Oral Answers to Questions

Nia Griffith Excerpts

Thursday 30th November 2023 Commons Chamber

[Kevin Hollinrake]

We work very closely with the Financial Reporting Council. No one can deny that the FRC has changed its approach completely and is now a much more effective regulator. Sir Jon Thompson did a fantastic job when he was there, and the current chief executive, Richard Moriarty, and chair, Jan du Plessis, are following his work. We are confident that the FRC can make sure that the UK’s corporate regime works effectively, without tying businesses up in red tape.

[Dame Nia Griffith (Llanelli) (Lab)]

3. What steps she is taking to prevent the use of fire and rehire practices.

[Mick Whitley (Birkenhead) (Lab)]

17. What steps she is taking to prevent the use of fire and rehire practices.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Government consulted on a draft statutory code of practice on fire and rehire earlier this year. The Government response and the final version of the code will be published in spring next year. The code sets out employers’ responsibilities when seeking to change contractual terms and conditions of employment, and is designed to ensure that dismissal and re-engagement is used only as the last resort.

[Dame Nia Griffith]

The very fact that only last week P&O Cruises felt able to say it would impose new contractual terms on workers through fire and rehire tactics shows that some employers still feel that they can use these tactics with impunity, in spite of the Government’s promise to clamp down on them. I thank the Minister for his answer, but is there any way he could bring in the legislation more urgently, so that we can protect our workers properly?

[Kevin Hollinrake]

I agree with the sentiment behind the hon. Lady’s question in terms of bringing legislation forward as quickly as possible. Of course, we have to get this right. I have to say that P&O was not a fire and rehire situation; it was a fire-only situation, which was strongly condemned by this Government and by many other stakeholders, and a civil investigation is ongoing into the matters surrounding that case. But yes, the hon. Lady is right, and we are keen to get the new statutory code of practice in place as soon as possible. We expect that to be in spring next year, and once it is in force, the employment tribunal can increase employees’ compensation by up to 25% when an employer fails unreasonably to comply with the code.