Employment Rights Bill

Luke Evans Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Angela Rayner]

We have already been working with businesses while bringing forward the Bill, and we will continue to do that through the consultations. We have recognised probation periods, for example, but we do not think that people should not have rights two years into their employment.

We are listening, but I say to Conservative Members, who promised employment Bill after employment Bill and then never delivered them, that the people of this country deserve secure fairness at work, and this Labour Government will deliver it. Almost 9 million employees will benefit from protection against unfair dismissal from day one, 1.7 million will benefit from new policies on flexible working, and up to 2 million will receive a right to bereavement leave. Thousands of pregnant women and mothers will benefit from new maternity protections, and tens of thousands of fathers and partners will be brought into the scope of paternity leave. We will deliver a genuine living wage that matches the cost of living.

In total, more than 10 million people will benefit from Labour’s plan in every corner of this country, so if you are in casual work, unable to rely on guaranteed hours, this Labour Government are delivering for you. If you are working hard on low pay and struggling to make ends meet, this Government are delivering for you. This is a Government back in the service of working people.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Can the Deputy Prime Minister define “working people”?

[Angela Rayner]

The Conservatives had 14 years to support the working people of this—[Interruption.]

[Dr Evans]

Will she give way?

[Angela Rayner]

Will the hon. Member listen to my response? I gave way to him. For 14 years, the Tories promised employment Bills and an industrial strategy, and in 14 years they delivered the highest cost of living for the working people of this country. It will be this Labour Government who deliver for them.

This is a Government back in the service of working people, building an economy fit for the future and making work pay. For the first time ever, we have instructed the Low Pay Commission to take account of the cost of living when setting the minimum wage, because everyone deserves a proper living wage for a proper day’s work. We have already moved to protect 4 million self-employed workers from late payments with the new fair payment code, and we have already encouraged employers not to use the ineffective and failed minimum service laws, which did not stop a single day of industrial action while in force, before we repeal them for good. That is a bold start, but we are going further. The UK labour market is not delivering for workers or businesses, and it holds back the UK economy. We know that things have to change. The Bill marks a momentous opportunity to chart a new route to growth—one built from the bottom up and the middle out—alongside the £63 billion of investment into the UK that was announced last week. Higher growth, higher wages and higher productivity—a new partnership between workers and business.

--- Later in debate ---

[Kevin Hollinrake]

I agree. I was interested that the Deputy Prime Minister said that her menopause measures would be exclusive to large businesses. I welcome that, and I ask her to look at attaching the same conditions, ideally, to the entire Bill, but if not to certain parts of it. The risks for small businesses are simply catastrophic. Even one or two cases could completely sink a business.

[Dr Luke Evans]

When it comes to risk, is my hon. Friend concerned about the timing of this legislation if, as reported, the Budget raises national insurance for those businesses? Is that yet another risk in addition to this legislation?

[Kevin Hollinrake]

My hon. Friend is right. This morning we met representatives from UKHospitality, who said exactly that: the Bill is coming on the back of a number of changes and some difficult times during covid for industries that employ a lot of people, which will be particularly badly affected by this legislation. The Government should think twice about implementing it at this moment in time.

Employment Rights Bill

Luke Evans Excerpts

Consideration of Lords amendments
Monday 15th September 2025 Commons Chamber

[Peter Kyle]

It is a pleasure to make my first appearance at the Dispatch Box as Secretary of State for Business and Trade to deliver the biggest improvements in workers’ rights for a generation, as part of the Labour Government’s Employment Rights Bill, which formed a key plank of my party’s manifesto commitments.

I take this opportunity to pay tribute to my predecessor, the right hon. Member for Stalybridge and Hyde (Jonathan Reynolds), for his work on the Bill and, more widely, in supporting our country to get to growth. I pay tribute to my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for her tireless fight for the rights of working people. Without her, this Bill would simply not exist. I also pay tribute to my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), who worked so hard to get the legislation to this point, and to my dear friend Baroness Jones of Whitchurch, whose indefatigable work in the other place has ensured that this Bill was steered through the legislative process with a very steady hand. To many who have worked on this Bill, it has been a life’s work, and the culmination of an enormous amount of effort on their part, for which I am extremely grateful.

This is a landmark Bill. It is pro-worker and pro-business, and it supports the Government’s objectives of boosting growth and improving living standards across the country.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Will the Secretary of State give way?

[Peter Kyle]

So early on! I will happily give way.

[Dr Evans]

I am grateful. The new Secretary of State has been asked this several times, but we never heard an answer: can he point to a small or medium-sized business that actually supports this Bill?

[Peter Kyle]

Of course I can. Many businesses have now come out in support of the Bill. The hon. Gentleman asked for a small business or a large business; let me give him one of each. I have talked to small and medium-sized enterprises. R & W Scott Ltd, a leading UK manufacturer based in south Lancashire specialising in high-quality ingredients for jams, came out in steadfast support. If the hon. Gentleman wants to know of large businesses who back this Bill, I could mention the Co-op, Centrica and Richer Sounds—all businesses that, as he will know, serve his community and his constituents. He should get behind those businesses in their support of the Bill.

Employment Rights Bill

Luke Evans Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Sarah Olney]

I will not name them, but the Minister will know who was in the room with her. That is what they have told us, and that is what I am reflecting in my comments today.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Does the hon. Lady agree that it would have been helpful if an impact assessment had been carried out, so that everyone could see exactly what the impact of removing the cap would be?

[Sarah Olney]

I would agree, but my point is that this last-minute change has been sprung on us and the business groups that engaged in good faith with the Government on these measures. This is a last-minute change that we and the business groups were not expecting, and that is why we will not be supporting it.

