Employment Rights Bill

Lord Lucas Excerpts

Committee stage
Wednesday 21st May 2025 Lords Chamber

[Lord Lucas (Con)]

My Lords, I have Amendment 107A in this group, which is intended to be an entirely helpful amendment for the Government, allowing them to put nine months on the face of the Bill but preserve all the flexibility they have there at the moment. I think that would be a small step forward in giving comfort to employers to know what is coming their way.

I understand that probationary periods are uncomfortable for people who want to take them—it would be interesting to try them in this House. None the less, when you run a small business, as I do, they are important. I have in the past employed prisoners; actually, every single one of those has worked out really well. I have employed promising young people who have turned out to be a total disaster. It is really hard to know. You cannot rely on references these days; nobody gives a truthful bad reference, because they would just get sued for it, so it is really hard to pick up warning signals. Everyone’s documents are compiled by AI, so they are beautifully written and answer all the questions perfectly. You cannot interview everybody, you have to take a chance, and sometimes it just does not work out.

To have to prove capacity or competence is hard. I do not know whether any noble Lords here have been involved in a school where the head has not quite worked out. It is really difficult to get rid of them on the basis of competence; it takes so long to negotiate their departure. If you are faced with that sort of disincentive for the ordinary, run-of-the-mill employees—“If get this wrong, I’ll be saddled with a £50,000 bill for unfair dismissal”, which is about the scale of these things if you are paying people decently—that is a big disincentive to employing people in the first place. It is certainly a huge disincentive to taking on people who have a question mark in their CV—a period of unemployment or something that looks odd about it—or who are just young.

We want people to take risks. I have enjoyed taking risks. It is wonderful when it goes right. You really feel you have helped someone in their career and have been part of building a life for them. They leave you, which usually they do, but you take pleasure in what they have gone on to do and the success they have made of their life, and perhaps you have done a bit there. But it is a risk, and to load that risk on to what is by its nature an inexact, uncomfortable and uncertain decision is a real incentive not to take that decision—not to hire.

I think it would be a mistake to go down that road, although I am comfortable, as the noble Lord, Lord de Clifford, pointed out, with a shorter timescale. You ought to know, if you are paying attention, whether things are right within three months; you might want to give someone a bit of extra leeway if you think they can set themselves right—but not holding it at two years. I am totally in favour of that; nine months seems a decent figure. It has to be possible, as my noble friends have said, to dismiss people just because it has not worked out. In some circumstances that is the best you can say: “No, sorry—we both did our best and it didn’t happen”.

[The Earl of Erroll (CB)]

Very briefly, because we are talking about the time periods here, you have to be very careful because accrued holiday goes into that, and if you do not give people notice before the holiday is up, you cannot get rid of them. So be careful: it should be three months or less, and actually you have to knock off another week or so. This is from experience.

The other thing is the headmaster issue. I know one small school which had terrible trouble because the headmaster was incompetent. He knew it, so he got depressed and went on permanent sick leave, and of course the school was then saddled with the costs. There are a lot of problems such as that. It would be nice to clean them up at the same time if we could, but I do not think it will happen in this Bill.

--- Later in debate ---

Finally, Amendment 120B proposes to remove one of the 173 delegated powers in this Bill. I know that my colleagues in the Liberal Democrats feel very strongly about the number of delegated powers. We have already highlighted the unacceptable vagueness surrounding the current factors, particularly the unclear requirement for employers to have “offered something” to employees. To compound this uncertainty by allowing further unspecified factors to be introduced via secondary legislation is deeply problematic. Of course, the Government may respond by saying that they intend to consult on any such additions, but experience tells us that businesses are already wary of the Bill’s current proposals. The prospect of further criteria being added without clear parliamentary scrutiny is unlikely to inspire confidence. I beg to move.

[Lord Lucas (Con)]

My Lords, I have Amendment 113A of this group, which is a very minimalist amendment designed to deal with circumstances in which, for instance, the company needs to change its registered address. That does not in any way affect the employee, but in the current wording of the Bill it would constitute a variation of the contract, and if the employee refused it—they do not have to be reasonable in doing so—we have found ourselves in difficulties for no good reason. I have a lot of sympathy with what my noble friend Lord Hunt has been saying, but my amendment is just to try to avoid creating difficulties where there should be none.

[Lord de Clifford (CB)]

My Lords, I will speak on Amendment 115 in my name, and I wish the Committee to note my entry in the register as set out in the previous group.

Employer businesses sometimes need to change, to adapt to the changes in the marketplace, to their customers’ needs, and sometimes to changes in society. Therefore, on occasions, employers need the ability to vary their employees’ contracts. This process should be done through consultation, negotiation and finally, agreement with their employees, at all times respecting the rights of those employees. I will quote from the Chartered Institute of Personnel and Development’s website, which refers to the current legislation:

“In exceptional circumstances, where there are genuine and pressing business needs and agreement cannot be reached, employers can sometimes be justified in unilaterally changing workers’ terms and conditions by terminating their contracts and re-hiring them on new terms and conditions”.


That comment and others that I have heard would suggest that the current legislation has been working, other than in exceptional circumstances and by some terrible employers. There will always be employers and people in society who will manipulate the law to their own advantage. This certainly was the case with the notorious P&O Ferries, which undertook an outrageous fire and replacement of their employees. Also, sometimes employers will certainly threaten employees with a fire and hire to gain advantage in negotiation. I recognise the value of unions and other employee organisations to assist and support employees when employers undertake varying contracts as a last resort.