Employment Rights Bill

Lord Clement-Jones Excerpts

Committee stage
Thursday 5th June 2025 Lords Chamber

Moved by

[Lord Clement-Jones]

148: After Clause 34, insert the following new Clause—
“Definition of AI System(1) For the purposes of this Act, “AI System” means an engineered or machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as content, predictions, forecasts, recommendations, or decisions influencing real or virtual environments. (2) AI systems may operate with varying degrees of autonomy and include use of algorithmic techniques such as natural language processing, large language models, multi-modal models, machine learning, speech or image recognition, neural networks, deep learning, or decision trees.”Member’s explanatory statement
This amendment clarifies the definition of an AI System within the context of employment rights as an engineered system generating outputs from inputs using algorithmic techniques.

[Lord Clement-Jones (LD)]

My Lords, first of all, I must make my apologies that this is my first contribution to the Bill. I have waited until day 7—I am not quite sure that that is entirely my fault—but it is a pleasure to speak in this group, particularly as I know that the noble Lord, Lord Holmes, is on the same page, even if he has put forward a different set of amendments.

In moving Amendment 148, I will also speak to Amendments 149 and 150. I hope that these amendments are of interest to the Committee; they are certainly close to my heart. They address the profound and rapidly evolving impact of artificial intelligence systems on the modern workplace. Reports by the Institute for the Future of Work and the All-Party Group on the Future of Work paint a clear picture: the wide spread of AI at work is transforming lives and livelihoods in ways that have plainly outpaced or avoid the existing regimes per regulation. The impact of AI will be profound and, although there are potential benefits, there are also significant risks or impacts on employment rights and conditions in the workplace. We must make sure that AI benefits are realised but also that the detriment is avoided.

As the All-Party Group on the Future of Work found, there is an urgent need to bring forward robust proposals to protect people and safeguard our fundamental values in the workplace. Existing regulatory frameworks are strained. Technical approaches commonly deployed before deployment of algorithmic systems are often inadequate. That is why a systematic framework for accountability is urgently required.

The workplace AI risk and impact assessments—WAIRIAs, as we have coined them—proposed by these amendments, are intended to provide such a framework. As the Institute for the Future of Work and others have argued, mandating such regimes of impact assessment is a practical response to a deficit of responsible foresight.

It is important for WAIRIAs to be made a legal requirement and for accompanying guidance to be issued to outline a framework. Amendment 148 defines what constitutes an “AI System” in this context as:

“an engineered system generating outputs from inputs using algorithmic techniques”.

That very clear definition ensures we are all addressing the same technology when discussing its regulation.

Amendment 149 introduces the cornerstone requirement for workplace AI risk and impact assessments. This amendment mandates that:

“Before implementing or developing an AI system which may have significant risks or impacts on employment rights and conditions in the workplace, an employer must conduct a workplace AI risk and impact assessment”.


The rationale for this is crucial. AI systems can have a potential significant risk or impact on areas vital to workers, including:

“the identification or exercise of rights … work access or allocation … remuneration or benefits … contractual status, terms or conditions …”

and even

“mental, physical or psychosocial health”.

--- Later in debate ---

[Lord Clement-Jones (LD)]

My Lords, I thank the Minister. That is probably the most comprehensive statement about the Government’s intentions on AI regulation that I have heard in this Parliament, so I thank her and her officials for taking the time and trouble to set out their approach.

The noble Lord, Lord Sharpe, talked about gap analysis. I am very much in favour of that. I do not want to see duplication of regulation; I want to see effective regulation. The noble Baroness, Lady O’Grady, set out the challenge: will the Government address the new challenges? That seems to be absolutely at the heart of this.

I thank the Minister for her assurance that there will be an imminent consultation. I think all of us with an interest in this will very much want to take part in that. I hope that this mini-debate has started the ball rolling in getting people’s thoughts about what we can do. What the noble Baroness, Lady Bennett, said was crucial; the illustrations she gave were exactly why we are concerned about these issues.

Talking of gap analysis, this morning I helped to launch the ICO’s new AI and biometrics strategy. We are all a bit nervous about this because we do not think the current ICO regime covers all the issues relating to AI use, particularly in the workplace. We are subject to exactly the issues that the noble Lord, Lord Holmes, put his finger on. The Government have no appetite for cross-sectoral regulation, but what does that mean? Does it mean having to pick off individual sectors, sector by sector, only to be told on individual Bills, “I’m sorry, it’s not appropriate to start legislating about AI in our particular bit of legislation”?