“Chapter 4A

Luke Evans Excerpts

Tuesday 11th March 2025 Commons Chamber

[Greg Smith (Mid Buckinghamshire) (Con)]

After 21 sittings in the Public Bill Committee, the Government are still tabling hundreds of amendments to the Bill. That highlights once again that their false political deadline of 100 days in which to publish the Bill was foolhardy. They should have taken better time.

This is a bad Bill. Although it contains many good and well-intentioned measures, the Government have failed to get the balance right between employees and employers. Although I welcome some of the Minister’s comments—not least on bereavement leave for pregnancy loss, on which we spoke at length and agreed in Committee—I am afraid that the Government have got the balance wrong in the vast majority of the Bill. The amendments in the names of right hon. and hon. Friends in His Majesty’s loyal Opposition seek to highlight how the Bill simply goes too far in too many regards: it will affect our economy, it will affect the number of people who have a job, and it will affect the willingness of employers—the wealth and job creators—to take on new staff, to grow, to put new product lines in place and to keep employing people.

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

I thank my hon. Friend for giving way and doff my cap to him for his 21 sittings in Committee. When the Regulatory Policy Committee considered the Bill, it said that eight of the 23 impact assessments were “not fit for purpose”. Is he any more confident that that has been rectified through the amendments?

[Greg Smith]

I am sorry to have to report to my hon. Friend that, no, I do not have greater confidence that the Bill will work. He is right that the RPC placed so much of the Bill in the red column—at severe risk—and identified it as “not fit for purpose”. Some of the amendments in my name and those of right hon. and hon. Friends, to which I will speak in more detail in a moment, seek to explore further the impact that the measures in the Bill will have on the economy, and to answer the point that he rightly outlined.

Fundamentally, we know that every Labour Government leave unemployment higher than when they started; the difference with this one is that they are actually legislating for that outcome.

I will turn first to new clause 83 and amendment 283. When we were in government, we banned exclusivity clauses in zero-hours contracts. We know that this flexibility works for many employees on zero-hours contracts, such as students and those with a summer job or other responsibilities—employees can value that. This Bill imposes a statist, top-down, “Government knows best” approach, which will limit flexibility for both employers and employees.

--- Later in debate ---

[Greg Smith]

My right hon. Friend makes a very good point in his stylish, witty manner.

As my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) said, the Regulatory Policy Committee has given a red rating to the identification of options and choice of policy on zero-hours contracts and guaranteed hours in the Bill. That means the Government have not justified the necessity of clauses 1 to 6. What is the problem the Government are trying to solve with those clauses? Why are those clauses needed? We just do not know. The Bill, despite literally hundreds of Government amendments, remains silent about how these provisions will work in practice, which means the Government’s assessment that the administrative cost of the Bill to business in shift and workforce planning will be £320 million could well be an underestimate.

The deputy CEO of UKHospitality raised their concerns in Committee, saying:

“the Government are intending to leave it to case law and employment tribunal systems to figure out what ‘reasonable notice’ means.” ––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 43, Q39.]

That is an unacceptable way to legislate. Businesses crave certainty and a stable regulatory environment. This Bill provides anything but, and the result, as the chair of the CBI has said, is that it risks becoming

“an adventure playground for employment rights lawyers.”

[Dr Luke Evans]

My hon. Friend is a learned man and he may have seen the report in the Financial Times that, for the first time ever, the number of companies registered at Companies House has fallen. Does he think this Bill being on the horizon has anything to do with that, particularly given the points that have been made about it not being fit for purpose?

[Greg Smith]

My hon. Friend makes an exceptional point. The Bill categorically will be playing a part in that, along with the Budget of broken promises, the increase in employer NI and so on. I shudder to think what will happen when the Bill becomes law. We understand the parliamentary arithmetic—we understand that the Government will force this through, and that is the reason we have tabled new clause 83 and amendment 283.