Employment Rights Bill (Eighth sitting)

Laurence Turner Excerpts

Committee stage
Thursday 5th December 2024 Public Bill Committees

The Bill needs significantly more surgery and more reflection from the Government to create that clarity and that certainty, at least for the consultations that have been proposed for so many parts of the schedule, during the window in which the Government will consult in depth. The Opposition feel that before we can support the Bill, it needs to go back to the Department and the drafters and come back with certainty on the direction that the Government want to take in so many areas in the schedule.

[Laurence Turner (Birmingham Northfield) (Lab)]

Does the hon. Gentleman accept that if the Bill were to go back to the Department as he suggests, the period in which changes to employment legislation are considered by Parliament would be extended and the uncertainty of which he speaks would be prolonged? Does he further accept that one of the business community’s key requests was for ongoing consultation as the Bill makes its way through its parliamentary stages, and that if we were to take the action he suggests, the Government would be breaking that commitment to business that business has asked for?

[Greg Smith]

I understand the hon. Gentleman’s point, but I believe that it was the Deputy Prime Minister who, in the media over the weekend, could not name a single business that supports the Bill. I will gladly take another intervention from the hon. Gentleman if he can name a single business that supports the Bill. [Interruption.] Not an umbrella body, but an actual business.

[Laurence Turner]

We heard from the Co-op, in the evidence sessions that we all attended last week, that that support is there. Off the top of my head, I would add Octopus and Centrica, two examples of very significant businesses that have welcomed provisions in the Bill.

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[Greg Smith]

I beg to move amendment 136, in clause 7, page 25, line 5, at end insert—

“(1AZA) But where the employer is—

(a) the Security Service;

(b) the Secret Intelligence Service, or

(c) the Government Communication Headquarters,

the test of reasonableness in subsection (2)(b)(ii) does not apply, and the notification under subsection 1(aa) need not explain why the employer considers that it is reasonable to refuse the application on that ground or those grounds.”

This amendment would exclude the security services from the Bill’s provisions on flexible working.

Amendment 136 is essentially a probing amendment—I make that clear from the outset—but one that should go to the nub of exactly where the Government want to go with this measure, not least bearing in mind the Minister’s comments at the end of the last debate about ensuring that everybody falls under the same set of rules. There may be organisations where it is impractical for their employees to be under the same set of rules. The amendment seeks to probe the matter of exempting those working in the security services from clause 7. We define the security services as MI5, GCHQ and the Secret Intelligence Service.

The Regulatory Policy Committee has explained that the Government have not proved that the measures on flexible working are necessary or undertaken any proper assessment of the costs to business. We therefore want to probe the Government’s thinking on how the provisions might apply in practice. There may be certain occupations, such as the security services, where it is harder for the employer to agree requests for flexible working. I am sure that everyone can see the practical realities and the potential consequences for national security and the safety of everyone in our great United Kingdom if the security services were to suddenly have flexible working arrangements.

Has the Minister given any consideration to which sectors may find these provisions either more difficult or completely impractical to comply with? The amendment takes the example of the security services, where irregular hours are worked. I am sure that hon. Members can think of other occupations, such as policing—and perhaps ours, if I may be so bold, Sir Christopher—where irregular hours are more than commonplace.

We would like to understand how the provisions of the Bill will apply to the security services and to understand the Minister’s thinking as to why. That is the critical question in politics—my early mentor in politics, the late, great Eric Forth, was clear that it is the only question that matters in politics—so I put it to the Minister. We want to understand the balance between the right to request flexible working and public protection. Again, I do not believe that any Member of this House wants to undermine public protection and the safety of our nation. The first duty of Government is the defence of the realm and the security of its citizens.

The security services will not be the only profession that might find the requirements difficult to administer. Will the Minister let us know, when he responds to what I repeat is a probing amendment, where the Government stand? What is his assessment of those areas that simply will not be able to comply with the provisions of the Bill? What safeguards will the Government put in place for them? We seek to understand the practicalities of the requirements that the Government are seeking to impose.

