns with the proposed regulations. Specifically, amendment 186 outlines that the Secretary of State will have the authority to make regulations that will confer specific functions on the director general of the IOPC. Those functions would relate to enforcement officers when they exercise powers granted to them through section 114B of the 1984 Act, which provides enforcement officers with certain powers, and this amendment ensures that there are appropriate mechanisms in place to address any complaints or allegations of misconduct arising from their use of these powers.

I would be grateful if the Minister provided further clarification on the scope of these regulations. Specifically, it would be helpful to understand what types of function the Secretary of State is likely to impose on the director general of the IOPC. For instance, will the regulations specify procedures for investigating complaints, the methods of oversight, or protocols for handling disciplinary actions against enforcement officers? What types of misconduct or complaint are anticipated to fall within this framework? Moreover, how do the Government envisage the IOPC’s role evolving, with the additional responsibility for overseeing enforcement officers under these amendments?

Understanding the intended use of these powers will help stakeholders anticipate the practical effects of these changes and their potential impacts on enforcement officers’ accountability. A key concern is whether the IOPC will be granted greater powers under this proposed framework. The IOPC’s current remit covers complaints and misconduct relating to police officers, but the introduction of enforcement officers who possess police powers raises important questions about whether the IOPC will have the authority to investigate misconduct claims against those officers in a similarly robust manner. Will the IOPC be granted expanded investigatory powers to ensure that complaints involving enforcement officers are handled thoroughly and impartially?

Additionally, will the IOPC have the authority to impose sanctions on enforcement officers found to have committed misconduct? If sanctions are available, it would be useful to understand what types of action the IOPC could take, such as recommending disciplinary measures, issuing fines or referring cases for criminal prosecution.

Providing clarity on the scope of the IOPC’s powers in relation to enforcement officers will be crucial for ensuring that those officers remain accountable for their actions while exercising their police powers.

[Justin Madders]

I am grateful to Opposition Members for raising those questions. I can reassure them that this is not about creating new powers, either for enforcement officers or for the IOPC. It is about transferring the existing responsibility that the IOPC has for designated officers with police-style powers to the fair work agency. The discussions have been on the basis that there would not be any additional resource implications for the IOPC. Obviously, if that were to change in due course, when the fair work agency is under way, there would be discussions about that. It is simply about the existing powers under section 114B of the Police and Criminal Evidence Act being applicable to the enforcement officers of the fair work agency on exactly the same basis as they are now. I hope that that has put Opposition Members’ minds at rest. On that note, I commend the amendments to the Committee.

Amendment 185 agreed to.

Amendments made: 187, in schedule 6, page 142, line 3, after “(3)” insert “—

(i) after paragraph (bc) insert—

‘(bca) any regulations under section 26CA of this Act (enforcement officers appointed under Employment Rights Act 2025);’;

(ii)”.

See the explanatory statement for amendment 186.

Amendment 186, in schedule 6, page 142, line 3, at end insert—

“(2A) After section 26C insert—

‘26CA Enforcement officers appointed under Employment Rights Act 2025

(1) The Secretary of State may make regulations conferring functions on the Director General in relation to enforcement officers acting in the exercise of functions conferred on them by virtue of section 114B of the Police and Criminal Evidence Act 1984.

(2) In this section “enforcement officer” means a person appointed by the Secretary of State under section 72 of the Employment Rights Act 2025.

(3) Regulations under this section may, in particular—

(a) apply (with or without modifications), or make provision similar to, any provision of or made under this Part;

(b) make provision for payment by the Secretary of State to, or in respect of, the Office or in respect of the Director General.

(4) The Director General and the Parliamentary Commissioner for Administration may jointly investigate a matter in relation to which—

(a) the Director General has functions by virtue of this section, and

(b) the Parliamentary Commissioner for Administration has functions by virtue of the Parliamentary Commissioner Act 1967.

(5) The Secretary of State or an enforcement officer may disclose information to the Director General, or to a person acting on the Director General’s behalf, for the purposes of the exercise by the Director General, or by any person acting on the Director General’s behalf, of a relevant complaints function.

(6) The Director General and the Parliamentary Commissioner for Administration may disclose information to each other for the purposes of the exercise of a function—

(a) by virtue of this section, or

(b) under the Parliamentary Commissioner Act 1967.

(7) Regulations under this section may, in particular, make—

(a) further provision about the disclosure of information under subsection (5) or (6);

(b) provision about the further disclosure of information that has been so disclosed.

(8) A disclosure of information authorised by this section does not breach—

(a) any obligation of confidence owed by the person making the disclosure, or

(b) any other restriction on the disclosure of information (however imposed).

(9) But this section does not authorise a disclosure of information that—

(a) would contravene the data protection legislation (but in determining whether a disclosure would do so, the power conferred by this section is to be taken into account), or

(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.

(10) In this section—

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

“relevant complaints function” means a function in relation to the exercise of functions by enforcement officers.’”

This amendment and amendment 187 would enable the Secretary of State to make regulations enabling the Director General of the Independent Office for Police Conduct to deal with complaints and misconduct relating to enforcement officers who are exercising police powers.

Amendment 188, in schedule 6, page 143, line 19, leave out “subsection” and insert “subsections (4) and”.

This amendment is consequential on amendment 184.

Amendment 189, in schedule 6, page 144, line 10, at end insert—

“Sentencing Act 2020

92A In section 379(1) of the Sentencing Act 2020 (other behaviour orders etc), after the entry for the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023 insert—

[Justin Madders]

I beg to move amendment 190, in schedule 6, page 144, line 10, at end insert—

“Police, Crime, Sentencing and Courts Act 2022

92B In Part 2 of Schedule 3 to the Police, Crime, Sentencing and Courts Act 2022 (extraction of information from electronic devices: authorised persons in relation to all purposes within section 37), after the entry relating to section 15 of the Gangmasters (Licensing) Act 2004 insert—

‘A person who is an enforcement officer for the purposes of Part 5 of the Employment Rights Act 2025.’”

This amendment would authorise enforcement officers under Part 5 of the Bill to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.

Government amendment 190 is another technical amendment to ensure continuity and effectiveness of the enforcement power under section 37 of the Police, Crime, Sentencing and Courts Act 2022. The Bill provides the building blocks for us to set up the fair work agency, which involves transferring enforcement functions that are currently split between multiple bodies, including the Gangmasters and Labour Abuse Authority. The GLAA office currently exercises its power across the UK under section 37 of the 2022 Act. Without this amendment, enforcement officers in England, Wales and Scotland would not have access to critical investigatory powers under that Act. Only officers enforcing the Gangmasters (Licensing) Act 2004 in Northern Ireland would retain those powers, creating an unjustifiable enforcement gap.

Investigations increasingly rely on access to electronic data, such as payroll records and communication logs. Excluding fair work agency officers from these powers would severely hinder their ability to obtain critical information, leaving them ill-equipped to tackle non-compliance and labour exploitation effectively.

The amendment ensures that enforcement powers remain consistent across England, Wales, Scotland and Northern Ireland, aligning with the policy aim of the fair work agency to deliver robust and uniform enforcement. Fair work agency officers would exercise the section 37 power in relation to labour market offences. That expands the scope of the power, as currently the power is exercised by GLAA officers only in connection with enforcement of the 2004 Act.

This amendment would mean that the power is used by fair work agency officers to enforce the broader range of legislation under their remit, which means that the power could be exercised in relation to any labour market offence, instead of just offences under the 2004 Act. That will prevent any disparity in enforcement capabilities that could undermine efforts to protect vulnerable workers and uphold compliance.

This amendment corrects a minor technical oversight during the drafting process, ensuring that the legislation accurately reflects operational needs. It aligns with the overarching policy intention to ensure that there is no reduction in enforcement capability as enforcement bodies transfer into the fair work agency, and it directly addresses concerns and strengthens the Bill’s overall effectiveness. In conclusion, this amendment is essential to prevent enforcement gaps, ensure parity across jurisdictions, and equip enforcement officers with the tools that they need to combat exploitation in the modern economy.

[Greg Smith]

As the Minister outlined in his opening remarks, Government amendment 190 would authorise enforcement officers, under part 5 of the Bill, to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.

As I understand it, the power conferred by section 37 of the 2022 Act may be exercised only for the purposes of preventing, detecting, investigating or prosecuting crime; helping to locate a missing person; or protecting a child or at-risk adult from neglect or physical, mental or emotional harm. How often does the Minister envisage that that power would be needed when enforcing employment law?

It is a very important power in the cases that I have outlined—not least for the critical work of protecting children and at-risk adults from neglect or physical, mental or emotional harm—but, I repeat, how often does the Minister envisage that it will be needed in employment law? What safeguards will be in place to prevent an inappropriate or intrusive use of the power? It seems an odd fit in this Bill.

Those matters are all rightly—I have double underlined that word—covered in other parts of legislation and enforced daily by the police and other agencies. His Majesty’s loyal Opposition salute everyone involved in the prevention of harm and the prosecution of its perpetrators, but I repeat that the power seems an odd fit with this Bill.

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[Sir Ashley Fox]

The amendment would grant enforcement officers, under part 5 of the Bill, the authority to exercise the powers outlined in section 37 of the Police, Crime, Sentencing and Courts Act 2022. Specifically, it would enable those officers to extract information from electronic devices in certain circumstances. Of course, everyone now carries one of those electronic devices.

The amendment is designed to support enforcement officers in carrying out their duties, including the investigation and enforcement of employment laws, particularly in cases that may involve criminal activities, such as exploitation, trafficking or financial misconduct. The ability to access electronic devices and retrieve relevant data will aid in gathering evidence and conducting thorough investigations, especially when digital evidence is critical to uncovering illegal practices.

To clarify the scope of that power, section 37 of the 2022 Act limits the use of the power to specific purposes. The powers can be exercised for the following objectives: preventing crime, which could include investigating cases of worker exploitation, trafficking or other forms of criminal behaviour related to employment law; detecting criminal activity, such as fraudulent schemes or illegal practices by employers; investigating crimes, especially where there is a digital trail or evidence related to labour abuse, fraud or similar issues that could be crucial to the case; prosecuting crime and ensuring that the evidence gathered can be used in legal proceedings to hold perpetrators accountable; locating missing persons, which could be relevant in situations involving forced labour or human trafficking; and protecting vulnerable individuals, such as children or at-risk adults, from harm, including neglect or physical, mental or emotional abuse in the workplace.

Those strict conditions are in place to ensure that the powers are used appropriately and only when there is a legitimate and necessary reason to extract information from electronic devices. While that power can be extremely valuable in investigating serious crimes, it is important to consider how often such powers will be needed when enforcing employment law specifically. The nature of employment law enforcement does not always require the same level of investigation into criminal activities as, for example, police work or national security investigations. Thus, I would appreciate an insight from the Minister regarding the frequency with which the power is likely to be used in the enforcement of employment laws. Is the power expected to be a routine tool, or will it be reserved for exceptional circumstances where there is significant evidence suggesting the need for such an intrusive measure?

Additionally, it is crucial to ensure that safeguards are in place to prevent any inappropriate or intrusive use of the power. Given the sensitivity of extracting data from electronic devices, there is a need for strict guidelines and oversight to ensure that the power is not abused. How will the Government ensure that the power is used proportionately and responsibly? What measures will be put in place to prevent overreach and protect the privacy of individuals who are not involved in criminal activity? For example, will there be a requirement for judicial authorisation before enforcement officers can access private data? Will there be any independent oversight to review the use of these powers and prevent misuse?

I would be grateful if the Minister outlined the safeguards and controls that will be implemented to ensure that the power is not used excessively or for purposes outside its intended scope. Furthermore, what will the procedures be for ensuring accountability and transparency in the use of this power?

[Justin Madders]

The shadow Minister and the hon. Member for Bridgwater asked me the “how long is a piece of string?” question—that is, how often the powers will be used. The best thing I can do is to come back to both of them with how often they have been used in recent times because, of course, there is an existing power with the Gangmasters and Labour Abuse Authority.

I was asked various questions about the use of powers, oversight and so on. Clauses 78 and 79 set out the powers that officers have. As we have discussed, we expect that these things will be the culmination of an ongoing dialogue between a particular business and the fair work agency. When there is non-compliance, these powers can be used as a last resort. Clause 83 sets out some of the oversight provisions.

[Nick Timothy]

Government amendment 190 is about the powers in section 37 of the Police, Crime, Sentencing and Courts Act 2022, which relate to the voluntary provision of a device for an enforcement officer to access. If there is not agreement, I am not sure what arises. The Minister just said that the proposal is about dealing with a situation whereby a negotiation between the fair work agency and the company has not led to a resolution. What happens if there is not agreement?

[Justin Madders]

As I said, if there is not agreement, the provisions in clauses 78, 79 and 83, which we debated last week, will come into play.

On the existing framework, the powers that we have set out are already in use. The Bill will make them available to all enforcement officers. They will be used only by people who have sufficient training and oversight within the organisation.

I was asked whether the code of practice will be updated. We are engaging with the Home Office on that. That is something that needs to be considered, given that the agency is being formed.

The hon. Member for West Suffolk was right to ask about proportionality. We do not see that there will be any change in how the system works on an operational basis as a result of these amendments. They really are about transposing the existing powers and safeguards into the Bill.

Amendment 190 agreed to.

Question proposed, That the schedule, as amended, be the Sixth schedule to the Bill.

[Justin Madders]

Part 5 of the Bill lays the groundwork for the creation of the fair work agency. It involves abolishing the Gangmasters and Labour Abuse Authority and the Director of Labour Market Enforcement, and transferring their functions to the Secretary of State.

Schedule 6 sets out consequential amendments that we are making to various Acts of Parliament as a result of these reforms. Part 1 of the schedule covers the consequential amendments to existing powers under relevant pieces of labour market legislation. Part 2 sets out the changes required to other Acts. The schedule is necessary to deliver a functioning and cohesive statute book and to deliver the policy intention of upgrading enforcement of workers’ rights.

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[Steve Darling]

I echo the shadow Minister, who sits to my right—in more ways than one. Definitely, further clarity from the Minister would be welcome.

[Justin Madders]

I understand what the Opposition Members are saying. They seek reassurance that there will be no disruption to the good work that goes on already, and clearly, that is our intent. We will keep a close eye on how this works when the Bill has passed and received Royal Assent. A lot of the operational questions that have been asked will emerge during that time. Whether the hon. Member for Mid Buckinghamshire remains my shadow—either of us could of course be moved on at any point—it would be perfectly reasonable for us to keep the Opposition updated on operational decisions and how the fair work agency emerges. There will of course be further parliamentary opportunities for scrutiny as more detail emerges.

Question put and agreed to.

Schedule 6, as amended, accordingly agreed to.

Schedule 7

Transitional and saving provision relating to Part 5

[Justin Madders]

I beg to move amendment 191, in schedule 7, page 146, line 19, after “by” insert “or in relation to”.

This amendment and amendment 192 ensure that things done in relation to existing enforcement officers, for example, before the coming into force of Part 5 of the Bill continue to have effect as if done in relation to the Secretary of State.

[The Chair]

With this it will be convenient to discuss Government amendments 192, 197 and 200.

[Justin Madders]

The schedule sets out transitional and savings provisions. It ensures a smooth changeover from the existing enforcement framework to the new provisions introduced by the Bill. That is of course important because it makes our legislative framework cohesive and functional.

Government amendment 191 is a necessary technical provision to ensure that the transition of enforcement responsibilities under part 5 of the Bill is well ordered. By clarifying that actions taken not just “by” but “in relation” to enforcement officers will continue to have effect as if done in relation to the Secretary of State, we are safeguarding a continuity in enforcement processes and ensuring no disruption to ongoing cases or decisions, which I am sure Members will be relieved to hear.

Government amendment 192 makes a consequential change to align with Government amendment 191, and Government amendments 197 and 200 make minor drafting changes in schedule 7. They do not affect the substance of the Bill, but they improve its clarity and accuracy. I hope that hon. Members will support what I imagine are uncontroversial amendments and support achieving the aim of ensuring continuity and cohesiveness as we move forward. On that note, I commend the amendments to the Committee.

[Greg Smith]

Government amendments 191 and 192 ensure that things done “in relation to” existing enforcement officers—for example, before part 5 of the Bill comes into force—continue to have effect as if done “in relation to” the Secretary of State. I fully accept that Government amendments 197 and 200 make minor drafting changes, which look as though they ensure legal continuity—that would be the case, based on the Minister’s opening remarks—and therefore seem sensible, given the policy direction.

I can conclude my comments on the amendments only by asking the usual question, which I have asked many times in Committee and fear I will ask a few more times during the debate over the remainder of today, Thursday and next Tuesday: should the amendments have been included in the Bill on its introduction? This is yet another example of why it is foolish to rush anything, particularly getting a Bill out in 100 days and its consideration in Committee.

[Sir Ashley Fox]

Government amendments 191 and 192 are designed to ensure legal continuity for actions and decisions made regarding existing enforcement officers prior to the implementation of part 5 of the Bill. They stipulate that any actions or procedures carried out “in relation to” enforcement officers before the new provisions come into force, such as appointments, disciplinary actions or administrative functions, will continue to have the same legal effect as if they had been made “in relation to” the Secretary of State. That is important, because it prevents any disruption or confusion in the legal standing of prior actions, ensuring that they are not rendered ineffective by the changes introduced by the Bill. Essentially, the amendments provide a mechanism to ensure that the transition to the new legal framework does not invalidate or interfere with prior administrative or operational activities.

The rationale behind the amendments is straightforward: it is legal continuity. As enforcement officers are brought under a new regulatory framework, it is crucial that past actions related to their roles, such as those conducted before the Bill takes effect, are preserved and do not need to be revisited or re-executed under the new provisions. That ensures that there is no disruption in the functioning of enforcement operations and that any ongoing matters involving enforcement officers continue seamlessly under the authority of the Secretary of State. The amendments clarify that past decisions and procedures will be treated as if they were made under the authority of the new system, which will help to avoid any potential legal challenges or confusion.

Amendments 197 and 200 involve relatively minor drafting changes. Although the specifics of those changes may not substantially alter the substance of the Bill, they are important for clarity, consistency and precision in the text. These types of amendments typically address technical issues, such as language inconsistencies, ambiguities or minor adjustments to improve the readability and legal accuracy of the provisions. Although they do not represent major shifts in policy, such amendments are crucial in ensuring that the Bill’s provisions are clear, unambiguous and legally sound. Even small drafting changes play an important role in improving the overall functionality and effectiveness of the legislation.

Amendments 197 and 200 help to fine-tune the Bill’s language, ensuring that there are no interpretive uncertainties that could arise during its application. By addressing potential issues in the drafting, the amendments help to streamline the implementation process and reduce the risk of legal challenges or confusion in future interpretations of the law.

Taken together, the amendments—particularly amendments 191 and 192—help to ensure that there is no legal disruption when the provisions in part 5 of the Bill come into effect. That is an essential part of the legislative process, as it guarantees that previous actions remain valid and that transition to a new regulatory framework is smooth. In addition, the minor drafting changes provided by amendments 197 and 200 contribute to legal clarity, ensuring that the Bill’s language is precise and consistent, which will help to avoid any future complications in the application of the law.

Although these changes are reasonable and sensible, in the light of the Bill’s policy objectives, it is worth noting that they should ideally have been included at the time of the Bill’s introduction. The legal continuity ensured by amendments 191 and 192, as well as the technical refinements in amendments 197 and 200, could have been addressed earlier in the drafting process, to ensure that the Bill was as comprehensive and clear as possible from the outset. None the less, these changes at this stage still serve to enhance the legal robustness and practical application of the Bill, which will ultimately contribute to more effective enforcement and smoother implementation.

[Justin Madders]

I think both Opposition Members who spoke were supportive of the amendments, although they raised legitimate questions about why they were necessary. As the shadow Minister pointed out, we had an ambitious timetable—a manifesto commitment—to issue the Bill within 100 days. Even when Bills are many years in gestation, there are often amendments in Committee to clarify issues, and to ensure that the Bill does what it says on the tin and is legally coherent. These amendments are an example of that process. I am sure Members appreciate how important it is that the amendments are passed, so that we can ensure that everything carries on and is as effective as possible.

Amendment 191 agreed to.

Amendment made: 192, in schedule 7, page 146, line 24, after “by” insert “or in relation to”.—(Justin Madders.)

See the explanatory statement for amendment 191.

[Justin Madders]

I beg to move amendment 193, schedule 7, page 147, line 2, at end insert—

“( ) an officer acting for the purposes of Part 2A of the Employment Tribunals Act 1996;”

The effect of this amendment is that the transitional provision in paragraph 6 of Schedule 7 to the Bill would apply in relation to officers acting for the purposes of Part 2A of the Employment Tribunals Act 1996 (which relates to the enforcement of employment tribunal awards). The functions of such officers are being transferred to the Secretary of State by the Bill.

[The Chair]

With this it will be convenient to discuss Government amendments 194 and 195.

[Justin Madders]

Government amendment 193 makes transitional provision in relation to the transfer of functions of officers acting for the purposes of part 2A of the Employment Tribunals Act 1996 to the Secretary of State. That transitional provision will ensure that anything done by those officers acting for the purposes of part 2A of that Act, relating to enforcement of financial awards by employment tribunals, will continue to have effect. As such, the amendment allows for the continuity of enforcing employment rights once the Bill has passed.

Amendment 194 facilitates a minor drafting change as a consequence of Government amendment 195. Amendment 195 ensures that officers of the Gangmasters and Labour Abuse Authority, acting under any enactment other than the Gangmasters (Licensing) Act 2004, are within the scope of schedule 7. That ensures that things done by them before commencement of the Bill continue to have effect after commencement. I am sure hon. Members will appreciate that the effect of the amendments is solely to ensure that the legislation is clear and unambiguous and that any activity will continue on that basis.

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[Sir Ashley Fox]

Amendment 193 addresses the need for a seamless transition in the enforcement of employment tribunal awards. It specifically ensures that the transitional provision in paragraph 6 of schedule 7 to the Bill will apply to officers acting under part 2A of the 1996 Act, which governs the enforcement of employment tribunal awards. This is an important step as the enforcement of the tribunal awards will now fall under the responsibility of the Secretary of State, as stipulated in the Bill. By making the provision, the amendment ensures that the functions previously handled by officers enforcing tribunal awards will continue smoothly during the transition, even as the legal authority for enforcement shifts.

The inclusion of the amendment is crucial for legal continuity. It guarantees that actions taken by officers acting under the 1996 Act will still have legal effect even as their functions are transferred to the Secretary of State and the fair work agency. The amendment essentially ensures that any ongoing enforcement activities related to employment tribunal awards remain valid, preventing legal confusion or disruption during the reorganisation. It also ensures that the change in responsibility from individual enforcement officers to the Secretary of State does not cause any delay or interruption in enforcement actions. This will help to maintain confidence in the process, both for workers seeking to enforce their tribunal awards and businesses affected by these decisions.

[Justin Madders]

Opposition Members raise the same point as before about why we have had to introduce this amendment now. I refer the shadow Minister to my previous comments on that matter; no doubt I may do so again.

Both Opposition Members have rightly raised the concern about ensuring continuity when the body is instigated. Clearly, what we would expect and hope is that the day-to-day operations of enforcement officers on the ground are not impinged or affected by the creation of the agency. The Bill and a number of amendments are about ensuring that their functions continue smoothly.

Amendment 193 agreed to.

Amendments made: 194, in schedule 7, page 147, leave out line 6.

See the explanatory statement for amendment 195.

Amendment 195, in schedule 7, page 147, line 11, at end insert—

“( ) an officer of the Gangmasters and Labour Abuse Authority acting for the purposes of any other enactment.”—(Justin Madders.)

This amendment and amendment 194 make a minor drafting change.

[Justin Madders]

I beg to move amendment 196, in schedule 7, page 147, line 11, at end insert—

“(4A) Sub-paragraphs (1) to (3) are subject to the remaining provisions of this Schedule (and see also section 114, which confers power to make transitional or saving provision).”

This amendment makes it clear that the general provision in paragraph 6 of Schedule 7 is subject to any more specific provision in that Schedule.

[The Chair]

With this it will be convenient to discuss Government amendments 198 and 199.

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[Justin Madders]

Amendment 196 will ensure that there is a smooth transition in the frameworks. Amendment 198 is a transitional provision ensuring that anything done by a labour abuse prevention officer before the abolition of the GLAA continues to have effect as if done under the fair work agency. Amendment 199 is another transitional provision for warrants that have been granted under the Gangmasters (Licensing) Act 2004, but not yet executed. It allows those warrants to have the same effect as before. It is a continuation of the amendments we have debated this morning, ensuring that enforcement officers have continuity when delivering their functions.

[Greg Smith]

Amendment 196 makes it clear that the general provision in paragraph 6 of schedule 7 is subject to any more specific provision in that schedule. Amendment 198 makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under section 114B of the Police and Criminal Evidence Act 1984.

Amendment 199 makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act, which is being re-enacted for England, Wales and Scotland, with some changes, through clause 83. In particular, proposed new paragraph 7C of schedule 7 of the Bill provides that, where a warrant issued under section 17 of the 2004 Act has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill that would not have applied if the warrant had been executed under section 17 —in particular the additional requirements in part 3 of new schedule 1—are disapplied.

On the face of it, these are sensible amendments to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. A number of Government amendments of this nature have been considered by the Committee. This set of amendments therefore leaves me slightly nervous, not about the intention, but about whether anything else has been missed. I would appreciate the Minister’s reassurance on that point.

[Sir Ashley Fox]

Amendment 196 seeks to clarify the applicability of general and specific provisions and the relationship between the general provision outlined in paragraph 6 of schedule 7 and any more specific provision within that schedule. The amendment ensures that, in the event of a conflict or overlap between general and specific provisions, the more detailed or specific provisions will take precedence. This is an important measure for maintaining legal clarity and consistency in the application of the Bill. By prioritising specific provisions where applicable, the amendment prevents any unintended gaps or inconsistencies in the legal framework, ensuring that enforcement activities and related actions are governed by the most precise and relevant rules.

Amendment 198 introduces a transitional provision designed to ensure that actions taken by or in relation to labour abuse prevention officers prior to the abolition of the Gangmasters and Labour Abuse Authority will continue to be recognised as valid. Specifically, it ensures that any activities, decisions or functions performed by those officers before the GLAA’s dissolution will have the same legal effect as if they had been carried out by or in relation to enforcement officers who have been granted equivalent powers under section 114B of the Police and Criminal Evidence Act 1984. This is critical because it provides a seamless transition as enforcement responsibilities are transferred, making certain that actions taken by the GLAA’s officers before the abolition of the agency are not rendered void or ineffective.

The amendment is vital for legal continuity. It guarantees that there will be no disruption in enforcement activities during the transition period. Officers who previously worked under the authority of the GLAA, particularly those involved in tackling labour abuse, will carry out their roles without interruption, as their actions will be treated as if undertaken by enforcement officers with the equivalent legal powers. The measure strengthens the overall framework for worker protection and labour abuse prevention, ensuring that the enforcement of relevant laws continues smoothly as the responsibility shifts to new authorities.

Amendment 199 focuses on the transitional provision for warrants issued under section 17 of the 2004 Act, which is being re-enacted in a revised form as clause 83 of the Bill. The amendment introduces new paragraph 7C, which addresses the scenario where a warrant issued under section 17 has not yet been executed at the time of the change. In such cases, the warrant will be treated as if it were issued under the new provisions in clause 83, but with a critical distinction. Any changes introduced by the Bill that would not have applied under section 17, such as the additional requirements in part three of new schedule 1, will be disapplied.

The purpose of the amendment is to ensure that any ongoing enforcement actions involving warrants issued under the old regime are not hindered or invalidated by the transition to the new framework. By allowing the warrants to be treated as though they were issued under the new clause, the amendment facilitates a smoother enforcement process and reduces the risk of legal challenges or procedural delays. This is an important safeguard for the enforcement of labour laws and ensures that the power to execute warrants continues without disruption, regardless of the legislative changes.

[Justin Madders]

I sense that the Opposition Members are supportive of the amendments. The shadow Minister challenged me on whether there will be any more minor or consequential amendments. I cannot give him an absolute guarantee on that; it is always an iterative process when Bills are issued; we take notice of what stakeholders say in their feedback, as well as other Government Departments. Of course, it is important that we get these things done before the Bill becomes law, by which time it is too late. I hope the Committee is reassured that there is an ongoing process to ensure that there is certainty and coherence in the legislation as we prepare for Report.

Amendment 196 agreed to.

Amendments made: 197, in schedule 7, page 147, line 25, after “repeal” insert “of that provision”.

This amendment makes a minor drafting change.

Amendment 198, in schedule 7, page 147, line 27, at end insert—

“Labour abuse prevention officers

7A (1) Anything which—

(a) was done by or in relation to a labour abuse prevention officer in, or in connection with, the exercise of a function conferred on the officer by virtue of section 114B of the Police and Criminal Evidence Act 1984 (“PACE”), and

(b) is in effect immediately before the day on which paragraph 67 of Schedule 6 comes into force (“the relevant day”),

has effect, on and after that day, as if done by or in relation to a relevant enforcement officer.

(2) Anything which—

(a) relates to a function conferred on a labour abuse prevention officer by virtue of section 114B of PACE, and

(b) immediately before the relevant day, is in the process of being done by or in relation to such an officer,

may be continued, on and after that day, by or in relation to a relevant enforcement officer.

(3) In this paragraph—

“labour abuse prevention officer” has the meaning given by section 114B of PACE (as that section had effect immediately before the relevant day);

“relevant enforcement officer” , in relation to a function conferred by virtue of section 114B of PACE, means an enforcement officer on whom that function is conferred by virtue of that section (as it has effect on and after the relevant day).”

This amendment makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under the Police and Criminal Evidence Act 1984 by virtue of section 114B of that Act.

Amendment 199, in schedule 7, page 147, line 27, at end insert—

“Warrants

7B (1) This paragraph applies to an application for a warrant under section 17 of the Gangmasters (Licensing) Act 2004 (“the 2004 Act”) which—

(a) is made in England and Wales or Scotland before the day on which paragraph 42 of Schedule 6 comes into force, and

(b) is not determined or withdrawn before that day.

(2) The application is to be treated, on and after that day, as an application made by an enforcement officer for a warrant under section 83 of this Act.

7C (1) This paragraph applies to a warrant under section 17 of the 2004 Act which—

(a) is issued under that section before the day on which paragraph 42 of Schedule 6 comes into force, and

(b) is not executed before that day.

(2) The warrant is to be treated for the purposes of section 83 of this Act as if it had been issued under that section.

(3) That section applies in relation to the warrant as if—

(a) in subsection (4)(a) , after “bring” there were inserted “any persons or”, and

(b) after subsection (4) there were inserted—

“(4A)On leaving any premises which an enforcement officer is authorised to enter by a warrant under this section, the officer must, if the premises are unoccupied or the occupier is temporarily absent, leave the premises as effectively secured against trespassers as the officer found them.”

(4) Section (Warrants) and Schedule (Warrants under Part 5: further provision) do not apply in relation to the warrant.”

This amendment makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act 2004, which is being re-enacted for England and Wales and Scotland (with some changes) as clause 83. In particular, new paragraph 7C provides that, where a warrant issued under section 17 has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill which would not have applied if the warrant had been executed under section 17 (in particular, the additional requirements in Part 3 of NS1) are disapplied.

Amendment 200, in schedule 7, page 147, line 40, leave out “that person” and insert “the enforcing authority”.—(Justin Madders.)

This amendment makes a minor drafting change.

[Justin Madders]

I beg to move amendment 201, in schedule 7, page 148, line 16, at end insert—

“8A “(1) This paragraph applies to information which—

(a) was obtained in the course of—

(i) exercising the powers conferred by section 9 of the Employment Agencies Act 1973 (“the 1973 Act”), or

(ii) exercising powers by virtue of section 26(1) of the Immigration Act 2016, and

(b) immediately before the coming into force of paragraph 2 of Schedule 6, is held by an officer acting for the purposes of the 1973 Act.

(2) On the coming into force of that paragraph, information to which this paragraph applies vests in the Secretary of State.”

See the explanatory statement for Amendment 202.

[The Chair]

With this it will be convenient to consider Government amendment 202.

[Justin Madders]

Existing enforcement bodies will have obtained information prior to the creation of the fair work agency. This information may be needed by the Secretary of State once part 5 of the Bill comes into force. Schedule 7 therefore provides for transitional and saving provisions to enable that. Amendments 201 and 202 provide that information obtained by officers acting under existing legislation prior to the coming into force of part 5 of the Bill, and which is held by the Secretary of State, can be used or disclosed in accordance with clause 98.

[Greg Smith]

Amendments 201 and 202 provide that information that was obtained before the coming into force of part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98. These are sensible amendments on the face of it, to make sure nothing falls through the cracks as the enforcement functions transfer to the fair work agency—very similar to the previous set of amendments that we have just considered. It is part of a continuing theme of amendments of this nature that we as a Committee are being asked to consider.

