Employment Rights Bill

Nusrat Ghani Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

In early September, over 500 Oscar Mayer workers, organised by Unite the Union, launched strikes against the company’s appalling use of fire and rehire. Many of these workers are my constituents and are facing serious threats to their pay and working conditions, with potential losses of up to £3,000 annually. I hugely support this legislation, but immediate action is crucial to protect my constituents and workers across the UK from such exploitative practices. Will my right hon. Friend provide clarity on the timescales for reforms to unfair dismissal?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Before the Deputy Prime Minister responds, may I say that if there are declarations of interest to be made, even in interventions, they should be made on the Floor of the House?

[Angela Rayner]

I thank my hon. Friend for his intervention. That is why we have moved at pace. The previous Government promised an employment Bill to protect workers and they did not deliver. Within our first 100 days, we are delivering this employment Bill.

Losing a loved one is among the hardest things for any of us. That is why in this Bill we are setting a clear standard for businesses, giving employees the right to bereavement leave. Taken together, these new rights for working people—sick pay when they need it, an end to exploitative zero-hours contracts and to fire and rehire, bereavement leave, expanded entitlements, paternity leave and new protections for women in work—represent the biggest upgrade for working people in a generation, but we are not stopping there.

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[Angela Rayner]

We have already written to the Low Pay Commission, as I have set out, and we want to go further through the fair pay agreement to make sure that carers are recognised for the valuable role they play. Care workers are not just people who do the shopping or call in for 15 minutes; they handle complex needs in the community and look after some of our most vulnerable loved ones. They should get the recognition they deserve, and that is why we are taking these measures.

We know the valuable contribution that trade unions make. That is why we are resetting industrial relations. The Conservatives presided over strike Britain with their scorched earth approach to strikes. First, we are repealing the Strikes (Minimum Service Levels) Act 2023. Anyone with a brain could see that that legislation would do two things: increase tensions and fail to prevent a single day of industrial action. We said so at the time, and what happened? The rail dispute cost our economy over £1 billion. The law has failed and has no reason to stay on the statute book.

We are also repealing nearly every part of the flawed Trade Union Act 2016, which tried to smother trade unions in form filling and red tape and prevent them from doing their job. We will go further by strengthening the voice of working people by making it easier for trade unions to get recognised, giving them the right of access to workplaces and making sure that they have enough time to represent their members. When the rights of working people are flouted, a new fair work agency will be empowered to investigate. Today we are also launching a consultation on modernising trade union laws so that they are fit for the modern workplace and our modern economy.

In under 100 days, we have put together a transformative package that marks a new era for working people. We know that the Conservatives will oppose this every step of the way. We know because they have history, just as they opposed Labour’s minimum wage and now, shamefully, want to take us back to the dark ages when women were denied maternity pay. It is clear that they are out of step with modern Britain.

Our plans mark a new way forward—a new deal for working people, making jobs more secure and family friendly, banning exploitative zero-hours contracts, supporting women in work at every stage in their life, a genuine living wage and sick pay for the lowest earners, further and faster action to close the gender pay gap, ensuring that rights are enforced and that trade unions are strengthened, repealing the anti-worker, anti-union laws, turning the page on industrial relations and ending fire and rehire, while giving working people the basic rights that they deserve from day one in the job. This is a landmark moment, delivered in under 100 days. This is a pro-business, pro-worker, pro-growth Bill and a pro-business, pro-worker, pro-growth Government. Today, after 14 years of failure, we are starting a new chapter and decisively delivering a better Britain for working people.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

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[Sonia Kumar (Dudley) (Lab)]

I just want to double-check: have you actually read the Bill? It talks about a consultation period with businesses, and the provisions will not be rolled out until 2026. There will be a probation period for certain businesses. We are pro-business, and maybe the shadow Minister should read the Bill properly.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We should not refer to other colleagues in the Chamber as “you”. It is quite simple.

[Kevin Hollinrake]

I wish the hon. Member for Dudley (Sonia Kumar) was with me for the hour I spent with the representatives of organisations this morning. They do not feel as she does—that there is nothing to see here and nothing to worry about. They are very concerned, and we should all be worried about that.

Through our approach, we doubled the minimum wage, boosted employment by 4 million, cut taxes on working people by £900, cut youth unemployment, slashed the employment rate and rolled out the biggest ever expansion of free childcare. Our approach recognised that by harming business, which is the strong horse that pulls the whole cart, we are harming workers—a fact that this Government have clearly failed to grasp. This Bill puts the cart firmly before the horse. For small businesses particularly, it creates an existential crisis of a magnitude not seen since the pandemic. The future of hundreds of thousands of business people and millions of jobs is in the Deputy Prime Minister’s hands. I urge her to think again, withdraw this legislation and listen carefully, not just to the unions but to the voice of business, before it is too late.