[Laurence Turner]

It is a pleasure to serve under your exemplary chairmanship, Sir Christopher.

Before I get into the clause, may I say that I enjoyed my discussion with the shadow Minister about the Northfield constituency? I am half tempted to cite my great grandparents, who were confectioners and newsagents, to burnish my small business credentials, but some on the Labour Benches can do it better. I appreciate that he said that the amendment is probing and that he is taking a particularly unique case in order to test the limits of the Bill.

Focusing on the words of the amendment rather than on the wider issues, because it is the words that matter, it is important to look at the history of employment rights as they relate to the intelligence services, because this is an area that was tested in the 1980s and 1990s in particular. The consequences of not extending these rights to the intelligence services speak to the argument against making the amendment.

For those of us who come from a trade union background, there is an uncomfortable reminder of the ban on trade union activity at GCHQ in the 1980s, which led to a number of skilled professionals leaving the employment of that service. It is important to remember the 14 trade unionists who were sacked because they did not give up their trade union membership. Many of them were re-employed 13 years later, because they still had their skills, which were in high demand.

The shadow Minister talked about the unique nature of flexible working in the intelligence services. I suspect that employees of those services have flexible working arrangements that are hard for any of us on the Committee to imagine, but when employees of the intelligence services did not have recourse to most of the normal procedures of employment law, it was an acknowledged problem that dissatisfaction among employees of the services in itself became a security risk. Some hon. Members may recall that there were a number of very high-profile cases of dissatisfied members of those services who went on the public record in breach of the Official Secrets Act. In some cases, that was attributed to dissatisfaction with employment situations. I can do no better than quote from the Intelligence and Security Committee’s annual report of 1997-98. At that time, the Committee was chaired by Baron King of Bridgwater, the predecessor of one of the Conservative Members who tabled the amendment. It stated:

“The Committee also believes that everything possible should be done to ensure that employees of the Agencies have the same rights as employees elsewhere.”

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[Nick Timothy]

The hon. Gentleman is making a powerful case for the universalism, or near-universalism, of employment rights and presumably, within that, trade union rights. The power to withdraw one’s labour is a very important part of modern employment practice. We are talking about the three security and intelligence agencies listed by my hon. Friend the Member for Mid Buckinghamshire, but I want to give the hon. Gentleman an opportunity to give his view about the universalism of these rights, including the right of the police, for example, to join a union and to strike.

[Laurence Turner]

I am grateful to the hon. Member for raising that point. It is a shame that our Liberal Democrat colleagues are not able to join us, because we could have an interesting discussion about the consequences of the 1919 police strike, and the promises that Lloyd George made and subsequently broke, which led to the creation of the Police Federation rather than an independent trade union, but I will not detain the Committee on that matter. I will just say that we are operating under the international framework for employment law, which sets out very clearly that there are exemptions to the normal right of freedom of association—let us call it what it is—and that includes industrial action. I do not think that the Bill is the right place to diverge from that international framework.

I had reached the end of my points. As I say, there are good national security reasons for rejecting the amendment.

[Michael Wheeler (Worsley and Eccles) (Lab)]

It is, as ever, a pleasure to serve under your chairmanship, Sir Christopher. As this is my first time speaking today, I draw everyone’s attention to my declaration in the Register of Members’ Financial Interests and my trade union memberships. I want to pick up very slightly on some of the points made by my hon. Friend the Member for Birmingham Northfield.

I fully appreciate that we are talking about a probing amendment. I will not revisit my use of the word “ridiculous” on Tuesday—we stayed in that territory for long enough—but the shadow Minister perhaps underestimates the ability of different sectors to accommodate flexible working and to overcome the challenges that he believes the flexible working measures in the Bill might present. In fact, GCHQ already operates a flexible working policy. On its website it is proud to point out that

“Work-life balance is important to us”

and that its

“flexible working patterns…are designed to help work fit… alongside…personal lives.”