I heard the Minister’s response to the previous debate about this being an iterative process and about the need to listen and best understand concerns or practical points raised by those being asked to prepare for and ultimately do this work. It remains a legitimate point of nervousness that there will be more such cracks that need repairing as part of this Bill. Accepting the Minister’s good faith in his explanation on the previous set of amendments, I put on record that we remain a little nervous that more cracks will need that legislative repair as the Bill goes forward.

We urge the Government to get on at pace with the conversations necessary to ensure that they have best understood where any further edits may be required—preferably before Report stage in the House of Commons, but if it does have to bleed into the time when the Bill goes to the other place, so be it. However, I think it would a far more satisfactory position if we were able to consider at our end of the building any further amendments that may be required before we ask their lordships to consider the Bill.

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[Sir Ashley Fox]

My hon. Friend makes a valuable point. The reason that the Bill is in such poor condition is that the Labour party was under a political obligation to its trade union friends to bring it forward within 100 days. Had it waited a month or two, we would not have needed such detailed scrutiny and so many Government amendments. Occasionally one hears a tut or a groan from Government Members as we try to scrutinise the Bill, but really it is entirely the Government’s fault for bringing forward such a poorly drafted piece of legislation.

As I was saying, without amendments 201 and 202, confusion or legal obstacles could prevent the use of such information, creating gaps in the enforcement process. By making it clear that the Secretary of State has the authority to use and disclose such information under clause 98, the amendments ensure that the enforcement process remains uninterrupted, effective and legally coherent.

Overall, the amendments are sensible and necessary to guarantee that nothing falls through the cracks as the responsibilities for enforcing labour laws transition from existing structures to the fair work agency. As the Bill centralises enforcement functions, it is essential that any information collected under the old system remains accessible and usable by the new agency. That is particularly important given the potential impact on ongoing investigations, compliance checks and prosecutions. By ensuring that previously collected information can still be used effectively, the amendments will help to prevent disruptions or delays in enforcement, safeguarding both workers and businesses.

It is worth noting that the transition to a new enforcement structure can often be fraught with challenges. The Bill will alter not only the bodies responsible for enforcement, but the way in which information and data are managed. The amendments will help address the practical aspects of the transition, ensuring that the fair work agency has the resources and information it needs to continue performing its duties effectively. In doing so, they will create a smoother handover of powers and responsibilities from the previous enforcement regime to the new framework.

Throughout the Committee’s proceedings, we have debated many Government amendments of a similar nature. Amendments 201 and 202 are necessary to fine-tune the Bill and ensure that all aspects of the transition are fully addressed, but the sheer volume of amendments at this stage leaves me with some concern, as it suggests that the Bill may not have fully accounted for all the transitional issues at the outset, and there may still be elements that have not been addressed. Given the complexity of centralising such a significant portion of the enforcement process, it is natural to be cautious about whether any areas may have been overlooked. While these amendments are clearly intended to provide clarity and ensure continuity, the volume of amendments suggests that there may still be unanswered questions or unforeseen gaps in the transition process, which leaves me somewhat nervous that issues may have been missed in the initial drafting of the Bill. We have certainly seen that happen often enough thus far. It is crucial that all challenges or concerns relating to the transfer of enforcement powers are adequately addressed before the Bill passes. As such, I believe it is important to consider whether there are any outstanding issues that might affect the long-term success of the transition.

Given the number of amendments and the complexity of the transition, I would appreciate the Minister’s reassurance that there is a comprehensive understanding of the full scope of the changes and that no essential elements have been left unaddressed. Are the Government confident that all necessary steps have been taken to ensure a smooth and effective transition? In particular, can the Minister assure us that the fair work agency will be fully equipped to handle its new responsibilities, including that it will be able to utilise critical information from the prior enforcement system without any disruptions? I would also like to hear about the monitoring processes that will be in place to oversee the transition period and ensure that any unforeseen issues are quickly addressed, which is vital for maintaining business confidence and worker protections throughout the period of change.

While the amendments are crucial for ensuring that enforcement activities continue smoothly during the transition, they should ideally have been made earlier in the process to avoid the need for these later clarifications. Having a more comprehensive and cohesive framework in place at the outset would have reduced uncertainty and provided greater assurance to all parties involved. Never-theless, the amendments go a long way to addressing the issues that could arise during the handover of enforcement responsibilities, and ensuring that the transition to the fair work agency will be as smooth and effective as possible.

[Justin Madders]

The shadow Minister asked whether it is our intention to have the Bill shipshape before we send it to the other place. That is absolutely our intention, and the amendments that have been debated today are part of that.

The criticism from the hon. Member for Bridgwater about the number of Government amendments has been noted. It was important that we kept to our manifesto commitment to issue the Bill within 100 days, but I have to say that when I was an Opposition Member I do not think I ever sat on a Bill Committee where the Government did not introduce their own amendments. If he is able to come up with some examples, I would be delighted to hear from him. I am afraid he will probably have to sit on a few more Bill Committees, and he will see that that is perfectly normal in the way these things work. After a Bill is published, it has more eyes on it; other stakeholders, Government Departments and agencies get to see it, and they offer views and feedback. It is right that we take account of those views and make what are often technical and minor amendments to make sure that the Bill has the intended legal effect.

The hon. Member asked whether any other essential elements have been omitted. The amendments we are debating are about ensuring that the fair work agency is functioning and effective from Royal Assent. I cannot give him a guarantee that there will not be other things that come out, but we have been doing a considerable amount of work, as can be seen by the number of amendments, to make sure that the Bill will be fully operational and that there will be no effect on the day-to-day running of the work of the enforcement officers and the creation of the fair work agency.

Amendment 201 agreed to.

Amendment made: 202, in schedule 7, page 148, line 19, leave out from “to” to end of line 20 and insert “—

(a) any information which the Secretary of State obtains by virtue of paragraph 8A;

(b) any information which, immediately before the coming into force of paragraph 20 of Schedule 6, the Secretary of State holds by virtue of section 15(2) of the National Minimum Wage Act 1998;

(c) any information which, immediately before the coming into force of paragraph 21 of that Schedule, the Secretary of State holds by virtue of section 16(2) of that Act;

(d) any information which the Secretary of State obtains by virtue of a property transfer scheme under paragraph 2 of this Schedule.”—(Justin Madders.)

This amendment and Amendment 201 would provide that information which was obtained before the coming into force of Part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98.

[Justin Madders]

I beg to move amendment 203, in schedule 7, page 148, line 20, at end insert—

“9A The repeal of section 9 of the Employment Agencies Act 1973 (inspection) by paragraph 3 of Schedule 6 does not prevent the use in evidence against a person, in criminal proceedings taking place on or after the day on which that repeal comes into force, of a statement made before that day by the person in compliance with a requirement under that section (subject to subsection (2B) of that section).”

Section 9(3) of the Employment Agencies Act 1973 provides that a statement made by a person in compliance with a requirement made under that section to provide information may be used in evidence in criminal proceedings against the person. This amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.

Schedule 7 sets out transitional and savings provisions ensuring a smooth changeover from the existing enforcement framework to the new provisions. That is important, as Members have debated at length already. Amendment 203 addresses the repeal of section 9 of the Employment Agencies Act 1973 and the evidentiary treatment of statements obtained under that provision. The amendment will ensure that such statements can continue to be used in criminal proceedings post repeal, subject to existing protections against self-incrimination under section 9(2B). This is a targeted, proportionate and necessary amendment, which safeguards the integrity of enforcement proceedings during a period of legislative transition. On that basis, I commend the amendment to the Committee.

[Greg Smith]

As the Minister outlined, Government amendment 203 relates to section 9 of the Employment Agencies Act 1973, which provides that a statement made by a person in compliance with a requirement under that section to provide information may be used in evidence in criminal proceedings against the person. The amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.

Similar to the previous two groups of amendments we have considered, this is a sensible amendment to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. It is all part of a continuing theme, and the points that I made in the previous debate apply as much to amendment 203 as they did to the previous amendments.

I understand what the Minister said about every Bill being subject, during its passage, to a number of technical amendments by Governments of all different political compositions. I gently it put back to him that this Bill seems to have had an extremely high number of technical Government amendments, and that all tracks back to the unnecessary speed with which it was presented to Parliament.

Government amendment 204 contains transitional provision to ensure that once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015—

--- Later in debate ---

[Sir Ashley Fox]

Government amendment 203 seeks to address an important transitional issue arising from the repeal of section 9 of the Employment Agencies Act 1973 by the Bill. Section 9 currently stipulates that a statement made by an individual in compliance with a requirement to provide information under that section may be used as evidence in criminal proceedings against them. The amendment ensures that any statements made under the provisions of section 9 prior to its repeal can still be used in criminal proceedings that occur after the repeal takes effect.

The amendment is a necessary adjustment to maintain the integrity of the legal process. It will ensure that evidence obtained while section 9 was in effect remains valid and admissible in criminal cases, even after the section’s formal removal from the statute. Without the amendment, there could be ambiguity and potential legal challenges regarding the admissibility of evidence, which could undermine ongoing enforcement efforts and hinder the administration of justice. By making this provision, the Government ensure that no gaps are created in the legal framework, preserving continuity and clarity in the application of the law.

As we transition enforcement functions to the fair work agency, such amendments are vital to ensure the process is as seamless as possible. The purpose of amendment 203, and others like it, is to safeguard that critical aspects of the previous legal framework remain intact, even as the functions are reassigned or modified under the Bill. The changeover to the fair work agency is a significant shift, and these amendments are an important step in maintaining enforcement consistency. Given the complexity of transferring powers and responsibilities between agencies, the amendments ensure that no legal actions or evidence will fall through the cracks during the transition. They will ensure that enforcement remains robust, and that any evidence gathered or actions taken before the changeover still hold legal weight under the new system.

Although the adjustments are sensible and necessary, the number of Government amendments made in Committee leaves me with some concern about whether every possible issue has been addressed. The amendments we have seen so far have been well intentioned and critical for ensuring legal continuity, but I would appreciate the Minister’s reassurance that nothing has been overlooked in this important process.

As we know, the task of realigning enforcement powers can be complex, and with numerous provisions being amended or repealed, the risk of something slipping through the cracks is a valid concern. Opposition Members are asking for clarity that even with these detailed and helpful amendments, the transition to the fair work agency will not inadvertently create gaps or unintended consequences. I urge the Minister to provide additional assurances that all potential legal or procedural pitfalls have been anticipated, and that the Government have taken every necessary step to guarantee that the work of enforcement officers and the legal process will continue without interruption. Although the amendments are certainly a step in the right direction, we must remain vigilant to ensure that the full scope of the transition is properly managed and that the system continues to protect the rights of workers effectively.

[Justin Madders]

I believe I have already addressed the concerns raised by the hon. Member for Bridgwater on several occasions this morning, although I take his points.

Amendment 203 agreed to.

[Justin Madders]

I beg to move amendment 204, in schedule 7, page 148, line 28, at end insert—

“10A (1) Where—

(a) a slavery and trafficking prevention order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 19 of the Modern Slavery Act 2015 (“the 2015 Act”), and

(b) immediately before the day on which paragraph 53 of Schedule 6 comes into force, that requirement has not been complied with,

that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.

(2) On and after the coming into force of paragraph 54 of Schedule 6, the reference in section 20(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking prevention order made on an application under section 15 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.

(3) In this paragraph “slavery and trafficking prevention order” has the same meaning as in the 2015 Act.

10B (1) Where—

(a) a slavery and trafficking risk order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 26 of the Modern Slavery Act 2015 (“the 2015 Act”), and

(b) immediately before the day on which paragraph 56 of Schedule 6 comes into force, that requirement has not been complied with,

that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.

(2) On and after the coming into force of paragraph 57 of Schedule 6, the reference in section 27(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking risk order made on an application under section 23 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.

(3) In this paragraph “slavery and trafficking risk order” has the same meaning as in the 2015 Act.”

This amendment contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended.

The amendment is essential to ensure the seamless and effective operation of the Modern Slavery Act 2015 during the transition of functions from the Gangmasters and Labour Abuse Authority to the Secretary of State. At its core, it is about continuity and clarity. Slavery and trafficking prevention and risk orders are critical tools in the fight against modern slavery. They impose important requirements on individuals for the purpose of protecting people from being victims of modern slavery, including requirements to notify enforcement authorities, and those obligations must remain enforceable.

Without the amendment, there is a clear risk that existing legal obligations could become unclear, creating loopholes for offenders to exploit. The amendment ensures that notification requirements transfer seamlessly to the Secretary of State, safeguarding our ability to hold individuals accountable and protect victims of exploitation. It also ensures that where an application is made to vary, renew or discharge a slavery and trafficking order, the courts can treat orders originally made by the GLAA as if they had been made by the Secretary of State. That provides legal certainty for courts, enforcement agencies and affected individuals alike.

This is a technical but vital amendment that protects the integrity of the legal framework and ensures continuity.

[Greg Smith]

Apologies for my premature comments on amendment 204, Mr Mundell; I accidently believed it had been grouped with the previous amendment.

Amendment 204 contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended. I would be grateful for the Minister’s assessment of how the creation of the fair work agency will allow for more effective identification and prevention of modern slavery offences. As we debate the amendment, it is important that we are fully appraised of the detail and the assessment that the Minister, the wider Department for Business and Trade and the Government have made. This is an important matter that all Committee members, and Members of the wider House of Commons, take incredibly seriously, and I urge the Minister to do so.

Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 Draft Unique Identifiers (Application of Company Law) Regulations 2024

Justin Madders Excerpts

Monday 13th January 2025 General Committees

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

I beg to move,

That the Committee has considered the draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.

[The Chair]

With this it will be convenient to discuss the draft Unique Identifiers (Application of Company Law) Regulations 2024.

[Justin Madders]

It is a pleasure to see you in the Chair, Mr Stringer. The registrar regulations were laid before the House in draft on 22 May 2024, and the unique identifiers regulations were laid before the House in draft on 31 October 2024. They form part of a programme to implement the Economic Crime and Corporate Transparency Act 2023.

The 2023 Act is a landmark piece of legislation that delivers the most significant reforms to Companies House in more than 180 years, in order to protect the public from fraud and deliver real benefits to the business community. There has already been much progress since the Act was passed, including the introduction of stricter rules and checks to help Companies House to cleanse the register. The two sets of regulations before us will help to implement perhaps the most important changes to the UK’s company registration framework in the Act, requiring identity verification for those setting up, running and controlling companies. The 2023 Act amended the Companies Act 2006 to establish two ways in which an individual can verify their identity: either directly with Companies House or via an authorised corporate service provider, which I will refer to as an ACSP. The providers must be supervised for anti-money laundering purposes and registered with Companies House.

I will set out specifically what the two instruments do. The draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 set out the legal framework that underpins identity verification. The identity verification procedure will involve an individual delivering specific information to the registrar or to an ACSP, which must include their name, date of birth and any further information specified in the registrar’s rules, which are a form of tertiary legislation.

Given the technical and increasingly evolving mechanisms for identity verification, it would be inappropriate to list every single identity document that must be provided to the registrar or an ASCP, or every single step that an individual must take in the regulations. Instead, the registrar is enabled to specify the requirements in a more suitable form and adapt or tweak the detail quickly where necessary. Companies House has produced a draft version of the registrar’s rules—I hope that they are in the Committee Room for Members to see—which I hope will provide some examples of the kind of information that might be required from applicants. When the registrar or ACSP receives all the correct information from an applicant, they will grant the identity verification application if they are satisfied that the information provided is true. That is the broad legal process for identity verification.

In practice, Companies House will use the gov.uk One Login platform to deliver its identity verification service. One Login is a cross-government verification platform that enables users to have a single login and verified identity for multiple government services. An individual will create an account and can verify their identity using a range of evidence, such as a passport or driving licence, or through knowledge-based verification questions based on their credit record or banking information. The process also includes checks to ensure that the individual matches the picture on their photo ID. For most people completing the purely digital route, the process will take a matter of minutes. Individuals can also complete the process in person at a post office.

If an individual decides to verify via an ACSP, the ACSP must follow the legal procedure established in these regulations and in the registrar’s rules. Companies House will issue guidance to ACSPs to explain how the procedure should be applied in practice and what checks they must perform on the information received. That will ensure that both routes achieve the same level of assurance in identity verification. Once an ACSP verifies an applicant’s identity, it will deliver a verification statement to Companies House to confirm that it has followed the correct procedure. The verification statement will be published alongside the applicant’s appointments on the register to maximise transparency. Alongside this verification statement, ACSPs must give the registrar information about the evidence they relied on to verify an individual’s identity. That means that Companies House will not lose access to crucial identity data if someone uses an ACSP and will also be provided with an assurance that the identity checks have been completed correctly.

The regulations add other checks and balances to the ACSP regime. ACSPs will be required to maintain records relating to the identity verification for seven years from the date they determined the identity verification request. The registrar can suspend and de-authorise an ACSP if they do not consider it to be fit and proper to carry out the functions of an ACSP. Finally, the registrar can perform spot checks on ACSPs and ask them to provide information about their identity verification obligations. All those provisions combined ensure that Companies House has the tools at its disposal to ensure that the ACSP regime is as effective and robust as possible.

I now turn briefly to the second set of regulations, the draft Unique Identifiers (Application of Company Law) Regulations 2024. These are technical and apply provisions on unique identifiers contained in the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 to other entities. A key mechanism underpinning the operation of identity verification is the use of a unique identifier or personal code, which we use to identify individuals who have had their identity verified, as well as registered ACSPs.

The first set of regulations we covered will enable allocation of unique identifiers to individuals associated with companies. These regulations give the registrar the power to allocate unique identifiers to ACSPs and individuals associated with other entities, namely limited partnerships, limited liability partnerships, companies authorised to register, unregistered companies, and Scottish qualifying partnerships. Identity verification requirements will eventually apply to other entities registered at Companies House, so it is necessary that we make these regulations relating to unique identifiers to ensure these requirements can operate in practice.

Finally, I want to update the Committee on the timings of identity verification. Companies House published its outline transition plan last October, which confirmed that it aims to start requiring identity verification from autumn of this year. In a few weeks, ACSPs will be able to register and individuals will be able to voluntarily verify their identity with Companies House, giving people lots of time to complete the process before legal requirements actually start.

--- Later in debate ---

[Justin Madders]

I am pleased to hear that the shadow Minister has already started using the acronym ACSP, which is very encouraging—I am sure it will enter the vernacular shortly.

In terms of the cost to businesses of individual identity verification, it will be free to businesses to log in. It is estimated that on average it will cost £10.50 to verify an individual’s identity and £2.10 to confirm verification for each appointment held. It is estimated in the impact assessment that the annual cost to UK businesses will be about £19.5 million in ongoing operational expenses. It should be said that we believe that this measure will be of benefit to legitimate businesses, enabling them to move forward with confidence that they are who they say they are. Of course, the companies register is estimated to be worth up to £3 billion to the UK economy each year, due to the amount of information that is available free to the public.

The hon. Gentleman also asked about the cost to Companies House. He will be aware that incorporation fees have been increased in recent times. Indeed, an economic crime levy has also been apportioned to Companies House, to recognise the fact that there are substantial new demands on it, and there are not substantial numbers of new staff that have been recruited to undertake these activities. However, there is no intention to increase the cost to the Treasury; rather, it is expected that these costs will be generally recovered through Companies House activities.

My understanding is that the second set of regulations would not have attracted an impact assessment due to the estimated cost to individual businesses. I will double-check that point for the hon. Gentleman and write to him if that proves to be incorrect, but I think it is normally the case that there is a £5 million floor on impact assessments, and my understanding is that these regulations did not exceed that; therefore, no impact assessment was required. On that note, I thank hon. Members for their time, and I commend the regulations to the Committee.

Question put and agreed to.

DRAFT UNIQUE IDENTTIFIERS (APPLICATION OF COMPANY LAW) REGULATIONS 2024

Resolved,

That the Committee has considered the draft Unique Identifiers (Application of Company Law) Regulations 2024.—(Justin Madders.)

Live Events Ticketing: Resale and Pricing Practices

Justin Madders Excerpts

Monday 13th January 2025 Written Statements

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

The UK has a world-leading music and live events sector, which plays an important role in our national life and supports economic growth across the country. However, the Government are concerned that tickets for many live events have become inaccessible to fans due to highly inflated ticket prices on the resale market. In addition, new practices within the live events sector, such as dynamic pricing, are presenting challenges for fans when buying tickets, particularly around transparency.

We want to put fans first, ensure that they are treated fairly and, in so doing, support an economically successful live events sector.

To support these objectives, the Department for Business and Trade and the Department for Culture, Media and Sport have published a consultation on the resale of live events tickets and a call for evidence on pricing practices in the live events sector, which are available on www.gov.uk.

Consultation on the resale of live events tickets

The Government recognise that a well-functioning ticket resale market can play an important role: helping to redistribute tickets between genuine fans; and allowing those who cannot attend an event to give an opportunity to others to get a ticket, while recouping some or all of their costs. However, it appears that professional ticket touts are systematically buying up tickets on the primary market and then reselling them to fans at often hugely inflated prices, with none of the profits going back to the performer, venue or the live events sector more generally. To address these issues, the Government are seeking views on a range of possible options, including:

Limits on ticket resale, such as via a price cap, making it illegal for tickets to be resold at more than a certain percentage above the original price, and fixed limits on the number of tickets that a seller can resell;

Increasing the accountability of secondary ticketing platforms by placing a duty on them to ensure that information provided by sellers is accurate;

Supporting the enforcement of existing consumer protection laws by updating provisions in the Consumer Rights Act 2015 to make enforcement more efficient and effective, including a licensing regime focused on resale platforms; and

Encouraging industry-led actions to improve the transparency and accessibility of ticket sales, for example by phasing ticket distribution.

Call for evidence on pricing practices in the live events sector

The live events sector has adopted new approaches to selling tickets, including pricing strategies using new technologies. These practices are changing both how the system works and the experiences of fans when they purchase tickets. It is important that fans are treated fairly and openly with timely, transparent and accurate information being presented ahead of sales, particularly when demand is high.

The call for evidence is seeking views to determine if there is a case for future intervention, specifically examining:

How the ticketing market works in the UK, when and how tickets are sold using dynamic pricing, and other technologies used to sell tickets;

If and how consumers have been impaired by a lack of transparency, for example the transparency and timeliness of information provided to inform purchasing decisions, and the extent of hidden fees, tiered pricing or pressure selling; and

Whether the current legal framework provides sufficient protection, including whether gaps exist or if there is potential for new harms arising from emerging trends.

Next steps

The consultation and call for evidence will be open for 12 weeks. We encourage all interested stakeholders, including fans, ticketing platforms and the wider live events sector, to respond.

I am placing a copy of the consultation and the call for evidence in the Libraries of both Houses.

[HCWS359]

Employment Rights Bill (Seventeenth sitting)

Justin Madders Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[The Chair]

Thank you, Sir Ashley, for giving notice of that point of order. The issue you have raised is obviously on the record. It will be raised with the Scrutiny Unit and there will be a report back to the Committee on the outcome of that inquiry.

Clause 72

Enforcement of labour market legislation by Secretary of State

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

I beg to move amendment 84, in clause 72, page 79, line 15, at end insert—

“(4A) Accordingly, in the case of the exercise by an enforcement officer of an enforcement function of the Secretary of State, any reference in an enactment to the Secretary of State in connection with that function is to be read as, or as including, a reference to that officer or any other enforcement officer.”

This amendment ensures that, where an enforcement officer is exercising an enforcement function of the Secretary of State by virtue of clause 72(4), references in legislation to the Secretary of State in connection with that function will include references to enforcement officers, so that the legislation will apply in relation to the enforcement officer as it would apply to the Secretary of State if the Secretary of State were exercising the function.

It is a pleasure to see you in the Chair this morning, Mr Mundell. I start by making the customary reference to my declaration in the Register of Members’ Financial Interests.

Clause 72 is the first in relation to the fair work agency, and it is one of the building blocks of the agency. I will explain the main elements of the clause, as that will help us to understand the amendment. The clause confers an overarching function on the Secretary of State to enforce certain legislation set out in part 1 of schedule 4, which the clause introduces. The clause provides flexibility for the Secretary of State in how to deliver that overarching enforcement function. It enables them to appoint enforcement officers to carry out the function on their behalf, and it provides that enforcement officers will be able to exercise any of the enforcement functions of the Secretary of State and will have the enforcement powers conferred on them as set out in the terms of their appointment by the Secretary of State.

As I said, the Secretary of State has the function of enforcing the legislation set out in part 1 of schedule 4. The legislation contains references to the Secretary of State having functions and powers in connection with the enforcement of the rights set out in that legislation. It is important that those references can be read as references to the enforcement officers the Secretary of State appoints to act on their behalf; otherwise, enforcement officers may not be able to properly exercise the enforcement functions of the Secretary of State. That would make their appointment, and potentially their enforcement activity, less effective.

Government amendment 84 inserts a new subsection after clause 72(4) to ensure that references to the Secretary of State are read as references to enforcement officers where necessary. The practical effect is that the legislation will apply to enforcement officers as it would to the Secretary of State. This is a technical change, but I hope that Members will see that it is necessary.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to see you in the Chair once more, Mr Mundell.

Government amendment 84 looks to us like a drafting correction. We will not rehearse the arguments we have had so many times in the Committee about drafting corrections, but I would be grateful if the Minister could confirm whether the powers in the Bill, which are directly related to the amendment, for enforcement officers to enter and search business premises are any wider in scope than current enforcement powers and, if so, how and why.

[Justin Madders]

I am grateful to the shadow Minister for not rehearsing the arguments, as we may end up having them every five minutes, given the number of technical amendments we will deal with today. He raises an important question about the enforcement powers and powers of entry. There are a number of clauses that deal with that. My initial understanding is that, generally speaking, we are not seeking to widen the remit of current enforcement powers. I will endeavour to write to him if there are any changes or exceptions to that. It may be something that becomes apparent when we debate the clauses in question.

Amendment 84 agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.

[Justin Madders]

Clause 72 is important, as it sets out the principles of a major part of the Bill. The UK’s labour market enforcement system is fragmented. The enforcement of core rights such as the minimum wage, domestic agency regulations and the gangmasters licensing scheme is split between three different agencies. That often means that workers do not know where to go when they think they might not have received what they are due. That makes enforcement ineffective. It is not fair for workers or businesses.

Clause 72 is a vital building block in the creation of the fair work agency. It is worth noting from the outset that the FWA will be established as an executive agency of the Department for Business and Trade, which means that it will not have its own distinct identity in legislation. The Bill therefore vests responsibility for enforcement of labour market legislation in the Secretary of State. The Secretary of State intends to discharge those responsibilities through the fair work agency, which will be created in administrative documents.

Clause 72(1) places responsibility for enforcing a set list of labour market legislation on the Secretary of State and introduces part 1 of schedule 4, which sets out the list of relevant labour market legislation that the Secretary of State will be responsible for enforcing. There is a general power in clause 118(3) to make regulations that commence different aspects of the Bill at different points. Exactly when the Secretary of State will take on responsibility for enforcement will depend on the detail of those commencement regulations. However, creating the fair work agency is about more than simply moving things around; the agency will also take on the ability to enforce workers’ right to paid holiday and their entitlement to statutory sick pay.

Clause 72(2) explains that part 5 of the Bill confers powers on the Secretary of State and enforcement officers to carry out the purpose of enforcing the labour market legislation in schedule 4. Clause 72(3) makes it clear that an enforcement officer includes anyone whom the Secretary of State has appointed to carry out enforcement of that legislation on his behalf, and clause 72(5) clarifies that enforcement officers appointed by the Secretary of State have only the powers conferred on them when they are appointed. Practically speaking, that means that whether the Secretary of State or an enforcement officer is carrying out this work, they will have the enforcement and investigatory powers they need to do the job effectively. Those powers are set out in later clauses.

Clause 72(5) is also a particularly important safeguard. As I have already said, the responsibility for enforcing legislation and the powers to carry it out will be vested in the Secretary of State, and the Secretary of State will then confer them on the enforcement officers he appoints. However, the FWA’s remit will also include the serious issue of modern slavery and labour abuse, for which certain specially trained enforcement officers will have extensive police-style powers, as set out in section 114B of the Police and Criminal Evidence Act 1984. Certain officers in the Gangmasters and Labour Abuse Authority are trained to use those powers, which are subject to additional oversight, including by the Independent Office for Police Conduct. The powers should continue to be reserved for tackling the most serious issues handled by the FWA. That is why we have included clause 72(5), through which the Secretary of State will specify what powers enforcement officers will have access to when appointing them. We will ensure that powers are conferred only on officers who are sufficiently qualified to use them and who genuinely need them to do their job.

[Sir Ashley Fox]

The Minister is talking about granting officials of the state extensive powers currently reserved to police officers. Can he tell us how many additional officials will be granted those additional powers?

[Justin Madders]

What we are doing is transferring existing powers and responsibilities from the existing agency. There are no new police-style powers being created for these officers; it is simply a transfer over to the fair work agency.

Clause 72 is key to delivering the much-needed upgrade to the enforcement of workers’ rights so that it is more effective and fair for workers and businesses. It brings together enforcement functions currently split between several different enforcement agencies and gives the fair work agency the flexibility to respond to a rapidly changing labour market. I commend the clause to the Committee.

[Greg Smith]

A lot of the detail is in the clauses that follow this one; as the Minister said, this is very much a building-block clause. Although I totally understand and appreciate the rationale for taking enforcement powers that are currently fragmented across multiple different agencies and consolidating them into one, the devil is always in the detail.

Although it might seem sensible to consolidate the powers that are currently so spread out into one agency, this is very much a centralisation of power. The crux of clause 72 is about directly providing the Secretary of State with the overall function of enforcing labour market legislation. Whenever I see such provisions in any legislation, I cannot help but be reminded of the late, great President Reagan’s famous quote about the nine most terrifying words in the English language:

“I’m from the Government, and I’m here to help.”

As my hon. Friend the Member for Bridgwater suggested in his intervention on the Minister, the serious detail is about the practical workings of the fair work agency as it is set up. What will be the total number of enforcement officers, employees and ancillary staff required—admittedly, some will be brought across from other agencies—to form it? What will be the cost to the taxpayer of putting that together? How many people are we actually talking about? I think that, as opposed to the powers that they will hold, was the crux of my hon. Friend’s intervention.

As I said, we accept the rationale for bringing these powers together under one agency, but whenever such powers are granted to a Secretary of State, no matter what the field, there is always uncertainty and scope for never-ending expansion of the new agency, and of the size of the state, to do what is, in many cases, important enforcement work—I do not doubt that. Given the presumption that the Bill will become an Act of Parliament and that the agency will be set up in the way envisaged in clause 72, it would be good to have clarity about the plan for just how big the agency will be and whether the Secretary of State will put any cap on that from the get-go. How far does the Minister envisage the agency going?

--- Later in debate ---

[Nick Timothy (West Suffolk) (Con)]

I want to add my support in principle for the idea of a single labour market regulator. I have written about that in the past in different ways and can claim a small amount of credit for the commissioning of the Taylor review into the gig economy when I was working in 10 Downing Street. These issues are very important to me. Hopefully that will reassure the Minister and Labour Members of my cross-party credentials when that might be necessary.

We can all think of ways in which different kinds of labour market exploitation—non-payment of the national minimum wage or living wage; breaches of terms and conditions, health and safety or holiday rights; and illegal working, among many other examples—can be difficult to address if the laws are tough but the enforcement is poor. Those on both sides of the Committee can agree on that.

I want to add to the questions that have already been raised. I think the Minister said that the idea is that no additional powers will be granted and that this is just a consolidation. My understanding is that the fair work agency will not be a single monolithic agency; it is more about different strands of work being brought under a single leadership. If that is the case, presumably the different agencies that exist will do so until this legal change comes into effect. Presumably, the powers of the officers in each of those agencies differ in certain ways. Will that remain the case under the one body, or will there be interoperability and transfer of officers within the different sections under the single regulator? Or is the idea that the officers across those different entities will all assume the maximum powers that exist at the moment so that they can operate across all the different responsibilities of the new agency? I think that would still mean a net increase in powers across those people. What work has been done in the Department to give us an idea of the numbers we are talking about? If the Minister could answer that and then write to us with some more detail and statistics, I would be grateful.

[Justin Madders]

It is pleasing to hear generally broad support for this measure. As my hon. Friend the Member for Birmingham Northfield pointed out, and as the hon. Member for West Suffolk will know better than most, this was previously a Conservative party manifesto commitment, and we are pleased to be able to move it forward.

Some detailed operational questions were asked. At this stage, how the agency will work in practice is still being fleshed out. The current understanding in the impact assessment is that this is about the consolidation of existing resources and having a single point of leadership. Members will recall that, in her evidence to the Committee, Margaret Beels, the Director of Labour Market Enforcement, talked about how her role would be much easier if she were able to combine the powers of different agencies.

