Employment Rights Bill Debate
Full Debate: Read Full DebateLord Freyberg
Main Page: Lord Freyberg (Crossbench - Excepted Hereditary)Department Debates - View all Lord Freyberg's debates with the Department for Business and Trade
(4 months ago)
Lords ChamberMy Lords, I would like to add my thanks and congratulate the four maiden speakers on their excellent speeches.
This Bill marks a significant milestone in the campaign to strengthen employment rights in the UK. For many workers, the measures it contains—day-one rights, enhanced sick pay, protections from unfair dismissal—represent long-overdue reforms. However, we must also ask how these reforms serve the backbone of our cultural economy: our freelancers.
In the creative industries, over a third of the workforce is freelance. I declare my interest as a freelancer in the visual arts. In sectors such as theatre, film, publishing and design, it is more than 50%. Freelancers contribute billions to our economy and underpin the UK’s global cultural reputation, yet this legislation, while welcome, still leaves too many of them in the margins.
The Bill includes small measures—such as blacklisting protections, enhanced health and safety requirements and the right to a written contract—but otherwise offers little in the way of concrete protections for freelancers. There is no guarantee of fair pay, no enforcement on late payments and no formal route to challenge exploitative contracts or to clarify issues around single-worker status. While further consultation is welcome, it must safeguard the creative autonomy and IP rights that freelancers depend on. A blanket reclassification could cause real harm.
I support calls from across the sector—by organisations such as DACS, ALCS, BECTU, Creative UK and the Cultural Policy Unit—for the creation of a freelance commissioner. A dedicated advocate is needed to ensure freelancers are included in future reforms. Too often, they are out of scope, out of protections and out of pocket.
However, we must also maintain the balance between protecting individuals and supporting the viability of the organisations that employ and commission them. That balance is increasingly fragile. Consider the Royal Society of Arts, where a polarised dispute over pay between unionised staff and leadership has spiralled into reputational damage and a breakdown in trust; or the Tate, a DCMS-sponsored body, which cut nearly 7% of its workforce to manage deficits. The Royal Academy of Arts has warned of cuts of 18% of its staff. Many cultural organisations are operating on the brink, with commercial income still in recovery and reserves depleted.
Faced with new obligations, some employers may delay hiring, turn to long-term contractors or shift work offshore. For agencies and studios, hiring freelancers may appear less risky, potentially increasing short-term opportunities, but without protection this shift may only deepen insecurity across the sector.
This underscores the need for phased, consultative implementation and enhanced public funding mechanisms. Rights must be matched by resources. Without support, organisations may reduce opportunities—or close altogether. We must act strategically. That means sector-sensitive collective bargaining, better enforcement mechanisms and targeted support for smaller and mid-sized arts bodies.
This Bill opens a long-overdue chapter in employment rights. However, for the UK’s world-leading creative industries—and the freelance workforce on which they depend—it must not be the final word. Let us ensure that these reforms support all workers, however they work, and provide the resources needed to sustain the culture that we value.
Employment Rights Bill Debate
Full Debate: Read Full DebateLord Freyberg
Main Page: Lord Freyberg (Crossbench - Excepted Hereditary)Department Debates - View all Lord Freyberg's debates with the Department for Business and Trade
(1 month, 4 weeks ago)
Lords ChamberMy Lords, I am grateful for the support of my noble friend Lord Freyberg, and the noble Lords, Lord Hendy and Lord Cashman, who unfortunately cannot be here today, and for the discussions I have had with them and other colleagues in the House, including the noble Baroness, Lady McIntosh of Hudnall, who I see her in her place, and with relevant industry representatives. I am also grateful for the meeting that my noble friend Lord Freyberg and I had with the Minister and her team on not just this but other areas of the creative industries in relation to the Bill.
This debate has been prompted by the ongoing dispute between Equity and the casting directory resource Spotlight around the levels of charging that Spotlight makes for the inclusion of performers in its now online directory. I declare an interest as my daughter is at drama school and signed up with Spotlight. Equity believes that Spotlight charges too much for this service and is bound by both the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. Equity believes that, at the very least, Spotlight should not be charging more than it costs to maintain the directory. This dispute has resulted in a class action brought last year by Equity against Spotlight, and a High Court hearing is scheduled for next month.