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Over 80 Members wish to contribute. To try to accommodate most of them, I will limit Back-Bench speeches to three minutes and maiden speeches to five minutes. The first Back-Bench contribution is from Mike Amesbury, and I know that he will not want me to cut him off.

[Mike Amesbury (Runcorn and Helsby) (Lab)]

I stand here not only as the Labour MP for Runcorn and Helsby, but as a former trade union convener and shop steward for the wonderful trade union Unison. I am also a GMB member and a member of the Union of Shop, Distributive and Allied Workers. I am proud to have the opportunity to speak in this Parliament with a trade union voice, coming from a working-class background, and as part of a Labour Government. How fantastic is that? I also proudly refer the House to my entry in the Register of Members’ Financial Interests. Have a look: it is very clean money—trade union money.

This is an important day for the history of the labour movement and for industrial relations in this country. This Employment Rights Bill is pro-business, pro-worker and pro-growth. This is exactly the change that we were elected to make, just a few weeks ago. The Bill works in partnership with business and trade unions. It is not the work of fiction—I say this respectfully—that the shadow Minister described in his response to my right hon. Friend the Deputy Prime Minister. Labour Members are pro-jobs, but pro good jobs. We are pro-business, but pro good business. The Bill is also good for Britain. We want to turn the page on an economy that has been blighted by insecurity, poor productivity and low pay, and we want growth that leaves nobody behind in our communities.

I pay homage to the architects of this landmark legislation: the trade unions, of course; the former shadow Minister, my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald); my good friend the Deputy Prime Minister; and my neighbouring MP and good friend the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). We were elected on a manifesto for change, and today that change begins—delivered within 100 days, as the Deputy Prime Minister said.

The Bill brings forward 31 employment reforms to help young and not-so-young workers alike. It marks the end of exploitative zero-hours contracts and fire and rehire practices, establishes day one rights to paternity, parental and bereavement leave for millions of workers, improves statutory sickness pay and collective bargaining, and provides for fair pay agreements. It means that 9 million people will have protection from unfair dismissal from day one, and that over 1 million people on zero-hours contracts will benefit from a guaranteed hours policy. This will help many in all our constituencies. An additional 1.5 million parents taking unpaid parental leave will be brought into scope of employment rights from day one. This Bill is a game changer. It is a manifesto commitment that I and everyone on the Labour Benches were proud to be elected on, and I look forward to our labour coming to fruition over the next few months and years.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson, Sarah Gibson.

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[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

As a proud member of the Community and USDAW trade unions, I am delighted with the legislation. In the short time available to me, I will focus on the particular issue of whether we work to live, or we live to work, because so far the debate in this place, particularly in the remarks made by Conservative Members, has sounded like something from the mesozoic era and the dying era of the dinosaurs.

Let us get something straight: tackling sexual harassment in the workforce is not about free speech, but about stopping a crime; flexible working does not mean people work less, just that they work flexibly; and rights do not make people irresponsible employees, any more than it is noticeable that our competitors internationally are ahead of us on this work. The measures in the Bill are about entrenching good practice, so that we have a race to the top, not a flounder to the bottom, as we did under the previous Government.

That is why I and others hope to push the Government to go further on maternity and paternity rights. It vital that the Bill contains protections for mothers around maternity discrimination, but such measures will only work if we include the other 50% and bring dads into the equation. We do not really have a gender pay gap in this country any more: we have a motherhood pay gap and a motherhood penalty. Women face the discrimination of being made unemployed not only when they have children but because they might have children, and women who have kids find that when they go back to work, they are considered to be less committed, capable and competent. Women who are childless are six times more likely to be recommended for a job and eight times more likely to be recommended for a promotion.

The issue cuts the other way too, because there is a fatherhood premium as fathers are considered to be more reliable employees. We must not entrench these inequalities but overturn them, so that dads can be part of their kids’ lives and mums can get a fair crack at being in the workforce. A third of dads in this country take no paternity leave at all; half of them say that is because they feel pressured financially to go back to work early. Modern employers get the problem and are offering more than the statutory minimum. Some 92% of fathers who are job hunting say flexibility makes all the difference when they choose which job to take. After the pandemic, the number of stay-at-home dads increased by a third. Frankly, dads want to step up to the plate, whatever Members on the Conservative Benches may think, and mothers want them to be there too.