The shadow Minister asked whether we will require extra staff. That will be part of discussions with the Treasury. As he will know, there is a spending review on the horizon and Departments have been asked to look at savings. Clearly, we hope that the combining of resources will lead to some efficiencies, but there is certainly a view from a number of stakeholders that enforcement is not at the level it ought to be—

[Greg Smith]

I fully acknowledge and appreciate the Minister’s point about negotiation with the Treasury, but even if we take it as read that it is right to bring powers into a single enforcement agency, there is always a cost to creating anything new, even if it is a consolidation. Surely, the Department for Business and Trade has a cost for that. There is legislation live, in front of us right now, that seeks to create the agency, so surely he must know the broad cost of setting it up and consolidating those powers.

[Justin Madders]

Yes, the impact assessment sets out the one-off set-up costs. I am sure the shadow Minister can spend the lunch break looking at the detail. In terms of the current enforcement framework, as I say, there is a view that more needs to be done. Of course, we will be adding holiday pay and social security to that, and there is a power to add further areas. We know that generally, when resources are combined, we can deliver more—the sum is greater than the parts.

The Liberal Democrat spokesperson, the hon. Member for Torbay, asked about the critical friend. This Government are always ready to have critical friends—more on the “friend” side than the “critical” side. We will come shortly to a clause about an advisory board, which will have a broad range of stakeholders able to take that role.

[Greg Smith]

Does the Minister not agree that for any power held by any Secretary of State in any Department, the critical friend is a very simple concept? It is called Parliament—it is all of us.

[Justin Madders]

Indeed it is, and the usual parliamentary scrutiny will apply, but I was talking specifically about the role of the fair work agency. There will be that role, and no doubt as more detail emerges there will be more parliamentary opportunities to talk about the role and functions of the agency.

My hon. Friends the Members for Worsley and Eccles and for Birmingham Northfield talked about the broad support for the agency’s establishment, as indeed did the hon. Member for West Suffolk. I have a list of all the supportive witnesses at the oral evidence sessions, and it is a broad and impressive cast. It includes the CBI, the British Chambers of Commerce, the British Retail Consortium, the Chartered Institute of Personnel and Development, the Recruitment and Employment Confederation, the Food and Drink Federation, the Co-op, Margaret Beels, and of course all the trade unions. There is support across the board for this single enforcement body.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell. There are a few points about the creation of the agency that I would like the Minister to address. I am broadly supportive of synergies and of the rationalisation of public bodies, particularly to ensure that the taxpayer is getting value for money, but have the Government considered the cost of this new body and whether it will result in savings for the taxpayer? Will they consider locating it outside London so that it is more broadly reflective of the country at large?

[Justin Madders]

As a regional MP—a north-west Member—I am always looking to see where we can get more Government agencies out into the rest of the country. It is probably too early to say, but those kinds of decisions are being looked at.

At the moment, His Majesty’s Revenue and Customs deals with minimum wage enforcement. Moving such a specific task across to another body will take some time, so there may well be a period during which HMRC continues to undertake that work, albeit that it is within the remit of the fair work agency. Such operational details will be discussed and dealt with in due course.

The hon. Member for West Suffolk made a point about the powers of individual officers. Initially, we envisage that officers will move into, effectively, their existing roles. It will be a matter for operational consideration in due course whether it is beneficial to extend people’s remits. It will not be required of anyone without sufficient training and safeguards in place, but as the agency develops, it may well be considered advantageous to broaden the role of enforcement officers. One of the rationales for the body is that there are often several aspects to an employer’s breach of obligations, so we want the fair work agency to be able to tackle these things as a whole. However, that is an operational matter that will be dealt with in due course. I commend the clause to the Committee.

Question put and agreed to.

Clause 72, as amended, accordingly ordered to stand part of the Bill.

Schedule 4

Legislation subject to enforcement under part 5

[Justin Madders]

I beg to move amendment 169, in schedule 4, page 127, line 29, leave out paragraph 3 and insert—

“3 Section 151(1) of the Social Security Contributions and Benefits Act 1992 (employer’s liability to pay statutory sick pay).

3A Regulations under section 153(5)(b) of that Act (requirement to provide statement about entitlement).”

This amendment clarifies the specific obligations relating to the payment of statutory sick pay which will be enforceable under Part 5 of the Bill.

[The Chair]

With this it will be convenient to discuss Government amendment 170.

[Justin Madders]

As we have discussed, the current enforcement system for workers’ rights is fragmented. By creating the fair work agency, we intend to bring enforcement into one place. We have been clear that we also want the fair work agency to enforce individual rights to statutory sick pay, because we want to upgrade the enforcement of workers’ rights and stand up for the most vulnerable in our workforce, including those who are unable to work owing to sickness. That is why part 1 of schedule 4 to the Bill, as introduced on 10 October 2024, includes part 11 of the Social Security Contributions and Benefits Act 1992—one of the main pieces of legislation setting out the statutory sick pay regime—in the body of relevant labour market legislation. Government amendment 169 further clarifies the obligations concerning the payment of statutory sick pay under the Act and regulations made under it, which will be enforceable under part 5 of the Bill.

However, there is a wider body of statutory sick pay legislation containing details about the entitlements bestowed on workers and the duties of employers. After further work, we noted that some of those provisions needed to be included under the fair work agency. That led us to amendment 170, which will add the following legislation to part 1 of schedule 4: regulations made under section 5 of the Social Security Administration Act 1992, in so far as they relate to statutory sick pay, which deal with claims for, and payment of, benefits; section 14(3) of the Act, which establishes the duty on employers to provide employees with certain information about their sick pay entitlement; and regulations made under section 130 of the Act, in so far as they relate to statutory sick pay. Those provisions will be considered relevant labour market legislation, which makes them part of the Secretary State’s enforcement function. We will proceed with them once the fair work agency is ready to enforce them effectively. Amendments 169 and 170 are therefore necessary for the fair work agency to deliver its remit on statutory sick pay.

[Greg Smith]

Amendment 169 clarifies the specific obligations relating to the payment of statutory sick pay that are enforceable under part 5. Similarly, amendment 170 will ensure that those additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under part 5. This goes back to our old friend, drafting errors being corrected that should really have been sorted out before the Bill was presented to Parliament in the first place.

[Justin Madders]

We will probably have this conversation a number of times. It is probably a little harsh to say that this was an error, but it would be fair to say that, given the complexity of social security legislation, not every provision was identified when the Bill was first introduced.

Amendment 169 agreed to.

Amendment made: 170, in schedule 4, page 127, line 30, at end insert—

“Social Security Administration Act 1992

3B Regulations under section 5 of the Social Security Administration Act 1992 (regulations about claims for and payments of benefit), so far as relating to statutory sick pay.

3C Section 14(3) of that Act (duty of employers to provide certain information to employees in relation to statutory sick pay).

3D Regulations under section 130 of that Act (duties of employers), so far as relating to statutory sick pay.”—(Justin Madders.)

This amendment ensures that additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under Part 5 of the Bill.

--- Later in debate ---

[Greg Smith]

I rise to speak to amendments 117, 118 and 119 and new clause 20, which stand in my name and in the name of my hon. Friends on the Committee. I make it clear that they are probing amendments; it will become clear over the next couple of minutes why we seek to probe the Government on the issue.

The amendments would repeal the working time directive within one year of the Bill’s coming into force. Our reason for tabling them is not that we intend to abolish entitlement to holidays, lunch breaks and so on—far from it, and nobody is suggesting that. However, the working time directive has had a troubled history. One example is the difficulties that occurred between the Commission and member states when the Court of Justice of the European Union ruled that employers—all of them public health and emergency services—did not calculate time spent on call as working time, when they should have done. The CJEU consistently declared that practice incompatible with the directive, arguing that inactive time spent at the disposal of the employer must be counted in its entirety as working time. Then, in 2019, the Court ruled:

“Member States must require employers to set up an objective, reliable and accessible system enabling the duration of time worked each day by each worker to be measured.”

The result of that judgment was never formally brought into British law, but as a result of the European Union (Withdrawal) Act 2018, it became part of retained EU law.

Last year, the Conservative Government legislated to clarify that businesses do not have to keep a record of the daily working hours of their workers if they are able to demonstrate compliance without doing so; to amend the WTR so that irregular hours and part-year workers’ annual leave entitlement is pro-rated to the hours that they work; to introduce an accrual method for calculating holiday entitlement for certain workers; to revoke the covid regulations—it seems odd that we are still saying that—and to introduce rolled-up holiday pay for irregular hours and part-year workers. Consultation requirements under the Transfer of Undertakings (Protection of Employment) Regulations 2006 to allow smaller businesses to consult directly with employees would be another measure. That is just the start of how it might be possible to simplify the working time directive. I would be grateful to hear the Minister’s thoughts on how well the working time regulations are working, and on whether any further changes might be made for the benefit of businesses to enable growth in this country.

[Justin Madders]

The working time regulations have had a relatively long history in our legal framework. They provide vital rights: a maximum working week of 48 hours, rest breaks of 20 minutes every six hours, rest periods of 11 hours each day and at least 24 hours each week, and 28 days of annual leave each year. The regulations implement the EU working time directive; the then Government deliberately designed them to provide maximum flexibility for both employers and workers. For example, workers can choose to opt out in writing from the 48-hour week maximum. We believe that the regulations have benefited millions of workers and their families over the years. They afford workers a better balance between work and other responsibilities, as well as improvements in health and wellbeing.

A 2014 review by the previous Government of the impact of the working time regulations on the UK labour market found that since 1998 there had been a decline in long-hours working in the UK and a general trend towards shorter working hours, which is probably not a surprise. The findings also suggested that the impact of the regulations was mainly through increased employment of workers doing shorter working weeks, rather than through a reduction in total hours worked. Annual leave entitlements have increased since the introduction of the working time regulations; many workers now enjoy a more generous leave entitlement than is prescribed by law.

Limitations on working hours and entitlement to a minimum number of days’ holiday can contribute to improvements in health and safety. Most employers accept that a minimum holiday entitlement contributes to physical and psychological wellbeing. Reductions in stress and fatigue caused by excess hours can provide many benefits, including less pressure on health services and better performance at work, with fewer accidents. By establishing minimum standards, the working time regulations also support a level playing field that discourages competition that relies on poor working conditions and a race to the bottom.

New clause 20 would revoke the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018, which provide for adequate rest for seafarers and support the management of onboard fatigue and the wellbeing of seafarers. Revoking the regulations would negatively affect the ability of the Maritime and Coastguard Agency to enforce safe and healthy working conditions for seafarers.

The new clause would also revoke the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004, which require the UK to implement the International Labour Organisation’s work in fishing convention, which underpins the safe operation of vessels. Fishing is one of the most dangerous sectors in the UK, with 50 injuries per 100,000 workers compared with a UK average of 0.4. We believe that the 2004 regulations are critical to ensuring that workers take the appropriate hours of rest to prevent fatigue-related incidents.

The new clause would also revoke the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003. The Maritime and Coastguard Agency is in the process of conducting a post-implementation review of those regulations. The initial responses to the consultation have indicated a generally positive view from stakeholders.

The new clause would also revoke the Cross-border Railway Services (Working Time) Regulations 2008, which provide enhanced rights and worker protections for those engaged in cross-border rail services, such as train crew for Eurostar services through the channel tunnel. The revocation of the regulations would erode those enhanced protections.

The Government believe that the minimum standards in the Working Time Regulations 1998 and other sector-specific working time regulations have supported millions of workers and their families by enabling them to better balance work and other responsibilities. The Government have no plans to revoke the working time regulations or any of the other sector-specific regulations.

I understand what the shadow Minister says about whether we consider the regulations to be beneficial to businesses, but he will know that there was ample time under his Government to undertake those reviews. Indeed, one was undertaken just over a decade ago, as I said. We have no plans to erode workers’ rights in this area; indeed, one of the fair work agency’s main functions will be to enforce rights to holiday pay, which evidence to the Committee suggests are not being enforced properly.

The shadow Minister says that he has no intention of revoking the working time regulations and that his amendment is probing, but I can only speak to what is before the Committee. If he had tabled an amendment seeking a review of the operation of the working time regulations, that might have been more appropriate in the circumstances. This feels to me like a dog-whistle amendment, so I am pleased to hear that he will not be pressing it.

[Greg Smith]

I am always pleased to delight the Minister in these debates. It was a probing amendment, and I can confirm that we will not be pressing amendments 117 to 119 or new clause 20 to a Division. However, I will briefly comment on the Minister’s response. I entirely respect him for it, but it was a full-throated defence of the status quo.

Something that goes deep within my view of politics, of government and of public administration is there is always room for improvement in pretty much everything. I say that as much about measures passed by previous Conservative Governments as about those passed by current or past Labour Governments. I refuse to accept that something is as good as it possibly can be and is working as well as it possibly can in the interests of businesses and workers alike. There is some disappointment from the official Opposition that the Government do not seem to want to look again.

[Justin Madders]

Does the shadow Minister not accept that his party undertook this exercise, which is why regulations were introduced last year to amend the working time regulations?

[Greg Smith]

I fully and totally accept that, but it is our job as the official Opposition, here and now in January 2025, to press the current Government on further measures that could be taken to work in the interests of everybody in our country—workers and businesses alike. Perhaps I accept the Minister’s point; perhaps we could have tabled an amendment to call for a review. Who knows? Perhaps on Report we might. But the fundamental position that I come back to is one that does not just accept the status quo, but is always challenging, always reviewing and always seeking to make things better in the interests of everyone.

When the Minister goes back to the Department and prepares for the remaining stages of the Bill in the main Chamber and in the other place, may I gently urge him to consider in the round, with the Opposition’s support, whether there are tyres to be kicked and measures to be improved in the operation of the working time directive? May I also urge him to ensure—now that we are a sovereign country once more, having left the European Union—that this Parliament can make improvements should it so wish? I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Justin Madders]

I beg to move amendment 85, in schedule 4, page 128, line 13, at end insert—

“( ) regulations 13 to 15E (entitlement to annual leave, etc);”

This amendment would enable the Secretary of State to enforce the entitlements to annual leave conferred by the Working Time Regulations 1998.

Government amendment 85 will add to schedule 4 the additional holiday pay and entitlement regulations: regulations 13, 13A, 14, 15, 15A, 15B, 15C, 15D and 15E of the Working Time Regulations 1998. It will enable the fair work agency to take enforcement action in relation to incorrect payment or non-payment of a worker’s holiday pay and incorrect payment or non-payment in lieu of annual leave entitlement, ensuring that a wider range of complaints can be dealt with more effectively. I commend it to the Committee.

--- Later in debate ---

[The Chair]

With this it will be convenient to discuss new clause 23—Review of the effectiveness of enforcement of labour market legislation—

“(1) The Secretary of State must establish an independent review providing for—

(a) an assessment of the effectiveness of enforcement of, and compliance with, relevant labour market legislation requirements as specified in Part 1 of Schedule 4 of this Act;

(b) an assessment of the performance and effectiveness of following bodies in enforcing labour market legislation—

(i) Gangmasters and Labour Abuse Authority;

(ii) Employment Agencies Standards Inspectorate;

(iii) His Majesty’s Revenue and Customs; and

(iv) Health and Safety Executive; and

(c) recommendations on strengthening labour market legislation enforcement.

(2) The Secretary of State must lay before Parliament a report of the review in subsection (1) not more than 18 months after the day on which this Act is passed and before a new single labour market enforcement body is established.”

This new clause would require the Secretary of State to establish a review of enforcement of labour market legislation and to report findings to Parliament before a new labour market enforcement body is established.

[Justin Madders]

The UK’s labour market enforcement system is fragmented, as we know. The enforcement of core rights such as the minimum wage, the domestic agency regulations and the gangmaster licensing scheme is split between three different agencies, so workers often do not know where to go when they think they might not have received what they are due. That makes enforcement ineffective.

Clause 72 is a vital building block of the fair work agency. Clause 72(1) will place on the Secretary of State a responsibility to enforce a set list of labour market legislation. It introduces part 1 of schedule 4, which sets out the list of relevant labour market legislation that the Secretary of State will be responsible for enforcing— the national minimum wage, domestic agency regulations, the gangmasters licensing scheme, parts 1 and 2 of the Modern Slavery Act 2015 and the administration of the unpaid employment tribunal award penalty scheme.

Creating the fair work agency is about more than simply moving things around. That is why we have also taken steps to enforce workers’ rights to paid holiday and statutory sick pay. We tabled two sets of amendments to part 1 of schedule 4 to ensure that the fair work agency delivers the policy intent in relation to enforcing holiday pay and statutory sick pay. As we have discussed, our amendment on holiday pay will ensure that the FWA can take action in relation to incorrect payment or non-payment of a worker’s holiday pay and incorrect payment or non-payment in lieu of annual leave entitlement; our amendment on statutory sick pay will ensure that all relevant statutory sick pay provisions that contain entitlements for workers or impose duties on employers are in scope of enforcement.

Part 2 of schedule 4 grants the Secretary of State a delegated power to make affirmative regulations to add new legislation to part 1 of the schedule. The Secretary of State can use the power to bring in scope legislation that relates to the rights of employees and workers, the treatment of employees and workers and requirements on employers, and legislation on trade unions and labour relations. It is a broad power but a necessary one: if we are to deliver the policy intent of genuinely upgrading enforcement, the fair work agency needs to be able to respond to changes in the labour market. We believe that a power to make affirmative regulations, which Parliament will of course have to approve, will ensure proper parliamentary scrutiny for any further changes.

New clause 23 is well intentioned, but it is unnecessary and would be counterproductive. It would impose a lengthy and redundant review process that largely duplicated the statutory duties that are already undertaken by the director of labour market enforcement. She already oversees the enforcement landscape and provides an annual strategy and annual report on the effectiveness of the activities of the bodies that will make up the fair work agency. New clause 23 would do nothing to add to those mechanisms. In fact, it would slow down the creation of the fair work agency.

I turn to clause 75—

[The Chair]

We will come to that later.

[Justin Madders]

Okay. I have nothing further to say, except that the shadow Minister’s new clause 23 is a duplication of existing requirements that would add nothing to the process.

[Greg Smith]

I hear what the Minister says about slowing things down, but it would be remiss of me not to comment that if the Government had perhaps taken their time a bit on the drafting of the Bill, we would not be spending so much time in this Committee considering the absolute deluge of Government amendments that tidy things up that should have been right in the first place. Sometimes it is best not to rush things. Sometimes it is better not to dive in head first and just go for the first thing available, but to be cautious, to review and to fully understand all the implications that new legislation such as this will have in the real world.

That is what new clause 23, which stands in my name and those of my hon. Friends, seeks to double-check. It seeks to ensure that the Government are getting this right—not in our interests or those of anyone in the House of Commons, but in the interests of businesses and workers in the real world, trying to get on with their daily lives, get their jobs done and get their businesses growing and providing the growth and prosperity that we all want to see in the country.

As I have said previously, we do not have a problem in principle with the establishment of a new body to oversee the enforcement of labour market legislation. I have made that clear, and hon. Friends who have spoken have made it crystal clear. But we also made a challenge in the previous debate, and that is what new clause 23 is all about. It is about ensuring that we fully understand the scope, cost and effectiveness of this new body.

Any new body, be it a Government body or in the private sector—although the creation of new bodies in the public sector tends to be slower and often cost more than the private sector would manage—will take time and resources, and we would like to be reassured that this is a good use of time and resources. I repeat that our instinct is that it probably is. Our instinct is that it does seem to make sense, but we can never rely on instinct or on that which might look good on paper as the absolute cast-iron test. It is about the real evidence.

--- Later in debate ---

[Sir Ashley Fox]

I want to speak in support of new clause 23 and to ask the Minister whether he is familiar with Parkinson’s law. It states that the number of workers in any public administration will tend to grow over time, regardless of the quantity of work done. The corollary is that work expands to fill the time available for its completion.

Although Conservative Members are in favour of the creation of the fair work agency, there is a risk that, over time, it will seek to have more staff and more power, will consume a great deal more of taxpayers’ money and resources, and will impose more on employers’ time, without great result. That is why a review is necessary. We want to ensure that any new authority is lean and efficient. We also want the Government to take the same approach to regulations.

Unfortunately, the Bill is a hefty document. It will impose £5 billion-worth of costs on employers, which will probably result in fewer people being employed, higher inflation and lower growth. It is therefore perfectly reasonable for the Opposition to ask the Government to reflect after 18 months and ascertain whether they can find anything in this weighty tome that they could do better or more efficiently.

The working time directive is immensely complicated and imposes burdensome record keeping on employers. In the past, it has resulted in retained firefighters in rural areas having to count the time when they sit at home, not doing anything, as working time. It has been a difficult and troublesome measure, and perhaps my party should have done more to simplify it when we were in office, but that is not an excuse for the Government to say, “Because you didn’t do enough, we intend to do nothing.” It is reasonable for us to ask the Government, at the end of 18 months, to take another look and see whether they can do anything to reduce the burden on businesses.

[Justin Madders]

I am beginning to wonder whether the Opposition’s support for the fair work agency is as strong as I thought. They now appear to want to make sure that creating it is the right thing do, despite its featuring regularly in Conservative manifestos and despite the support of the breadth of stakeholders who gave evidence to the Committee. The current Director of Labour Market Enforcement made it clear in her evidence to the Committee that the creation of the fair work agency would make her role much easier and more effective. She spoke about the recommendations in her most recent report:

“The ones that relate to having a better joined-up approach, to greater efficiency and to better sharing of information among bodies are the things that I think the fair work agency will do a lot better.” ––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 153, Q159.]

I think that almost half of the recommendations from her most recent report contained an element of that.

--- Later in debate ---

[The Chair]

With this it will be convenient to discuss clause 74 stand part.

[Justin Madders]

Clause 73 specifies which functions are considered enforcement functions of the Secretary of State for the purposes of part 5 of the Bill. It defines enforcement functions widely and then carves out certain functions that are not enforcement functions.

Clause 73(1) specifies that the enforcement functions of the Secretary of State include the following: any functions granted under part 5 of the Bill; functions in the relevant labour market legislation that they are responsible for enforcing; and any other functions that they perform to support enforcing labour market legislation.

Clause 73(2) goes on to set out exceptions. It lists specific functions that are not enforcement functions for the purposes of part 5 of the Bill. These are generally functions that relate to the arrangements for state enforcement of labour market legislation, and the overall governance of the fair work agency. These overarching governance functions include: appointing officers under clause 72; delegating functions under clause 74; setting up the advisory board under clause 75; publishing the annual reports and enforcement strategies under clauses 76 and 77; providing for transfer schemes to move staff into the Department under part 1 of schedule 7; and powers to make subordinate legislation.

The effect of clause 73 becomes clear when it is read in conjunction with clause 72. First, the enforcement functions that are listed in clause 73(1) can be performed by enforcement officers appointed under clause 72. Under clause 72(4), the powers of an enforcement officer include the power to exercise any enforcement function. Those powers can be limited further by the terms of the appointment of those officers.

Clause 74 gives the Secretary of State flexibility about how they carry out the functions of labour market enforcement. It provides the option to delegate functions to another public authority. Clause 74(1) gives the Secretary of State the power to make arrangements with the public authority so that it can exercise the delegable function. It also enables the Secretary of State to make arrangements to appoint a public authority’s staff as enforcement officers. The Secretary of State can delegate the enforcement functions listed in clause 73(1), all of which have been highlighted already. Those functions relate to arrangements for state enforcement of labour market legislation or the overall governance of the fair work agency. The Secretary State can also delegate powers relating to the licensing of gangmasters under sections 7 or 11 of the Gangmasters (Licensing) Act 2004. The arrangements the Secretary of State makes with public authorities can also include an agreement to make payments in respect of the performance of any function by either the public authority or their staff.

Clause 74(5) means that delegating an enforcement function does not strip the Secretary of State of responsibility or control in enforcing labour market legislation. The Secretary of State can still carry out functions even when they have arranged for another public authority to do that on their behalf.

The Bill is about bringing enforcement and employment legislation into one place in order to make enforcement more effective and efficient by ensuring the better use of resources. It is about creating the right powers to carry out investigations and take enforcement action where necessary. However, it does not set out a specific approach to implementing that more joined-up enforcement, because operational flexibility will be the key to the success of the fair work agency. The clause helps to provide that flexibility by enabling the Secretary of State to delegate certain functions to other public authorities or to make arrangements for staff of other bodies to be appointed as enforcement officers. Both clauses are integral to the effective functioning of the fair work agency in the future.

[Greg Smith]

On the face of it, the clauses are not problematic: they are quite clear, and it is important that those things that are considered as enforcement functions are clearly defined. That is all well and good—until we get to clause 74(5), which states:

“Arrangements under this section do not prevent the Secretary of State from performing a function to which the arrangements relate.”

Therefore, a body with certain powers—admittedly in the Secretary of State’s name—is created; essentially, a quango is put in place, and people are given the clear job of carrying out the enforcement functions in the Bill. However, if the Secretary of State is not prevented from performing one of those functions, what is the mechanism by which they can overrule the quango they themselves set up to perform them? Of course, the ultimate buck must stop with the Secretary of State, but it is a pretty established convention that where a quango is set up and has powers delegated to it—I think of Natural England within the Department for Environment, Food and Rural Affairs and many other quangos—it is very rare for a Secretary of State to intervene, overrule and perhaps come to a different conclusion from that quango.

We will not oppose the clauses, but I would be grateful if the Minister could reflect on the circumstances in which he believes clause 74(5) would come into effect, to make clear the procedures a Secretary of State would need to follow to bring that subsection into effect.

--- Later in debate ---

[Justin Madders]

I hear what the shadow Minister says. He is possibly over-egging the pudding or taking us on a ride on the ghost train in terms of what clause 74(5) means. It simply means that if the Secretary of State delegates powers to another body, they are still the responsible person for the overall operation. This is not about overruling different bodies; it is about where the final responsibility lies. I hope I have put the hon. Gentleman’s mind at rest to some extent.

Question put and agreed to.

Clause 73 accordingly ordered to stand part of the Bill.

Clause 74 ordered to stand part of the Bill.

Clause 75

Advisory Board

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

I know you have been eagerly awaiting this clause, Mr Mundell. It concerns an important part of the fair work agency, and something that the Liberal Democrat spokesperson touched on earlier. The agency has a big job on its hands to restore trust among workers that they will get the rights that they are entitled to and that Parliament has laid down. It also important that the agency is trusted by businesses, and that they know they will be treated fairly and that if they follow the law, they will not be undercut by those who seek to avoid it. That is an important job for the fair work agency and it is important that we get it right. It must reflect the concerns of businesses and workers.

The Low Pay Commission has served the country well since the last Labour Government created it to advise on the national minimum wage. That is because it is a social partnership, comprising equal voices of workers, businesses and independent experts, and can reflect the perspectives of all those bodies when making recommendations. We want the FWA to replicate that success.

The clause requires the Secretary of State to create an advisory board for the fair work agency. Subsection (2) specifies that the board must consist of at least nine members appointed by the Secretary of State. Subsection (3) provides that board members must hold and vacate their position in accordance with the terms and conditions of their appointment. Subsection (4) provides for the advisory board to have a social partnership model, requiring equal representation of businesses, trade unions and independent experts.

We know this is a complex area that is constantly changing, but we believe that the model and approach that has proved so successful with the Low Pay Commission should be replicated here. I therefore commend the clause to the Committee.

[Greg Smith]

I hear what the Minister says in his explanation of the clause. Often, advisory boards are perfectly good and useful bodies, but I return to my earlier point that where a power rests with a Secretary of State, the accountable body to which any Secretary of State must submit themselves is the House of Commons, where they are a Member, or the House of Lords, in the rare case that they sit in the other place. Parliament is the advisory body—the critical friend—that the Secretary of State should submit themselves to.

However, accepting that an advisory board is going to be established, I want to ask the Minister about its make-up. While the Bill seems to be quite clear, there are some gaps, and some unanswered questions that the public, businesses, employees and the trade union movement will no doubt wish to have answered.

Probably the clearest definition in clause 75(4) is that in paragraph (a):

“persons appearing to the Secretary of State to represent the interests of trade unions”.

I think we can all understand that that means representatives of the trade union movement.

--- Later in debate ---

[Greg Smith]

I am grateful to the hon. Gentleman for his intervention and for what appears to be his support for the British egg industry. I encourage him to eat as many British eggs as possible and to support our farmers.

[Justin Madders]

Egg-cellent!

[The Chair]

We are not going down this route, thank you.

Employment Rights Bill (Sixteenth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[The Chair]

With this it will be convenient to discuss the following:

Amendment 114, in clause 51, page 64, line 9, after “employer”, insert—

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

This amendment paves the way for Amendment 115.

Amendment 115, in clause 51, page 64, line 10, at end insert—

“(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, together with Amendment 114, prevents facility time for equality representatives being provided unless the relevant public sector organisation is meeting its statutory targets for performance.

Clauses 51 and 52 stand part.

New clause 18—Facility time: cost assessment—

“(1) The Secretary of State must commission an assessment of the cost and prospective cost of—

(a) time off and associated payments under sections 168 to 170 of the Trade Union and Labour Relations (Consolidation) Act 1992, and

(b) implementing section 168B of that Act,

in relation to each sector of the economy.

(2) For the purposes of subsection (1), a sector of the economy means—

(a) an area of the economy in which businesses share the same or related business activity, product, or service, or

(b) in relation to the public sector, a sector which provides similar or related services.

(3) The Secretary must lay a report of the assessment commissioned under subsection (1) before each House of Parliament.”

This new clause requires the Secretary of State to undertake a sectoral cost assessment of trade union facility time, and see also Amendment 113.

Amendment 113, in clause 118, page 105, line 20, at end insert—

“(3A) But the provisions of section 51(2) to (12) may not be brought into force before the report of the cost assessment referred to in section [Facility time: cost assessment] has been laid before each House of Parliament.”

This amendment provides that the amendments made in Clause 51 cannot come into force until after the completion of the review referred to in NC18.

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

It is a pleasure to see you in the Chair, Sir Christopher. I wish you a happy new year. As always, I will start by referring to my entry in the Register of Members’ Financial Interests.

I shall attempt to navigate this mega-grouping of clauses, amendments and new clauses. Clause 50 will amend section 168 of the Trade Union and Labour Relations (Consolidation) Act 1992 to provide that an employer that permits an employee to take time off for carrying out trade union duties, including as a learning representative, must, where requested by the employee, provide the employee with accommodation and other facilities for carrying out their duties or undergoing training related to their trade union duties, as is reasonable in all the circumstances. “Facilities” could include office and meeting space and access to the internet or intranet. In providing the employee with facilities, the employer should have regard to a relevant code of practice issued by ACAS.

The clause will also strengthen the existing right to reasonable paid facility time for union representatives, including union learning representatives, by establishing a presumption that the employee’s view on what is considered reasonable time off is reasonable in all the circumstances, having regard to any relevant provisions of a code of practice issued by ACAS. The clause will require that the employer show that it was not a reasonable amount of time off at an employment tribunal, in the event of legal proceedings.

Despite the fact that most union representatives receive paid time off, it is often insufficient to allow them to carry out all their trade union duties, and many union representatives use significant amounts of their own time to do so. This Government want to ensure that union workplace representatives can take sufficient paid facility time and have sufficient access to facilities to enable them to fulfil their union representative duties. That will lead to improved worker representation and industrial relations by giving trade unions and workplace representatives the freedom to organise, represent and negotiate on behalf of their workers and to increase co-operation between employers and unionised workers, leading to beneficial outcomes for the economy.

The Government will not support the shadow Minister’s amendments 114 and 115, which would place an unnecessary restriction on trade union equality representatives’ ability to take time off during working hours to carry out their role as equality representatives. Equality representatives have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. Placing a performance condition on the right to paid time off for equality representatives is at odds with existing rights and protections for other trade union representatives, such as union learning representatives.

In addition, the Bill is clear that the amount of time off that an employee is permitted to take, the purposes and occasions for which it is taken and any conditions subject to which it may be so taken are those that are reasonable in all the circumstances, having regard to any relevant provision of a code of practice issued by ACAS or the Secretary of State. The existing code of practice on time off for trade union representatives will be updated in due course to cover equality representatives. The Government would therefore strongly argue that the additional condition is not required for equality representatives.

Clause 51 will insert new section 168B into the Trade Union and Labour Relations (Consolidation) Act 1992. The proposed new section requires that an employer must permit an employee who is a member of an independent trade union recognised by the employer and an equality representative of the trade union to take paid time off during the employee’s working hours for the following purposes: carrying out activities for the purpose of promoting the value of equality in the workplace; arranging learning or training on matters relating to equality in the workplace; providing information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace; consulting with the employer on matters relating to equality in the workplace; obtaining and analysing information on the state of equality in the workplace; and preparing for any of the things mentioned previously.