If anything, exclusions for entire services sectors would be a retrograde step in places where flexible working provisions are already working perfectly well.

Moving on to the broader point, as demonstrated, I believe that sectors, businesses and employers can cope with this change. There are adequate measures for reasonableness in the Bill. Access to flexible working is an incredibly important right for workers in a modern, evolving workplace. Measures such as these gear the world of work for the future by enabling people to enter the workforce and to stay in it—something that the shadow Minister has expressed a concern about. Anything like this amendment that would exclude sectors, groups or organisations wholesale feels unnecessary, especially in the light of how the measures would work in practice.

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[Greg Smith]

The Opposition are not against flexible working; as I said, we actually legislated for it in the previous Parliament. We can see the benefits of it, as we discussed this morning, for anyone with childcare responsibilities—I count myself and my wife in that; I do not think it is quite a declarable interest—a caring responsibility or a need to have those flexible hours.

We fully recognise and accept the challenges around the nuts and bolts of the details proposed in this legislation, but I gently put it to the hon. Lady that it is our job, as His Majesty’s loyal Opposition, to road-test any legislation that the Government bring forward, which is what we are seeking to do. We are not against flexible working, but we are focused on the potential unintended consequences, the potential cost to business and the potential cost to jobs in the overall workforce, as I argued in a debate on an amendment this morning.

If employers do not have confidence—if they think that something will go wrong or that it will lead to countless days and months in employment tribunals—they may not make those hires in the first place, and then everyone and the whole economy will suffer. Opposition Members cannot stand by and not challenge or test that to ensure that the Government have got it right. To return to what I was saying before the intervention, for SMEs, the opportunity cost of their chief executive officer or another senior director spending time on employment tribunals is also considerable.

New clause 26 in my name and the name of my hon. Friends merely gives the Government an opportunity to do their homework and test whether the provision will work. We do not believe that they should casually pile more regulation on to business without knowing whether these specific measures—the detailed measures in the Bill—are actually needed to achieve their objectives.

We are asking the Government to consult on the impact of the measure and to report on it, and for the House of Commons to approve that report before the measure comes into force. Given the RPC’s verdict on the Bill’s impact assessments, business would find it reassuring if the impact assessment could be done and placed before the House so that we could study it and debate it, and so that Members on both sides of the House—Government Back Benchers and Opposition Back Benchers, as well as those in the smaller parties—can fully understand it. We believe that it is important for the Government to have to come back again for the approval of the House before the measure comes into effect.

[Laurence Turner]

The hon. Gentleman seems to be looking for statistical evidence about employers unreasonably refusing flexible working requests. I must say that it is a shame that the workplace employment relations study was last carried out in 2011. The Government at the time declined to repeat the exercise; had they not, we might have the information in front of us that he is looking for.

Does the hon. Gentleman accept that there are precedents—blacklisting, for example—in which there were widespread but anecdotal reports that the practice was occurring? It was difficult to prove, and on that basis, the regulations on blacklisting were not enacted. Then, lo and behold, it became apparent years later that the practice was not just widespread but had been carried out on an industrial scale. Had the measures been put in place at the time, many lives would have been left unbroken.

[Greg Smith]

I will take on the chin the hon. Gentleman’s point about the 2011 dataset, which was published under the coalition Government, led by my noble friend Lord Cameron. The current Government is seeking to make this legislation, however, so the onus is on them—right here, right now—to provide the datasets, evidence, proper analysis and impact assessments for the legislation that they are putting before the House of Commons and, later, the House of Lords in this Session of this Parliament. I hope the hon. Gentleman accepts the good will with which that comment is made—it is not a political attack. It is the duty of any Government at any time, as they seek to legislate on any matter, to provide the impact assessments, the real data and the real-world evidence of why it is necessary to put that legislation in place.

As I said earlier, it is simply a case of asking the Government to do their homework properly, and to provide, not just to Parliament but to businesses and employees up and down the land, the basis for which they are seeking to change our statute book.

