Employment Rights Bill

Lord Murray of Blidworth Excerpts

Committee stage
Wednesday 18th June 2025 Lords Chamber

[Lord Murray of Blidworth (Con)]

My Lords, I support the amendments in this group in the name of my noble friend Lord Sharpe of Epsom. Looking at Clause 113, I am put in mind of the pre-exploration exhortation of Colonel Kurtz: “The horror! The horror!”. As an employment lawyer looking at this clause, I can say that it is a complete Horlicks. It is truly bizarre. Can the Minister say why this power is required? Who should decide whether the Secretary of State should intervene in a person’s right to bring proceedings? Why should that choice be taken away from them? If the Secretary of State decides to bring proceedings, how would the Secretary of State compel the person who did not want to bring proceedings to give evidence in their own claim that they are not bringing? Why would the judge decide that the claim should be allowed to succeed, in the absence of evidence from the person whose claim it is?

Then there is the question as to why the taxpayers of this country should bring proceedings in the name of somebody who does not want to bring them, possibly against a public sector employer who then has to pay to defend those proceedings to make an award of damages to a person who does not want to claim damages. All this is absolutely beyond belief.

Furthermore, I noticed that it is a discretion:

“the Secretary of State may, in place of the worker, bring proceedings about the matter in an employment tribunal under the enactment”,

which appears to relate to any enactment in the entire employment canon. There is no explanation as to the test the Secretary of State is going to apply in making that discretion. That exercise of discretion will plainly be subject to judicial review. If the Secretary of State chooses not to exercise their power, no doubt there will be satellite litigation in the High Court—brought by the unions, I suspect—as to why the Secretary of State has not chosen to bring a claim on behalf of somebody who they think should have had their claim brought by the Secretary of State. Applying the usual tests, I suppose it will be said that it was irrational not to bring the claim or it was in breach of some legitimate expectation that their claim would be brought. It seems to me that that whole delight now lies before the Committee as to whether there should be litigation on behalf of somebody who does not want to litigate.

This is simply an absurd and inverse world of mirrors that, frankly, Lewis Carroll in Through the Looking-Glass would not have believed was possible. The lunacy of it is notable in Clause 113(5), whereby a worker can appeal against the outcome in a claim when he did not even want to bring a claim. This is so badly thought out that it should clearly be withdrawn.

[Baroness Lawlor (Con)]

My Lords, I follow my noble friends by supporting the amendments tabled by my noble friend Lord Sharpe and voicing very strong opposition to Clause 113. I could not believe it when I read this clause. I could not believe that a third party—the Secretary of State—could bring proceedings on my behalf to a tribunal if I did not want proceedings brought. Nor did I think that subsection (6) was worthy of any government Bill. One could go through the whole of this clause and find something very wrong with it on many grounds.

There are many reasons why a worker may not want to proceed with a claim. He or she may not wish to bring proceedings because of the hassle involved, the delay, the stress to themselves and their family in waiting for the tribunal—which can never hear a claim quickly—the potential impact on his or her reputation, or a perfectly natural desire by an employee to settle things amicably with their employer. There are many individual reasons: family reasons, personal reasons and professional reasons. What right have we to give the Secretary of State powers to override that basic individual liberty in order to bring a case which someone may not want to be brought?

One can only wonder why such a clause is there—that the Secretary of State can bring proceedings, presumably, against a worker’s will or inclination. We can only assume that this may be due to workplace political pressures exercised by others in the workplace, perhaps by union members who want these cases brought as test cases and for the taxpayers to pay, or by others who have the ear of government.

This is a very sectional Bill in the interest of one vested interest group. I have said it before during proceedings, but it is not for the Government of this country in a parliamentary democracy to sectionalise the law in favour of one interest group or another. Clause 113 is particularly dangerous, and I support my noble friends’ amendments to it. I hope the Government will not proceed with it.

--- Later in debate ---

[Baroness Jones of Whitchurch (Lab)]

My Lords, I begin by saying what a pleasure it was to be chaired by the noble Baroness, Lady Fookes, who is celebrating 55 years of public service today. I congratulate her.

Back to the not-so-inspiring business: I am responding to the noble Lord, Lord Sharpe of Epsom, on his amendments relating to civil proceedings and the noble Lord, Lord Jackson of Peterborough, and the noble Baroness, Lady Coffey, for giving notice of their opposition to Clause 113. The Government are committed to ensuring a fair playing field for all employees and businesses. This includes enabling the fair work agency to challenge breaches of employment rights and labour abuse where individuals may not be able to pursue this for themselves or where these cases are not suitable for other enforcement routes.

I am sorry to hear that some noble Lords cannot envisage the circumstance in which these powers might be necessary but, as we rehearsed on a previous group of amendments, many vulnerable workers, especially migrant workers, are reluctant or unable to bring their case to the tribunal to enforce their employment rights. Rogue employers exploit this, break employment law and get away with it. That is unfair for the majority of businesses that do right by their staff. It is unfair for the vulnerable workers involved in being denied their rights. It is unfair for British workers who are denied work opportunities due to illegal practices undercutting them. That is why, in the plan to make work pay, which was a manifesto commitment, we set out that the fair work agency will have the power to bring civil proceedings to uphold employment rights. This is why the Secretary of State will have the power to bring proceedings in place of a worker. It will mean that all employers are held to the same standards.