I will not say anything about how the court case should or will pan out, and I am sure that the Minister will be equally as careful in her response in that respect. What I can say is that things very much came to a head in 2023, when Spotlight tried to launch its so-called “premiere service” at a time when we had only just emerged from Covid. This was widely criticised within the industry as invoking a two-tier membership which would only benefit the more privileged. To its credit, Spotlight paused this service, but there is no doubt that some damage had been done in terms of trust.
Equity says that the charges that Spotlight makes are their members’ number one concern and that, further, Spotlight is exploiting its monopoly position. However, there is a strong argument for a single, recognisable go-to platform for professional actors and other performers. This is a really important point, otherwise it could cost actors a lot more if it becomes necessary to sign up to more than one platform. This is a role that Spotlight has fulfilled for almost 100 years and continues to fulfil. I should say that, as far as I can ascertain, there is no substantial criticism of the service that Spotlight or indeed other platforms provide; this is a dispute about costs.
One potential outcome of the court case is that performers will not have to pay anything at all for inclusion in such directories. However, this raises very problematic concerns about how those moneys are made up for if that should be the case, as well as there being potentially wider implications beyond the entertainment industry.
I ask two things of the Minister. The first is very simple and modest: that the Government keep a watching brief on this. We may well return to this after the court case, and I will leave it to my noble friend Lord Freyberg to provide particular arguments about why we should have the review that the amendment itself asks for.
Secondly, and the reason for raising this issue at the present time, is that as I have tried to show, this dispute has not come out of the blue. I therefore ask the Government whether they believe that a legally enabled mechanism might have been useful in this instance and potential future instances in order to resolve such disputes and avoid court proceedings, which is always a nuclear option. In that respect, I listened with great interest to the previous debate on the group led by the noble Lord, Lord Hendy, and wonder whether the Minister has a response to that. I beg to move.
My Lords, I will speak in support of Amendment 204C. I thank my noble friend Lord Clancarty for tabling the amendment and I am grateful for the constructive discussion that he, the noble Lord, Lord Hendy, the noble Baroness, Lady McIntosh of Hudnall, and I had with colleagues, industry representatives and the Minister and her team. Like my noble friend, I do not intend to comment on the ongoing legal proceedings between Equity and Spotlight; that is rightly a matter for the courts. However, I believe that the situation that has prompted this amendment highlights an underlying tension that is worthy of review: whether the existing employment law and regulatory framework remain fit for purpose in today’s digital casting environment.
Lord Freyberg
Main Page: Lord Freyberg (Crossbench - Excepted Hereditary)Department Debates - View all Lord Freyberg's debates with the Home Office
(1 month, 2 weeks ago)
Lords ChamberMy Lords, this group of amendments addresses the arts and cultural sector. I declare my interest as an artist member of DACS. I thank the noble Earl, Lord Clancarty, the noble Baroness, Lady Bennett of Manor Castle, and the noble Lord, Lord Parkinson of Whitley Bay, for their support for the various amendments I have tabled in this group. I also thank the Minister and her officials for meeting with the noble Earl, Lord Clancarty, and me earlier this month to discuss these amendments.
The arts and cultural sector is of national importance. Creative industries generated some £126 billion in gross value added, representing almost 6% of the economy, and supported roughly 2.4 million jobs, as of 2022. However, its workforce is highly atypical. A recent study found that a fully 32% of creative and cultural jobs are freelance, more than double the 14% of the wider UK workforce. Creative organisations tend to be small, low-margin and reliant on irregular income, such as ticket sales, grants and philanthropy. In short, a one-size-fits-all employment regime risks harming both workers and institutions. Our amendments in this group aim to strengthen protections for arts workers—especially freelancers—without inadvertently pushing theatres, galleries and arts charities over the edge. I remind the House of the earlier Amendment 16, moved by the noble Lord, Lord Parkinson, regarding theatres and casual workers, as another worry.
