Employment Rights Bill (Ninth sitting)

Laurence Turner Excerpts

Committee stage
Tuesday 10th December 2024 Public Bill Committees

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I just emphasise what the hon. Member for Mid Buckinghamshire stated in respect of smaller settings. In my constituency there are lots of restaurants and small hotels without the network of support for workers that a trade union would offer. It would be useful if Ministers were alive to the circumstances of those smaller settings. I also wonder whether the Minister is reflecting on what guidance he might issue on the question of what is equitable that could be reflected if people end up going to a tribunal.

[Laurence Turner (Birmingham Northfield) (Lab)]

I draw attention to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and Unite trade unions. I noticed last week that the Prime Minister made a James Bond joke, and I wondered whether he was following the Committee’s proceedings in real time. There is a valid question here: when James Bond buys a vodka martini, what happens to the tips? Hopefully, thanks to this Bill and the legislation passed last year, we will have a more equitable solution.

I want quickly to raise two issues. The “Make Work Pay” document published earlier this year stated:

“Labour will strengthen the law to ensure hospitality workers receive their tips in full and workers decide how tips are allocated.”

I would be interested in the Minister’s views on whether this measure meets that very welcome commitment. Whether tips that would have been received during shifts that are cancelled fall under the definition of reasonable compensation is presumably a question to be addressed in the future.

In respect of the points raised by the hon. Members for Torbay and for Mid Buckinghamshire about consultation with groups of workers who are not represented by a trade union, I suggest that the kinds of businesses they mentioned should have at least a degree of familiarity with the principles of that, since they are established and well understood in the context of redundancy situations and in other areas.

[Justin Madders]

First, I will acknowledge, as did the shadow Minister, the hon. Member for Mid Buckinghamshire, the work in this area by previous Members of this place, including the former Member for Ynys Môn. I think it was seven years after the announcement that there was to be legislation that we finally got action, but it is welcome. I note the shadow Minister’s comment that the legislation has transformed attitudes, and that is what we are trying to do with this Bill in general: transform the workplace so that workers have better security and a better voice.

The shadow Minister raised some important questions, as did the Liberal Democrat spokesperson, the hon. Member for Torbay, about what this measure means for smaller businesses where there may not be a trade union. Of course, that is an argument for greater organisation in the workplace so that employers can consult collectively with the workforce. Those smaller employers—the Great British café, for example—would not always have an easy route to consult with their workforce, but in that kind of informal setting, where there is only a handful of employees, it should be fairly straightforward. Everyone will know their role and what goes on, and the existing code of practice deals with the guidance for smaller employers in that sense.

My hon. Friend the Member for Birmingham Northfield asked whether this measure meets our commitments under “Make Work Pay”, and I believe it does. It is a significant step in continuing the welcome, transformational moves that we have seen on tips, and it gives workers an absolute right to be consulted, which I think is important. There is evidence, such as the research by the Chartered Institute of Personnel and Development, that certain sections of the workforce, including agency workers and people working in certain parts of a business, feel that they do not have a voice. This provision will give them that voice and the real teeth they need to ensure that tips are fairly distributed. As the shadow Minister said, this is all about them. It is about ensuring that everyone who contributes to the service that we all enjoy gets those tips, which the customer clearly wants to ensure are spread among the workforce. On that note, I commend the clause to the Committee.

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[Greg Smith]

There is quite a lot in this grouping, and I will try to go through it in a sensible order. I will start with new clause 29 and amendment 135. The Regulatory Policy Committee has said that the Government have not managed to demonstrate sufficiently the need for the clauses in the Bill that require employers to prevent harassment of their employees by third parties, nor that the measures are sensible—those are the RPC’s words, not mine—and it has rated the impact assessment on this as red.

I want to be absolutely crystal clear from the outset, across all the clauses, amendments and new clauses that we are debating, that harassment is wrong; that the sort of sexual harassment that the Minister spoke about is absolutely, categorically unacceptable; and that whatever it takes in the law, and from an enforcement perspective, to stamp harassment out must happen. Such harassment is simply unacceptable in our country and society. The comments that I am about to make are not in any way, shape or form critical of action against harassment, therefore; they are about trying to best understand how the Bill and the amendments that have been tabled would work, and the difference they would realistically make to people’s lives, including by protecting them from harassment or other unacceptable behaviour.

With those ground rules set, if I may put it in that manner, the Opposition are concerned, and have doubts about, the need for and the operability of the provisions in clauses 15 to 18. I repeat that that is not about the principle of stopping harassment, but about the operability of the proposals that we are considering. We must question whether the benefits of these clauses will be outweighed by the burden on employers and, in certain respects, by the chilling impact on free speech.