The above applies only if the trade union has given the employer notice in writing that the employee is an equality representative of the union and has undergone sufficient training to enable them to carry out the activities listed above, or if the trade union has in the past six months given the employer notice in writing that the employee will be undergoing such training—this can be done only once in relation to any one employee—or within six months of the trade union giving the employer notice in writing that the employee will be undergoing such training, the employee has done so and the trade union has given the employer notice of that. “Sufficient training” is that which is sufficient for fulfilling the purposes of an equality representative, having regard to any relevant code of practice issued by ACAS or the Secretary of State.

Clause 51 will also require an employer to permit an employee to take paid time off during working hours to undergo training relevant to their role as an equality representative and, where requested, provide the employee with accommodation and other facilities to enable them to fulfil their role, having regard to a relevant code of practice issued by ACAS. Should an employer fail to permit the employee to take time off or provide the employee with facilities as required, the employee may present a complaint to an employment tribunal, at which it will be for the employer to show that the amount of time off that the employee proposed was not reasonable.

Trade unions have long fought for equality. Equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. Clause 51 therefore recognises in statute the role of trade union equality representative, which is defined in proposed new section 168B(12) as a person appointed or elected in accordance with the trade union rules and defined by reference to, and in a manner consistent with, the Equality Act 2010.

I turn to the shadow Minister’s amendments 113 and new clause 18. I should start by stating that sections 168 to 170 of the Trade Union and Labour Relations (Consolidation) Act 1992 are long-standing provisions that require employers to provide facility time for union representatives and union learning representatives of a recognised trade union.

Our legislation also requires employers to make payments to union representatives for time off for carrying out their union duties. Despite the fact that most union representatives receive paid time off, it is often insufficient to allow them to carry out all of their trade union duties, and many union representatives use significant amounts of their own time to do so. We want to ensure that union workplace representatives can take sufficient paid facility time and have sufficient access to facilities to enable them to fulfil their union representative duties. That is why we are strengthening the rights of trade union representatives in the Bill. As part of that, we are also providing—in clause 51, which will insert new section 168B into the 1992 Act—new rights for time off for union equality representatives. Equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer.

The shadow Minister’s new clause 18 would require Ministers to commission a cost assessment of facility time for trade union representatives and for union learning representatives and the prospective costs of time off for equality representatives across all sectors of the economy. It would also require Ministers to lay a report before both Houses of Parliament once the assessment has been made. Amendment 113 would further require that the provisions of clause 51 could not come into force until after completion of the assessment referred to in new clause 18.

New clause 18 is not necessary. We do not need such a time-consuming assessment across all sectors of the UK economy. Also, union representatives under our legislation are already entitled to reasonable paid facility time to enable them to carry out their duties. As I have said already, we know that many union representatives do not have sufficient time; the Bill is intended to rectify that. I also note that no such assessment of facility time, sector by sector, for the entire UK economy was ever carried out by the previous Government.

Clause 52 will repeal sections 13 and 14 of the Trade Union Act 2016 by removing sections 172A and 172B of the Trade Union and Labour Relations (Consolidation) Act 1992. Regulations made under section 172A, inserted by section 13, require relevant public sector employers to publish information relating to facility time for relevant union officials. Section 172B, inserted by section 14, provided a power—although I do not think that it was ever implemented—to impose a cap on public sector facility time. Repealing these sections will help to ensure that trade union representatives have sufficient time to represent workers, negotiate with employers and conduct training.

The removal of the reporting requirements represents a significant step in resetting the relationship between public sector employers and trade unions by recognising the importance of union representatives and the time needed for them to fulfil their duties effectively. The removal of the regulations will reduce the annual administrative burden on many public sector employers, freeing up more time to focus on delivery for the public.

This Government believe that it is for each employer to work in partnership with their own recognised trade unions to determine the facility time needed to ensure that their trade union representatives can properly represent their members and the workforces within which they operate. It is unnecessary to require annual reporting or to introduce an arbitrary cap on facility time. I therefore ask the hon. Member for Mid Buckinghamshire not to press amendments 113 to 115 and new clause 18. I commend clauses 50 to 52 to the Committee.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I, too, wish you a very happy new year.

I will start with amendments 114 and 115, which stand in my name and those of my hon. Friends on the Committee. The amendments would prevent facility time from being provided for equality representatives unless—this is the important bit—the relevant public sector organisation is meeting its statutory performance targets.

In workplaces in which a trade union is recognised, trade union workplace representatives have a right to paid time off for the purpose of carrying out their trade union duties or to take part in union training. That right currently applies to workplace representatives, health and safety representatives, union learning representatives, and information and consultation representatives. The Bill will extend that right to equality representatives, who will now be allowed paid time off to carry out

“activities for the purpose of promoting the value of equality in the workplace”;

to arrange

“learning or training on matters relating to equality in the workplace”;

to provide

“information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace”;

to consult

“the employer on matters relating to equality in the workplace”;

and to obtain and analyse

“information relating to equality in the workplace.”

I make no criticism or comment about the value of those activities, but what I would say is that they are straightforwardly set out in the law already, and employers already have a duty to consider them. Creating a duty to allow more facility time for this purpose seems to be at cross-purposes with what employers are already, rightly, under an obligation to consider.

The amendments are an attempt to ensure that the taxpayer gets something out of this latest concession from the Labour Government to the trade unions. We would like to make sure that equalities representatives working for public sector employers are entitled to facility time only if that employer is meeting any statutory targets that it has. We suggest that if the employer is not meeting those targets, that is more important to taxpayers than facility time.

New clause 18 and amendment 113 also stand in my name and those of my hon. Friends on the Committee. As the Minister says, new clause 18 would require the Secretary of State to undertake a sectoral cost assessment of trade union facility time. It would require the Secretary of State to undertake an assessment of the cost, and prospective cost, by sector of that facility time. Amendment 113 would provide that clause 51, which will introduce facility time for trade union equalities representatives, could not come into force until after the completion of the review referred to in new clause 18.

That is an eminently sensible step. I cannot see how anyone could object to a cost analysis and assessment being done before provisions come into effect. People need to know what they are dealing with and how much it will cost them, whether that is in the public sector or the private sector, a Government Department or a Government quango, a council, an NHS trust or a private business. It is not reasonable for these things to be asked for without a true assessment and understanding of the cost.

The Opposition are concerned about the increased impetus that the Bill places behind facility time and about extending it to equalities representatives. We would therefore like to make sure that the Government have done their homework and understood the cost to business of these changes before they implement them.

--- Later in debate ---

[Sir Ashley Fox (Bridgwater) (Con)]

It is good to see you in the Chair, Sir Christopher.

I rise to speak in support of Opposition amendments 113 to 115 and new clause 18. These are modest proposals to ameliorate the additional costs and burdens that the Bill is will place on employers and the public sector. It seems extraordinary that the Government want to introduce this new facility time without any thought about what the cost will be. It strikes me that the measures the Government are bringing forward are simply a bung to their trade union friends to provide extra money to employ extra trade union officials to do work that genuinely does not need doing.

The law is clear and should be enforced. We do not need the state to impose further burdens by employing trade union officials to effectively double up as Government inspectors. I shall therefore support the amendments and vote against the Government’s new clauses. A pattern is being followed through this Bill, whereby Ministers rise and say that each individual proposal is reasonable and modest, yet each one is an additional burden on the taxpayer and/or employers. The net result is £5 billion in additional costs, which will make this country less competitive, efficient, and effective.

[Justin Madders]

I will respond briefly to some of the points that have been made. I was asked why we need to put equality representatives on statutory footing. I think the hon. Member for Torbay gave just one example of the ongoing issues of discrimination in many workplaces up and down the country but, of course, this Bill also seeks to expand family friendly rights. Anyone who takes cognisance of local authority matters—I know that my hon. Friend the Member for Birmingham Northfield does so more than most—will be aware that equal pay is still a huge issue in many local authorities. This is over 50 years since the Equal Pay Act 1970 was brought into force, so there is a strong case for allowing equality reps to bring their value to the workplace.

The amendment on performance targets is particularly unfair. In effect, the hon. Member for Mid Buckinghamshire is seeking to punish trade union members for the failings of their employer if they do not hit performance targets. None of those targets have been specified in the legislation. Perhaps it is a reflection of the fact that under his party’s Administration, most public services did not meet performance targets, and he was hoping that if they got back into power he would be able to use that to deny facility time to all trade union representatives.

[Sir Ashley Fox]

Does the Minister really expect us to believe that his Government has not costed these proposals? Does he believe that providing additional facility time to trade unions will improve public sector performance? What we have said is that in cases where Departments are not meeting their targets, the Department should use taxpayer money to meet those targets before granting additional facility time to trade union officials.

[Justin Madders]

I understand the hon. Gentleman’s point but I refer him to the impact assessment, which sets out the cost of these individual measures and their cumulative impact. For facility time, the amount is very small indeed. It has been green-rated by the Regulatory Policy Committee, and studies by the predecessor Department of the Department of Business and Trade showed that facilities time did lead to significant savings and reduced dismissals, reduced employment tribunals, reduced voluntary exits and enhanced productivity. We are talking about figures in the region of hundreds of millions of pounds here. I accept that it is an old study, but the principle remains the same. We heard repeatedly during evidence that strong engagement from trade unions is a good thing for employers, because it helps to engage the workforce and improve productivity. Therefore, I do not accept the premise of his argument.

Regarding the general thrust of what is coming from the Opposition about the use of facilities, the Trade Union Act 2016 was designed to make it more difficult for trade unions to perform their duties by increasing the amount of investigation and focus on their time, but the reported figures in terms of the percentage of the public sector pay bill were the same at the start of the reporting requirements as they were at the end, which was 0.07%—007; we are back to James Bond again. That shows that the requirements of the 2016 Act were simply burdens that added nothing. I therefore urge hon. Members to reject the Opposition amendments and to support the clauses.

Question put and agreed to.

Clause 50 accordingly ordered to stand part of the Bill.

Clauses 51 and 52 ordered to stand part of the Bill.

Clause 53

Blacklists: additional powers

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause will enable us to strengthen the protections against blacklisting. The Consulting Association scandal, in which thousands of union workers were blacklisted, underscored the need for strong anti-blacklisting laws. Blacklisting persists, yet the rules have not been updated for over a decade. That is why we are taking steps to modernise them.

The clause amends section 3 of the Employment Relations Act 1999. It will enable regulations to be made that extend prohibitions to lists that are not prepared for the purpose of discrimination, but are subsequently used for that purpose. Secondary legislation and guidance can then make clear that blacklisting prohibitions extend to lists created by predictive technology.

The clause also extends the scope of the powers, so that prohibitions no longer have to be limited to employers or employment agencies. First, the reference to employers or employment agencies is removed from section 3(1)(b) of the 1999 Act. Secondly, an amendment to section 3 adds a power for the Secretary of State to make regulations in relation to third party use of blacklists. It is important that the Government continue to make it clear that blacklisting is unacceptable, and updating the law supports that.

[Greg Smith]

This is one of the less contentious clauses in the Bill. The Minister is right to say that something that has not been updated for a decade probably should be looked at again, especially in the light of some of the technology that we see emerging. We will not oppose clause 53 standing part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Clauses 55 and 56 stand part.

New clause 32—Workplace intimidation in regard to balloting—

“(1) The Employment Relations Act 2004 is amended as follows.

(2) After section 54 (12) (c) insert—

‘(d) measures are in place to prevent workplace intimidation.’”

This new clause requires the Secretary of State to consider whether there are sufficient measures to be in place to prevent workplace intimidation before they make any order to allow balloting to take place by a means other than by postal ballot.

New clause 33—Balloting in the workplace—

“(1) The Employment Relations Act 2004 is amended as follows.

(2) After section 54 (12) insert at end—

‘(12A) No order may be made under this section that would permit balloting to take place in the workplace.’”

This new clause would prohibit the Secretary of State from making an order to extend the means of voting in trade union ballots and elections that would allow the ballot to be held in the workplace.

New clause 43—Industrial action: impact assessments and family tests—

“In Part V of the Trade Union and Labour Relations (Consolidation) Act 1992, before section 234A (and the italic heading before it), insert—

‘Industrial Action: impact assessments and family tests

234ZA Impact assessments and family tests

(1) No ballot for industrial action may take place unless the trade union has taken the following steps—

(a) published a report containing an economic impact assessment of the industrial action;

(b) published a report containing a family test on the impact of the industrial action; and

(c) informed members of the trade union of the publication of reports required under paragraphs (a) and (b).

(2) For the purposes of this section, a “family test” is defined as an assessment on the impact of industrial action on family relationships.’”

This new clause would require trade unions to carry out an impact assessment and a family test, for the reports of these to have published, and trade union members informed of their publication, before a ballot for industrial action can take place.

[Justin Madders]

This is a large group of measures, comprising clauses 54, 55 and 56 and new clauses 32, 33 and 43. Clause 54 seeks to repeal sections 2 and 3 of the Trade Union Act 2016 by amending section 226 of the Trade Union and Labour Relations (Consolidation) Act 1992 to reverse the changes made by sections 2 and 3 of the 2016 Act. This will mean that trade unions will no longer have to meet a minimum turnout or support threshold for a ballot for industrial action to be successful. The trade union will only need a simple majority of those voting in the ballot to vote in favour of industrial action, as was the case prior to the 2016 Act being passed.

--- Later in debate ---

[Steve Darling]

I have some sympathy with the desire to understand the cost, but to me, the vast majority of the Government proposals before us today are about modernising the system appropriately. I am concerned that this afternoon we have seen the official Opposition one minute say that all in the garden is rosy and there is no need for equality, and the next flip over and catastrophise about the Government’s proposals. We need to get a firm hand on the tiller and see that the vast majority of these proposals simply entail modernisation. I welcome them.

[Justin Madders]

The shadow Minister asked why we cannot support new clauses 32 and 33. The simple answer is that there are already legislative protections in section 54(12) of the Employment Relations Act 2004, which sets out the conditions that must be adhered to in order to ensure that balloting is done in a secure and safe manner. He made some interesting points about people peering over others’ shoulders when votes are taking place. Clearly, his colleagues in the parliamentary Conservative party cannot be trusted to behave themselves when electronic voting takes place. That is something he will no doubt address with his colleagues in private.

If the shadow Minister is concerned about the impact of electronic balloting in all spheres—I am sure there are sometimes reasons in his own party to question the outcome of the electronic ballot—we can look at that, but there is already clear provision in law about how any trade union ballot is to be conducted. The working group will be considering that. If the Conservative party thought there were concerns about the use of electronic ballots for industrial disputes, they might not have commissioned the Knight review back in 2017 to consider the matter. That they did so suggests that they considered that it is right and appropriate that we modernise trade union practices to allow for electronic balloting for industrial action.

Moving on to the assessments the shadow Minister is requesting, the Government are pretty clear that, through new clause 43, the Opposition seek to add another administrative hurdle for a trade union that wants to take industrial action. There is no doubt that any such tests or assessments that were undertaken would lead to a multitude of satellite litigation, delay resolution of disputes, and divert both parties’ focus from resolving the disputes to arguing about impact assessments. I am not quite sure what the family test is. I think there is a family and friends test that some organisations use. It is a little vague. It is also unclear who would be the arbiter of whether these tests and assessments were being done sufficiently accurately. It is also fair to say that trade union members know, when they take industrial action, that there will be consequences. They are well aware. They do the job every day, they know the impact, and that is why they always take these matters very seriously.

The central point that the Bill will lead to more industrial action is counterintuitive, given that we are, in the main, reversing provisions of the 2016 Act. As we know, there has been more industrial action in recent years than there has been for decades. Perhaps there is not a cause and effect relationship between that and the 2016 Act, but I would suggest that the evidence points to it.

Question put and agreed to.

Clause 54 accordingly ordered to stand part of the Bill.

Clauses 55 and 56 ordered to stand part of the Bill.

Clause 57

Industrial action: provision of information to employer

[Greg Smith]

I beg to move amendment 167, in clause 57, page 69, line 16, leave out “seventh” and insert “twenty-first”.

This amendment would increase, from seven to 21 days, the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action.

The amendment would increase from seven to 21 days the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action. As we noted in the debate on the previous group, the Bill liberalises trade union law and repeals legislation passed by the last Conservative Government that brought some balance to the relationship between employers, the British public and trade unions. We think it is fair to require trade unions to provide 21 rather than seven days’ notice to employers that they plan to take industrial action, particularly given that the Bill repeals the minimum service levels legislation passed by the last Conservative Government to ensure sufficient levels of critical public services during strike action.

Given that the British public no longer have that protection, we think it is only fair that employers should have more time to prepare to mitigate some of the damage that occurs during strike action, particularly in vital public services such as ambulance and rail services. When strike action takes place, while of course employers have to prepare to mitigate its effect and put in place other steps to ensure that people still get their healthcare, education or critical services such as transport, the general public also need to make considerable preparations. Preparing properly and putting in place other ways of doing things often cannot be done at the last minute.

I would rather the minimum service levels legislation remained in place and, indeed, was strengthened, but when there is strike action on the railway, for example, it takes place at the drop of a hat—I consider seven days’ notice as at the drop of a hat. I think of the number of children in my constituency who get on at Wendover and Stoke Mandeville stations to travel to Dr Challoner’s grammar school in Amersham, and the number of my constituents who rely on the railway to get to hospital appointments, often in London. Some 7% of Buckinghamshire cancer referrals are to Mount Vernon, which is within London, and most of my constituents who go there for chemotherapy try to travel by train. To put in place a different route to that key chemotherapy appointment, or for parents to mitigate against or make different arrangements for their child to get to school, takes more than a handful of days.

I appeal to the Government to listen to us on what I argue is a moderate and reasonable amendment. Increasing the time limit would give people a fighting chance to put in place different ways of getting to their hospital appointment and getting their kids to school.

--- Later in debate ---

[Justin Madders]

As the shadow Minister eloquently set out, amendment 167 seeks to increase from seven to 21 days the notice that a trade union must give an employer of industrial action after it has secured a ballot mandate and before any such action is taken. As we know, the Trade Union Act 2016 brought in a requirement for unions to provide 14 days’ notice to employers. As we are committing to repealing the 2016 Act through this Bill, it stands to reason that if the clauses are agreed to, the seven-day notice period that was required prior to the 2016 Act will apply in its place.

We want to reset the relationship with both employers and unions to resolve disputes through meaningful negotiations. Far from supporting the economy, the effect of the legislation in recent years has been an increase in strikes. In 2023, close to 2.7 million working days were lost to strikes, up from 2.5 million in 2022. Both those figures were the highest since the 1980s.

However, we recognise the importance of striking a balance between allowing for effective strike action and ensuring that employers can reasonably prepare. That is especially important in public services such as the NHS, as the shadow Minister has mentioned, where managers need adequate time to plan for periods of industrial action, and that includes adequate time to agree patient safety mitigations with unions. That is why we have given employers, workers, and trade unions the opportunity, through a consultation, to comment on what notice of industrial action should be provided to employers. That consultation closed on 2 December 2024 and our response will be published in due course.

It seems to me that the shadow Minister’s proposal of a 21-day period is effectively a finger-in-the-air job rather than something considered. If he had tabled an amendment to keep it at 14 days, that would at least have been consistent with his party’s previous position. His statement that it is important to change this in the light of the repeal of the minimum service levels legislation is slightly erroneous given that, to our knowledge, no one has ever actually used the provisions of that Act. When we consider the consultation responses, we will look at whether there is a case for changing the length of the notice period from seven days. I therefore suggest that the amendment is unnecessary, and I ask the shadow Minister to withdraw it.

[Greg Smith]

I accept the Minister’s point about where precisely the number of days should sit. I slightly take issue with him when he says that the 21-day proposal was a finger-in-the-air job. Most people would describe that three-week window as a reasonable notice period to enable people in many walks of life to make plans, such as alternative provision for childcare.

If the Minister is offering up 14 days, we might well take him up on that, but I suspect he is teasing us rather than making a firm offer. Therefore, we stick with our belief that all our constituents deserve fair and reasonable time to plan and make provision in their daily lives to mitigate against strike action and industrial action, which have such a devastating impact on our economy and on people’s healthcare and their children’s education. We wish to see amendment 167 in the Bill, and we will press it to a Division.

Question put, That the amendment be made.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

I will not detain the Committee long, because we have kind of had the debate already. Clause 57 seeks to repeal section 8 of the Trade Union Act 2016 by amending section 234A of the Trade Union and Labour Relations (Consolidation) Act 1992. This will revert the notice period that trade unions need to provide, after securing a successful mandate, from 14 days to seven days.

As I have said, the Government are committed to modernising employment laws, striking a balance between enabling effective industrial action and ensuring that employers can reasonably prepare for such action. We have sought views on what notice period is suitable for modern working patterns and practices through a formal consultation, which closed last month, and we will be reporting on its outcome in due course. I commend the clause to the Committee.

[Greg Smith]

The bulk of the argument to be had on the clause was made in the debate on amendment 167. The Opposition still believe that the time period stated in this clause is insufficient to enable real people to plan. I therefore urge the Government to go back and consider this, and to see what more reasonable compromise they might be willing to offer our Great British public on Report.

Question put and agreed to.

Clause 57 accordingly ordered to stand part of the Bill.

Clause 58

Union supervision of picketing

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause seeks to reverse the effect of section 10 of the Trade Union Act 2016, thereby removing the requirement under section 220A of the Trade Union and Labour Relations (Consolidation) Act 1992 for trade unions to appoint a picket supervisor and to meet other bureaucratic and administrative burdens in relation to the supervisor, such as taking reasonable steps to provide their name to the police. As the period of disruption between 2022 and 2024 has shown, administrative requirements and bureaucratic hurdles do not prevent strikes; they only make it more difficult for trade unions to engage in good faith negotiations with employers. These changes will bring trade union law into the 21st century and fix the foundations for industrial relations that have not delivered for workers, employers or unions in decades, costing the economy £3.3 billion in lost productivity in the last two years alone.

The Government recognise that regulations governing picketing lines are important, however. That is why the Bill repeals only those measures introduced by the Trade Union Act 2016 in relation to the role of the picket supervisor. Other legislation and an amended code of practice on picketing will remain in place. We are returning the law on picketing to what it was prior to 2016, when I believe that it was working well and was clearly understood by all parties. I therefore commend clause 58 to the Committee.

[Greg Smith]

I will not take much of the Committee’s time on this. The Opposition do not understand why the Government wish to remove perfectly sensible measures from the statute book, other than that the trade unions have clearly demanded that the change be made. It does not seem proportionate or reasonable to us, and we think that those picket supervisors should instead remain on the statute book, as they are the status quo.

[Justin Madders]

Our view was that the legislation was not required when it was introduced in 2016. There was no evidence at the time that there were issues with picketing, and there was already a code of practice in place to deal with abuse and intimidation on picket lines. Therefore, we believe that reverting to the pre-2016 position, when in most people’s opinion everything was working as it should, is an entirely reasonable move.

Question put and agreed to.

Clause 58 accordingly ordered to stand part of the Bill.

Clause 59

Protection against detriment for taking industrial action

Amendment made: 83, in clause 59, page 71, line 4, leave out “three” and insert “six”.—(Justin Madders.)

This amendment would increase the time limit for bringing proceedings under the new section 236A of the Trade Union and Labour Relations (Consolidation) Act 1992 from three months to six months.

[Greg Smith]

I beg to move amendment 166, in clause 59, page 72, line 21, 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.

Amendment 166, which was tabled in my name and those of my hon. Friends the Members for West Suffolk, for Bridgwater and for Mid Leicestershire, would disapply the right not to suffer detriment as a result of industrial action in certain circumstances. This amendment is designed to target what has become known as leverage, which is action taken by a trade union other than traditional industrial action to put pressure on an employer to settle a dispute or meet various demands. When describing leverage in the context of the Grangemouth dispute, Unite said:

“Leverage targets all areas of weakness of an employer, group of employers or sector—both direct and indirect. Leverage is an extension of the understanding that ‘weight of argument’ does not change the position of an employer. Leverage analyses what will change the position of the employer. Leverage is the translation of an organising mind-set into the planning and implementation of a campaign strategy, underpinned by the escalation of pressure to create uncertainty.”

Those are not my words, but the words of a spokesperson for Unite the union. Unite was also of the view that in a leverage campaign

“the employer is routinely treated as a target to be defeated not a friend to be convinced.”

I am not sure that is the good faith relationship between trade union and employer that Labour Members have tried to paint as the normal back and forth between the two. I would certainly condemn as unacceptable any relationship between a trade union and an employer in which

“the employer is routinely treated as a target to be defeated not a friend to be convinced”.

That is not good faith.

--- Later in debate ---

[Greg Smith]

I welcome the hon. Gentleman’s constructive approach. If he accepts the principle of what we are saying, we will work with the Government to polish it, and to ensure the amendment gives the maximum protection and protects junior managers as well as senior managers, and land adjacent to a premise that may not be owned or leased by the company. I will happily work with him and the Minister in a constructive tone to ensure the protections against leverage are as strong as possible. I will happily withdraw the amendment if the Minister commits the Government to working with us and coming up with a stronger amendment on Report that will stamp out the practices I have outlined. I dare say that we will see in a few moments whether he does so.

[Justin Madders]

I think it would be helpful if I set out why we are seeking to address the issue of detriment within the Bill. The reason is that new section 236A of the Trade Union and Labour Relations (Consolidation) Act 1992 is required because of the Supreme Court’s ruling in April 2024 that section 146 of the 1992 Act is incompatible with article 11 of the European convention on human rights, because it fails to provide any protection against detriments intended to deter or penalise trade union members from taking part in lawful strike action organised by their union. Hopefully, Members will accept as a starting proposition that we cannot continue to be in breach of our international obligations under the ECHR.

The intention is to rectify that situation by inserting new section 236A into part V of the 1992 Act. This will provide that a worker has the right not to be subject as an individual to detriment of a prescribed description by an act, or any deliberate failure to act, by their employer, if the act or failure to act takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising the worker for doing so. The prescribed detriments will be set out in secondary legislation following consultation, which will take place after the Bill gains Royal Assent.

The shadow Minister made some interesting points in his speech. However, his amendment seeks to prejudge the consultation on this issue. He made some valid points and I am sure that we will discuss this issue again in future, because there is a need for us to clarify what is considered a detriment, for the reasons that I have outlined.

Some of the examples that the shadow Minister gave are of things that are already catered for in the law. The protection from prescribed detriment only applies where the sole or main purpose of an act or a failure to act is to subject the worker to detriment, to prevent them from or penalise them for taking protective industrial action. For example, if a worker is subjected to detriment solely because, for example, they have damaged property, the protection would not apply. That is the existing position.

Of course the criminal law would still apply to pickets, just as it applies to everyone else, so no person involved in activities associated with pickets or organising pickets has any exemption from the provisions of the criminal law as it applies, for example, to prevent obstruction and preserve public order, or to regulate assemblies or demonstrations. There is already a relevant code of practice in place for that. Consequently, although I understand the points that the shadow Minister is making, I say to him that this issue will be dealt with in detail in a forthcoming consultation. I therefore ask him to withdraw his amendment.

[Laurence Turner]

The Minister raised the Fiona Mercer case, which was brought by Unison. As he said, the final judgment in that case found that new protections are needed to prevent the victimisation of workers who undertake lawful industrial action. Can he confirm that, as a result of the changes that we are making here today, the UK should now be compliant with international law?

[Justin Madders]

My hon. Friend is correct. That is indeed the purpose of the—well, we will get to the clause stand part debate shortly, when we will hopefully deal with that issue. However, this measure is about dealing with a particular ECHR judgment. Therefore, as I say, I ask the shadow Minister to withdraw his amendment.

[Greg Smith]

I understand the point that the Minister makes about prejudging any consultation, notwithstanding the points he makes about international obligations, but this is one of those areas where we have a particular identified problem in leverage that is not being challenged. I should be grateful if the Minister would provide further detail, not in Committee this afternoon but perhaps in writing, on where he thinks that protections exist around this.

From our perspective, it looks very much like this practice is happening and there are no protections against it. If there are protections against it, they are not being enforced. If they are not being enforced, there needs to be a mechanism to enable and allow that enforcement to take place. In good faith, I will withdraw the amendment for now and reserve the right to bring it back on Report, but notwithstanding some of the legitimate points made by the Minister, it is incumbent on us to properly stamp down on this practice and see it as very separate and distinct from the more traditional form of industrial action—strike action. The public understand that in a way that means that there would be even less sympathy when it comes to leverage. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause, as amended, stand part of the Bill.

[The Chair]

With this it will be convenient to discuss clause 60 stand part.

[Justin Madders]

We touched on this in our debate on the shadow Minister’s amendment. Clause 60 addresses the Supreme Court ruling made in April 2024 that section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 is incompatible with article 11 of the European convention on human rights, in so far as it fails to provide any protection against detriments intended to deter trade union members from or penalise them for taking part in lawful strike action organised by their union. Clause 59 therefore amends the 1992 Act by inserting new section 236A into part V of the Act.

New section 236A provides that a worker has the right not to be subject as an individual to detriment of a prescribed description by an act, or any deliberate failure to act, by the worker’s employer if the act or failure takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action or penalising the worker for doing so. The prescribed detriments will be set out in secondary legislation following consultation, which will take place after Royal Assent of the Bill. I will write to the shadow Minister with further detail on that in due course. However, the power in the Bill enables the Secretary of State to prohibit all detriments in secondary legislation should that be the preferred approach following consultation. Employers will continue to be able to deduct pay from workers in proportion to hours taken by strike action.

If a worker or former worker believes that they have been subject to a detriment by an employer in contravention of new section 236A, they may present a complaint to an employment tribunal within six months of the detriment occurring, or later if the tribunal is satisfied that it was not reasonably practicable for the complaint to be presented within that time period. On complaint to the employment tribunal, it is for the employer to show what was the sole or main purpose for which the employer acted or failed to act. If the tribunal finds that the complaint is well-founded, it must make a declaration to that effect and may make an award of compensation to be paid by the employer. The approach taken in the Bill addresses the ruling by the Supreme Court and, once the relevant secondary legislation has been made, will ensure that our legislation is compatible with the ECHR and ensure that protections against some forms of detriment for trade union representatives and members extend to industrial action.

Section 238A of the Trade Union and Labour Relations (Consolidation) Act currently provides that workers can claim unfair dismissal if they are dismissed for taking protected industrial action and the dismissal takes place within 12 weeks of the worker starting the industrial action. The strike action could be intermittent rather than continuous. The worker will also be automatically regarded as unfairly dismissed if they are dismissed after the 12-week period but had stopped taking action before the end of that period or the employer had not taken reasonable steps to resolve the dispute. Industrial action is protected if it is official action for which the union has immunity under section 219 of the 1992 Act.

Clause 60 amends section 238A of the 1992 Act so that protection against dismissal will apply whatever the length of the strike action. Should the employer wish to dismiss an employee as a result of a long-running protected industrial action, the dismissal would have to be for reasons other than participating in industrial action. The clause also makes consequential amendments to sections 229 and 238B of the 1992 Act and sections 26 to 28 of and schedule 1 to the Employment Relations Act 2004. I commend the clauses to the Committee.

--- Later in debate ---

[Alison Hume (Scarborough and Whitby) (Lab)]

It is a pleasure to serve under your chairmanship once again, Sir Christopher. I know that the shadow Minister likes us to draw attention to our union membership, so I again draw attention to my membership of Unison.

I welcome clause 59 because it addresses the critical issue of protecting workers taking part in industrial action, ensuring that they are safeguarded not just against dismissal but against other forms of detriment. As my hon. Friend the Member for Birmingham Northfield has previously mentioned, the case of Fiona Mercer, a care worker suspended after participating in legal industrial action, highlights why the reforms are needed. Like so many care workers, Fiona dedicated her career to supporting some of the most vulnerable in our society—in Fiona’s case, adults with learning difficulties. Yet she faced suspension for standing up for fair pay and better conditions. Her case is a pertinent reminder of the vulnerabilities faced by workers in critical sectors such as social care when their legal rights are not adequately protected.

Therefore, I welcome the clause’s introduction of protections against detriment, ensuring that employers cannot punish workers like Fiona for exercising their right to strike. This provision is essential to safeguard the ability of care workers and others to advocate for fair treatment without fear of suspension, demotion or other retaliatory measures. The removal of the arbitrary 12-week protected period for unfair dismissal means that workers like Fiona can continue to fight for justice without compromising on protections.

[Justin Madders]

I will start by recognising the contribution of my hon. Friend the Member for Scarborough and Whitby; the reason we are debating this clause is the case of Fiona Mercer and the quest for justice that my hon. Friend highlights. I will try to put the shadow Minister’s mind at ease about lawyers’ charters. As a former employment lawyer, I stand in the peculiar position of not wanting to see matters go to tribunal if we can avoid it. If we can resolve things before they get to that stage, it is always better. His fears are misplaced about the likelihood of creative lawyers going back many months or even years to link a particular dismissal to a period of industrial action.