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[Chris Law (Dundee Central) (SNP)]

It is good to see you in your place, Sir Christopher. I will speak to an amendment on this issue shortly, but I will briefly say that everyone in this room, at some point in their working life, will be ill. It is not something that we would choose or desire, and most of us want to get back to work as soon as possible. The problem is that it happens, and when we are off ill we still have bills to pay, families to keep and mortgages or rents to pay. The level of statutory sick pay is frankly woeful in this country—in fact, for those hon. Members who do not know, it is the worst in the developed world. We should all be ashamed of that and we need to really think about it.

I welcome the changes to ensure that everybody gets statutory sick pay, but I find it disgraceful that we have not even touched on its level: it is £116 a week, or £6,000 a year. At some point in our lives, all of us have worked in very low-paid jobs. We have all done that, particularly in the early years. We would never imagine that somebody could live on £6,000 a year. Not everybody is expected to be off for a year, but some are, due to prolonged illnesses.

I will talk about this issue more on my amendment, but before I go into it in detail, I really want to hear from the Minister what changes the Government look to make so that we are no longer the sickest country in the world for being unreasonable, unfair and unjust to employees, and to ensure that statutory sick pay, which is about 17% of the average income—it was 35% when it was introduced—will start to restore the proper justice required for employees.

[Laurence Turner]

The shadow Minister’s comments to the effect that he accepted in practice the arguments on the workplace and presenteeism were welcome. If, through this Committee, we can reach some degree of cross-party consensus on the issue, it would be a real advance and proof of the value of this process. I mean that sincerely.

I turn to the measures. The question of waiting days is as old as the national insurance system. Although many of the incremental changes made in the Bill are welcome, it is time to take a step forward. The case for that step was proven during the pandemic. The Minister quoted USDAW research, and I am obliged to quote GMB research, which found that 90% of care workers could not afford to take time off if they became ill. That meant that during the pandemic, many people were presenting at work either for the duration of their illness or for the waiting period, and we have very good evidence of that. I will quote one example. A study by Dr Laura Shallcross and other authors in The Lancet found that the odds of covid infection in care home residents and staff and of large outbreaks

“were significantly lower in LTCFs”—

long-term care facilities—

“that paid staff statutory sick pay compared with those that did not.”

That was one of the key determinants or predictors of where outbreaks might occur.

To perhaps quote a more human voice, a social worker and member of the GMB said:

“For me, being on a zero-hours contract, I don’t always get work. If I become ill, I don’t get paid. If I get a cold or flu-related illness, I am expected to stay at home without pay, because I may pass the illness on to our service users. It is a very, very stressful life.”

When the Chartered Institute of Payroll Professionals surveyed its members, 47% agreed with the abolition of the waiting days period, so there is support in this area among private sector practitioners. When the Fabian Society, of which I declare I am a member, looked at this question, it found that the cost to business of adopting that measure would be very low—somewhere in the region of £15 per year for each employee.

As matters of cost have been raised in Committee on several occasions, I shall finish by quoting from the 2010 Black review, commissioned by the then incoming Government, which I think is still the best evidence we have of the cost of the statutory sick pay regime. It said:

“Great Britain has a mixed approach to sickness absence. Although employers in theory bear the cost of Statutory Sick Pay (SSP), the cost itself is not very high. Barriers to dismissal are relatively low (although it should be noted that dismissing someone specifically to avoid paying SSP is illegal). Employers are therefore obliged to bear little cost or accountability for sickness absence, albeit many employers choose to pay more in occupational sick pay (OSP) than the statutory obligation.”

There are many cases where occupational sick pay is paid at a rate higher than the SSP rate. That is of course welcome, and accounts for the majority of employers. For those employers who are being brought into paying SSP earlier, as we have heard, the cost is low, but the changes could make a really significant difference to the lives of some of the lowest paid workers in the economy. This measure is extremely welcome.