Employment Rights Bill

Mark Sewards Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

We are addressing the specific issue of the removal of a limit on the cap. Of course, while this will have a big impact on businesses, it will also have a huge impact on our public sector. Large organisations that employ significant numbers of high-paid professionals, such as the NHS, will see their insurance costs driven up significantly by this measure, so it is all the more surprising that no consultation or impact assessment is before the House when we are asked to make the decision this evening.

We must reflect on the real-world impact of this measure, alongside the package of measures in a Bill that worthily deserves to be scrapped in its entirety. One of the proudest achievements of the last Conservative Government was that when we left office, youth unemployment was half what we inherited from the previous Labour Government. A huge share of those 4 million new jobs went to younger people. Today, the number of young people not in education, employment or training has hit over 1 million. The Resolution Foundation said, on this issue specifically, that

“young people are bearing the brunt of Britain’s jobs downturn”.

Most of us will have heard from businesses in our constituencies that all the measures in the Bill are significantly raising the barriers to entry for new workers into the market at a time when there is a double whammy. Our demographics as a country make it much harder to recruit them compared with older, more experienced workers, simply because there are fewer young people in our population. Imposing new measures like this that make it more expensive and harder for young people to get their first foot on the ladder is a dereliction of our duty to our economy. We must not forget that for our young people, many of whom we hope will end up as those high-paid professionals, getting and keeping a job is the thing that is most important in their lives—to their health, their mental wellbeing, their wealth and their long-term life prospects. In addition, it is our economy that pays not just for those people’s wellbeing, but for the public services on which so many other people depend.

In conclusion, while the whole Bill deserves to be scrapped—it is shocking to see the craven capitulation of the Liberal Democrats, rather than fighting the corner of British workers—let us at least vote to support this small change that has come from the other place. Let us show that somebody in this Chamber is on the side of jobseekers, wealth creators and those who will create future opportunities for our economy, our country and our people.

[Mark Sewards (Leeds South West and Morley) (Lab)]

I will be brief. I proudly refer members to my entry in the Register of Members’ Financial Interests. I am a proud member of several trade unions, and have indeed received money from trade unions to remove the Conservatives from power.

Speaking of removing the Conservatives from power, on 4 September I proudly voted, along with the vast majority of people in this House, to remove hereditary peers from the other place. I did so because I do not believe that individuals should be able to shape our laws purely because of the families they were born into. Whatever the arguments put forward on the Bill’s amendments, we are here today because hereditary peers stopped the progress of the Bill through the other place. The simple fact is that if we were to remove the hereditary peers who voted—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We are not debating hereditary peers; we are debating the amendments to the Employment Rights Bill.

[Mark Sewards]

Thank you, Madam Deputy Speaker. The votes in the other place serve only to strengthen my resolve that we must get the Bill through Parliament and strengthen the rights of workers.

[David Reed (Exmouth and Exeter East) (Con)]

When I look to the other House, across the political divide I see captains of industry—people who have led businesses small and large. Does the hon. Member see any merit in their arguments?

[Mark Sewards]

We will always pay attention to the arguments made in the other place, but I place more credence on the arguments made by life peers—people who have been appointed because of their expertise and not because of the family they were born into. However, I appreciate that that point has been well made, Madam Deputy Speaker, and I will move on.

Along with the fact that the Government have already compromised in good faith on the Bill with trade unions and businesses, and that those businesses and their representative organisations have welcomed what we have put in the Bill and called on us to pass it today, we were elected on a promise to get this Bill passed into law. Fire and rehire must be banned. Exploitative zero-hours contracts must be ruled out. Day one rights for parental and bereavement leave must be rolled out, and sick pay must be improved. Whichever way the House votes on these amendments today, I implore the hereditary peers in the other place to do the right thing, get out of the way, let this Bill pass and make work pay.

[Bradley Thomas (Bromsgrove) (Con)]

The impacts of the Bill in its current form are already being felt: 71% of businesses have raised serious concerns, with over 90% of small business owners expressing deep worries, resulting in 67% of companies preparing to halt recruitment. We already know that the Government do not understand business. That has been demonstrated clearly through the string of damaging policies trailing behind them, from the national insurance changes that are crippling the hospitality sector to the family farm tax that is undermining our national food security. Aspects of this Bill are no exception, the prime example being the complete removal of the employment tribunal cap on unfair dismissal compensatory awards.

As of June 2025, 515,000 open claims were in the system, and the numbers continue to rise. The employment tribunal system is inundated. It is overwhelmed and debilitated by cases, leaving thousands facing intolerable delays. Rather than addressing the issue through action that would significantly help working people—