The creative workforce is famously project-based and freelance-heavy. For example, BECTU reports that many film, TV and theatre freelancers were initially excluded from Covid support schemes. We propose sector-specific measures: flexible collective bargaining, phased implementation of new rules and targeted support, balanced by accountability measures such as impact reviews. These proposals reflect best practice abroad. For instance, new EU guidelines explicitly enable self-employed workers to engage in collective bargaining, and many countries even use cultural levies to fund arts employment. Our aim is therefore practical: to adapt the Bill’s intentions to the realities of the arts. It is a vital opportunity for the sector’s needs to be heard.
I am always happy to meet with noble Lords on these important matters.
My Lords, I thank the Minister for his very helpful answer and all noble Lords who have taken part in today’s very interesting and in-depth discussion that I think we have all valued and benefited from.
I will make a couple of observations. The noble Earl, Lord Clancarty, made a very powerful point about the lack of government representation from freelancers when he said there was not then and there is not now any clear channel between freelancers and government. I do agree with the points made by many noble Lords about this. The noble Lord, Lord Clement-Jones, talked about having a freelance commissioner for advocacy and driving change. We need more work on this, because it is not clear that freelancers are getting the type of direction that the Government need to give on this.
I was struck by the very powerful speech by the noble Baroness, Lady Caine, on the concerns about health and safety in the film industry. Again, a freelance commissioner would be able to look at this in more detail and drive that through. There does not seem to be the same powerful advocate without that, so I hope the Minister will consider how to strengthen that. The noble Lord, Lord Londesborough, made a powerful speech about the number of freelancers who are going to come into this area; therefore, not to have them represented in this Bill is an oversight.
When I was anticipating what the Minister would say, I had various things down: asking for a carve-out, asking for special treatment for one sector, phased implementation is a slippery slope, oversight already exists through Arts Council England and DCMS, there is not enough evidence to justify these changes and we already have a Minister for Culture. However, as others have rightly said, this is not about a carve-out or an exemption, it is about adaption. The creative workforce is structurally different, highly freelance, project-based and often dependent on public and charitable funding. Our amendments aim to ensure that employment rights can be applied fairly and effectively in this context.
Employment Rights Bill Debate
Full Debate: Read Full DebateLord Freyberg
Main Page: Lord Freyberg (Crossbench - Excepted Hereditary)Department Debates - View all Lord Freyberg's debates with the Department for Business and Trade
(1 week, 5 days ago)
Lords ChamberMy Lords, I am aware that many of the amendments in this group have a rather different focus from the points I wish to make. I acknowledge the amendments by the noble Lords, Lord Clement Jones and Lord Holmes of Richmond. I believe they provide a valuable opportunity to reflect on the particular nature of working in tech and AI. This is, as has already been alluded to, a sector that makes a significant and growing contribution to the UK economy, and it is rightly seen as one of the priority strands of the Government’s modern industrial strategy.
As the rather scary AI 2027 forecast by Daniel Kokotajlo and other makes clear, developments in this space are accelerating incredibly rapidly and are already reshaping how we live and work. Even as I say that, I wonder whether I may have triggered an algorithmic alert somewhere—let us hope that parliamentary privilege covers some of it. AI is happening, regardless of how we feel about it, and the opportunity it provides makes it all the more important that firms are based and regulated here rather than elsewhere.
Jobs in this area tend to be highly skilled and well paid, but that does not mean workers do not need some protections. In many cases, the things that matter most are not issues such as minimum wage and paid leave but how easily people can move between companies, start their own ventures and work across several fast-growing enterprises. Here, it is non-compete agreements which pose a particular challenge. Understandable concerns over safeguarding intellectual property have led some firms to restrict employee movement, yet this comes at a cost to innovation, competition and the free flow of ideas that underpin these industries. I know the last Government carried out a review of these clauses in general terms, but no meaningful reform followed. Does the department have a view on how widespread these clauses now are, particularly in fast-moving and competitive sectors? Has any formal assessment been made of their impact on innovation, start-up activity, and people’s ability to move freely and fairly between roles?
I fully appreciate that this Bill is focused on establishing baseline rights for all workers rather than addressing sector-specific concerns. However, I hope the Minister can say something about how these challenges are being considered as part of the Government’s wider thinking on the future of work and on how we ensure that the UK remains a good place to innovate, as well as a fair place to work.
