Employment Rights Bill

Lord Hunt of Wirral Excerpts

Report stage
Monday 21st July 2025 Lords Chamber

Moved by

[Lord Hunt of Wirral]

128: Clause 55, page 75, line 23, at end insert—
“(8) The provisions inserted by this section do not apply to small businesses.(9) For the purposes of subsection (8), a “small business” means an undertaking which employs fewer than 50 employees.”

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[Lord Hunt of Wirral (Con)]

My Lords, in moving this amendment, I will also speak to Amendments 129, 131 to 134 and 145 in my name and that of my noble friend Lord Sharpe of Epsom. What we are talking about here is the extent to which the Government’s sweeping changes to trade union access rights, including the unprecedented extension of digital access, should apply to small businesses. These changes were introduced without any proper explanation on Report and they have generated serious concern, particularly for our small and medium-sized enterprises, which may suddenly find themselves subject to obligations they neither anticipated nor are equipped to manage.

These amendments have been directly endorsed by the Federation of Small Businesses, the principal organisation representing the voice of small employers right across the country. I quote from it directly:

“New growth and jobs in local communities rests squarely on our SMEs, which make up over 99 per cent of all UK businesses and employ around 16 million people—disproportionately recruiting those furthest from work.


The Federation of Small Businesses (FSB) supports this amendment, which recognises the distinct nature and limited resources that small employers face when it comes to managing industrial relations in what in many cases are more like family units or teams, than big corporates.


They simply do not have the HR infrastructure or legal teams that big firms rely on to navigate complex union access procedures and negotiations. This amendment provides a necessary and vital safeguard by ensuring that SMEs are not automatically subject to trade union access requests or changes to recognition thresholds.


Our recent research found that 92% of small business employers are deeply concerned about the measures proposed in the Employment Rights Bill, with 72% specifically worried about the increased cost of compliance, such as the need for specialist HR or legal support. These figures further demonstrate the importance of maintaining proportionate, practical and measured safeguards, such as those contained within this amendment.


We hope that Conservatives and Liberal Democrats will back the amendment to delay these measures, and that the Labour Government will agree to it, to guarantee proper consultation, and assessment of the practical impacts on SMEs, and that Parliament considers these before Ministers turn on these provisions”.


I beg to move.

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[Lord Leong (Lab)]

It is just like any other right that employees expect, such as health and safety, annual leave and all that. The right to join a union does not mean that they have to join a union; it is still their choice. It is a small step that empowers workers and supports a fairer and more balanced workplace.

The statement of trade union rights will be provided at the start of employment, alongside an existing written statement of particulars already required under Section 1 of the Employment Rights Act 1996 and at other prescribed times. Given that it builds on an established process, we believe that this measure places minimal burden on employers, including many small businesses. We will consult on the practical details of Clause 55 before this is set out in secondary legislation.

On Amendment 130, the right to access is a complex policy and will involve detailed practical consideration. We will therefore provide for the operational details of a responsible and regulated access framework in secondary legislation. Ahead of doing so, we will publicly consult on the operational details this autumn, including on model access terms that the CAC must consider reasonable for both employers and unions to comply with, and the appropriate amount of notice a union must give before access takes place. Consulting before setting out these operational details will ensure that we cater for a variety of scenarios and workplaces and will ensure that these measures are fair and workable in practice. We believe that providing for this operational detail now, ahead of consultation, would be premature. I therefore respectfully ask the noble Lord, Lord Hunt, to withdraw Amendment 128.

[Lord Hunt of Wirral (Con)]

My Lords, I say with great regret that the response we have received today is totally unconvincing. At no point throughout the progress of the Bill have Ministers offered a satisfactory explanation as to why sweeping changes to trade union access rights, including digital access, were introduced on Report in the other place, with no consultation, no impact assessment and no regard for the realities facing small and medium-sized businesses. There has been no clarity whatever regarding how these measures will work in practice.

How right the noble Lord, Lord Londesborough, is to stress that there has been no recognition of the burden they will place on the thousands of small and medium-sized employers across the country. There has been no proper answer to my noble friend Lord Moynihan of Chelsea, who was supported by my noble friends Lady Lawlor and Lord Leigh of Hurley. I have no need to reply to the noble Baroness, Lady O’Grady of Upper Holloway, as she was shot out of the water by my noble friend Lord Hannan of Kingsclere. All I will say is that there has equally been no proper consideration of the broader impact these changes could have on the labour market, particularly on hiring, retention and business confidence, at a time of economic uncertainty.

I regard the noble Lord, Lord Goddard of Stockport, as consistent, but I disagree with him fundamentally. I hope he will issue a detailed explanation to the Federation of Small Businesses as to why he has felt unable to follow its guidance that there has to be a recognition of the special needs of small and medium-sized enterprises. I can well understand that the arguments that the noble Lord, Lord Londesborough, introduced in support of Amendment 129, together with Amendments 131 and 145, provide a simple and proportionate safeguard. Given the seriousness of these issues and the complete lack of justification for how this has been handled, I shall seek to test the opinion of the House on Amendment 129, but, in the meantime, I beg leave to withdraw Amendment 128.

Amendment 128 withdrawn.

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Moved by

[Lord Hunt of Wirral]

129: Clause 56, page 76, line 35, at end insert—
“(c) may not be made if the employer in question is a small or medium-sized enterprise.”Member's explanatory statement
This amendment and others in the name of Lord Sharpe of Epsom provide that a trade union cannot give an access request if the employer is a small or medium-sized business, unless the Secretary of State has provided for this in regulations. Such regulations (where they affect small or medium-sized businesses) may not be made before 6 April 2028, and without prior consultation and publication of an impact assessment. They also provide that the Secretary of State must consult and publish an impact assessment prior to making regulations to vary the required percentage.