There are many other potential claims that people can bring that relate to an act or something they may have done; whistleblowing is a very good example of that. Clearly, the further it is from the protected act and the dismissal, the harder it is to show that there is a connection, particularly, as will probably be the case for most dismissals that take place many months or years after the initial action, if there is an intervening event that causes the dismissal to take place. We do not want to get into the details of what those may be, but there are many intervening reasons why a dismissal might take place that have nothing to do with industrial action, but these are matters of law and fact for a tribunal to determine. We need to move away from a situation where we could have a particularly unscrupulous employer who wished to take advantage of the current law and seek to dismiss those who took part in industrial action 12 weeks and one day after that action had finished. That is not a state of affairs we want to defend.

Question put and agreed to.

Clause 59, as amended, accordingly ordered to stand part of the Bill.

Clause 60 ordered to stand part of the Bill.

Clause 61

Repeal of provision about minimum service levels

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

New clause 27—Section 61: impact assessment—

“(1) The Secretary of State must carry out an assessment of the likely impact of section 61 of this Act on the ability of the services listed in section 234B(4) of the Trade Union and Labour Relations Consolidation Act 1992 to provide minimum service levels during strike action.

(2) 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 61.

Amendment 133, in clause 118, page 105, line 20, at end insert—

“(3A) But no regulations under subsection (3) may be made to bring into force section 61 of this Act until the findings set out in the report under section [section 61: impact assessment] have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.”

This amendment is linked to NC27.

[Justin Madders]

The clause seeks to repeal the Strikes (Minimum Service Levels) Act 2023, which provides powers for the Government to make regulations to set minimum service levels during strike action in some essential services. The previous Government introduced regulations to implement minimum service levels in rail, border security, fire and rescue, and ambulance services. No work notice, however, has ever been issued by an employer to require individuals to work to meet the minimum service level during strike action. This demonstrates the futility and misguided approach of the Act and I urge Members to support its repeal. Minimum service levels unduly restrict the right to strike and undermine good industrial relations. As a result, our plan—it is a clear manifesto commitment—pledged to repeal the Act to give trade unions the freedom to organise, represent and negotiate on behalf of their workers.

The clause amends the Trade Union and Labour Relations (Consolidation) Act 1992. Subsection (1) repeals provisions of the 1992 Act as inserted by section 1 of the Strikes Act, with sections 234B to 234G falling away. A number of further amendments are made by the clause to the 1992 Act to reverse other changes made by the Strikes Act. As a result, all associated powers, regulations, provisions and defined terms related to minimum service levels will also fall away. We want to reset the relationship with both employers and trade unions to resolve disputes through meaningful negotiations, and repealing the Strikes Act will help us to achieve that.

I will now turn to new clause 27 and amendment 133, which were tabled by the hon. Member for Mid Buckingham- shire. The Government will not support his proposals, which unnecessarily ask for an assessment of the ability of essential public services to provide minimum service levels during industrial action, and to lay a report containing the findings before the House. The Government have already produced a comprehensive set of impact assessments, including an assessment covering the repeal of the Strikes (Minimum Service Levels) Act 2023. This was published alongside the Bill at Second Reading and is based on the best available evidence about the potential impact on business, workers and the wider economy. The assessment is hamstrung by the fact that the Act has never been implemented, so we are in some difficulty in seeing whether there was an impact from it.

The analysis we undertook, however, included labour market and broader macroeconomic analysis, including sectoral analysis on industries providing essential services, potential influence on collective bargaining and dispute resolution processes, while also addressing the balance between employer needs and union representation. We want to reset the relationship with both employers and trade unions to resolve disputes through meaningful negotiations, and believe that the Act was a hindrance to doing so. I therefore ask the shadow Minister not to move his new clause or amendment.

[Greg Smith]

I will focus my remarks predominantly on new clause 27 and amendment 133, which stand in my name and those of my hon. Friends. New clause 27 would require the Secretary of State to assess the impact of clause 61, which, as the Minister outlined, repeals legislation passed by the last Conservative Government that implemented minimum service levels in vital public services during periods of strike action. Amendment 133 would specify that regulations could not be laid to repeal minimum service levels legislation until the reports required by new clause 27 had been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.

We think that is fundamentally right because, with no justification or explanation, the Government will repeal legislation designed to ensure that, during a strike, levels of service are maintained to ensure public safety. We consulted on minimum levels of service for the ambulance service, fire and rescue services and passenger rail services during the last Parliament. It is an important principle that members of the public, who pay through their taxes for lifesaving public services such as ambulance and fire services, should be able to rely on those services at all times, including when members of those services choose to take strike action. Equally, members of the public depend on rail services and in many cases will have already paid for them through season tickets. They have a right to an acceptable level of service, even when members of unions decide to take strike action.

Therefore, before the Government can commence the repeal of the minimum service levels legislation, we think it is only right that the Secretary of State should demonstrate and reassure the House that, in the sectors that the Conservatives specified as suitable for requiring minimum service levels during strike action—to recap, because I think it is important that we get this back on the record, those are health services, fire and rescue services, education services, transport services, services involved in the decommissioning of nuclear installations and management of radioactive waste and spent fuel, and border security—minimum levels of acceptable service can be provided to the public. I make that point not on a whim, but as a matter of public safety and public convenience, and I would be grateful for reassurance from the Minister on it.

If I may humanise it for a moment, this is not about simply saying that people should not be allowed to strike, or taking away rights or anything, although I am sure it will be painted as that; it is about expanding an established custom and precedent in this country about certain sectors, such as the police, being unable to strike. My father was a police officer for 31 years before he retired. We have always accepted as a country that the police should not be able to strike, because they are there for the fundamental purpose of public safety. We know that when we need them, they will be there and available. The same core public service, which we all pay for through our taxes, is provided by the other professions I outlined, not least fire and rescue services, border security and the niche but important services involved in the decommissioning of nuclear facilities, and there absolutely must be minimum service levels there too. Any one of us could need an ambulance at any point at no notice. Whether or not that minimum service level is in place is quite literally the difference between life and death. This is a serious issue.

The Labour party has always been opposed to minimum service levels. It opposed the legislation in the previous Parliament, and through this clause it is taking the quickest action possible to repeal it. I urge Labour Members to consider the practical, life-and-death consequences of not ensuring minimum service levels for fire, ambulance and border security services. If they have issues with some of the detail of the minimum service levels legislation, they should by all means strengthen it, but it would be simply negligent to allow the minimum service levels to drop and to leave any of our constituents—even just one—in a position of potentially life-and-death danger by repealing the legislation.

[Justin Madders]

I understand the points that the shadow Minister has made, but they would carry rather more weight if we had seen the minimum service levels Act operate in practice. The reality is that not a single day of industrial action has been prevented as a result of that legislation. The Government’s own impact assessment at the time indicated that it would have a detrimental impact on industrial relations, and the increase in strike days in the past couple of years has proved that to be the case.

It is also true that all the public sector bodies the shadow Minister referred to that are covered by the Act had voluntary arrangements in place to ensure that there was no endangerment to life. Trade unions and their members have and always will work with employers during periods of industrial action to ensure that life is not endangered. That is absolutely right. Indeed, there is potential criminal liability for those who do not. The evidence given by all at the time—including employers, who saw that the legislation was designed to drive a wedge between employers and trade unions—was that the existing voluntary arrangements worked and ensured that vital services were able to continue during periods of industrial action.

The minimum service levels Act drove a coach and horses through decades of agreement and understanding about how sensitive issues were dealt with during periods of industrial action. The proof is in the pudding: the fact that the Act was never used by any of the organisations that were empowered to use it shows that it was simply a bad piece of legislation, done purely for cosmetic political purposes, and had no meaningful impact. Therefore, its repeal will have no impact on the issues the shadow Minister has raised. I commend the clause to the Committee.

Question put and agreed to.

Clause 61 accordingly ordered to stand part of the Bill.

Clause 62

Annual returns: removal of provision about industrial action

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Clauses 63 to 69 stand part.

New clause 44—Certification Officer: growth duty—

“When discharging its general functions, 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) its growth 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.

[Justin Madders]

Clause 62 seeks to reverse the effect of section 7 of the Trade Union Act 2016. It will remove the additional reporting requirements imposed on trade unions for their annual returns to the Certification Officer regarding details of industrial action taken during the reporting period. Specifically, trade unions will no longer be required to include information on any industrial action taken during the reporting period, the nature of the trade dispute relating to the industrial action, the type of industrial action taken or when it was taken, or confirmation that the relevant thresholds covering industrial action ballots have been met. Additionally, trade unions will no longer be required to include information regarding the results of industrial action ballots—for example, the number of votes cast and the number of those who voted yes or no.

Subsection (1) removes section 32ZA from the Trade Union and Labour Relations (Consolidation) Act 1992, which sets out the additional reporting requirements on trade unions. Trade unions will still be required to submit an annual return to the Certification Officer. However, the amount of information they will be required to include will be reduced. By removing these additional administrative burdens on trade unions, we are freeing up their time to engage in bargaining and negotiation with employers and allowing them to devote more time to representing their members’ interests.

Clause 63 seeks to repeal amendments made to the 1992 Act by section 12 of the Trade Union Act 2016 and thereby remove the requirement for trade unions to include political fund expenditure in their annual return to the Certification Officer. Currently, this information must be provided where a union spends more than £2,000 per annum from its political fund. Subsection (2) removes section 32ZB from the 1992 Act, which sets out the information to be included in a union’s annual return on political expenditure.

Other subsections of clause 63 make other amendments to the 1992 Act that are consequential on the removal of section 32ZB, including as to its enforcement and its application to employers’ associations. Section 12 of the 2016 Act itself is repealed by subsection (7). Trade unions will still have to report to the Certification Officer on their income and expenditure. That includes reporting on the income and expenditure of the political fund. Moreover, all political parties will still be subject to the reporting requirements in the Political Parties, Elections and Referendums Act 2000, which requires certain donations and loans to be recorded and reported to the Electoral Commission.

Clause 64 seeks to repeal the remainder of the effect of section 18 of the 2016 Act. It removes the power of the Certification Officer to publicise a trade union’s failure to include the required industrial action data in its annual return. Clauses 62 and 63 remove the requirement for trade unions to include details of industrial action and political expenditure in their annual returns, so there is clearly no need for the Certification Officer to retain powers to enforce such a requirement.

Enforcement relating to details of political expenditure is addressed in clause 63, and enforcement relating to details of industrial action in clause 64. Therefore, clause 64(2) removes section 32ZC of the 1992 Act, thereby removing the powers of the Certification Officer to enforce the additional annual return requirements relating to industrial action. The Certification Officer will retain the powers to enforce the remaining annual return requirements in relation to a union’s financial affairs and governance.

Clause 65 seeks to reverse the effect of section 17(1) and (2) of the 2016 Act, which inserted schedule A3 to the 1992 Act. It will repeal the enhanced investigatory powers of the Certification Officer, including the power to launch investigations by inspectors, the ability to compel trade unions to produce documents, and the related powers of enforcement. Schedule A3 to the 1992 Act sets out the details of the Certification Officer’s investigatory powers as introduced by the 2016 Act.

Clause 65(5) removes section 256C of the 1992 Act and subsection (6) removes schedule A3 from the 1992 Act. Subsections (2), (3) and (4) make more minor amendments that relate to the removal of schedule A3. Consequentially, subsection (7) removes section 17(1) and (2) of the 2016 Act, and schedule 1 to that Act, and makes further minor amendments to schedule 4 to that Act and to section 43 of the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014.

The enhanced powers created by the 2016 Act were unnecessary. There was no evidence of regulatory failure, and unions have consistently complied with their statutory obligations in relation to their finances, governance and reporting requirements. Since their introduction, the Certification Officer has never used those additional powers. Removing onerous regulatory burdens from trade unions is part of the Government’s commitment to bringing in a new era of partnership that sees employers, unions and Government work together in co-operation and through negotiation.

Clause 66 seeks to remove the powers of the Certification Officer to investigate trade unions proactively without first having received a complaint from a member of that trade union. Those powers were added to various provisions of the 1992 Act by schedule 2 to the 2016 Act. The enhanced investigatory powers created by the 2016 Act were unnecessary. There was no evidence of regulatory failure, and unions have consistently complied with their statutory obligations in relation to their finances, governance and reporting requirements. In fact, since their introduction, the Certification Officer has never used those additional investigatory powers either.

Subsections (2) to (9) of clause 66 remove the ability for the Certification Officer to proactively investigate a range of issues, reverting to the position pre-2016, when the Certification Officer could only consider and act upon a complaint from a member. Trade unions are voluntary associations, run by and for their members. We are returning the Certification Officer’s role to one of adjudicating when it receives members’ complaints in relation to a union.

Clause 67 seeks to reverse the effect of section 19 of the 2016 Act to remove the ability of the Certification Officer to impose financial penalties on trade unions. The previous Government presented no evidence as to why the Certification Officer needed those additional powers. Since they have come into force, no financial penalties have been imposed on any trade union.

Schedule A4 to the 1992 Act sets out the detail of the power to impose financial penalties. Clause 67(2) removes section 256D of the 1992 Act, which gave effect to the schedule, and subsection (3) removes the schedule. As a result, the clause removes subsections (1) to (3) of section 19 of the 2016 Act and schedule 3 to that Act. The Certification Officer will retain the power to issue enforcement orders, and if those orders are not complied with, the union may be found in contempt of court.

Clause 68 will repeal sections 257A and 258(1A) of the 1992 Act, as inserted by section 20 of the 2016 Act. That will remove the levy charged by the Certification Officer on employers’ associations and trade unions. Furthermore, the Certification Officer will no longer be required to report on the levy as part of its annual report to Parliament. The levy is an impediment to the rights of voluntary associations, and it attracted criticism from international bodies, including the International Labour Organisation.

Clause 68(2) removes section 257A of the 1992 Act, which sets out the requirements for a levy to be paid to the Certification Officer by trade unions and employers’ associations. Subsection (3) removes the requirement in section 258(1A) of the 1992 Act for the Certification Officer to report on the levy. The Government believe that we should interfere as little as possible in the activities of social partners, which are voluntary associations.

Clause 69 seeks to reverse the changes made by section 21 of the 2016 Act to the 1992 Act so that the right of appeal against decisions of the Certification Officer to the Employment Appeal Tribunal is on questions of law only, rather than on questions of law and fact. That brings the appeals process back in line with the position before the 2016 Act and with many other enforcement bodies of employment law. For example, appeals against the decisions of employment tribunals are considered only on points of law, not points of fact. I hope hon. Members were keeping up with that; I shall be asking questions later.

New clause 44 would place a new duty on the Certification Officer, the regulator of trade unions and employers’ associations, by requiring it to advance the objectives of the international competitiveness of the economy and its growth over the medium to long term when carrying out its statutory functions.

It is helpful at this stage to set out the role of the Certification Officer. It has been the regulator of trade unions and employers’ associations since 1975 and not only carries out regulatory functions, but has administrative and supervisory functions and a significant quasi-judicial function, where it adjudicates on complaints raised by trade union members and other parties. As part of our repeal of the provisions of the Trade Union Act, we will be repealing the Certification Officer’s enhanced investigatory and enforcement powers and the levy imposed on trade unions and employers’ associations. As such, we will be returning the role much to what it was before the Trade Union Act was implemented.

The Certification Officer’s primary role is to ensure that both unions and employers’ associations adhere to the statutory requirements in relation to their finances and governance that Parliament has decided they are required to observe. Its statutory functions are to maintain lists of trade unions and employers’ associations; determine complaints from union members against their unions relating to alleged breaches of statutory duties and some other types of union rules; determine union independence; ensure that annual returns are made; supervise mergers, political fund ballots and members’ superannuation schemes; and investigate alleged financial irregularities and breaches in relation to trade union membership. The Certification Officer therefore has no locus in relation to industrial action and no role in making assessments of how unions and employers’ associations impact the economy. It has no economists or statisticians on its payroll.

In view of the Certification Officer’s functions and role, the new clause is not appropriate. It is not clear how the Certification Officer, in making decisions on whether a union or employer association has breached its statutory obligations, will act to advance the objectives of international competitiveness of the economy and its growth in the medium to long term. Hopefully the shadow Minister will set out how that would work in practice, because it is not obvious to me how the Certification Officer could take those factors into account when determining the statutory obligations that unions and employers’ associations have to observe under Acts of Parliament. For that reason, I ask him not to press his new clause, and I commend clauses 62 to 69 to the Committee.

[Greg Smith]

I congratulate the Minister on his marathon run through clauses 62 to 69. I will focus my comments particularly on new clause 44, which, as the Minister has outlined, 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.

--- Later in debate ---

New clause 44 is designed to help the Government achieve their growth mission by getting the unions on side with the Government’s own agenda for growth. I cannot believe that the Minister does not wish to get on board with that mission from the Prime Minister, whether it is a mission, a yardstick or milestone, or whatever it is they are calling it these days. We on the Opposition Benches would like the Certification Officer to act in such a way as to advance the international competitiveness of the economy of the United Kingdom and its growth in the medium to long term. We do not believe that the Certification Officer should be legally able to preside over industrial action that is contrary to these aims—aims that, up until today, we really did think the Government shared.

[Justin Madders]

I am grateful to the shadow Minister for taking slightly less time than I did on this grouping. For the record, I am fully supportive of the Prime Minister’s action plans, milestones, missions and all other types.

[Greg Smith]

Can he name them?

[Justin Madders]

I am afraid that would be out of scope of the Bill Committee. I hear what the shadow Minister says. His essential argument is that we should be able to judge the actions of trade unions in terms of the damage or disruption they cause to the UK economy. Of course, we want to see growth and we want to see industrial action minimised. We believe that by having a more harmonious set of industrial relations, we will see that.

Unfortunately, the shadow Minister’s new clause really mischaracterises the Certification Officer’s role. He is not, as the hon. Gentleman said, there to preside over strikes; he is there to preside over the governance, finances, reporting requirements and statutory obligations of trade unions and employers’ associations—I noted that the hon. Gentleman did not mention employers’ associations. The Certification Officer is not there to preside over industrial disputes and strikes. There are courts to intervene if a party feels aggrieved about the way industrial action has been observed, whether lawfully or not. I can see the intention of the new clause: the shadow Minister wants the Government to succeed in their growth mission. We all do, but I do not think the Certification Officer is the right or appropriate vehicle for that to take place.

Question put and agreed to.

Clause 62 accordingly ordered to stand part of the Bill.

Clauses 63 to 69 ordered to stand part of the Bill.

Clause 70

Regulations subject to affirmative resolution procedure

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause amends section 293 of the Trade Union and Labour Relations (Consolidation) Act 1992, with which I am sure all Members are now very familiar, to require that regulations made under the following new sections of the 1992 Act are subject to the affirmative resolution procedure. This therefore will apply to the following regulations: section 70ZC, on access agreements, response period and negotiation period; section 70ZE, on access agreements and the period to make an application to Central Arbitration Committee; section 70ZF, on access agreements and determinations by the Central Arbitration Committee; section 70ZI, on the enforcement of access agreements and the maximum penalty; and section 236A, on detriment for taking industrial action. Any other regulations made under section 293 will continue to be subject to the negative resolution procedure. I therefore commend clause 70 to the Committee.

[Greg Smith]

I will not detain the Committee with a commentary on this clause.

Question put and agreed to.

Clause 70 accordingly ordered to stand part of the Bill.

Clause 71

Devolved Welsh authorities

Question proposed, That the clause stand part of the Bill.

Employment Rights Bill (Fifteenth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[The Chair]

May I begin by wishing everyone a happy new year? Will everyone please ensure that all electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sittings is available in the room and on the parliamentary website. I remind Members about the rules on declaration of interests, as set out in the code of conduct.

Clause 45

Right to statement of trade union rights

Question proposed, That the clause stand part of the Bill.

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

Good morning, Mr Mundell. It is a pleasure to see you in the Chair. Happy new year to you and to all members of the Committee. I start by making my customary reference to my declarations in the Register of Members’ Financial Interests.

This, I hope, is a fairly straightforward and uncontroversial clause; it does exactly what it says on the tin. Currently, there is no general requirement for employers to let their staff know of their right to join a trade union. The clause introduces a legal duty for employers to inform all new employees of their right to join a union and to remind all staff of that right at prescribed intervals. Employers must provide this information alongside the written statement of particulars that they are already required to produce under section 1 of the Employment Rights Act 1996. Specific details, including the frequency and manner of notification, will be set out in secondary legislation following consultation.

A lack of awareness of the right to join a trade union may be contributing to declining union membership and reduced worker engagement in collective bargaining. The clause will help empower workers to become active in protecting their rights. This is a step forward in strengthening worker representation and the collective voice in the workplace, ultimately supporting more effective collective bargaining. I therefore commend the clause to the Committee.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I too wish you and all members of the Committee a very happy, prosperous and healthy new year. If only the optimism of that statement were matched by business confidence around the country as we start this new year.

I understand why the Government want to take this measure, and it is pretty clear that it will happen as part of the Bill. As the Minister prepares for the consultation that he spoke about, I ask him to reflect on how quickly we can give businesses certainty on the frequency with which they will have to remind their employees of their right to join a trade union. Of course everyone has a right to join a trade union—there is no issue with that—but this is yet another thing that HR departments of bigger businesses, and individual owners of smaller businesses, who have to do everything from the HR function down to replacing the loo roll in the toilets, will have to remember to do on a regular basis, and presumably they will face consequences if they do not. It might not seem onerous as we talk about it at half-past 9 on a Tuesday morning in Westminster, but once we start ratcheting up all these different things for businesses—particularly those very small businesses—to do, it will become a burden.

The other thing that I gently ask the Minister to consider as part of his consultation is this. Would it not be a fairer, more balanced and better way of doing things to have in the proposed statement, as well as a reminder to employees of their right to join a trade union, a reminder that they do not have to do so—that there is equally a right not to join a trade union if they do not wish to? It would be much more fair and balanced if the consultation focused on ensuring that both sides are equally reflected—yes, a reminder that there is a right to join a trade union, but equally, a reminder that there is no compulsion and no absolute, set-in-stone requirement to do so. If we could have that, the clause would be much more balanced.

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I wish you and other colleagues a happy new year.

I want to follow on from the comments made by the shadow Minister, my hon. Friend the Member for Mid Buckinghamshire, and emphasise that the clause is completely pointless. Of course all workers have the right to join a trade union and the right not to join a trade union. Will the Minister outline the consequences for a small employer of not complying with the clause? Will there be a penalty? Will the employer be taken to a tribunal that can make a protective award? If there will not be a penalty, surely the clause is only performative, and just more evidence that the Government are doing what their trade union masters are telling them to.

Time and again in the Bill, we see measures that are small and inconsequential individually, but in total mount up to £5 billion of additional costs, most of them on small and medium-sized businesses. We see from surveys of business confidence that businesses are reeling under the imposition of additional taxes and of these rights, and the Government’s business-unfriendly stance. While the Minister talks about growth, the actions of his Government point to the very opposite. They believe that somehow they can regulate their way to growth. We start this new year with more regulation from the Government, none of which will contribute to the wealth and prosperity of our citizens.

[Justin Madders]

There was a mix of responses there. We heard from the hon. Member for Torbay that the Liberal Democrats welcome the clause, I think the shadow Minister was generally supportive, albeit not explicitly, and then the hon. Member for Bridgwater was fairly critical. I will address the points made by all three individuals.

The shadow Minister made a fair point that the frequency with which employees will have to be notified is important. That will be determined by the responses that we get to the consultation. Clearly, we do not want to make this measure too onerous, but we believe that it is important as a matter of principle that employees are aware of their right to join a trade union, for all the reasons that have been amply set out over many months and years.

On making it clear within a notification that the employee is not obliged to join a trade union, I am sure the shadow Minister is aware that the closed shop principle was abolished quite some time ago—possibly not even in his lifetime. [Interruption.] Well, possibly not; perhaps his rest over the Christmas period has made him look more youthful than he is. The precise wording of the notification will be set out in secondary legislation. I am sure it will not be worded in a way that indicates that there is a compulsion on individuals to join a trade union, but it is important that people know of the right.

In reference to the comments from the Liberal Democrat spokesperson, the hon. Member for Torbay, I too have had many conversations with constituents who have notified me of issues with their workplace. I hope most Members respond with the question, “What has your trade union said about this?” When I ask that, quite often I get the response, “My employer doesn’t allow us to join a trade union.” That response is far too common for my liking. Evidence has been submitted to the Committee, particularly by the Union of Shop, Distributive and Allied Workers, about the lack of awareness of employees’ right to join a trade union. In a free society, we should be ensuring that people are aware of their rights.

On the points made by the hon. Member for Bridgwater, the consequences for not notifying an individual of this right will be the same as they currently are for failure to provide a statement of terms and conditions under section 38 of the Employment Act 2002. It is not a free- standing claim on its own; it can be put on top of another employment tribunal claim, and the penalty can be between two and four weeks’ pay.

On the administrative burden, there is already prescribed in legislation a long list of matters about which the employer must notify the employee when they join in a statement of terms and conditions. Really, we are just adding this to that list. We think this is an important measure.

[Sir Ashley Fox]

I think this comes together with day one employment rights. Take the example of a very small businessman or woman who takes someone on with no written contract, and within a week or two the employment does not work out and the employee is fired. They might be within a—what is the word for the period of time in the first few weeks of employment?

[Justin Madders]

Probation.

[Sir Ashley Fox]

Probation period—thank you. It is early in the new year, Mr Mundell. That member of staff might be within their probation period, but if that is not specified in a written contract, that dismissal would be procedurally unfair, according to the Bill. If that same small businessman or woman has not notified the employee of their right to join a trade union, the Minister seems to be saying that the employee will get a protective award of another two to four weeks’ salary on top of that. Can he not see that for microbusinesses, the array of sanctions becomes threatening—many weeks’ wages, for a very short contract that did not work out—and that he threatens to make it very difficult and onerous for them to take on new employees?

[Justin Madders]

I understand the point the hon. Member makes. I do not think it is helpful to get into hypotheticals about what might or might not happen under the statutory probation system, given that we have not really fleshed out the details. That will happen in due course, but it is already the law that statements of terms and conditions are required to be presented to employees, I think within the first month. There is not an additional burden of extra paperwork that has to be delivered; this is already built into the system, in terms of ensuring that employees receive their statement of terms and conditions when they start employment.

On that note, I commend the clause to the Committee.

Question put and agreed to.

Clause 45 accordingly ordered to stand part of the Bill.

Clause 46

Right of trade unions to access workplaces

[Justin Madders]

I beg to move amendment 72, in clause 46, page 50, line 30, leave out “listed” and insert “qualifying”.

This amendment and other amendments to this clause would require a trade union to have a certificate of independence in order to have the rights provided for in the clause.

[The Chair]

With this it will be convenient to consider Government amendments 73 and 75 to 79.

--- Later in debate ---

[Justin Madders]

The clause makes provision for trade unions and employers to negotiate access agreements, under which employers will be required to permit trade union officials to enter workplaces for various purposes, such as recruitment, organising, and meeting and providing support to existing members. This is particularly significant for unrecognised unions. Access to a workplace can provide an opportunity to recruit and organise with the aim of gaining formal recognition.

The Bill currently provides that any listed trade unions can apply for access to a workplace. Under the current definition, it is possible that employers could use staff associations and non-independent bodies to frustrate independent trade unions’ access to the workplace. Therefore, proposed amendments 72, 73 and 75 to 79 require trade unions to have a certificate of independence issued by the Certification Officer to qualify for access.

The amendments will ensure that clause 46 is used as intended. The clause will ensure that independent unions can initiate and agree access agreements with an employer, while not affecting the existing ability of non-independent bodies to negotiate voluntary access agreements. Amendment 73 inserts the defined term “qualifying trade union” and defines it as a union that has a certificate of independence issued by the Certification Officer. That will apply to proposed new chapter 5ZA of the Trade Union and Labour Relations (Consolidation) Act 1992 only, and amendments 72 and 75 to 79 update other provisions that refer to “listed” trade unions accordingly.

[Greg Smith]

As the Minister clearly outlined, the requirement for a trade union to have a certificate of independence to have the rights provided for in clause 46 is a tidying up of the Bill. The Opposition are not entirely on board with the spirit of the Bill in this regard, but we welcome its being tidied up and the clarity that the amendments bring to what the Government are trying to do to prevent even more of a free-for-all in terms of access to workplaces.

I have said many times that it is a shame and regrettable that so many of these tidying-up amendments have had to be tabled. Welcome though they are in bringing certainty to businesses about the Bill’s core provisions, if we had not had that arbitrary 100-day deadline, we probably would not be spending our time going through these sorts of amendments, and could instead be debating much more of the substance of the Bill. As I say, the Opposition are not convinced about some of the core provisions of the Bill, but these particular amendments do at least tidy it up to some extent.

[The Chair]

Minister, do you wish to say anything further?

[Justin Madders]

Just that I welcome the support from the shadow Minister, albeit for the wording rather than the spirit of the amendment.

Amendment 72 agreed to.

Amendment made: 73, in clause 46, page 51, leave out lines 1 and 2 and insert—

“(3) A ‘qualifying trade union’ is a trade union that has a certificate of independence.”—(Justin Madders.)

See the explanatory statement to amendment 72.

[Justin Madders]

I beg to move amendment 74, in clause 46, page 51, line 4, at end insert—

“(4A) ‘Workplace’ does not include any part of a workplace used as a dwelling.”.

This amendment would ensure that the right of access does not include access to dwellings.

This important amendment adds some clarity about the right of access to a workplace, providing an exemption so that the right of physical access does not apply to private dwellings such as the private homes of workers who are working either fully from their home or in a hybrid manner between their workplace and their home. Most exemptions will be provided for and set out in detail in secondary legislation, but we think it is important to set out this principle in the Bill.

We will provide in secondary legislation and guidance more detail on how complex physical access cases, such as care homes, where premises are a mix of residential and a workplace, will be negotiated. To protect the privacy of people living in the premises, that could, for example, set out the terms that it is reasonable for the trade union to comply with when exercising access, for example limiting access to parts of the premises that are used by workers only, and specifying that unions should take a specific route to the particular room where access activities are due to take place. That sort of detail will be set out in secondary legislation following consultation.

[Greg Smith]

As the Minister says, the amendment ensures that the right of unions to access workplaces does not extend to dwellings. Of course the Opposition welcome that the Government have acknowledged that trade unions should not be able to access private dwellings. The fact that the Bill was introduced in such a manner that would have permitted trade unions to do so begs a number of worrying questions about the speed with which the Bill was drafted. The fact that we are debating whether a trade union should have access to someone’s private dwelling is deeply regrettable. I would have hoped that the Government, from first principles, would acknowledge that it was never an acceptable outcome for anyone to have their own home invaded by a trade union or otherwise.

The way people set up their homeworking arrangements within their own dwelling is very much a matter for them. Balancing what they do in their own home with their family life and perhaps their children’s needs or the needs of someone they are caring for, and the way they structure that should, of course, remain entirely private. This is just another example of the damage that can inadvertently be done when legislation that is not ready is introduced to this House. It makes us question what other mistakes, if I may call them that, are lurking in the Bill that are still yet to be spotted by the Bill Committee.

--- Later in debate ---

[Greg Smith]

I am grateful to the hon. Gentleman for his intervention. I understand his fundamental point, but before the Government tabled the amendment a feasible interpretation of the rules would have allowed access to a private dwelling. We can all stand or sit here in Committee Room 10 of the House of Commons and think how preposterous that would be and how that it never actually happen, but there are plenty of examples in history where the preposterous has come to be—where someone’s interpretation of legislation or rules or regulations or whatever it may be has brought about perverse outcomes.

We would have been in a much more satisfactory position had the Government, from first principles and at the very start, laid out in the Bill that someone’s private dwelling is just that: private. Although there has been an explosion in working from home and a fundamental shift, particularly in the post-pandemic world, of people actively choosing to work from home, either all the time where they can, or in a hybrid arrangement where they work from home for a couple of days a week and in the office, factory, warehouse or wherever it might be for the other days, it should be an enshrined principle in this country—the free society the Minister spoke of—that a private dwelling should from absolute, unquestionable first principle remain private, and not be an area to which a trade union or otherwise can freely demand access. It is important that private dwellings remain accessible only by warrant, which has to be granted by a magistrate, for clear purposes, such as where criminality or some such activity is suspected.

The Opposition welcome the core text of the amendment, but we want it firmly on the record that such an amendment should never have been required in the first place.

[Justin Madders]

I feel that we are going to have a few of these conversations again this year. Heaven forbid the previous Government ever amended anything in Committee! We knew the Bill was issued at a challenging pace and that it was large, so there were always going to be elements that needed clarification at this stage. It is right to do that now before it becomes law and well in advance of any practical application. Like amendment 72, this amendment is an example of us responding to concerns raised when the Bill was published. It is probably fair to say that no one actually envisaged trade unions marching into people’s homes, so it was not something we thought it necessary to spell out in the Bill, but that concern has been raised in feedback, and we are able to provide clarification and reassurance. I therefore commend the amendment to the Committee.

