Employment Rights Bill

Lord Pitkeathley of Camden Town Excerpts

2nd reading
Thursday 27th March 2025 Lords Chamber

[Lord Pitkeathley of Camden Town (Lab)]

My Lords, like buses, you wait for one nepo Peer to come along—

I rise to speak in support of this Bill and refer the House to my registered interests. First, I congratulate all those who have made their first contributions today. The House is blessed with four eloquent and distinguished new Members and it is a particular joy to be joined by my noble friends Lady Berger and Lady Gray, who acquitted themselves so well, and I look forward to getting to know the noble Baroness, Lady Cash, and the noble Lord, Lord Young.

As an employer and entrepreneur, and through my work with business improvement districts and workspace provision, I have seen first-hand both the challenges and responsibilities of employing people. Good businesses do more than create jobs. They foster opportunity, stability and prosperity in our communities. For most responsible employers, the principles behind this Bill are nothing new. Anyone who has run a business knows that keeping and supporting a great team is a daily concern. Whether it is offering flexibility, ensuring fair treatment or helping staff through difficult times, most employers already do much of what is set out in this Bill—not because they have to but because a happy, motivated team is the foundation of success. Businesses thrive when their people thrive.

That said, rising employment costs are a reality. Businesses have adapted to higher minimum wages, pension auto-enrolment and other well-intentioned interventions, all of which add to the cost of employing people. While these measures bring benefits, they also create pressures, particularly for small businesses, as we have heard. The Government’s impact assessment acknowledges this, but we must be mindful that, if costs rise too far, businesses may turn to automation rather than hiring staff. This is not an argument against the Bill, but a reminder that we should support both employers and employees.

In that spirit, could we do more to improve access to insurance products to help businesses manage employment risks, such as covering statutory sick pay? Such products seem rare to me and it may be worth engaging with those such as the Association of British Insurers to explore better provision in this area. We should also consider practical support for businesses adapting to new employment obligations. Could advisory services or incentives help them implement best practices? A culture of shared responsibility between government, businesses and employees will be the key to ensuring that these measures work in practice as well as in principle.

Ultimately, this Bill strengthens workplace rights in a way that is fair and balanced. It reflects what responsible employers already do, while ensuring that bad practice is tackled, creating a level playing field for all. Businesses that uphold high standards should not be disadvantaged by those who do not and legislation such as this helps to make good employment practices the norm. It is a step forward and I support it.