My Lords, I support the timely and vital amendments tabled by the noble Lords, Lord Clement-Jones and Lord Holmes of Richmond, concerning the use of artificial intelligence in the workplace. These amendments, which cover transparency, accountability, consent, fairness and the protection of workers’ rights, speak to one of the central challenges of our time: how we align the rapid deployment of AI with the rights, dignity and agency of working people.
Just 11 days ago, a few of us, including the noble Lord, Lord Clement-Jones, had the privilege of attending the round table on aligning AI for human flourishing, hosted here in the House of Lords by the noble Baroness, Lady Kidron, and convened by Oxford University’s Institute for Ethics in AI and the Accelerator Fellowship Programme. It was led by Professor Yuval Shany and brought together leading international voices, including Professor Alondra Nelson, who designed the US Blueprint for an AI Bill of Rights, later embedded in President Biden’s executive order on AI.
That discussion made one thing clear: we are at a crossroads. As Professor Nelson put it at a recent AI action summit in Paris:
“We can create systems that expand opportunity rather than consolidate power for the few”.
If we are serious about that aspiration, we need laws that embed it in practice. I hope we will soon see legislation introduced in this House—an AI Bill of Rights rooted in the UK context—that reflects our democratic values, legal traditions and the lived realities of British workers. That will require leadership from the Government and support across parties, and I believe this House is well placed to lead the way.
That is precisely what the amendments tabled by the noble Lord, Lord Holmes, seek to do. Amendment 168 outlines the core principles employers must uphold when using AI on workers: safety, fairness, transparency, governance, inclusion and the right to redress. These are the bedrock of responsible innovation. Amendment 169 proposes the appointment of designated AI officers within organisations, ensuring that someone is directly accountable for the ethical and unbiased use of these powerful technologies.
Amendments 171 and 172 tackle perhaps the most urgent concern: consent. No worker’s data should be ingested by AI systems—or decisions made about their employment by algorithm—without their meaningful, informed opt-in. We are not speaking in abstractions; AI is already determining who is shortlisted, scheduled, surveilled or sidelined. These systems often operate in secret and carry forward the biases of the data they are trained on. If we do not act now, we risk embedding discrimination in digital form.
This is not the first time that this House has stood up for fairness in AI. On 12 May, and in subsequent ping-pongs on the data Bill, many of us voted in support of the amendments tabled by the noble Baroness,sb Lady Kidron, which called for transparency over copyright and AI. That debate too was about rights—to control one’s work, one’s data and one’s identity. The same principle is at stake here. If the UK is to lead on AI, we must lead not just in capability but in ethics. The amendments tabled by the noble Lord, Lord Holmes, are not radical but responsible; they bring our values into alignment with our technologies. I therefore urge all noble Lords to support them, even though it is highly unlikely that they will be accepted.
From these Benches, all I can say is that I echo those words. I hope that the Government have listened to the arguments about AI and will respond positively.
Employment Rights Bill Debate
Full Debate: Read Full DebateLord Freyberg
Main Page: Lord Freyberg (Crossbench - Excepted Hereditary)Department Debates - View all Lord Freyberg's debates with the Department for Business and Trade
(1 week, 3 days ago)
Lords ChamberMy Lords, it is extremely disappointing that we are debating something of this order of importance at this time of day and at the fag-end of this Bill. However, unusually, I shall try to ingratiate myself with the House by being as brief as possible.
First, I want to thank the noble Lord, Lord Katz, for his letter of 30 June and for the publication of the draft terms of reference for the freelance champion, referred to by the noble Earl, Lord Clancarty, who set out the stall extremely cogently for these amendments. I do not need to go over the ground that he has explained extremely well. The lack of a single clear voice representing the interests of freelancers to government is what this is all about—a clear definition of what a freelancer is and clear duties for the freelancer commissioner.
The freelance champion has some similar characteristics to the freelance commissioner, but there are significant differences from the independent freelance commissioner. It is not going to be a statutory office, unlike the freelance commissioner. The structure proposed in our amendments would be more permanent and more independent of government. The terms of reference explicitly state that the champion will focus on freelancers working in the creative industries only, so it will not be cross-sectoral. As we heard from the noble Lord, Lord Londesborough, it is clear that freelancers are extremely prevalent not only in the creative industries but in many other industries as well, including construction, professional, scientific and technical activities, business support, health and social work, IT, digital services and education and training.