Employment Rights Bill

Luke Evans Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

Our proposal would remove the cap of 52 weeks’ gross pay or £118,223. It is important to reflect that, in practice, few awards get anywhere close to the cap. The median average award for unfair dismissal in 2023-24 was £6,746. Employment tribunals will continue to calculate compensatory awards to reflect the losses that employees suffer as a result of being unfairly dismissed.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Has the Minister conducted an impact assessment? If so, how much does she think this change will cost? How many uncapped awards will be made? These are the kinds of big, important decisions that the other place has concerns about, as do Conservative Members. If she has that evidence, she could put this to bed tonight by simply providing it to us so that we can make an informed decision.

[Kate Dearden]

An economic assessment will be published, as is standard practice.

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[Sarah Olney (Richmond Park) (LD)]

Today we are debating the fourth round of consideration of Lords amendments to this Bill, and this long and protracted process says a lot about the way the Government have approached this legislation. The Bill was initially put together at great speed, missing much of the detail; there was a long series of Government amendments late in the process; and now a major last-minute change on the compensation cap for unfair dismissal has been sprung on businesses and Parliament. Regardless of what one makes of the different measures in the legislation, I think most of us would agree that the process followed in designing it has been less than ideal. Having said that, let me reiterate what has always been the Liberal Democrat position on the Bill: we support many of the aims of this legislation.

We welcome expanding access to statutory sick pay, improving parental leave and taking steps to address the massive pay gap facing social care workers. We agree with giving those on zero-hours contracts more certainty, even though we proposed what we view as a more practical and balanced way of doing so, and we are pleased to see a unified Fair Work Agency, which we also called for as a way of empowering employees to exercise their rights without fear of any negative consequences. However, we have made it clear that we have significant worries about the specific way in which some of those measures would be implemented, and we have repeatedly raised our concern that crucial detail was being left for secondary legislation.

By far our biggest concern was the complete lack of clarity on unfair dismissal and probation periods, which is why we have worked in both Houses to secure a vital concession setting the qualifying period for unfair dismissal at six months. We are proud that when some tried to brush aside the concerns of the business community and others sought to frustrate the process, it was the Liberal Democrats who secured this vital provision. It is the role of any responsible Opposition party to engage constructively and achieve substantial improvements for the good of our country. It could not be clearer that this fair and sensible shift will equally benefit businesses and workers. So many businesses I have spoken to have said that this is the single most meaningful change that could have been made to the Bill.

[Dr Luke Evans]

I am conscious that we are debating a particular point. Is the hon. Member voting for or against the cap? That is the essence of what we are looking at today.

[Sarah Olney]

I am glad that the hon. Member has raised that. I was coming to that in my speech. Perhaps he could listen with a little more attention.

Employers have finally been given the necessary clarity to make hiring decisions with confidence, and we have avoided the danger of unnecessarily slowing down the labour market even further, which would have deprived so many people of vital employment opportunities. That is exactly what the progressive Resolution Foundation think-tank warned of when it said there was a risk that

“employers would be nervous about hiring new workers or offering shifts, and this would make life harder for job seekers.”

As I pointed out last week, it is really disappointing that the Government decided to muddy this improvement by simultaneously abolishing the cap on compensation for unfair dismissal. Employers were not in favour of scrapping the £118,000 cap, and I once again point out that bringing in a change like this at the last minute is not how we build trust between Government and business. However, I note that employers and business groups have been equally clear that this last-minute change must not stand in the way of the far more important changes secured with regard to the six-month qualifying period. Above all else, business values pragmatism, and that is exactly why it wants to see this breakthrough protected and enshrined in law. That is what has guided our approach throughout.

Will the Minister confirm on the Floor of the House that the Government will conduct an assessment of the impact of the removal of the compensation cap, actively seeking views from businesses, as was indicated to the Liberal Democrats in the other place? On a broader level, will she give a cast-iron commitment that the Government will hold regular debates in both Houses to ensure that Parliament can scrutinise what work is being done to consult businesses and workers on all relevant implementation aspects of this Bill? How are the Government planning to support employers in order to ensure that they have robust policies and practices in place to navigate these changes to the unfair dismissal regime?

Lastly, to those in the Conservative party who have been trying to sabotage this crucial compromise on the six-month qualifying period, I simply say that they are acting not in the interest of British businesses but only in their own narrow party political self-interest.

--- Later in debate ---

[Laurence Turner]

If the Lords amendment were not rejected, it would have two immediate effects. First, it would collapse the agreement between employers and union representatives. It is not some reasonable call for a review; it strikes out the changes to the compensation cap, which was a key component of that agreement. The Conservatives know that it is a nonsense to call for a review if the legislation that would give it effect is not carried—[Interruption.] Secondly, the amendment would so delay the Bill that April’s extension of statutory sick pay and parental leave for millions of people—some on the very lowest incomes—falls into doubt.

[Dr Luke Evans]

I was listening carefully to the hon. Gentleman, but he tailed off when he was talking about a problem, and it did not quite go through. I think that he was talking about the fact that there would be a delay because of the consultation. In 1999 and 2015 there were consultations on the very issue of a cap. Why have the Government not done that?

[Laurence Turner]

If the hon. Gentleman had been listening carefully, he would know that I was referring to the review called for in the Lords amendment. That is not all that the amendment contains; it seeks to strike out the powers to change the compensation cap. It is a nonsense to say on the one hand that the Bill must be halted in its track while there is a review, when the powers in question have been removed.

The delays to the April implementation of fundamental rights cannot be suffered. As the employers’ representatives have said, we are out of time. The opposition to the Bill is exhausted, and the Commons mandate must be respected. Parliament must pass the Bill.