New clause 29 would require the Secretary of State to

“report on the extent to which the prevalence of third-party harassment makes the case for the measures in sections 15 to 18”.

Within that report, the Secretary of State must include

“an assessment of the impact of sections 15 to 18 on free speech…an assessment of the likely costs to employers…an assessment of which occupations might be at particular risk of third-party harassment through no fault of the employer, and…proposals for mitigations that can be put in place for employers employing people in such occupations.”

Amendment 135 quite reasonably provides that clauses 15 to 18 will not come into effect until—not never, but until—the House of Commons has approved the report required under new clause 29.

We then come to the two new clauses tabled by the right hon. Member for Dwyfor Meirionnydd, the leader of Plaid Cymru. I share the Minister’s concerns about the new clauses. I do not think they are necessary, I do not think that they particularly add to the spirit of what the Government are trying to achieve in the Bill and I do not think they pass the Opposition’s tests of operability. The official Opposition will therefore not be supporting them.

Amendment 130 would require employers to have regard to protecting freedom of expression when exercising the Bill’s duty not to permit harassment of their employees. I do not believe any business wants its employees to be harassed. No business owner that I know wants their staff, or any human being, to face harassment at all, in whatever setting. However, the amendment is designed to show the impossibility of the position in which the provisions on third-party harassment will put employers. It is a probing amendment, in the sense that we are not trying to create additional burdens for businesses by giving them another duty. It has been tabled so that we can talk about how unrealistic it is to expect employers to be able to enforce all the provisions in the Bill and, inherent to that, so that we can make the challenge that there may be more appropriate and operable pieces of legislation that already sit in statute or that may yet still need to be debated and passed through Parliament to prevent that.

The amendment is about how an employer can balance the right to free expression with the duties explicitly in the Bill. I do not believe that, in the moment, it will always be clear whether someone’s behaviour, say, in a pub falls on the right or wrong side of the line—it is a subjective test. Leaving that aside, there are situations where it will be frankly impossible for employers to abide by the law that the Government are seeking to make. I am interested in the Minister’s reflections on that.

[Laurence Turner]

The hon. Gentleman says that there will be situations where it is not just difficult, but impossible for an employer to abide by the Bill. Can he give some examples of the situations he has in mind?

[Greg Smith]

I am building up to my wider point. To skip ahead, there will be circumstances where, even within the reasonableness test—I understand that test—something so unexpected and unforeseeable happens that the employer could not in any way have planned a protection for their employees around that. Despite that, the employer might find themselves challenged in a tribunal or, worse, some form of criminal investigation about why they did not take reasonable steps against a totally unexpected and unplanned-for eventuality. I accept that, in most cases, there are practical steps that could be put in place to prevent harassment of any sort, but there will be times where that reasonableness test could fall over and someone could find themselves in a very tricky spot, unable to account for why they did not prepare for the totally unexpected.

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[Greg Smith]

I am not certain that is quite the point that my hon. Friend the Member for West Suffolk was making. However, in the interest of fairness, I will commit to properly looking up that case, which I had not come across until my hon. Friend mentioned it a couple of moments ago.

[Laurence Turner]

We are back to talking about perverse outcomes and unintended consequences, which are important things to consider. However, is that not what we are looking at in amendment 131? In in my view, it confuses sectors with functions. The hon. Gentleman says that he and his colleagues have selected these particular cases or sectors because they relate to freedom of speech. However, if we take the example of universities and higher education, a higher education institution contracts services of all sorts, many of them not relating to freedom of speech—for example, security and refuse services—but if the amendment were made and if it failed to conduct even basic vetting on a contractor, it would be exempt from these provisions if an incident of sexual harassment occurred. However, if exactly the same circumstances were to be repeated by a community hall or a church that would fall under the scope of the legislation. Is there not a problem in the drafting of the amendment? On that basis alone, it should not be accepted.

[Greg Smith]

I understand the point the hon. Gentleman is making. However, in the examples he gave he has shown exactly why there is a need to ask the Government to doubly rethink the way in which the original Bill is drafted to ensure that some of those areas are covered off so that the reasonability test is clearer and people do not find themselves on that proverbial sticky wicket for innocent reasons. We tabled the amendment—we fully accept it does not cover everything and every eventuality—because it is our job as the Opposition to highlight cases which in turn highlight areas where the Bill may be deficient and where it needs a little surgery to ensure that it achieves what the Government are trying to achieve, rather than creating many loopholes and perverse outcomes. I have probably spoken for long enough on this group of amendments.