While welcome, the freelance champion for the creative industries under the sectoral plan does not go nearly far enough across the board in making sure that there is a real advocate and one with teeth who is able to influence policy towards freelancers across all those different sectors. The question really is why the Government have failed to grasp the urgency and widespread nature of the challenges faced by freelancers across all sectors. It is not unclear that freelance work covers much broader areas than just the creative industries. These amendments would offer recognition to a workforce that contributes enormously to our economy and cultural life and is too often unprotected and unheard in legislative terms.
I urge the Government, even at this time of day and at this time in the Bill, when they cannot really change their approach, really to think about this. We have heard so much about how, on AI or dependent contractors, the Government are considering these things. They really need to shape up in terms of the modern economy. Freelancing is on the increase and they need protection—and the freelance commissioner would be by far the best way forward.
My Lords, it is a pleasure to follow my noble friend Lord Clancarty and the noble Lord, Lord Clement-Jones, who have each set out the case for a more coherent and strategic approach to freelance policy with great clarity. I shall not repeat their arguments but will attempt to build on them.
I support Amendments 160 to 162, to which I have added my name, and I will speak to my own Amendments 163 to 165. I declare my interest as an artist member of DACS, the Design and Artists Copyright Society.
My Lords, Amendment 167 is in my name and that of the noble Lord, Lord Londesborough, whose support I am extremely grateful for. I will also speak to Amendments 177 and 178. Many of my points are likely to coincide with those to be made by the noble Lord, Lord Moynihan of Chelsea, on his Amendment 184A. However, his amendment takes a much broader view of the employment landscape than I do. I look forward to hearing his speech, and that of the noble Lord, Lord Clement-Jones, who will revisit the definition of the independent contractor.
Amendment 167 is a probing amendment that draws attention to the lack of consistent and widely accepted definitions of “freelancers”, “self-employed persons” and “sole traders”. These terms are often used interchangeably but carry distinct legal and practical implications.
A helpful approach would be for the Government to adopt a three-tier taxonomy, defining “freelancer” as a person who provides services on a project or contract basis, often to multiple clients, without being an employee. Amendment 161 from the noble Lord, Lord Clement-Jones, serves as an effective model for this, notwithstanding the comments by the noble Lord, Lord Hendy. The annexe in the draft terms of reference for the freelance champion, which I have seen, like the noble Earl, has also attempted to define a freelancer, which is a useful first step but by no means definitive.
A self-employed person is someone who runs their own business and is responsible for its success or failure, typically registering with HMRC for tax purposes. According to July’s House of Commons UK Labour Market Statistics report, self-employed people make up approximately 13.5% of the labour market, which currently has 4.43 million self-employed individuals.
A sole trader is a specific legal and tax classification in which an individual runs a business in their own name without forming a limited company. Although all sole traders are self-employed, not all self-employed persons are sole traders, and some may operate through partnerships or limited companies. Freelancers may span both categories, depending on their business structure.
The amendment also asks for
“an assessment of how the categories … may be impacted differently by the provisions of this Act”.
This provides an opportunity to examine disparities in access to employment protections, financial services, taxation and eligibility for public support. For instance, while a sole trader may more easily access certain types of finance or insurance, freelancers working intermittently across sectors often face barriers in securing mortgages, pensions, sick pay and other forms of welfare.
A government report could use illustrative case studies to clarify the lived experience of these categories—for example, contrasting the experience of a freelance illustrator, a self-employed plumber and a sole trader café owner. To ensure fair and equitable treatment across these groups, the Government may wish to explore options for harmonising entitlements and protections where possible. This might include developing portable benefits for freelancers, expanding access to contributory social protections or encouraging the adoption of freelance codes of good practice. The Creative Industries Council’s freelance toolkit is one model that could be promoted across sectors.
Amendments 177 and 179 raise closely related concerns regarding the visibility and classification of workers in the visual arts and craft sectors. These sectors often involve individuals working across multiple roles, such as creators, educators, curators and consultants, and frequently combine freelance and part-time employment in complex ways. Employment and legal status in these fields is therefore especially difficult to define clearly, which can leave individuals underprotected or misrepresented in government data and support schemes.
