Employment Rights Bill

Lord Palmer of Childs Hill Excerpts

2nd reading
Thursday 27th March 2025 Lords Chamber

[Lord Palmer of Childs Hill (LD)]

My Lords, it is a privilege to contribute to this important Second Reading today. Unlike the noble Lord, Lord Hunt, I acknowledge that this Bill contains several provisions that, if implemented properly, could have a significant positive impact on many individuals. However, as we deliberate, I am mindful that the Bill presents both promise and areas of concern. In particular, I shall focus my remarks on the challenges faced by carers, an often-overlooked but integral part of our society. As the Bill progresses, their needs must be not only considered but prioritised. I shall rely on my noble friend Lord Fox to deal with many aspects of the Bill other than the bits that I am stressing.

First, I turn to paid carer’s leave. While the Government have committed to reviewing the Carer’s Leave Act 2023, I question why we delay a measure that is both necessary and beneficial. The Government recognise that carers’ inability to work costs the economy £37 billion annually. In light of this, paid carer’s leave should be a priority, not an afterthought. This is not an expensive proposal. Carers UK estimates that introducing paid carer’s leave would cost between £5.5 million and £32 million per year, depending on the level of compensation. In return, more than 2 million working carers would benefit, businesses would save billions through improved staff retention and workforce participation would increase. Given these clear advantages, why have the Government excluded this measure? During the passage of what became the Carer’s Leave Act, Members of the now-Government challenged this omission. It is striking that they have not prioritised it themselves. Will the Government commit to including paid carer’s leave in this Bill? To neglect this opportunity would fail both carers and the economy.

Beyond paid leave, employers should be required to consider employees with caring responsibilities in their equality action plans, alongside commitments to closing the gender pay gap and supporting employees experiencing menopause. If we are serious about workplace equality, we must acknowledge the specific challenges that carers face. Furthermore, the Government must prevent discrimination against carers. One solution would be adding caring as a protected characteristic under the Equality Act 2010. Many carers face workplace marginalisation and are penalised for their responsibilities. Will the Government explore this reform? Every year, 200,000 people leave the workforce to take on caring responsibilities, costing the economy £8 billion annually. By failing to support carers properly, we harm their well-being and weaken economic potential. Paid carer’s leave would help carers stay in work, strengthening both the labour market and the economy.

Another issue is the recognition of kinship carers. I recently heard of a couple caring for their grandchildren out of love and duty, yet they receive none of the employment rights or support given to foster carers. Is this not an injustice? The Government must consider extending employment rights to kinship carers.

Additionally, I support the Bill’s provisions on third-party harassment in the workplace. I have heard from young women in retail and hospitality who feel sick with anxiety knowing that they will face harassment during their shifts. Their employers must have a duty to protect them. While the Bill takes steps in the right direction—I acknowledge that—stronger action is needed to prevent non-disclosure agreements silencing victims.

I now turn to probationary periods. A balanced approach is needed to protect both employees and employers from unnecessary tribunal costs. I note what the Minister said on statutory sick pay, but will the Government consider a standardised probationary period of, say, three to nine months to provide greater certainty?

We must ask whether this Bill will genuinely drive economic growth. We can judge that the noble Lord, Lord Hunt, thinks that it will not, but I would say there is a possibility. Economic growth is one the Government’s cornerstone ambitions. Business leaders and HR professionals I have consulted welcome the Bill’s aims, but question whether it strikes the right balance between employee rights and employer obligations. It must not stifle economic activity, but nor should it miss opportunities for meaningful reform.

The noble Lord, Lord Hunt, spoke about the number of amendments in the other place, and I will not repeat those remarks, but I think there were 200 government amendments on Report, which shows a certain amount of indecision, if nothing else.

I agree that this Bill is driven by noble intentions, but it risks becoming a tangled quagmire of complex employment bureaucracy, with uncertainty over whether it will genuinely recalibrate the balance between employers and employees in a way that promotes fair and productive employment. A Member in the other place—I like this—likened it to Snow White’s apple: appealing in appearance but ultimately sending the economy into a slumber. Let us ensure that this Bill is not a missed opportunity but a transformative step forward for carers, families and our nation’s economic future.