Making such changes matters to the economy. The loss of productivity that comes from women caring for their parents or their children means that millions are being cut out of our economy. We have some of the longest working hours for dads in Europe, and some of the shortest working opportunities for mums. Putting in measures to support paternity leave will be good for both sides of the equation. Let us not be the generation in which dads say they never got the chance to know their teenage kids, and mums say they never got the opportunities they wanted. Let us amend the Bill to ensure paternity leave matches maternity—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I call Sir Alec Shelbrooke.

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[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I draw attention to my membership of the GMB. I support this landmark employment Bill, the biggest expansion of workers’ rights for a generation. Today we see the difference that a Labour Government can make for people up and down the country.

Although I support all aspects of the Bill, I will focus specifically on the transport sector. During and following the covid pandemic, transport workers faced the short end of the stick of poor employment practice. I welcome the end of fire and rehire. That unfair practice was used as a sledgehammer against workers, particularly during the pandemic, by companies such as British Airways, which tried it on more than 35,000 staff members, including many of my constituents in Hounslow. BA staff who had worked for decades faced the prospect of being sacked and rehired on poorer pay and weaker terms and conditions.

After huge pressure from trade unions, Labour MPs and the Transport Committee, BA dropped its plans, but other firms such as P&O have also exploited the weakness in UK employment law that the Bill is intended to address. Those practices are still happening, as my hon. Friend the Member for Montgomeryshire and Glyndŵr (Steve Witherden) highlighted in his intervention on the Deputy Prime Minister. When workers were facing fire and rehire, Labour was clear that a Labour Government would ban that practice, and I am pleased the Government are doing that. I welcome clause 22.

On minimum service levels, the Bill will also repeal and scrap the previous Government’s Strikes (Minimum Service Levels) Act 2023—a farcical bit of legislation designed to limit strike action. In Committee, when I pushed the rail operators on the proposed legislation, it was clear that they had not sought it and they appeared to have no plans to use it. The fact that so few rail operators chose to use the powers once they were enacted showed that the companies themselves doubted their value and use.

This Bill also brings in much-needed modernisation of our maritime laws. In the last Parliament, the then Chairs of the Transport Committee and the Business and Trade Committee—one Conservative, one Labour—jointly wrote to the then Government about the need to update our laws to protect maritime workers. I welcome the Bill’s closure of the loophole whereby ships registered overseas previously did not have to inform the UK Government of collective redundancies, and the fact that this Government have committed to further strengthen workers’ rights at sea.

In conclusion—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I call Shivani Raja to make her maiden speech.

[Shivani Raja (Leicester East) (Con)]

It is with great privilege and a deep sense of responsibility that I stand before you today, Madam Deputy Speaker. As I take my place in this historic Chamber, I am acutely aware of the profound trust placed in us by the constituents of our great nation. I wish to express my heartfelt gratitude to the people of Leicester East for electing me to represent them in Parliament.

My story, like that of many in Leicester, is one of heritage, resilience and opportunity. My parents arrived in Leicester from Kenya and India in the late 1970s, bringing with them cultural and faith traditions and a remarkable work ethic. They made Rushey Mead their home, and I was born and raised there. From Herrick primary school to Soar Valley college and De Montfort University, Leicester has nurtured me every step of the way and for that I am deeply thankful.

As is customary, I pay tribute to Claudia Webbe, my immediate predecessor, who served the constituency to the very best of her ability. Claudia followed in the footsteps of Keith Vaz who, alongside Paul Boateng and Bernie Grant, broke new ground in the representation of people of colour in Parliament. In the election, I had the unique experience of standing against both Claudia and Keith—a testament to the vibrant political landscape of Leicester East.

Leicester is a city of remarkable history and diversity. Leicester hosts the largest Diwali festival outside India. It is home to the UK’s longest running comedy festival. It is one of England’s oldest cities, so much so that we found a king under one of our carparks; for those who do not know, one of our earliest kings, King Richard III, was found under a carpark in Leicester. The University of Leicester is the birthplace of DNA fingerprinting. Leicester is also home to the National Space Centre and we are proud of our contributions to the arts, sciences and sports.

We have got it all going on in Leicester, but if Members remain unconvinced that Leicester has influenced their life, because perhaps they are not a former monarch or a scientist in their spare time, Leicester has also given Britain icons like the late Lord Richard Attenborough and—very much living—Sir David Attenborough, Gary Lineker and Peter Shilton. Our city is where Walkers crisps were born and where fashion guru Gok Wan grew up. Leicester’s influence even extends to music, with entertainers like Engelbert Humperdinck and Showaddywaddy. So whether you have tucked into a bag of ready salted, gone to the cinema to watch “Jurassic Park” or boogied on down to “Hey Rock and Roll”, you’ve got Leicester to thank.