The Government could respond by convening a time-limited working group with representatives from relevant sector bodies, such as the Artists Information Company, the Crafts Council, Heritage Crafts, CVAN, DACS, the Cultural Policy Unit and Creative UK, to develop practical guidance on employment classification in the arts and crafts sectors. This could be an initial task for the creative freelance champion to prioritise early in their role.
Both amendments also highlight the significant limitations in how current standard industrial classification, SIC, and standard occupational classification, SOC, codes capture creative labour. For example, SIC code 9003 for “artistic creation” groups together visual artists, authors, composers and digital designers, obscuring the distinct needs and contributions of each group. SOC codes similarly fail to disaggregate fine artists, applied artists and craftspeople.
I understand that government departments may use a threshold of approximately 4,000 practitioners as a cut-off point for counting people working in various sectors—if the Minister could clarify this, it would be most helpful—as this approach would exclude virtually all heritage craft makers from official statistics. The Red List of Endangered Crafts includes 285 crafts, but not all of them are covered by the current SIC and SOC codes.
My Lords, I wish I had also brought my white hanky to the debate, but sadly I do not have that cop-out. This been a short but focused and interesting debate. I will begin with Amendments 177 and 179, tabled by the noble Lord, Lord Freyberg. The Government are well aware of the importance of accurate occupational categorisation, especially for those in culturally important occupations, and the noble Lord and I have separately discussed this issue and the complexities around it.
More specifically, we understand that some stakeholders feel the four-digit standard occupational classification—SOC—system is not detailed enough for their needs. To address this, in 2023 the ONS published an extended six-digit system that includes more accurate categories for groups like those mentioned by the noble Lord in his amendments. In addition to this, the ONS is now beginning work on the next update to the SOC system, which will be published in 2030.
I am afraid that I do not have some of the details on disaggregation, the levels of qualifications and so on that the noble Lord, Lord Freyberg, asked about, but I will undertake to write to him with more details. However, I would be very happy to facilitate contact between the noble Lord and the ONS team that is responsible for this work. He has demonstrated great interest and no little expertise in this subject area, and I am sure that they would appreciate his views and detailed analysis on the system, how it could be improved and how it could better reflect the complex ecosystem of craftspeople and other creative workers.
I turn to Amendment 167, again tabled by the noble Lord, Lord Freyberg, and supported by the noble Lord, Lord Londesborough, as well as Amendments 183 and 184A, tabled by the noble Lords, Lord Clement-Jones and Lord Moynihan, respectively. I hope that the noble Lords are reassured from the debate on the previous group that the Government take the commitment to tackling pressing issues with the existing employment status framework very seriously—and from the comments of the noble Lord, Lord Clement-Jones, I think that is the case.
As the noble Lords, Lord Moynihan and Lord Clement-Jones, said, consultation in the fullest sense is imperative on this issue. It will allow us to receive and consider the widest range of views and engage fully with relevant stakeholders, including those mentioned by the noble Lord, Lord Moynihan, in his amendment. Consulting on employment status was a commitment in the plan to make work pay, and as my noble friend Lady Jones outlined to your Lordships’ House in the debate on the previous group, today we are confirming that we will publish a consultation on this by the end of the year. As the noble Lord, Lord Moynihan, said, we will risk undermining the value of this work if we introduce new definitions without prior consultation.
The noble Lord also mentioned requiring an impact assessment of any legislative proposals brought forward as a result of this consultation. I can reassure your Lordships’ House that, in keeping with our better regulation requirements, we will produce impact assessments alongside any such legislation.
I hope this assures noble Lords that the Government are committed to consulting on employment status and are doing so with the care, focus and full engagement that this important issue requires. On this basis, I ask the noble Lord, Lord Freyberg, to withdraw Amendment 167.
My Lords, I am very grateful to all noble Lords who have contributed to this thoughtful and wide-ranging debate. In particular, I welcome the announcement of the employment status consultation, which will be very helpful in looking at this matter in the round. I also am very grateful to the Minister for his offer to put me in touch with the ONS; I would be delighted to accept that and take it up at a later point. Given the lateness of the hour, I will not comment further. I beg leave to withdraw my amendment.