Amendment 74 agreed to.

Amendments made: 75, in clause 46, page 51, line 18, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 76, in clause 46, page 52, line 13, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 77, in clause 46, page 52, line 26, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 78, in clause 46, page 53, line 36, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 79, in clause 46, page 53, line 40, leave out “listed” and insert “qualifying”.—(Justin Madders.)

See the explanatory statement to amendment 72.

[Justin Madders]

I beg to move amendment 80, in clause 46, page 54, line 11, leave out from “circumstances” to “a determination” in line 13 and insert—

“in which it is to be regarded as reasonable for the Central Arbitration Committee to make”.

This amendment would clarify that, if circumstances are specified under subsection (4)(a), the effect of specifying those circumstances is that it is to be regarded as reasonable for the CAC to make a determination that officials of a union are not to have access (but without requiring the CAC to make such a determination).

[The Chair]

With this it will be convenient to discuss Government amendment 81.

[Justin Madders]

Proposed new section 70ZF(4)(a) of the Trade Union and Labour Relations (Consolidation) Act 1992 allows the Secretary of State to prescribe circumstances in which it would be reasonable for the Central Arbitration Committee to determine that a trade union is not to have access to a workplace. Amendment 80 is a minor technical amendment to clarify that, if circumstances are specified under proposed new section 70ZF(4)(a) of the Act, the effect of specifying those circumstances is that it is reasonable to make a determination that officials of a union are not to have access, but it does not require the CAC to make such a determination.

Amendment 81 allows the Secretary of State to prescribe in secondary legislation the matters to which the CAC must have regard when determining whether access is to be granted to a trade union. As an example, that would usefully allow the Secretary of State to prescribe that the CAC must, when making determinations about access, have regard to the presence of a trade union with existing access to the workplace to which another union is seeking access. In that scenario, the amendment provides reassurances that an access request will not be rejected by default if there is an existing arrangement with another trade union. The Government have consulted on the exact details of what the CAC is required to consider when making determinations about access, and secondary legislation will follow Royal Assent to the Bill. With that in mind, I commend the amendments to the Committee.

[Greg Smith]

As the Minister said, Government amendment 80 clarifies that if circumstances are specified under new section 70ZF(4)(a), the effect of specifying those circumstances is that it is to be regarded as reasonable of the CAC to make a determination that officials of a union are not to have access, but does not require the CAC to make such a determination. Government amendment 81 would allow the Secretary of State to prescribe matters to which the CAC must have regard when considering an application for a determination about access. Therefore, these amendments set out that if the Secretary of State has specified circumstances in which it would be reasonable to decline union access to a workplace, the CAC must accept those circumstances.

That is all well and good, but the access principles, as they are set out, are incredibly broad and make it very difficult for an employer to refuse access. For example, subsection (2)(a) of new section 70ZF specifies that

“officials of a listed trade union should be able to access a workplace for any of the access purposes in any manner that does not unreasonably interfere with the employer’s business”.

That accepts that access can and should be allowed to cause interference, but what would count as unreasonable interference? Can the Minister give any concrete examples? How will businesses know what they are or are not expected to put up with in terms of inconvenience and disruption to their operations? This all seems to be still particularly woolly and ill-defined. It will cause a lot of headaches and a lot of businesses to scratch their heads to work out what they have to put up with, bear the burden of, or lose profit to in order to enable some of the access that the Bill determines will take place.

The circumstances in which it would be reasonable for officials of a union not to have access will be specified in future regulations, but this is an area where it is incumbent on the Government to be very clear—indeed, crystal clear—about where the Minister or the Department feels these regulations should sit, or the operating window in which they should sit, moving away from woolly language and into real practical detail to allow businesses to begin to prepare. Can the Minister give any examples of matters that might be specified by the Secretary of State to set some constraints on the access principles envisaged by the amendments? I know he will say that he wishes to consult, which is all very well and good, but as I said a moment ago, this is an area where I do not think businesses will simply accept the offer of future consultation; they will instead want an operating window with practical examples and very clear language about what the amendments envisage will happen in the future. It is just not good enough for us to be left in this position of trying to second-guess and wonder what things will be like when the consultation finally happens.

[Steve Darling]

I will be concise and echo the shadow Minister’s call for clarity.

[Justin Madders]

I acknowledge the points made by the shadow Minister, but of course, as he has already anticipated, my response is that all of that will be determined in secondary legislation following a consultation. That is the right approach. The sort of detailed questions he is rightly posing are best dealt with in secondary legislation and probably in codes of practice as well. That is the kind of detail that would not normally find its way into a Bill. Of course, for me to prejudge any consultation on the circumstances in which it may or may not be appropriate for unions to gain access would of course, be to predetermine the outcome of the consultation.

--- Later in debate ---

[Justin Madders]

The shadow Minister tempts me to set out the kind of detail that I really cannot supply at this stage. Clearly, a consultation document will ask a series of fairly broad questions. Given that we will deal with pretty much every workplace in the country, the consultation will cover a range of different set-ups, businesses, places of work and working arrangements. The question at the start will necessarily be fairly broad, so we can understand the kinds of effects on their ability to carry on their business that firms are concerned about.

Equally, we want to hear from trade unions about their experiences of where they feel that they have unreasonably been refused access or perceived that that might be a risk. The shadow Minister is trying to get me to draw up a consultation document in the Bill Committee, but I am afraid I will have to decline to do so. Clearly, we will come back to this and talk about it in further detail at a later date.

Amendment 80 agreed to.

Amendment made: 81, in clause 46, page 54, line 27, at end insert—

“(6) The Secretary of State may prescribe matters to which the Central Arbitration Committee must have regard in considering an application for a determination under section 70ZE.”—(Justin Madders.)

This amendment would allow the Secretary of State to prescribe matters to which the CAC must have regard in considering an application for a determination about access.

[Justin Madders]

I beg to move amendment 82, in clause 46, page 57, line 37, at end insert—

“(c) dismiss the appeal.”

This amendment would clarify that the Employment Appeal Tribunal may dismiss an appeal under new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992.

The amendment is straightforward, providing clarity that an Employment Appeal Tribunal can dismiss an appeal under the new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992. It is a fairly straightforward and self-explanatory amendment.

[Greg Smith]

As the Minister said, the amendment clarifies that the Employment Appeal Tribunal may dismiss an appeal under new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992. Of course the Opposition agree that this amendment should be accepted and put into the Bill, but it beggars belief that the amendment was necessary in the first place. Of course the Employment Appeal Tribunal should be allowed to dismiss an appeal if it finds that to be necessary, but how on earth was a Bill put before this House of Commons—this Parliament—that only envisaged that the tribunal might quash the order or make an order requiring the person to pay a reduced amount to the CAC? How was this Bill introduced in a form in which the dismissal of an appeal was not even an option?

It is extraordinary that a Bill could have been allowed through the write-around process—the various processes that Government have—without this anomaly being spotted and rectified before the Bill was presented and had its Second Reading debate. I gently ask the Minister to reflect on that and go back through the Bill’s provisions to double-check for any other glaring omissions, which I am sure he never wished to see in the first place and is now correcting by the amendment in his name. Could he ensure that the Bill contains no more of these, frankly, howling errors that could cause so much damage?

[Steve Darling]

Bill Committees are here to check for snags in the final construction of legislation. I am pleased that this snag has been picked up and will be sorted out by this amendment.

[Justin Madders]

I am not sure that the shadow Minister wants me to check everything again, because it might lead to further amendments and we may have this debate repeatedly. I would gently push back on the suggestion that this is a “howling error”, as he described it. Of course, the Employment Appeal Tribunal already has the jurisdiction of the CAC to hear appeals. It is probably more a case of making sure it is clear that that applies to this particular provision rather than its being an oversight in the first place.

Amendment 82 agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.

[Justin Madders]

Clause 46 formally provides trade unions with the right of access to workplaces where an access agreement is reached between a trade union and an employer following negotiation. This will make it easier for union representatives to recruit and organise and potentially secure a collective bargaining agreement with an employer. It will not impact existing voluntary access agreements between a union and an employer. For unrecognised unions, access to a workplace is an opportunity to recruit and organise with the aim of gaining formal recognition.

In this framework a union can provide an employer with a request for access, to which the employer can either agree or object within a set timeframe. If both parties agree on the access terms, the Central Arbitration Committee is notified to record the agreement and proceed. In the instance that a union and employer cannot agree on access terms, the CAC can impose an agreement. The decision will be guided by prescribed terms which will be set out in secondary legislation. The CAC will have some discretion when making a determination on whether access should occur, and the decision will be subject to principles set out in the Bill that consider both union and employer interests.

The clause also establishes an enforcement mechanism whereby complaints of breaches of an access agreement can be raised with the CAC. The CAC can then vary the agreement, make a declaration that the complaint is well-founded or not, and issue an order requiring specified steps to be taken to ensure that the agreement is complied with. We recently consulted on some specifics of the enforcement mechanism, which various unions and employers contributed to and which we are now carefully considering. Regulations relating to a union’s right of access, such as notice periods for employers and the terms of reasonable access, will be prescribed in secondary legislation after consultation.

Amendments 72, 73 and 75 to 79 require trade unions applying for access to be certified as independent instead of being only listed as a trade union. This will help independent unions initiate and agree access agreements with an employer. Non-independent bodies’ existing ability to negotiate voluntary access agreements will remain unaffected. Amendment 81 will amend this clause to allow for the Secretary of State to set specific matters that the CAC must consider and have regard to. Amendment 74 will ensure that private dwellings are exempt, as we have discussed. Through the provision of a formal right of access, the Government are delivering on our commitment to modernise outdated and ad hoc access arrangements and align them with the 21st century. I commend clause 46 to the Committee.

[Greg Smith]

We have covered the bulk of the commentary that the Opposition want to make in the debate that we have had on the amendments. All I will say on clause 46 is that there is still so much left for secondary legislation, and I do not think businesses can have any certainty as to what is truly coming down the line until there have been the consultations we have spoken about and the secondary legislation has been laid, debated and, let’s face it, probably passed given the parliamentary arithmetic we have at the moment. While clause 46 as amended is better than what was first presented to the House, there are still many open-ended questions that businesses and trade unions alike will want to know the answers to. I urge the Minister to ensure that his Department moves at pace to get those consultations out there, so that he and the Department can hear from real businesses, trade unions and workers when it comes to the provisions that they are proposing. Then the questions of uncertainty can be ironed out as quickly as possible and nobody is left in the position of not knowing where this is going.

[Justin Madders]

The shadow Minister is of course right—we do need to get this right and engage with businesses and trade unions about the detail. That is what we intend to do.

Question put and agreed to.

Clause 46, as amended, accordingly ordered to stand part of the Bill.

Clause 47

Conditions for trade union recognition

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause makes amendments to the statutory trade unions recognition process, which is administered by the Central Arbitration Committee. Hon. Members will possibly not all be aware of the current statutory recognition process, so I will just take a moment to detail that. Where an employer refuses to recognise a trade union voluntarily, that union can apply to the CAC to obtain statutory union recognition. On application, unions have to show the CAC that, first, they have 10% membership of the proposed bargaining unit and secondly, that they are likely to have a majority in the subsequent trade union ballot. Where the majority of workers in the bargaining unit are members of the unions, the CAC can decide to automatically recognise the union without holding a recognition ballot. However, the CAC must still hold a ballot if it receives credible evidence from a significant number of union members that they do not want the union to conduct collective bargaining on their behalf, or membership evidence is produced that leads the CAC to doubt whether a significant number of union members want recognition, or if the CAC believes that holding a ballot would help further industrial relations. For the union to win, it must then obtain a majority in a recognition ballot and also in that ballot, at least 40% of the workforce in the proposed bargaining unit must support union recognition.

We are committed to strengthening collective bargaining rights and trade union recognition. We believe that strong trade unions are essential for tackling insecurity, inequality, discrimination, enforcement and low pay. Our view is that the existing legal framework needs to be simplified so that workers have a more meaningful right to organise through their trade unions. To achieve that, the clause therefore removes the current requirement for a union to have at least 40% of the workforce in the proposed bargaining unit supporting union recognition. In future, unions will only need a simple majority in a recognition ballot to win.

The current requirement for a union to demonstrate, at the application stage, that it is likely that there will be a majority for the recognition process is a significant hurdle in modern workplaces, which are increasingly fragmented. That is why the clause deletes the requirement for a union to demonstrate on application to the CAC that they are likely to win a future recognition ballot. Now unions will only need to show that they have 10% membership of the proposed bargaining unit for their application form recognition to be accepted by the CAC. We are also considering whether the current 10% membership requirement upon application should be lowered in future. The clause therefore provides a power to enable the Secretary of State to make affirmative regulations, which we will of course consult on, to amend the 10% membership requirement in future within parameters of 2% to 10% as set out in subsection (10) of the clause.

[Greg Smith]

I am grateful to the Minister for his detailed explanation. I will focus my remarks predominantly around the proposed new range of 2% to 10%. I would think, to most reasonable people, 10% is already a relatively low number: 10% is, generally speaking and in most walks of life, not a difficult proportion for anybody to reach if they truly believe that right is on their side, and they have wider support, with wider mandates to get on and negotiate within those bargaining units, to deliver a better outcome. I would argue that any union that cannot be kept to 10% really is not clearing the first hurdle and is certainly not passing “Go” or collecting the metaphorical £200. I question why it is in any way, shape or form necessary to lower that.

--- Later in debate ---

[Alison Hume (Scarborough and Whitby) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I refer to my entry in the Register of Members’ Financial Interests and to my membership of Unison and the Writers’ Guild of Great Britain.

I am pleased that the Bill will take significant steps to simplify the union recognition process by removing unnecessary barriers that unions currently face. As my hon. Friend the Member for Birmingham Northfield mentioned, recent events at Amazon’s Coventry distribution site, where the unionisation effort was defeated by 28 votes, serve as a reminder of the challenges that workers encounter.

I particularly welcome the flexibility in the Bill to lower the membership threshold required to begin the recognition process from the current 10% to potentially as low as 2%. That will give workers the opportunity to organise effectively from the outset. Ensuring that unions need only a simple majority in favour of recognition will mean that the will of the workers is fairly and clearly reflected without being stifled by unnecessary procedural hurdles.

[Justin Madders]

We have had a good debate. The main focus of the shadow Minister’s questioning was the 2% issue. The first thing to say is that, as it stands, the 10% figure will remain. We are simply giving ourselves the power to reduce it to 2% following consultation, although as various Committee members have powerfully set out, including my hon. Friends the Members for Worsley and Eccles and for Birmingham Northfield, there is a strong case for it to be reduced from the current 10%. As my hon. Friend the Member for Birmingham Northfield pointed out, the previous Government set a precedent in this area with the reduction to 2% in the Employment Rights (Miscellaneous Amendments) Regulations 2019, which were introduced not long ago.

The shadow Minister must understand that these measures are about the very worst employers that are actively hostile to trade unions. Most employers recognise the value of a trade union and, as my hon. Friend the Member for Worsley and Eccles pointed out, enter into voluntary arrangements, but there are examples, such as the GMB-Amazon dispute, of unwillingness to engage. I remember the example of an employer not far from where I live who sacked all the people who joined the trade union. It will not surprise the shadow Minister that no one wanted to join a trade union after that. That is a clear example of why, in the most extreme situations with hostile employers, it is difficult to increase trade union membership. Of course, we also now have workplaces that are much more fragmented, because there is more homeworking and hybrid working, and people are often out in the field.

--- Later in debate ---

[Michael Wheeler]

It could be dangerous for me to admit that sometimes I might have wished to instruct a member, but I can reassure everyone here that the instructions flow the other way when someone is a trade union official acting at the behest of members at all times.

I was one sentence from the end before the interventions. I have been thoroughly derailed by people in this room, so I will wrap up and say that I do not agree with the amendment. I disagree with a lot of what was raised in the debate and the false analogy around subscription models versus membership of a democratic organisation. I will obviously not support the amendment.

[Justin Madders]

We have had a good debate on the amendment. It is fair to say there is a deep divide in our positions. I will address the amendment and the clause stand part debate.

Amendment 126 would make two changes to clause 48. First, it seeks to retain the requirement on trade unions to provide their members with an annual notice of their right to opt out of contributions to the political fund. Secondly, it seeks to require trade union members to opt in to contributions to the political fund annually. As we have heard, that would place substantial and unnecessary bureaucratic requirements both on trade unions and on their members. As my hon. Friend the Member for Worsley and Eccles said, this is one of those rare occasions when the Conservative party seems to be in favour of more red tape, which is clearly something that we want to see reduced.

I will start with the change that would retain the requirement for trade unions to send an annual notice to members reminding them that they can opt out of contributing to a political fund. The amendment targets the wrong section. It would amend section 86 of the Trade Union and Labour Relations (Consolidation) Act 1992, which relates to ensuring that employers do not deduct contributions through check-off from the member where the union member has opted out of the political fund or where the opt-out notice has been given but is not yet in force.

However, I will respond in terms of the spirit of the amendment tabled by the shadow Minister. The Government have been clear in our intention to repeal the Trade Union Act 2016, which was a clear manifesto commitment. We have a mandate to deliver on that. The amendment seeks to frustrate that clear intention by retaining the substantive effect of section 84A of the Trade Union and Labour Relations (Consolidation) Act 1992, as amended by the Trade Union Act 2016.

We should be clear that members are, of course, free to opt out of contributing to a political fund whenever they wish. Clause 48, which I will come to, sets out how that is possible. Currently, alongside the requirement to ballot members on the maintenance of a political fund every 10 years, trade unions must also remind their members of their right to opt out of a political fund. The Government are proposing to remove the ballot requirements. We have consulted on whether to retain a requirement for trade union members to be reminded on a 10-year basis that they can opt out of the political fund.

[Greg Smith]

I understand the point the Minister is making. On the one hand, he wants everyone to be reminded annually of their right to join a trade union, but he wants them to be reminded of their ability to opt out of the political fund only every 10 years. Surely he can see the inconsistency in that approach. Even though I am sure that he wants the political funds to be as bulging as possible, certainly for those unions that donate to the Labour party, surely he must see that there is an inconsistency between reminding people of their right to join a trade union annually but reminding them of their right to withdraw their support for the political fund on a less frequent basis.

[Justin Madders]

I thank the shadow Minister for his question. I have not actually said that we will require members to be informed of their right to join a trade union annually—we are simply consulting about the frequency of a reminder. That is the point the hon. Member for Bridgwater raised earlier. We are consulting on that point, and we are consulting on the 10-year reminder about being able to opt out of the political fund. What is sauce for the goose is sauce for the gander. If the shadow Minister thinks we should not inform people annually of their right to join a trade union, presumably he would also agree that they should not be reminded annually of their right to opt out. The arguments work both ways.

[Greg Smith]

In the spirit of following that debate through to its natural conclusion, no matter where we stand on the politics, surely the happy medium would be to marry up whatever the consultation ends up concluding for the reminder of the right to join a trade union in the first place with the reminder of the right to opt out of the political fund. Surely that would be the fair and equitable way through this—to simply say that the answer is to marry up the reminder of the right to join a trade union with the reminder to opt out of the political fund, with whatever frequency the consultation says.

[Justin Madders]

Those are of course two entirely separate requirements. At the moment, trade union members can choose to opt out of contributing to the political fund at any time. Clause 48 sets out clearly how they can do that by post, email or other electronic means. As my hon. Friend the Member for Worsley and Eccles so eloquently said, most trade union members will be aware of their rights in this area should they wish to exercise them. The comparisons between trade union membership and political funds and 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 membership of a democratically organised society and independent trade union. The members have control of the organisation because it is democratically organised, so it is not the same thing at all.

--- Later in debate ---

[Greg Smith]

I do not think I need to correct the record, in that I made a statement of the obvious, which is that Conservatives wish to beat Labour in elections, but equally I went on to say that, with the right consent, it is perfectly fair, democratic and legitimate for the Labour party to receive funding from those trade unions that wish it to do so. I went even further by saying that that is perfectly fine; so long as it is done transparently and stated on the record—as Labour Members have assiduously done every time they have stood up to speak during this Bill Committee and, indeed, in other debates—there is nothing wrong with it.

This is about the process for members, whether they are contributing to political funds where the unions do donate to Labour, or to any other cause, be it party political or a campaign on this side or the other— the hon. Member for Birmingham Northfield himself recognised and spoke earlier about the very good campaign in relation to attacks on emergency workers. That is a perfectly good, legitimate and worthwhile use of that money, to which I would anticipate—although presumption is a dangerous thing—that most, if not all, contributors to the political fund that supported the campaign would happily continue to contribute. However, there are circumstances and times when trade union members contributing to political funds may not see that money being spent as they would like it to be. It is the ease of being able to opt out, not just having the right to opt out, that the amendment gets to the heart of.

Before the Committee divides on amendment 126, I urge Committee members to reflect on whether they really want to say to the outside world that, while consumers have the right to be reminded on a monthly or annual basis of how to opt out of their mobile phone contract, magazine subscription or whatever else, such a reminder of how to opt out of political funds—not the right to opt out but how—should be denied to trade union members.

[Justin Madders]

The shadow Minister talks about this being a rule that applies to every other section of society. Is he saying that the principle should apply to every membership organisation, be it the Chartered Institute of Personnel and Development, the Royal Society for the Protection of Birds, the Royal National Lifeboat Institution or any of the many other membership organisations that exist in the country? There will be millions of members of those organisations, so should the principle apply equally to them all? Is he aware that it applies at the moment?

[Greg Smith]

For the most part, I would say that it does exist. I am thinking of membership organisations outside the world of politics that I have subscriptions to: at the annual point of renewal—most of the ones I have are annual—I do get either an email or a letter saying, “Your direct debit for the next year is going to be £2 higher a month. It will automatically renew unless you do x, y and z.” The x, y and z to opt out, stop or unsubscribe is always very clear.

[Justin Madders]

rose—

[Greg Smith]

The Minister is going to tempt me to say which memberships, isn’t he?

[Justin Madders]

I am not sure that we need to know about the shadow Minister’s memberships. I have two points: there is not legislation requiring this, and when trade unions raise subscriptions they will send a similarly worded letter out. The analogy the shadow Minister has drawn already takes place.

[Greg Smith]

I am grateful for that, but there is not an increase every year.

[Justin Madders]

There is.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause is relatively simple in that it seeks to repeal section 15 of the Trade Union Act 2016 by amending the Trade Union and Labour Relations (Consolidation) Act 1992 to remove section 116B. Section 15 of the 2016 Act required trade unions to pay public sector employers where they administered payroll deductions for trade union subscriptions—known as check-off. Section 15 further mandated that the service be made available only where workers had the option to pay their union subscriptions by other means.

The check-off regulations were apparently introduced as a cost-saving measure, with estimated annual savings of £1.6 million, totalling £12 million over the next 10 years. However, as last year’s check-off impact assessment acknowledged, the Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2024 brought a cumulative cost of £17 million to public sector employers and trade unions over that period, which is far higher than the estimated cost savings.

In the spirit of wanting to save businesses and the public sector from burdens, we think that this is an entirely sensible move. I urge members of the Committee to support the clause.

[Greg Smith]

Of course we wish to save taxpayers money, particularly when it comes to the public sector, but likewise we do not see why businesses should bear the cost of trade union subscription collections. That should be a cost entirely for the trade unions to bear, just as we would never tolerate—on the Opposition Benches for sure—the public purse or the taxpayer’s pound having to subsidise any other body that should be funding itself.

I understand where the Minister is coming from. As he looks across other parts of the Bill, I urge him to have a similar approach to saving businesses and taxpayers money across the piece.

Question put and agreed to.

Clause 49 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Anna McMorrin.)

Employment Rights: Terminal Illness

Justin Madders Excerpts

Wednesday 18th December 2024 Westminster Hall

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

It is a pleasure to see you in the Chair this morning, Sir Edward. I start by referring to my entry in the Register of Members’ Financial Interests, including my membership of the Unite and GMB unions; obviously, there is a particular reference to the GMB from one of the leading proponents of the campaign.

I congratulate my hon. Friend the Member for Corby and East Northamptonshire (Lee Barron) on securing this important debate. We have been talking about death recently: the Second Reading of the Terminally Ill Adults (End of Life) Bill was an important moment in its own right and clearly raised a lot of interest across the country. It was also a wider discussion about how we approach the end of life as a society and as individuals—and indeed as employers, who are the subject of today’s debate. Today we are continuing the discussion about how we handle this important issue.

The private Member’s Bill proposed that only those with a terminal diagnosis who were expected to live for six months or less could come under its auspices, but there can be a considerable time between diagnosis and death. It is important that that time, however long it is, is considered carefully when it comes to how we better support people to live with dignity and fulfilment. Today’s debate has raised interesting points about how we best do that. My hon. Friend was right to say that the vast majority of employers would not dream of dismissing a terminally ill member of staff, but of course the Dying to Work campaign is a much broader look at how employers can support employees in that situation; the issue is not just the prohibition on dismissal.

We had contributions from a number of Back Benchers. As always, the hon. Member for Strangford (Jim Shannon) made a thoughtful contribution. He paid tribute to Marie Curie’s work to provide wider support for individuals in this situation. I understand that colleagues in the Department for Work and Pensions continue to engage with Marie Curie on the issue. He mentioned the “Dying in poverty” report, which I have not read, but will.

My hon. Friend the Member for Morecambe and Lunesdale (Lizzi Collinge) highlighted a number of measures that are already available—I will talk about those shortly—such as reasonable adjustments and flexible working, which enable those who want to carry on working to do so in a way that suits them. She made the important point that continuing to work is particularly important for people on lower incomes.

My hon. Friend the Member for Sherwood Forest (Michelle Welsh) paid tribute to the campaigner Jacci Woodcock; I echo her tribute, and those of all the other hon. Members who praised her work. Jacci Woodcock has brought the campaign to the attention of many parliamentarians over a number of years, and the fact that we are having this debate is a tribute to the work that she started all those years ago.

As I would have expected him to do, my hon. Friend the Member for Wolverhampton West (Warinder Juss) gave a thorough legal analysis of the protections available. He noted, as did a number of hon. Members, that there is a lack of direct protection for people with a terminal illness. Equally, my hon. Friend the Member for Birmingham Northfield (Laurence Turner) gave a characteristically thorough analysis of the situation. He made the important point that employers want clear guidance, and mentioned a number of relevant codes that may need to be updated. The shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), also made the point that a number of employers do not have any policy at all; we can certainly take that away and look at it.

My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) made an important point about St Andrew’s hospice in particular: both the people who work there and those they help in their last days of life have protection, should it be needed. That is a reassurance to those in the hospice.

My hon. Friend the Member for Blyth and Ashington (Ian Lavery) spoke movingly about the awful moment when someone gets a diagnosis. He made the point, as did a number of hon. Members, that different people will react differently: some want to continue to work and carry on as best they can. He mentioned the potentially traumatic experience of having to notify one’s employer—seeing, in black and white, that there is a terminal illness. That is one of the challenges we would face if we were to legislate in this area.

The Liberal Democrat spokesperson, the hon. Member for Wokingham (Clive Jones), raised questions about statutory sick pay. He will be aware that the Employment Rights Bill will significantly increase the scope of those who are eligible for statutory sick pay by removing the lower earnings limit and the waiting days. I hope that his party will be able to support that Bill on Third Reading. He also mentioned raising benefits, and I will pass on his request to colleagues in the Department for Work and Pensions who are responsible for the matter.

The hon. Member for Strangford, as well as a number of other Members, made the point that people with a terminal illness want the choice to work if they can. For some people, work forms a big part of their social group. Work is about dignity; it is about finding something that occupies a person’s mind other than thoughts about the terrible situation they are in. People should be able to continue to work if they want to. Of course, not everyone wants to, and not everyone can—this issue is not simple to characterise. Everyone reacts differently, and everyone is a different situation: their medical conditions and prognoses will all be very different. People will therefore need very different kinds of support, depending on their situation.

We must deal with this issue with sensitivity, but also with flexibility. We must not only make sure that protections are in place, but enable employers and employees to have the space and freedom to come to the arrangements that suit them best. A number of hon. Members referred to protections under the Equality Act. I remind hon. Members that anyone with a health condition that has a substantial and long-term effect on their ability to carry out normal day-to-day activities is classified as disabled and therefore has protection under that Act, whether as an employee or a job applicant. Certain chronic illnesses, such as cancer, entitle the employee to automatic protection under the Act.

The vast majority of people with a terminal illness should be covered by the Equality Act. However, I have heard what various Members have said—indeed, my hon. Friend the Member for Corby and East Northamptonshire, who introduced the debate, mentioned people who may not fit within the protections of that Act, and I am happy to have a further conversation with him to understand where the gaps are. There are also more general protections relating to unfair dismissal under the Employment Rights Act 1996.

As we know, terminal illness is a longer journey for some than for others. Some facing it may wish to carry on working; some may not. However, we need to think about what support is available for people. The individual placement and support in primary care programme provides support to unwell people who are out of work and to those who need support with their health to stay in work. The support available includes physical and psychological treatment, in recognition that illness, including terminal illness, can take many forms. Alongside that, the Government provide Access to Work grants to help with the extra costs of working beyond standard reasonable adjustments and tailored support for individuals through work coaching, among other support.

More generally, the Government provide employers with guidance on health disclosures and having conversations about health, as well as guidance on legal obligations. However, I take the point that that guidance is not well understood out there. We think our guidance is helpful for employers, but we need to make sure that they are aware of it and that it is as up-to-date as possible.

As we have already touched on, terminally ill people who wish to remain in work may need reasonable adjustments to do so. One of the options for people is to look at flexible working. Quite often, terminal illnesses have a debilitating effect on people’s energy levels, so being able to take time off flexibly is important. All employees have a statutory entitlement at the moment to request flexible working from day one of their employment. The new Employment Rights Bill will update that entitlement to introduce, among other changes, a requirement that any rejection of a flexible working request be a reasonable one. We hope that will make it more likely that any such request made by an individual with a terminal illness will be accepted.

If terminally ill people do fall out of work, they are eligible for enhanced access to a range of benefits under the special rules for end of life. Those rules allow for faster, easier access to certain benefits without needing to attend a medical assessment, and in most cases entitle the recipient to the highest rate of benefit. It is important to note that the rules apply to those who are unable to work and to those who wish to continue working, but require support to do so. The special rules for end of life aim to positively impact the quality of life of people with limited time left by ensuring that they can receive the financial support they are entitled to quickly and easily.

However, as hon. Members have already referred to, we are determined to go further. As we have heard, many employers have signed up to the Dying to Work charter, a TUC initiative that aims to unite employers under a standardised action plan to support employees as and when they are concerned. The charter represents a commitment from employers to ensure that all employees experiencing terminal illness have

“security of work, peace of mind and the right to choose the best course of action for themselves and their families which helps them through this challenging period with dignity and without undue financial loss”.

The Government have worked with ACAS to promote the charter and the TUC encourages union negotiators to seek clear agreement that their employer will abide by the charter’s principles. I am among 130 Members in this place who have already signed the charter as a commitment to my staff, because I believe that we should be setting an example as employers.

I understand that, as has been mentioned already, we are looking closely at being to implement the charter in full across Government. The Government People Group, which is in the Cabinet Office and responsible for civil service human resources, is currently working to develop a package of measures for all Departments as employers, including this Department, to introduce the Dying to Work charter. The Government People Group is due to meet the TUC in January to discuss that and a Minister will then be appointed to lead that work across Government. Once we are in a position to say that we have adopted the charter, we can hopefully be much more forward in encouraging others to sign up.

I conclude by thanking everyone for their contributions in the debate. It has been a very thoughtful and considered debate; we understand that there are concerns about how the law currently operates, but the employer needs space with the employee to agree arrangements appropriate to their own situations. We therefore believe that our current flexible approach is probably the right one and will deliver the best practical working arrangements, hopefully giving people not only the protection they need, but the flexibility and space to deal with this awful situation in the way that best suits them.

Employment Rights Bill (Fourteenth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 17th December 2024 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

I beg to move amendment 168, in schedule 3, page 115, leave out from the beginning of line 15 to the end of line 31 and insert—

“(1) In the case of staff employed under subsection (3)(b) of section 148C, matters within the SSSNB’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) When taking any action related to the matters in subsection (2), an employer may disregard the framework only in exceptional circumstances.

(4) For the purposes of subsection (3), the definition of ‘exceptional circumstances’ shall be set out in regulations.

(5) 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.

(6) 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 30 career progression for school support staff.”

This amendment would change the matters within the SSSNB’s remit in relation to academy staff, limiting it to the creation of a framework to which academy employers must have regard in all but exceptional circumstances.

It is a pleasure to serve under your chairmanship, Ms Vaz, at the Committee’s last sitting before Christmas—let us make it a memorable one. [Laughter.]

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

They are all memorable.

[Greg Smith]

They are.