I say to the noble Baroness, Lady Coffey, and the noble Lord, Lord Carter, that these provisions on civil proceedings are modelled on the Equality Act 2006, which allows the Equality and Human Rights Commission to institute legal proceedings that are connected to the commission’s functions. This includes bringing proceedings for breaches of the European Convention on Human Rights and assisting individuals who are party to proceedings related to the Equality Act 2010.

[Lord Murray of Blidworth (Con)]

My Lords—

[Baroness Jones of Whitchurch (Lab)]

If the noble Lord lets me finish this point, I may answer his question.

The Employment and Human Rights Commission does not need consent for this and has issued proceedings in its own name before. When acting as an intervenor, the EHRC has also previously received court approval to take over conduct of an appeal on behalf of an appellant when the appellant decided to withdraw from the legal proceedings. This was done with the consent of the Supreme Court in the case of MS (Pakistan) v Secretary of State for the Home Department. I give way.

[Lord Murray of Blidworth (Con)]

I am grateful to the Minister for reaching the end of that paragraph. She agrees that the power for the EHRC to intervene in proceedings is not a power to take over and institute proceedings if people do not want to. Instead, it is a power to intervene and carry on proceedings in the event that somebody wants to withdraw. That is not based on any statutory provision; this is still extremely novel. I am sure that the Minister will agree that there is no statutory precedent for the kind of power that the Government want to take in Clause 113.

[Baroness Jones of Whitchurch (Lab)]

As the noble Lord has more legal expertise than me, I am happy to write to him on that point because it is an important point that we need to clarify. Of course, these are relatively new powers that we are taking on board, and we are taking them for very good reasons. I am sorry that noble Lords opposite do not see the case for this, because, certainly, an awful lot of workers are being exploited out there. At the moment, they do not have the power to speak for themselves in the way that many others who are better informed can do.

While I respect the intention of the noble Lord, Lord Sharpe, behind some of his amendments, I must state they are unnecessary. Some of the provisions of the amendments are already provided for, either within the existing drafting of the specific clauses or in other clauses of the Bill. Regarding Amendments 271D, 272ZZA and 272ZZD, as I mentioned on Monday, normal practice would be for the Secretary of State to bring proceedings with a worker’s consent and involvement. However, in the worst cases of serious exploitation and intimidation, workers may fear the repercussions that they may face from their employer should they be de-anonymised. By allowing the Secretary of State to take a case forward without consent, it would be harder for employers to attribute blame to individual employees. Therefore, limiting this power in the way that these amendments seek to do could prevent the Secretary of State pursuing serious breaches in some of the most egregious cases.

Amendment 272ZZB is an unnecessary amendment. Legally privileged material and confidential information is already protected under the Data Protection Act, as well as under usual legal rules and principles that apply to proceedings.

On Amendment 272ZZC, normal public law principles already take account of all considerations referenced in this amendment, including the best interests of a worker. This is therefore another unnecessary amendment.

Amendment 272ZZE is yet another unnecessary amendment. Clause 113(6) does not provide a blanket exclusion from all liability, and it is self-evident that the Secretary of State would be held accountable if they undertook actions that were unlawful. This is a basic principle of the rule of law.

On Amendment 272ZC, it is clearly in the interests of enforcement authorities and all parties that the most effective and proportionate means of enforcement is chosen. The Bill already provides that civil proceedings cannot be initiated where a notice of underpayment has been given. It would be inappropriate to impose hurdles on the fair work agency’s use of its powers; it should be able to decide how best it will use this and its other powers to enforce labour market legislation in each case.

On Amendment 272AA, Clause 92 already provides for the fair work agency to prepare and publish an annual report, which we would expect to cover all of its activities. It is simply not necessary to require individual reports on individual powers.

We strongly resist Amendment 272AB. Ultimately, the business of the next Parliament should be for that Parliament to decide and not for us to dictate now.

Briefly on Amendment 272AC, only officers with appropriate knowledge and training will carry out these powers. Clause 87(6) already clearly provides that a person can exercise the powers of an enforcement officer only to the extent specified in their appointment by the Secretary of State. This amendment would duplicate that existing provision.

To summarise, Clause 113, together with Clauses 114 and 115, delivers a manifesto commitment. It provides a new power that will enable fair work agency enforcement officers to bring proceedings to an employment tribunal in place of a worker. It is designed to address situations where a worker has a legal right to bring a claim but, for various reasons, including fear of retaliation, lack of awareness or language barriers, they are unable to do so. This clause enhances the state’s ability to support the most vulnerable workers in accessing justice and will be particularly valuable in cases involving labour exploitation or breaches of minimum employment standards.

It will bring broader benefits. The fair work agency will be able to bring multiple complaints simultaneously. This will save time and costs for workers and employers alike. It has the potential to reduce the burden on the employment tribunal system over current practices, where most claims are brought individually.

Importantly, the clause is tightly drawn. The fair work agency’s tribunal proceedings will follow the same process as if they were brought by workers. This includes a requirement for ACAS consultation. Additionally, the power cannot be used in cases where a notice of underpayment has been issued under Section 100. This ensures that there is no duplication of enforcement mechanisms. Both the Secretary of State and the worker can appeal a decision, recognising that both parties have a legitimate interest in the outcome. The clause includes safeguards to ensure that the Secretary of State cannot be held liable to the worker for how they exercise this power, reflecting the discretionary and strategic nature of enforcement.

This clause forms a crucial part of the fair work agency’s toolkit, enhances the effectiveness of labour market enforcement and delivers a manifesto commitment upon which Members in the other place were elected. It should stand part of the Bill.