--- Later in debate ---

[Sarah Gibson]

I appreciate the clarification. That makes perfect sense—it would be unlikely that a body representing employees would create a ceiling, so I cannot help feeling that that issue is not likely to come up. With that in mind, I am unable to support the amendment.

[Justin Madders]

It is a pleasure to see you in the Chair this afternoon, Ms Vaz, and as always I refer to my entry in the Register of Members’ Financial Interests, and my membership of the GMB and Unite trade unions.

The shadow Minister will not be surprised to hear that we are not going to accept the amendment, as it would drive a coach and horses through what we are trying to achieve. The remit in the Bill gives the negotiating body the scope necessary to negotiate and reach agreements on pay and conditions, and advise on training and career progression for all school support staff. The Secretary of State may then incorporate agreements reached in support staff contracts through secondary legislation. As has been pointed out, that would be a floor. It will be possible for schools to innovate above that, and the detail will be worked out in due course. This is about creating a baseline for terms and conditions, not a ceiling.

As the shadow Minister knows, as roughly half of the 24,000 state-funded schools are academies the amendment would seriously undermine the policy intention of the SSSNB. We believe that about 800,000 employees would be positively impacted by the Bill, but the amendment would mean that school support staff in academies would have no voice, and no opportunity to raise their concerns about pay, career progression and training prospects, which we know are real issues, particularly in the SEN sectors. There would no vehicle for them, because they would not be part of this body. Of course their employers would have to have regard to what the SSSNB decided, but there would be no legal requirement for those terms to be incorporated into individual contracts. I think that misses the point of what we are trying to achieve here. I do not accept that there is a connection between good educational outcomes and low pay for teaching assistants, which seems to be the thrust of the argument from the Opposition. As my hon. Friend the Member for Birmingham Northfield said, the references in the amendment to a framework are not particularly helpful, as it is not defined and would create more confusion. We should say that it is not just academies that can demonstrate excellence in innovation. All schools have the ability to do that, and there will be room for all schools to continue to innovate under the legislation and meet their local recruitment needs.

--- Later in debate ---

[Greg Smith]

I listened very carefully to what the Minister and the hon. Member for Birmingham Northfield said about amendment 168. I was open to dialogue on it to see if we can make it stronger and improved. Its proposed new subsection (2) sets out all the information we would expect to see in such a framework. There are five parts including the remuneration of school support staff; the terms and conditions of employment of school support staff; the training of school support staff; career progression for school support staff; and—the lovely catch-all phrase that drafters love to put in—all related matters. I would say that it is pretty clear what we have laid out.

To get to the nub of the argument, this is not about some sort of race to the bottom. It is not about, as the Minister asserted, arguing for low pay. That is not what we are doing at all. This is a point of principle about support for the academy system, which was brought in by a former Labour Government, and support for free schools, which was brought in by a coalition of the Conservatives and Liberal Democrats. The three main parties in this House on that basis are broadly aligned, unless anyone has radically changed their mind—perhaps they have, and 2015 probably did focus some minds.

This is a point of principle of diversity in the education system, and central to the diversification of offer is that those establishments, in this case academies, have the freedoms to decide things themselves, locally. In this case, it is on pay and terms and conditions but, wary of the fact that I do not want to go out of scope, it can be on other things as well. To take that away would be the retrograde step that I spoke about. It would undermine academies, and it would undermine the very point of having choice and the diversity of offer in the education system for parents.

[Justin Madders]

The shadow Minister is talking about choice, but the Bill does not remove any academies from the current system. Will he confirm that?

[Greg Smith]

No, of course it does not remove academies from the system, but it does take away a freedom and power that all those wonderful academies, many in my own constituency and I am sure some in the Minister’s, currently enjoy to be able to set their educational offer, including the power of who they recruit and on what basis they recruit them. I come back to the point I made when I intervened on the hon. Member for Chippenham; if we are going to just make everything the same again, there needs to be an honesty about actually advocating that from the Government, from the Liberal Democrats or from whoever it might be. I value and welcome the choice that we have in our education system, and this is one of those freedoms that makes that choice possible.

--- Later in debate ---

[Greg Smith]

I am grateful to my hon. Friend; he is always reassuring. He raised an important point. Given that, as he highlighted, free schools enjoy the same freedoms —they are specifically referred to in amendment 168—as academies, I am worried that the Government’s attitude to free schools indicates that they are rowing back on support for them.

[Justin Madders]

The shadow Minister keeps referring to freedoms, but does he accept that the only freedom that would be given to academies by virtue of this amendment would be the freedom to pay their staff—I am not saying that they would—lower than the national terms and conditions?

[Greg Smith]

I come back to this point of principle: either we have autonomous bodies that can make their own decisions or we do not. If the Government’s answer is that we do not, I certainly understand why they do not want this amendment, but I do not understand why they persist with their support for that which they created in the first place—the academisation of so many schools—and resist making the more straightforward argument for a one-size-fits-all education policy. I hope they do not adopt such a policy, because of the progress that the Labour party made through academisation in the first place. However, that is the natural conclusion of what the Minister is saying.

--- Later in debate ---

Division 7

Question accordingly negatived.

Ayes: 3

Noes: 12

[Justin Madders]

I beg to move amendment 65, in schedule 3, page 116, line 6, leave out “education”.

This amendment, and amendments 66, 67, 69, 70 and 71, make a minor drafting correction.

[The Chair]

With this it will be convenient to discuss Government amendments 66 to 71.

[Justin Madders]

Amendments 66 and 67, and 69 to 71, make minor drafting corrections to the clauses to remove the word “education” when referring to local authorities. This is necessary because of an error in terminology used in the Bill on introduction.

I will also speak to amendment 68. We know that academy trusts use a range of innovative practices to support staff in a range of roles. The sector and the workforce have evolved since the previous negotiating body for school support staff existed in 2009. That is why we intend to consult on the definition of support staff in scope and appropriate protections for staff in transitioning to the new arrangements. The consultation may bring to our attention staff in academy trusts who are not captured by the existing definition of support staff, working wholly at one or more academies, but who we think should be. Having the ability to broaden the scope, as well as to exclude staff types in secondary legislation, would give us more flexibility to respond to the consultation.

[Greg Smith]

As the Minister said, amendment 68 extends the definition of school support staff in the Bill to include people who do not work in an academy, but who are employed by the proprietor of an academy to carry out particular kinds of work, to be specified in regulations—it is our old friend, waiting for future regulations to be laid before the House—for the purposes of one or more academies. The other amendments in this grouping are minor drafting corrections, and we accept that. I merely want to put on record once more that had this Bill not been so rushed to meet the arbitrary political 100-day deadline, we might not be in this place, and we might have had greater clarity from the get-go. We accept, however, that these are fundamentally minor amendments that really should have been included at introduction.

[Justin Madders]

The shadow Minister’s comments are noted, and I commend the amendments to the Committee.

Amendment 65 agreed to.

Amendments made: 66, in schedule 3, page 116, line 8, leave out “education”.

See the explanatory statement for amendment 65.

Amendment 67, in schedule 3, page 116, line 10, leave out “education”.

See the explanatory statement for amendment 65.

Amendment 68, in schedule 3, page 116, line 13, leave out from “employment” to end of line 14 and insert “which—

(i) provides for the person to work wholly at one or more Academies, or

(ii) provides for the person to carry out work of a prescribed description for the purposes of one or more Academies.”

This amendment extends the definition of “school support staff” in new Part 8A of the Education Act 2002 to include people who do not work at an Academy but are employed by the proprietor of an Academy to carry out particular kinds of work (to be specified in regulations) for the purposes of one or more Academies.

Amendment 69, in schedule 3, page 123, line 31, leave out “education”.

See the explanatory statement for amendment 65.

Amendment 70, in schedule 3, page 123, line 33, leave out “education”.

See the explanatory statement for amendment 65.

Amendment 71, in schedule 3, page 124, line 13, leave out “education”.—(Justin Madders.)

See the explanatory statement for amendment 65.

[Greg Smith]

I beg to move amendment 123, in schedule 3, page 124, line 39, at end insert—

“(2A) Before making or revising arrangements under sub-paragraph (1), the Secretary of State must publish and lay before Parliament an impact assessment of the costs on the education sector of any proposed arrangements.”

This amendment makes a requirement from the Secretary of State to undertake an impact assessment of the costs on the education sector before making or changing arrangements related to the School Support Staff Negotiating Body.

--- Later in debate ---

[Sarah Gibson]

For similar reasons as I was concerned about previous amendments, I feel that I cannot support this amendment. I think it is unnecessary to add more complications to the system on things that are probably already covered in other areas.

[Justin Madders]

I thank the shadow Minister for tabling amendment 123 and 124 and for raising these issues. The Department will assess the cost implications of the constitutional arrangements of the SSSNB prior to constituting it, but it would be disproportionate to require an impact assessment. My hon. Friend the Member for Birmingham Northfield referred to some costs; those costs have not necessarily been pinned down at this stage, but they are clearly below the level at which a formal impact assessment would normally be required. It is envisaged that the costs of the body will be limited to administrative expenses and fees, so we do not think that amendment 124 is necessary.

The Bill requires the constitutional arrangements for the SSSNB to provide for it to prepare annual reports; it allows the Secretary of State to specify the manner in which reports are published. Assessing the impact on the education sector of agreements reached will be important, prior to the Secretary of State’s ratification of any agreements. We anticipate that the Department for Education will undertake an assessment of affordability and impact, as it will be better placed to do so than the SSSNB itself. It is important to note that there will be employers on the SSSNB who will be part of the body making those recommendations, so they will have those considerations at the forefront of their mind.

Considerations of cost and affordability will be an important part of any discussions and negotiations that take place in the SSSNB. Annual reports are likely to set out the work undertaken by the body, but the exact detail of what will be in the annual reports will be agreed at a later date; I do not think that it would be appropriate to specify that in the Bill.

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[Greg Smith]

I cannot remember a single time in the last Parliament when the then Opposition would have made the case that there was no need for an impact assessment. I put that to the Minister very gently as a point of principle that is specific to amendments 123 and 124. However, I understand the argument that he is making.

The Opposition still think that the Bill’s approach is flawed as to diversity across our educational establishments. We will not press our amendments to a Division now, but we reserve the right to revisit the matter when we come up for air on Report, once the Minister has had time to reflect on the implications of his policy. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the schedule, as amended, be the Third schedule to the Bill.

[Justin Madders]

As the Committee has discussed, clause 28 introduces schedule 3, which provides for the establishment, remit and functioning of the school support staff negotiating body. Paragraph 1 of schedule 3 will insert into the Education Act 2002 a new part 8A, which contains proposed new sections 148A to 148R.

New section 148A will reinstate the SSSNB as an unincorporated body. Reinstating the SSSNB will give school support staff the voice and recognition that they deserve as a crucial part of the school workforce. It will help to address the recruitment and retention challenges facing schools and will drive standards in schools to ensure that we give every child the best possible chance in life.

New section 148B sets out the remit of the SSSNB for remuneration, terms and conditions of employment, training and career progression of school support staff, and the powers of the Secretary of State to define what is or is not to be treated as falling within those categories within the regulations. This ensures clarity over the remit of the SSSNB and what can and cannot be referred to it by the Secretary of State. The remit will lead to a national terms and conditions handbook, fair pay rates and clearer training and career progression routes for school support staff in England.

New section 148C defines school support staff in relation to who they are employed by and their role. Support staff are defined as all staff, other than qualified teachers, who are employed by local authorities, governing bodies and academy trusts to work wholly at schools in England. The 2009 SSSNB included only those support staff employed by local authorities and governing bodies to work in maintained schools within its scope. Support staff employed by academy trusts are now included in the SSSNB’s remit, despite the shadow Minister’s attempts to persuade us otherwise.

It is crucial that the body have a remit for all state-funded schools in England to achieve greater national consistency, irrespective of the type of school in which support staff work. Roughly half of the 24,453 schools in England are now academies, compared with approximately 200 in 2009 when the body was previously established. New section 148B gives the Secretary of State a power to prescribe in regulations those who will not fall within the SSSNB’s remit.

Amendment 68 will allow the Secretary of State to include, through secondary legislation, those who do not work wholly at academies within the SSSNB’s remit, by reference to the type of work that they do. The Department currently holds limited information about the roles in which support staff are employed in academies or the terms and conditions under which they work. It intends to consult on which roles should and should not be within scope of these provisions. These powers will provide the necessary flexibility to respond to that consultation and amend the remit of the SSSNB as necessary.

New section 148D sets out the power of the Secretary of State to refer matters to the SSSNB that are within its remit, namely those matters relating to remuneration, terms and conditions of employment and training and career progression of school support staff. Referrals by the Secretary of State to the negotiating body will mean that those representing employers and employees can agree and advise on suitable outcomes for school support staff within the parameters set out by the Secretary of State in relation to wider Government priorities and context.

New sections 148E and 148F set out the powers of the Secretary of State when referring matters relating to remuneration, terms and conditions of employment and training and career progression to the SSSNB. The Secretary of State may specify factors that the SSSNB must consider and a timescale for their consideration. The new sections set out the steps that the SSSNB must take, depending on whether it has or has not reached agreement on matters relating to terms and conditions. Where the Secretary of State refers a matter relating to the training and career progression of school support staff to the SSSNB, the SSSNB is required to provide a report on the matter to the Secretary of State, rather than reaching agreement.

New section 148G will give the SSSNB the power to consider matters within its remit that have not been referred to it, with the Secretary of State’s agreement. This will give the SSSNB the ability to raise alternative matters that it wishes to negotiate or advise on. Agreement from the Secretary of State is required from the outset to ensure that no work is undertaken on a matter that could be considered to be outside the SSSNB’s remit. It will also ensure that the body has sufficient capacity to consider referred matters within the required timescale, alongside any additional matters that the SSSNB wishes to consider.

New section 148H sets out the Secretary of State’s powers in relation to agreements submitted by the SSSNB. The Secretary of State may ratify an agreement in secondary legislation in full or in part—if in part, the part not ratified falls away—or refer the agreement back to the SSSNB to reconsider it under new section 148I. This power is necessary to ensure that any agreements are practicable—for example, that they are affordable—before being incorporated into contracts. The ability for the Secretary of State to ratify agreements in part is a pragmatic approach to allow matters with agreement to progress and to avoid delays if there is an element of an agreement that the Secretary of State is not content to agree.

New section 148I sets out what happens where the Secretary of State refers a matter back to the body for reconsideration. The Secretary of State may specify factors to which the body must have regard in reconsidering the agreement and by when it must revert.

New section 148J will apply where the SSSNB has submitted an agreement to the Secretary of State after reconsideration. The Secretary of State has powers to ratify the agreement in full or in part in regulations; to refer the agreement back to the SSSNB for reconsideration; to make regulations requiring prescribed people to have regard to the agreement in exercising prescribed functions; or to make regulations that make alternative provision in relation to the same matter. The new section gives the Secretary of State a range of powers to determine the best course of action based on the agreements from the SSSNB to ensure that the desired outcomes for school support staff are met and are practicable.

New section 148K sets out the process if an agreement cannot be reached by the SSSNB on a matter relating to school support staff remuneration and terms and conditions referred to it by the Secretary of State. The Secretary of State may specify a later date by which agreement must be reached or may make regulations in relation to the matter referred to the SSSNB if there is an urgent need to do so, but the Secretary of State must consult the SSSNB before making those regulations. This will ensure that the Secretary of State is able to regulate as necessary in the event that agreement cannot be reached, for instance on a pay award for school support staff.

New section 148L sets out the Secretary of State’s powers if the SSSNB fails to submit a report on a matter relating to the training and career progression of school support staff by the deadline set by the Secretary of State. The Secretary of State can specify a later date for the SSSNB to report or issue guidance on the matter. This ensures that the Secretary of State can still issue guidance on training and career progression to support recruitment and retention in the absence of a report from the body.

New section 148M sets out the effect of regulations made by the Secretary of State that ratify agreements reached by the SSSNB in full or in part. The terms of the agreement are imposed in a person’s contract of employment so that a member of school support staff must be paid and treated in accordance with those conditions. Any inconsistent terms in contracts of employment or academy funding agreements have no effect. That allows the Secretary of State to make changes to the pay and terms and conditions of school support staff as agreed by the SSSNB, in order to ensure fairer pay rates and greater national consistency, boost recruitment and retention in those roles, and drive improved standards in schools.

New section 148N sets out the effect of regulations made by the Secretary of State where she decides not to ratify agreements reached by the SSSNB or where the SSSNB fails to reach agreement on a matter. Where the Secretary of State decides to make regulations imposing terms and conditions into school support staff contracts, for example because there is an urgent need to make changes to terms and conditions and the SSSNB has failed to reach agreement on them, school support staff must be paid and treated in accordance with those terms and conditions. It is important that the Secretary of State has the ability to legislate to provide fair terms and conditions for school support staff in the event that the SSSNB fails to reach an agreement.

New section 148O will allow regulations made under part 8A to have retrospective effect, subject to their not subjecting anyone to a detriment in respect of a period that falls before the date on which the regulations are made. This will allow the Secretary of State to backdate pay awards agreed after the start of an annual pay period to ensure that school support staff may benefit from them for the entirety of the period.

New section 148P sets out how and when the Secretary of State and the SSSNB can issue guidance on matters within the SSSNB’s remit. The SSSNB, with the Secretary of State’s approval, can issue guidance on pay and terms and conditions, as can the Secretary of State. Only the Secretary of State can issue guidance on training and career progression. Local authorities, governing bodies and academy trusts are required to have regard to guidance issued. This will allow the Secretary of State and the SSSNB to support employers in the implementation of new terms and conditions and the promotion of training and career progression opportunities for school support staff.

New section 148Q will provide a carve-out for the SSSNB framework from the collective bargaining provisions in the Trade Union and Labour Relations (Consolidation) Act 1992. The new section is necessary to ensure that agreements reached by the SSSNB can be imposed in contracts only through ratification by the Secretary of State.

Paragraph 2 of schedule 3 will insert a new schedule 12A into the Education Act 2002. New schedule 12A includes provision for the SSSNB to be constituted in accordance with arrangements made by the Secretary of State. School support staff and employer representative organisations on the SSSNB will be set out in secondary legislation; the Secretary of State will be required to consult the TUC before prescribing which organisations represent school support staff.

The membership of the SSSNB will include support staff, employee and employer representatives, an independent chair and a representative of the Secretary of State. It may also include members who do not represent school support staff or their employers. However, only school support staff and employer representatives will have voting rights. The new schedule also provides for administrative support to be provided to the SSSNB, including for the Secretary of State to pay expenses for the chair and for administrative costs incurred by the SSSNB. The SSSNB is required to provide a report for each 12-month period.

I commend schedule 3, as amended, to the Committee.

[Greg Smith]

After that lengthy oration from the Minister, I can only conclude that when it takes that long to explain something, a bureaucracy is coming that probably nobody wants. As we rehearsed during our debates on amendments to the schedule, it challenges in many respects the freedoms that some of our education establishments enjoy.

As the Bill leaves Committee at some point in January and heads back to the main Chamber for Report, I urge the Minister to reach out to educational establishments—and perhaps to the Department for Education, but real-world schools are probably better—and reflect on the impact that this new bureaucracy will have on them. Is it as streamlined as it can humanly be? The Minister was on his feet for seven or eight minutes trying to explain that bureaucracy. In fairness, he did a commendable job of it, but that does not necessarily make it right. Whether we are in opposition or in government proposing things, we too rarely ask ourselves in the House: have we collectively got this right?

The Opposition believe that this new body—which we in government, along with the Liberal Democrats, removed—should not be brought back in. There is a better way of achieving some of the noble aims that the Government have in this regard and avoiding some of the potential catastrophes that we spoke about earlier. We therefore cannot support the schedule remaining in the Bill.

--- Later in debate ---

[Laurence Turner]

We have covered a huge amount of ground in this debate, so I will restrict my remarks to a few matters that have been raised. I say to the shadow Minister that if he thought that the Minister’s summary was bureaucratic and difficult to follow, he should sit through some meetings of the National Joint Council for Local Government Services, which is the dominant mode through which pay and terms and conditions are set.

It is worth reflecting briefly on some of the practical issues in schools that can be remedied through this new approach. It is a well-known problem that schoolteachers’ and school support staff’s pay award dates are misaligned. For schoolteachers, it is September; for school support staff, it is April, with the financial year. That can be a nightmare for bursars, school business managers and large employers, who have to plan their budgets with that significant difference.

In a previous life, I sat through a working group convened by the Local Government Association through the NJC on a vexed issue: how can school support staff’s work out of term-time be calculated on a term-time-only contract, because they are accumulating annual leave but cannot take all of it during term? It was a bit like a version of this Committee that reached no conclusions and never ended. These are real problems that result from the ossification of the NJC system. It is not appropriate for school support staff workers. As we all know, when a pay and grading system becomes ossified, legal danger lurks for employers in the inconsistencies that emerge.

There is no justification for saying that TA level 2 means something completely different in neighbouring authorities. That can become a block on people’s progression and ambitions to relocate. Multi-academy trusts and other academy employers overwhelmingly remain subscribed to the NJC, because this system of pay and grading, which has grown up over decades, is labyrinthine and difficult to follow, and most academy trusts do not have the HR and payroll functions to put something new in place.

We can put some figures on this. The school workforce census carried out by the Department for Education collects data on NJC coverage compared with other pay gradings. For local authority maintained schools, 80% of school support staff are paid on NJC grades, when non-responses are excluded. For academies, the figure is 77%, so there is no huge difference between the two sectors. Even among the remainder, some staff are employed under separate agreements with Soulbury terms, so are quite separate, and a high proportion—possibly even the majority—are paid on NJC-like terms and conditions, although there might be some local improvements to those pay gradings. That is the issue that the Confederation of School Trusts raised in its written evidence, and I think it has been addressed through this Committee. We are seeking to establish a floor, not a ceiling, so local improvements can still be made where employers and trade unions agree them.

The clause takes a lot from the lessons that were learned from the previous iteration of the SSSNB, which is welcome. The clauses on the adult social care negotiating body contain a general provision that any specified matter relating to employment could be referred to that body. Proposed new section 148J is drafted a bit more tightly for the SSSNB—at least, that is my reading of it—so I wonder whether there is a case for aligning the wording for the two bodies.

Let me go back to why we are doing this. School support staff are the hidden professionals in the education system. I did not just represent school support staff; I was once a school governor in a specialist SEND setting, and there were school support staff and teaching assistants. It is important to remember that the term covers site staff, cleaners, caterers and all sorts of other workers, who often do not get talked about. Those workers make lifesaving interventions—they may have to administer medicine or perform a medical intervention that literally keeps a child alive—but they are paid about £14,000 a year. That represents a failure of central Government to account for the pay, conditions and wellbeing of all the people who work in schools. The measures we are discussing are hugely important and welcome, and it is very welcome that the Bill has been brought forward this early in the Parliament.

[Justin Madders]

I am grateful for Members’ contributions. The shadow Minister gently joshed me about the technical detail but, as my hon. Friend the Member for Birmingham Northfield pointed out, that is the nature of the beast: it is important that all eventualities are covered. We have not reinvented the wheel here; we have lifted much of what was already in place for the previous iteration of this body, and we have taken some further learnings from that.

On my hon. Friend’s points, we have not needed to take the broader powers of the adult social care body, which we will discuss shortly, because the clauses relating to the SSSNB give it a remit to negotiate terms and conditions, as well as advise on training and career progression. That is broader than its 2009 remit, and we think it covers the areas that are recognised as those that need to be included, in addition to the powers the body had in 2009. Of course, the Bill has to be detailed—it has to be right—because it will affect 800,000 people, and a lot of people in that workforce are on low pay, have poor career prospects and are frustrated at the lack of progression in their job. When setting up such a body, it is important to cover all eventualities.

This is not a novel concept, but it is an important step forward in our industrial relations in this country, and in tackling low pay and insecurity. I am proud that we are able to discuss it today.

Question put, That the schedule, as amended, be the Third schedule to the Bill.

--- Later in debate ---

[Sarah Gibson]

I rise to speak to the amendment, but I note that the whole clause is relevant. As the shadow Minister stated, this debate is fairly similar to the discussion we had about the SSSNB. Our hope for the adult social care negotiating body, similar to that for the SSSNB, is that having a uniform body can help to negotiate and address some of the issues that he highlighted, such as the poor pay and terms and conditions that a lot of adult social care workers suffer.

Social care providers in my constituency, many of which are not for profit, have welcomed the fact that the adult social care negotiating body will include providers, and that they will be able to discuss this issue together. I feel that that is an important point when discussing some of the issues that hon. Members might be concerned about. There is a suggestion that the Government might consider that some of those not-for-profit providers should be included in the negotiating body so that they have a voice.

However, several of the providers in my constituency that I have spoken to have said that, as employers who take their employees seriously and pay them properly throughout the day, they welcome the body on the grounds that it will give them a level playing field against the many employers who do not do that, since they feel that they are commercially disadvantaged against those employers. That is the predominant response that I have heard from employers in my constituency. With that in mind, I will not support the amendment and I do support the clause.

[Justin Madders]

The shadow Minister will not be surprised to learn that we do not support his amendments. Amendment 121 seeks to require an assessment of the impact of the new negotiating body on the adult social care sector. The Government have already produced a comprehensive set of impact assessments for the Bill, including one on the fair pay agreement for adult social care. That was published on Second Reading and was based on the best available evidence regarding the potential impact on businesses, workers and the wider economy.

The adult social care fair pay agreement will be subject to sector-wide collective bargaining and negotiation. At this stage, our impact assessment provides an illustrative analysis of its potential impact, including the magnitude of the cost to businesses, as well as the benefits for up to 1.6 million social care workers. We intend to refine that analysis over time, working closely with businesses, trade unions, academics and, of course, the Department of Health and Social Care.

As is standard practice, we will publish an enactment impact assessment once the Bill reaches Royal Assent, in line with the better regulation framework requirements. That will account for where the Bill has been amended in its passage through Parliament in such a way as to significantly change its impacts on business. That impact assessment will be published alongside the enacted legislation. In addition, the Government will produce an impact assessment to accompany regulations connected to the establishment of the negotiating body.

The Minister asked why the body is needed—what is the evidence base? He will be aware of the evidence given to the Committee, both orally and in writing, about its importance. The hon. Member for Chippenham spoke of the need for a level playing field, which is certainly a big part of what we are looking at here, because many of us will know from our experiences in our constituencies—never mind the evidence before the Committee—that, fundamentally, the adult social care sector is in desperate need of help. We have known that for a very long time, and if Members care to look at the Low Pay Commission’s recent reports, they will see that it has dedicated a considerable amount of space in them to the challenges in the sector. Trade unions, of course, have also been calling for action in this area for many years.

It is also well known that there are huge recruitment and retention challenges in the adult social care workforce. It is a very large sector, employing about 1.6 million workers, which is about 5% of all people in adult employment, and it plays an important role. The people in those roles are predominantly women and, as was noted during the evidence sessions—and backed up by the analysis in the impact assessment—there are about 130,000 vacancies at the moment. It was also noted that filled posts have reduced by 4% recently, and that the shortfall since 2022 has been plugged primarily by overseas workers, which we know is a topic of great interest.

The turnover rate in the sector is incredibly high: it has been higher than 25% since 2016 and was consistently over 30% between 2017-18 and 2022-23. There were some improvements last year, but that was largely driven by international recruitment, and the turnover rate is generally much higher than the UK average. The impact assessment notes that, while some movement is healthy, the higher rates witnessed can be disruptive and impact not only productivity, but the quality of service, with recipients of care not getting continuity. I think we can all recognise the situation in which a person in receipt of care has a different person turning up every day and how disruptive that can be. It is important to note that recipients of care, and not just the workers, will benefit from the Bill.

We know that low pay is rife, as has been identified by the Low Pay Commission. In December 2023, the average wage was £11, and nearly 70% of workers were paid within £1 of the minimum wage. In the last two reports by the Low Pay Commission, space has been dedicated to underpayment in the sector. In its latest report, the Low Pay Commission said:

“In the social care sector, non-compliance appears persistent”.

The shadow Minister asked a wider point about travel costs. He will no doubt welcome the announcement in the Budget that we are freezing fuel duty, but the cost of travel is a much broader issue than the point he raised. Clause 30 will allow broader questions of terms and conditions to be considered. Clause 39 is also important, because it deals with record keeping. We know from research by Unison that about one quarter of domiciliary care workers are repaid only for travel time, and only 18% of them have the travel time listed on their payslips. Given that these people often earn close to the minimum wage, this is an absolute scandal that needs to be addressed. The shadow Minister made an important point about travel, but we hope that the fundamentals of ensuring that people are paid for that travel time will be addressed by the negotiating body.

Let me turn to amendment 122. The Government are committed to engaging with the adult social care sector on the design of a fair pay agreement, including how the negotiating body will be set up, how it should operate and how negotiations will run. The powers under clause 29 allow for the Secretary of State to create the adult social care negotiating body by regulations and to provide for the smooth and efficient running of that body. The regulations will confirm the type of body being created. The power also allows for reporting requirements to be imposed on the negotiating body, such as producing reports. Engagement with the sector will ultimately influence the type of body that the negotiating body actually becomes. All public bodies have specific reporting requirements to meet transparency standards.

I can confirm that the Department of Health and Social Care has committed to publishing an impact assessment on establishing fair pay agreements in the adult social care sector to accompany the secondary legislation required to establish the negotiating body. It is intended that the assessment will include an analysis of the potential costs and benefits that will arise from a fair pay agreement. On that basis, I invite the shadow Minister to withdraw his amendment.

[Greg Smith]

I am grateful to the Minister for his remarks, and not least for acknowledging the importance of the points about just travel time and about compensation for using one’s own vehicle and having to purchase the petrol, diesel, electricity, hydrogen or whatever to get around—in a brave new world, who knows what it might be? I invite him to ensure that that can be locked into, whatever the negotiating body has the power to do. I say that not least for rural communities such as mine, where it is not unusual for someone to have to travel for half an hour between many of the villages, and from one person they are caring for to another. That adds up very quickly in terms of not just time, but the cost of the fuel to get them there and the wear and tear on the vehicle’s brakes, tyres and so on.

We will not press these amendments to a Division. However, as the Minister reflects on this issue, I urge him to again ensure that the way in which this new body will inevitably be set up accounts for the multiple different platforms of provision across local government, the private sector and the not-for-profit sector, which the hon. Member for Chippenham talked about. This is a much more complex arena than that of schools, which is much more heavily defined—we spoke about that earlier. I urge the Minister to reflect on that as he potentially brings forward Government amendments or minor surgery to the Bill ahead of Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss clauses 30 to 44 stand part.

[Justin Madders]

As Committee members will have noticed, this is a significant group of clauses, which relate to the establishment of a negotiating body for the adult social care sector, a key element of the Government’s plan to make work pay. The body aims to address the long-term issues of low pay and poor retention in the adult social care sector.

The adult social care sector is large, with 1.59 million people working for it in England in 2023-24, which as I have already said is equivalent to 5% of all adults in employment. Poor terms and conditions are associated with higher staff turnover. For example, the Skills for Care annual report states that care workers were less likely to leave their posts if their employers paid above the 3% auto-enrolment rate for pensions, or paid more than statutory sick pay if care workers could not work due to illness. This is a key element of the Bill.

I will speak to each clause in turn. Clause 29 gives the Secretary of State the power to create the adult social care negotiating body by regulations, with the aim of negotiating a fair pay agreement within the adult social care sector. Giving specific powers to the Secretary of State in relation to the body is key to ensuring that the Government have the necessary powers to set up and design this body, and that will take place after engagement with the sector.

The clause ensures that the Secretary of State has the power to create a body that is appropriately made up of members including representatives from relevant trade unions and employers. It also enables regulations to provide for the smooth and efficient running of the body, and for it to be subject to reporting requirements. The Secretary of State will have the power to set out the body’s decision-making process and to make provision for any staff and facilities and for payment of fees and expenses.

Clause 30 defines the matters within the negotiating body’s remit—namely, the remuneration and other terms and conditions of employment of social care workers. The clause enables the body to cover not only pay, but wider terms and conditions of employment of adult social care workers.

We know that the adult social care sector is diverse, so the clause also allows the Secretary of State to add further matters to the remit of the body, provided they relate to a social care worker’s employment. The remit of the body can also be narrowed by the Secretary of State, who has the power to specify in regulations the types of social care worker that fall within the remit of the body.

Members will see that clause 31 defines “social care worker” as including those who work in, or are employed in connection with the provision of, adult social care. The clause specifically excludes from the definition of adult social care anything provided by an establishment or agency regulated by His Majesty’s chief inspector of education, children’s services and skills, to ensure that children’s services are not captured. The clause provides an essential definition of adult social care worker, which the other clauses refer to throughout. Without it, the remit of the body and the scope of the clauses would not be sufficiently defined.

Clause 32 sets out the power of the Secretary of State to make provision in regulations about the consideration by the negotiating body of matters within its remit. In accordance with regulations made under the clause, the Secretary of State will be able to specify conditions that any agreement must meet, such as on funding. It also allows regulations to provide that the body may consider only matters referred to it by the Secretary of State, such as specific terms and conditions for certain types of social care worker, and must take into account specified factors when coming to an agreement.

The regulations that can be made under clause 32 can impose information-sharing duties on the body’s members to enable efficient negotiation and require the body to submit any agreement to the Secretary of State for consideration. They also allow for the body to be allocated clear deadlines for discussion, so as not to delay this important process.

Clause 33 enables regulations to provide that the Secretary of State can refer agreements back to the negotiating body for reconsideration. Making provision for reconsideration of an agreement ensures that any agreement can be refined following review by the Secretary of State and that the Government are not forced to reject an agreement they are unable to implement. It also provides the Secretary of State with an appropriate safeguard to ensure that further work can be done, where necessary, to ensure that a suitable agreement is reached. The Secretary of State can also make regulations that provide for the same matters listed in clause 32.

Clause 34 allows the Secretary of State to make provision in regulations for circumstances where the negotiating body is unable to reach an agreement. Providing a clear process for the body to resolve roadblocks in reaching an agreement is key to ensuring that the body arrives at a conclusion that is agreeable to all parties. In regulations made under this clause, the Secretary of State will have the power to appoint someone to resolve the barriers to an agreement and confer the relevant dispute resolution powers on them.

Clause 35 allows the Secretary of State to ratify an agreement made by the negotiating body and thereby give it legal effect. That is essential to successful implementation and ensures that any agreement provides the maximum protection for affected workers. It allows for sufficient flexibility, because the Secretary of State can ratify part of an agreement, such as implementing some aspects through employment contracts, while leaving others that would be more appropriately implemented through codes of practice.

The regulations may have a retrospective effect, as outlined under clause 41. That is necessary to enable regulations to appropriately fill any gap between, for example, the body reaching an agreement and the subsequent regulations ratifying that agreement, and could be used to backdate a pay rise to the date previously agreed by the body. However, the retrospective effect is limited by appropriate safeguards: regulations cannot make provision that reduces remuneration or alters conditions of employment to a person’s detriment, in respect of a period before the date on which regulations are made.

Clause 36 explains that the effect of ratifying an agreement under clause 35 is to change the employment contracts of adult social care workers included in the scope of the agreement. The ratification regulations can change both the remuneration and the terms and conditions of employment contracts, depending on the content of the fair pay agreement. They also give precedence to the terms in ratified agreements over inconsistent terms in existing employment contracts. For example, if an agreement sets a new minimum hourly rate, that will take precedence over employment contracts that set out a lower rate, and so ensure that the employee enjoys the rate set out in the ratified agreement. The clause is essential to ensuring that any ratified agreement will be on a statutory footing and therefore legally implemented.

Clause 37 gives the Secretary of State the power to make provision in regulations when the body has notified the Secretary of State that it has been unable to reach an agreement. The Secretary of State’s powers under this clause are limited to those matters on which the body has failed to reach an agreement. The powers under the clause are similar to those in clause 35, and enable regulations to override the pay and other terms and conditions set out in social care workers’ contracts.

As under clause 35, the regulations may have a retrospective effect, as outlined under clause 41. That is necessary to enable regulations to appropriately fill any gap between, for example, the body reaching an agreement and the subsequent regulations ratifying that agreement, and could be used to backdate a pay rise to the date previously agreed by the body. However, the retrospective effect is limited by appropriate safeguards: regulations cannot make provision that reduces remuneration or alters conditions of employment to a person’s detriment, in respect of a period before the day on which regulations are made.

Clause 38 gives the Secretary of State the power to make regulations about the creation of guidance or codes of practice in relation to the agreements reached by the body. The clause also enables regulations to impose duties on specific persons in relation to provision in guidance or a code of practice, and makes provision around the consequences of failing to comply with those duties, including increased financial awards in any later court or tribunal proceedings. That will ensure that any pieces of guidance or codes of practice are appropriately followed, with appropriate consequences for parties that fail to comply.

Clause 39 gives the Secretary of State the power to make regulations imposing record-keeping obligations on employers. Similar provisions already exist for enforcing other aspects of employment law, such as the national minimum wage and the working time regulations. The clause therefore gives the power to apply the provisions under the National Minimum Wage Act 1998, to give social care workers a right of access to records. There may be new requirements under a ratified agreement that are not covered by existing record-keeping obligations, and without this clause the employer may not be able to provide evidence to enforcement authorities that the new requirements are being followed. We expect the fair work agency, upon its creation, to take on responsibility for the enforcement of the national minimum wage, including those record-keeping requirements.

Clause 40 will give the Secretary of State the power to make regulations about the enforcement of remuneration terms in ratified fair pay agreements. These regulations can apply enforcement mechanisms used under the National Minimum Wage Act 1998, notably the notices of underpayment regime, and the clause lists specific sections of that Act in relation to enforcement. We do not intend to introduce any criminal sanctions to enforce the fair pay agreement framework. That will ensure that any pay terms can be appropriately enforced by the state, ensuring that employees are effectively paid under the conditions of a ratified agreement. The clause also prevents double recovery of remuneration, ensuring that enforcement cannot take place twice—once for the national minimum wage and again for a ratified fair pay agreement—in respect of the same work.

Clause 41 gives the Secretary of State the power to create regulations under clauses 35 and 37 that have retrospective effect. As we have set out previously, that is to ensure that provision in terms of pay and conditions that falls after an agreement is reached and before the day on which regulations are made can have retrospective effect. That is necessary to enable regulations to appropriately fill any gap between the body reaching agreement and subsequent regulations being passed to ratify that agreement. Subsections (3) and (4) ensure transparency, creating an obligation to publish documents, such as the ratified agreement, that are referred to in the regulations.

Clause 42 makes further provision about the regulations that can be made under the powers in this chapter. These provisions are non-controversial, and they include the option for regulations to confer discretion on a person. That may be needed, for example, to give the chair of the body discretion to deal with a matter during the negotiation process or to give a third party discretion to resolve a dispute in accordance with the regulations under clause 34. Subsections (2) and (3) provide that ratification regulations will be subject to the negative resolution procedure, and any other regulations made under this chapter will be subject to the affirmative resolution procedure. That is because ratification relates to an agreement that has been reached by the negotiating body and assessed by the Secretary of State as being appropriate for ratification, and it would not be necessary to subject the ratification regulations to detailed parliamentary scrutiny.

Clause 43 simply allows regulations to provide that any actions or agreement by the body would not constitute collective bargaining or a collective agreement as defined in the Trade Union and Labour Relations (Consolidation) Act 1992. The Government have taken that approach because these clauses, and the regulations made under them, will create a new, separate legal framework under which fair pay agreements in the adult social care sector will be negotiated. For example, the clauses provide for a fair pay agreement to apply across the entire sector and to be legally binding when it is ratified in regulations.

That goes further than the 1992 Act, which sets different requirements for collective agreements to be legally binding and envisages that collective bargaining will be on a much smaller scale between one or more recognised trade unions and one or more employers or employer associations. The Government’s intention is very much for the negotiating body’s activities to be a form of collective bargaining, as a concept. It is simply that we cannot have two different legal frameworks to the same process.

Clause 44 is uncontroversial. It simply provides definitions for the terms used in this chapter and ensures that the definition of worker’s contract can cover agency workers who might not have a contract with their agent or the person they have been supplied to work for. That ensures that an agreement can be ratified for agency workers who do not have a contract with the agent or principal. The clause clarifies that references to a ratified agreement may also include references to parts of an agreement that have been ratified.

I am confident of the Government’s ability to deliver this flagship policy, supported by the Health Foundation, which indicated the strong case for improving pay and conditions in the social care sector in its written evidence to the Committee. Indeed, the same thing was noted in much of the evidence that we have heard in support of these measures. I commend clauses 29 to 44 to the Committee.

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[Sarah Gibson]

I start by thanking the hon. Member for Scarborough and Whitby for that very personal story. I imagine it has been extremely difficult. She must be very relieved to have finally found somewhere where her son is happy. I have several friends with children in similar situations. I know that it can be extremely stressful.

We are all in agreement that people working in social care have been undervalued for a long time. These provisions are incredibly helpful in bringing them to the fore and in trying to make their conditions of work considerably better. Members on both sides of the Committee have made that point very clearly.

I have one specific concern, which is on clause 41, where it talks about

“provision that has retrospective effect.”

Like the hon. Member for Mid Buckinghamshire, I find the word retrospective in any legislation extremely worrying. My background is in the building industry, and that retrospective element has been introduced many times in the 20 years that I have been in the building industry, to the detriment of many of the hard-working professionals involved.

This clause concerns me because many of our care-provider employers are small businesses, and they are also not-for-profit small businesses. Those small businesses will be in no position whatsoever to provide any retrospective increase in salary if they are asked to do so, because they simply do not have any profits—because they are not for profit—to draw on to pay any increase. I am very concerned that if subsequent legislation were to introduce a retrospective pay increase that these firms do not have provision for, that would detrimentally affect some of these hard-working and useful not-for-profit care providers. As it stands, I will not be able to support that clause.

[Justin Madders]

I will deal with the point raised by the Liberal Democrat spokesperson and the shadow Minister first. This measure is about the practicality of negotiations. Clause 41 is not trying to say that the body will reach back in time to change workers’ terms and conditions; it is about the fair pay body agreeing terms and conditions, and the period between that agreement being reached and it then being ratified and passed in regulations by the Secretary of State.

For example, if the body said that from 1 April 2028, for argument’s sake, there would be an uplift of whatever pence or pounds an hour to everyone’s pay, and if the regulations enacting that were not passed until July of that year, the retrospectivity would be from July 2028 back to 1 April, so that pay can be included. That is normal in pay negotiations. That is all it is; it is not about trying to unpick previous agreements; it is about the way that anything agreed is implemented.

The shadow Minister said that we legislate first and consult second. As he will be aware, introducing a fair pay agreement in such a huge area of employment in this country is a novel and groundbreaking introduction to our legal system, so we need to put the legislative framework in place, which is what the Bill does. The detail and how it will work in practice is what the consultation and the secondary legislation will deal with. That is the proper way to do this, and that is how we will get this right. The Government are absolutely committed to getting this right. We absolutely recognise the terrible pay and conditions that lots of people in the adult social care sector face and the need for this kind of body to try and drive out those poor practices.

The shadow Minister asked about clause 33 and the ability of the Secretary of State to refer matters back to the negotiating body. He will of course understand that as the Bill is currently drafted the Secretary of State will need to pass regulations in order to enact many of the recommendations from the body. Some will be guidance, but that will still need the Secretary of State’s involvement. It simply would not be tenable for the Secretary of State to be compelled to pass legislation with which they did not agree, so I am sure that the shadow Minister will appreciate why that is in the Bill. We hope that that does not come to pass—it would clearly not be in the spirit of what we are trying to achieve—but we have no way of knowing what the future holds in that respect. It is therefore important for the Secretary of State, who is the person responsible for this system, to have the final say on such matters.

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[Greg Smith]

I took careful notes, and we can check Hansard later, but I am pretty certain that the Minister himself used the word sufficient in his remarks.

[Justin Madders]

We may have to write to the hon. Member on that. Having furiously double-checked clause 32 during the other hon. Members’ speeches, I cannot find the word sufficient.

My final point relates to the powerful contribution from my hon. Friend the Member for Scarborough and Whitby about her personal circumstances and how important it is that we get this right. It is people such as her son who have benefited from good support in social care, and at the end of the day, they are the people who will benefit from stability and security in the workforce and better retention rates. This is about the workforce, but it is also about the people who receive the care, and it is about time that we gave them more priority. That is why these clauses are so important, and I therefore commend them to the Committee.

Question put and agreed to.

Clause 29 accordingly ordered to stand part of the Bill.

Clauses 30 to 44 ordered to stand part of the Bill.

[The Chair]

Before I call the Whip to move the Adjournment, I wish everybody a very happy Christmas and a happy new year.

[Justin Madders]

On a point of order, Ms Vaz. I thank all those who have worked behind the scenes—the Clerks and other staff—to ensure that the Committee has run smoothly. We have had some very interesting debates and made good progress with the Bill. I wish everyone involved a very merry Christmas and a happy new year. No doubt we will see many of them in January.

Employment Rights Bill (Thirteenth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 17th December 2024 Public Bill Committees

[The Chair]

Will everyone please ensure that all electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sittings is available in the room and on the parliamentary website. I remind Members about the rules on declarations of interests, as set out in the code of conduct.

Clause 25

Public sector outsourcing: protection of workers

Question proposed, That the clause, as amended, stand part of the Bill.

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

Good morning, Mr Mundell; it is a pleasure to see you in the Chair. As is customary, I refer to my entry in the Register of Members’ Financial Interests and my membership of the Unite and GMB trade unions.

The clause will empower Ministers to reinstate and strengthen the two-tier code on workforce matters where contracts for public services have been outsourced to the private sector. It will ensure fair and equitable employment conditions for public sector workers who have been transferred into the private sector, and private sector workers who work alongside them on public service contracts, while maintaining a high quality of service for the public. It therefore directly supports the Government’s manifesto commitment to make work pay and will tackle the issue of unfair two-tiered workforces where staff working alongside one another to deliver the same contract do not have comparable terms and conditions of employment.

The powers are constrained so that the provisions of the regulations and the code, when developed, will apply only to new contracts entered into once the Bill comes into force, but can and will apply to re-procurements of services already outsourced where the re-procurement leads to a further transfer of workers. Ministers will have the power to make regulations specifying provisions to be included in relevant outsourcing contracts. The provisions may, for example, set out model contract terms that, where incorporated into contracts, will impose obligations on suppliers. Authorities will be required to take all reasonable steps to include those provisions in all relevant outsourced contracts.

The regulations made under the clause will, first, have the purpose of ensuring that transferring workers are treated no less favourably as workers of the supplier than when they worked for the public sector contracting authority and, secondly, have the objective of ensuring that workers of the supplier who are not transferred from the public sector but recruited by the supplier to work on the contract are treated no less favourably than those transferring workers. Alongside that, Ministers of the UK, Scottish and Welsh Governments will be subject to a duty to publish a code of practice addressing similar matters to which contracting authorities will need to have regard.

To ensure that the code is effectively enforced, there will be several forms of redress. Contracting authorities will be required to take all reasonable steps to ensure that suppliers meet their contractual obligations, as set out in the regulations. In addition, the procurement review unit, which will be established under our new Procurement Act 2023, due to commence in 2025, will be able to investigate whether a contracting authority has had regard to the code and taken appropriate steps in relation to provisions specified in the regulations.

These powers are being extended through amendments to the clause, which we discussed last week, to the devolved Governments of Scotland and Wales so that the benefits of a consistent approach to fair and equitable employment terms and conditions on relevant outsourced contracts can be spread throughout the UK. Fair and equitable working conditions are the right of all employees working alongside one other on the same outsourced contracts, and these measures will help to tackle that issue head on.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell.

Clause 25 has got me thinking about many moons ago, in 2006, when I was part of the team that won Hammersmith and Fulham council for the Conservatives for the first time since 1968. One of our first acts was quite literally to take the red flag down from the roof of the town hall. Part of the symbolism of that, which is why I mention it, was that the council, in 2006, was one of the last to outsource anything at all. Competitive tendering simply had not happened in that London borough. Everything was still a direct service run by the local authority, and we set about contracting out waste, grounds maintenance and many other services. Why? Because we wanted to deliver better value for taxpayers—indeed, we cut council tax by 20% over the eight years that we ran the council—and to improve service standards.

One of the things I learned in that process, and the reason my point is relevant to the clause, is that the first iteration of any contracting out—that first contract, be it for refuse collection, street cleansing, grounds maintenance or whatever—does not tend to result in economies and improvements. It is often in the second or third contract iteration where the cost savings and improvements in service standards start to be seen. That is partly because of the TUPE provisions that rightly exist to ensure that those staff who are being transferred from whatever part of the public sector we might be talking about—in this case, local government—transfer with the same rights, terms and conditions, and pay that they had at the point that they ceased to be direct employees of the council, or whatever other public service, and became employees of whoever won the contract.

The rub comes in the real-world application. In such cases, the staff members who transferred are on favourable terms and conditions, and probably better pay, than some of the staff that the contractor brings into the team. If it is immediately locked in that everybody new has to be on the same terms and conditions and pay scales, we will never achieve value for money for taxpayers, and we will never enable the contractor, be that a refuse collection company or whatever, to find efficiencies and savings at the same time as increasing service standards in the way that we all want to see. It might as well never be done in the first place. That makes me question whether that is in fact the ideological position that the Government want to take. I can see the Minister grinning; perhaps I have hit upon something.

I gently remind the Committee of the time when every refuse service and local government service was provided directly, in house, before competitive tendering and the revolution of the 1980s and the Thatcher Government. We can all remember what delivery of those services looked like in the 1970s: the rubbish piled up on the streets with no one collecting it.

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[Laurence Turner]

I would say better, having had some experience. The hon. Gentleman might want to return to that point.

On the substance of the clause, there were some concerns about the original incarnation of the two-tier code. It was purely voluntary and did not contain meaningful provisions for redress where an employer who had signed up to uphold the standards of the code did not follow through. I hope that that deficiency will be remedied when the associated regulations appear.

It is legitimate to have differences on points of principle. After the current Lord Maude abolished the two-tier code, the Secretary of State—now Baron Pickles—said that the Government of the time had

“Abolished the…two-tier code that…hindered the voluntary and independent sector from delivering better value for money.”—[Official Report, 26 March 2015; Vol. 594, c. 166WS.]

The shadow Minister has made much the same point. This was explicitly about driving down wages for the large number of people who are contracted out to deliver public services. I very much welcome the fact that this Government have a policy objective of making work pay. For a large number of people in the labour market who have been overlooked by politicians for too long, the clause represents an important step forward for remedying that deficiency.

[Justin Madders]

We have had a broad debate—very broad from my hon. Friend the Member for Birmingham Northfield, who took us on a canter through the history. He was right that it was the coalition Government who abolished the two-tier code, which is why it is welcome that the Liberal Democrats have realised the error of their ways; I welcome their support on this. Their spokesperson, the hon. Member for Chippenham, made the important point that the inherent unfairness of people doing exactly the same job for the same employer finding out that they are on different terms and conditions and are earning less is a big morale sapper. It is also a big issue in terms of workforce retention—one problem that we often see with outsourced contracts.

I will turn to the shadow Minister’s misty-eyed days at Hammersmith and Fulham, and I will raise him Ellesmere Port and Neston borough council, which was a great believer in direct provision of services; we certainly felt that was the best way to deliver value for the taxpayer and good-quality services. In his contribution, the shadow Minister alighted on the illusion of outsourcing—the fact that consultants can demonstrate that savings can be made, but when you drill into the detail, those savings are always off the back of the workforce. They are not some magical way of doing things differently. It is about cutting terms and conditions and it is about a race to the bottom, which we are determined to end.

[Greg Smith]

I do understand the ideological difference between the two sides on this point, but I take issue with the Minister that this is about a race to the bottom and cutting terms and conditions; it really is not. From my experience, it was not a matter of consultants, but of properly probing contracts, setting the right specification to deliver for the residents in the place that the council served, and requiring the flexibility to ensure that some people would be doing very different jobs in a different way from before in order to deliver that. It was not about wanting to cut anyone’s pay or terms and conditions; it was about service delivery and value.

[Justin Madders]

I take the shadow Minister’s point. I am not familiar with the machinations of Hammersmith and Fulham council in the 2010s, and it may well be that savings were made by doing things differently. But there is absolutely no reason why that cannot be done directly from a public body: if it is well led, if it is able to have constructive dialogue with its work force, savings can be made.

The difficulty with the shadow Minister’s analysis is that, while he may have been able to find savings for the taxpayer through those kinds of measures, too often the savings are made by cutting terms and conditions for new workers. That is why, as he said in his original contribution, the second or third outsourcing is usually where the savings happen, because it is when those new workers come in on lower terms and conditions that the savings begin to emerge. That is why the whole outsourcing trick is a con, because it is how those savings tend to be made.

When we add in the contract monitoring costs and the profit motivations for the outsourced company to make a living from these things, we can quickly see why it becomes a bad deal for the taxpayer. I certainly make no apologies for putting forward this proposal, because we think it is the right thing to do, to respect and value those who work in public service and ensure that they are paid the same as their colleagues for doing the same work. I therefore commend—

[Laurence Turner]

I thank the Minister for giving way at the death. Does he also recognise that one example of a council that tried to go down the wholesale outsourcing route was Northamptonshire? We all know how that story ended, and Eddie Martin, the Conservative former leader of Cumbria county council, stated that the then Government

“says that outsourcing is everything, but while it might get you an initial cheaper price, that price simply doesn’t last, you lose flexibility, and it causes a great deal of unrest.”

[The Chair]

I call the Minister to rise from the dead.

[Justin Madders]

I think that is the kindest thing that has been said about me this year, Mr Mundell. I thank my hon. Friend for his intervention; I think we can all see the difficulties. I know, from dealing with public bodies in my area, that sometimes when there is more than one person responsible for a service—the public body and then the contracting body—we find duplication, differing priorities and often a poorer service as a result, because there are competing ambitions in those bodies. That is one of the main reasons why we want to see a much more holistic approach to our public services. I commend clause 25 to the Committee.

Question put and agreed to.

Clause 25, as amended, accordingly ordered to stand part of the Bill.

Clause 26

Equality action plans

[Sarah Gibson]

I beg to move amendment 112, in clause 26, page 38, line 35, at end insert―

“(c) supporting employees with menstrual problems and menstrual disorders.”

This amendment would add menstrual problems and menstrual disorders to “matters related to gender equality”, in relation to any regulations made under the Bill to require employers to produce equality action plans.

I am very pleased to move this amendment. First, as the Bill stands, there are provisions for businesses to report on the impact of menopause on women in the workplace as part of the equalities impact assessments. I think the hon. Member for Sheffield Brightside and Hillsborough (Gill Furniss) is right to table this amendment and to remind us all that menstrual problems can hinder women at any point in their working life, not just as they enter menopause. She is the chair of the all-party parliamentary group on women’s health and an officer on the APPG on endometriosis; I feel confident that she has tabled this amendment with the best intentions. It seems an omission that this issue was not included in the original Bill.

Several constituents have contacted me about endometriosis, and specifically its impact on them at work. Endometriosis costs the UK economy £8 billion a year in treatment, loss of work and healthcare costs, and it takes an average of eight years to get a diagnosis. One in six workers with endometriosis leaves the workforce due to their condition—an issue that the Government and employers cannot afford to ignore. Those people could go back to work and stay in work if there was additional flexibility for them.

As one of my constituents told me—she does not wish to be named for these reasons—many employees with endometriosis find that their employers do not believe them about their symptoms, that their flexible working requests are refused and that they are subject to discriminatory automated absence procedures that penalise short but intermittent time off work. The amendment seeks to address that injustice. I want to be very clear that I support it, and I hope that the rest of the Committee will see its importance.

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[Justin Madders]

Clause 28 introduces schedule 3, which inserts proposed new part 8A into the Education Act 2002. Paragraph 1 of schedule 3 contains proposed new sections 148A to 148R of the 2002 Act and will be discussed separately.

The reinstatement of the school support staff negotiating body will give school support staff the recognition they deserve for the crucial role they play in children’s education and development. Establishing the SSSNB through the Bill will help ensure that schools can recruit and retain the staff needed to deliver high-quality, inclusive education and support the Government’s work to drive high and rising standards in schools, so every child has the best life chances.

The body will bring together representatives of school support staff employers, representatives of support staff, an independent chairperson and a representative of the Secretary of State. The SSSNB will consider the remuneration, terms and conditions of employment, training and career progression opportunities for school support staff. Its remit will lead to the creation of a national terms and conditions handbook, fair pay rates and clearer training and career progression routes for school support staff in England.

Most school support staff are currently employed on National Joint Council for local government services pay and conditions. The NJC is a negotiating body made up of representatives from trade unions and local government employers. Existing NJC arrangements are not statutory or school specific. Moving to a school-specific body where pay rates and pay awards for support staff are negotiated by school support staff employer and employee representatives and ratified by the Secretary of State will both help to ensure fair pay rates for school support staff and allow central Government to have a strategic view of pay across the school workforce.

It is essential for the SSSNB to have a statutory remit so that all prospective and current support staff in state schools nationally benefit from a transparent, guaranteed core pay and conditions offer. The Bill re-establishes the SSSNB as an unincorporated body on a similar footing to the previous body from 2009 that was abolished by the coalition Government in 2010.

As education is a devolved matter, the extent of these measures is therefore England and Wales and the measures will apply to England only. This is consistent and in line with the remit of the School Teachers Review Body being England only.

The 2009 SSSNB included only those support staff employed by local authorities and governing bodies to work in maintained schools within its scope. Roughly half of schools are now academies, compared with around 200 in 2009 when the body was previously established. Support staff employed by academy trusts are now included within the SSSNB’s remit. It is crucial that the body has a remit for all state-funded schools in England in order to achieve greater national consistency, irrespective of which type of school support staff work in. That is a point that we may come on to debate in due course.

[Greg Smith]

The Opposition have tabled a number of amendments that probe what is introduced by clause 28 and schedule 3, which we will come on to in subsequent debates today. I will reserve the bulk of my remarks for those debates, although, as clause 28 introduces schedule 3, I will preview those debates now by noting our strong opposition to these provisions. There was a very good, solid and rational reason that the former Secretary of State for Education during the coalition years—now editor of His Majesty’s Spectator magazine—abolished SSSNBs, which was to give that flexibility and freedom to the quite right and good, educational standards-raising revolution in education that came through the creation of the academies by the last Labour Government and in particular the creation of free schools by the last Conservative Government, including in the coalition years. Clause 28 and schedule 3, which we will come on to shortly, seek to undo a lot of that. For the reasons I will outline when speaking on those amendments, I think this part of the Bill requires a rethink.

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[Sir Ashley Fox]

I am trying to think of how clause 28 and schedule 3 relate to SEND education, and I am struggling. I do not believe that the SEND system is a success, and I do not think that more central control is the way to solve that. In fact, one of the problems is that every time there is a problem, we in Parliament and Whitehall think, “The solution is a directive from above. That will sort out the problem.” That is precisely the model that the Government are adopting in clause 28 and schedule 3: “There’s a problem with low pay, so we will set up a process in London that will help matters.” That is not true at all.

I hope we can all agree that the purpose of spending money on education is to improve the life chances of our children. How are resources allocated? Are they best managed on a school basis or an academy basis? Or are they best decided in London? I argue that they are best decided on a school or an academy level. As I say, I fear that clause 28 and schedule 3 are the beginning of a process in which we will see more and more central control exerted over schools, and that that will lead to worse outcomes for our children.

[Justin Madders]

I will respond in the strict terms that you have directed, Mr Mundell. I also point out to Members that an education Bill will be presented today. So there will be an opportunity for the wider debate that Members are keen to have, when that Bill gets its Second Reading in due course.

[Nick Timothy]

Will the Minister give way?

[Nick Timothy]

I will avoid the temptation to start to read out the PISA statistics. It is important that the Bill that is published today is seen alongside this Bill, because together they chip away quite substantially at the academy freedoms that have been behind school reform. It would be good to hear the Minister acknowledge that fact.

[Justin Madders]

Of course, the Bill has not been published yet, so we cannot stray into that. We may be able to get on to it this afternoon, but we are trying to help some of the most poorly paid people in our society, who do such an important job. My hon. Friends the Members for Penistone and Stocksbridge, for Birmingham Northfield and for Stratford and Bow all talked about how important teaching assistants are, particularly in supporting those with special educational needs. My hon. Friend the Member for Birmingham Northfield was right that it is shameful that the Low Pay Commission has now deemed teaching assistants to be part of the low pay environment. We are determined to address that, which is why the reinstatement of the SSSNB is an important step.

Let us reflect on some of the evidence that we have had—for example, the GMB evidence. Andy Prendergast said:

“we see increasingly more pupils with special educational needs go into mainstream education, and they need that additional support.”––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 132, Q136.]

Some of those staff do detailed things such as phonics, supporting pupils with special educational needs and disabilities, and help to deliver classes.

I take the point that has been made about the NJC being an inappropriate way of evaluating and assessing job value. It is clear—indeed a number of other pieces of written evidence have supported our assertion—that the NJC is not the right vehicle for assessing teaching assistants’ pay. We believe that the SSSNB is the way ahead.

The hon. Member for Bridgwater talked about this being a centralising move. Of course, the SSSNB will comprise mainly employers and employee representatives. It will not be a Whitehall-dominated machine.

[Sir Ashley Fox]

But to the extent that the SSSNB will decide the terms and conditions of assistants in Bridgwater, Mid Buckinghamshire and Birmingham Northfield, and those conditions will apply to all teaching assistants, regardless of the school’s or academy’s view on the subject, it is a centralising measure, does the Minister not agree?

[Justin Madders]

It is a necessary measure because, as we have seen, teaching assistants and school support staff have suffered in recent years. The point that the hon. Member for Chippenham and several other Members made about funding is correct. It will, of course, be incumbent on future Governments to ensure that any proposals that come forward are affordable. It should be noted that the recent Budget put some additional funds into special educational needs.

Let us look at why this measure is needed. We know that there is a chronic issue of low pay, a lack of career progression and damaged recruitment and retention among school support staff. A survey of teaching assistants found that 27% were considering leaving education altogether—surely we need them to stay—while 60% cited low pay as a reason for leaving, and 40% said that lack of opportunities for progression was. Eighty-nine per cent of schools said they found recruitment difficult, particularly in respect of teaching assistants, and 78% said they found that group hard to retain. There were similar figures in terms of the difficulties with the recruitment and retention of teaching assistants with SEND specialisms.

We are setting up this body to recognise that these people do a critical job in our education system and that they are not properly represented at the moment. They do not have a proper voice, and they do not have a proper mechanism to ensure that the valuable work they do is properly measured, remunerated and recognised. That is why the SSSNB is so important.

Question put, That the clause stand part of the Bill.

Royal Mail Takeover Bid: EP Group

Justin Madders Excerpts

Monday 16th December 2024 Written Statements

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

Royal Mail is an iconic national institution, and this Government will ensure that it continues to be one. Since taking office in July, the Secretary of State and I have been clear that the Government would robustly scrutinise the proposed takeover of Royal Mail, and ensure there are safeguards for its future.

While the takeover bid is still ongoing and subject to the relevant ongoing regulatory processes, this statement is to update the House on the legally binding undertakings that have now been given to Government by the bidder— EP Group. This does not mark the conclusion of the takeover, and these undertakings will only become effective if the takeover goes through.

Should the takeover complete, I am pleased to confirm that the Department for Business and Trade has secured significant commitments to promote the long-term and financially sustainable future of Royal Mail in the United Kingdom.

It may be helpful to set out where Royal Mail was at the time the takeover bid was announced. In its financial year 2023-24, Royal Mail recorded an operating loss of £348 million. At the same time, Royal Mail had not met its quality of service targets as set by the independent regulator, Ofcom. Royal Mail’s performance for the 2022-23 financial year resulted in a £5.6 million fine.

While the previous Government were happy to accept decline, this Government have worked closely with EP Group to secure significant commitments to delivering transformation of Royal Mail into a sustainable service, and hardwired in stronger protections for Royal Mail’s identity.

My Department’s objectives when these discussions with EP Group began were to first strengthen the financial sustainability of this iconic and important British institution. Secondly, we wanted to protect the customers, workers and brand of Royal Mail.

The Department for Business and Trade has agreed unprecedented commitments from the potential buyer of Royal Mail to protect its long-term future and to recognise its position in the UK’s national life.

Significantly, EP have committed to issue the Department for Business and Trade with a “golden share” in Royal Mail for certain matters. This means that—except in very limited circumstances—the Department for Business and Trade can now prevent Royal Mail from moving its headquarters abroad or moving its tax residency without the Government’s permission. This is an entirely new measure which was not in place at the time of Royal Mail’s privatisation, and it will remain in place in perpetuity, including where there is a subsequent change in ownership of Royal Mail in the future.

I want to be clear that this will not change any of the Government’s role in the day-to-day running of the business; Royal Mail remains a private entity.

In addition to this golden share, there are several other commitments made by EP Group to the Department for Business and Trade. These include:

A number of financial commitments to guard against value extraction and introduce a set of requirements to strengthen Royal Mail’s finances, including the implementation of a balance sheet restructuring, which will remove a significant intra-group debt that is currently due to the remainder of the IDS group.

There is a commitment from EP Group to ensure that Royal Mail has the financial means to fund the transformation of its business in the three-year period following completion of the acquisition.

Royal Mail has consistently not met its targets set by Ofcom. Recognising this, there will be a commitment such that EP Group cannot extract value from Royal Mail Group until it both can afford to do so, and has achieved specific performance targets.

I am placing copies of the deed in the Libraries of both Houses.

[HCWS311]