This is what true diversity looks like. In fact, in 2013 Leicester was described as the most multicultural city in the UK. Today, 59% of people living in Leicester are from ethnic minority groups, and 41% were born outside the UK. But most relevant to today’s debate is employment and businesses in my constituency. Leicester is located at the heart of England, and local businesses are the lifeblood of our city. Leicester was recognised as the UK’s most entrepreneurial city—a title that reflects the resilience, creativity and determination of its people. Our entrepreneurial scene is not just about numbers; it is about stories, of those who dared to dream big, hustled harder, and turned their ideas into reality.

The Employment Rights Bill threatens to undermine that spirit before those entrepreneurs have even made their first £1. The additional costs and regulations proposed will act as a barrier to entry, discouraging the very innovation and hard work that has earned Leicester that title. We must be cautious not to stifle the ambition of small business owners, who are the backbone of our economy. Our journey is one of innovation and community—a story of people coming together across different sectors and backgrounds to build something truly remarkable.

In a city as diverse as Leicester, many rely on flexible work to balance family commitments, faith observances or second jobs. By imposing blanket regulations that do not consider the unique needs of our communities, the Bill risks alienating the very workforce it aims to protect. We must ensure that employment regulations support businesses and workers alike. Imposing regulations that add costs without first offering support will harm the very people Labour claims to champion. For our small businesses in Leicester, many of which work with razor-thin margins, the burdens imposed by the Bill will be overwhelming. It is one thing to champion workers’ rights, but quite another to do so in a way that risks the survival of the very businesses that provide the jobs.

Let us not forget that successful businesses are the best way to secure meaningful long-term employment. Our decisions in this House will shape the future of our country for generations to come. It is imperative that we approach these challenges in a spirit of collaboration, transcending partisan divides to serve the best interests of all our constituents. With our nation facing economic challenges, the Bill risks raising costs for consumers and worsening the cost of living crisis, particularly in communities like Leicester East, where many are already struggling to make ends meet. We must find solutions that protect workers without penalising local businesses and their customers.

I am honoured to stand before the House as the Member for Leicester East, and I warmly invite you, Madam Deputy Speaker, and all hon. Members to visit our great city. You can join us for our glorious Diwali celebrations, our annual Pride parade or our vibrant Caribbean carnival. Come and experience the city where fish and chips are just as popular as samosas and kebabs, and where Stilton and Red Leicester cheeses sit alongside Italian pizza and French patisserie. The road ahead may be challenging, but it is also filled with possibilities. I firmly believe that not only Leicester’s but our country’s greatest days are ahead of us, and I am grateful to be able to play my part, championing my constituents in that endeavour.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I had to let that speech run over; I was waiting for my invitation to have samosas.

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[Imran Hussain (Bradford East) (Ind)]

I refer Members to my entry in the Register of Members’ Financial Interests.

I support and welcome this transformative Bill. I place on the record my thanks to my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), and the Deputy Prime Minister, with whom I have had the pleasure of working to play a small part in bringing this transformative legislation to the House.

In reality, the balance of power in our workplaces has been fundamentally set against employees for too long, meaning that the UK has some of the weakest labour protections in Europe, with legislation curbing the rights of working people to organise in defence of their rights, and insecure contracts and poor wage growth leaving one in five people struggling in poverty.

Under the last Tory Government, we saw an explosion in the growth of exploitative zero-hours contracts, unscrupulous fire and rehire practices, and the unforgiving and abusive gig economy. Ordinary working people across the country have experienced the most sustained period of wage stagnation for hundreds of years compared with our counterparts across Europe. Despite that exploitation of working people by bad bosses, the Tories never strayed from their mission of dismantling the power of trade unions to secure better jobs, pay and conditions for the ordinary people they represent, even in the middle of a cost of living crisis.

The Bill that we are discussing today, however, sets us on the road to implementing the transformative new deal for working people and to repealing the last Tory Government’s draconian anti-trade union legislation, which restricts people from organising in defence of their pay, terms and conditions. Spanning over 30 different measures, the Bill could give any of us a lot to talk about. However, as time does not permit that, I will concentrate on two or three areas.

With the establishment of a framework for fair pay agreements in the adult social care sector, the Government have acknowledged the immense benefits that collective sectoral bargaining can play. Social care workers are among the most crucial yet worst paid and badly treated groups of workers in our economy. I very much hope that the Government will introduce that framework for further sectors, and I encourage them to do so. Secondly, by ensuring that workplaces offer a guaranteed-hours policy to end the exploitation trap of zero-hours contracts that millions of workers find themselves in, the Bill ensures that we can provide the eight in 10 workers who desire greater stability more certainty over their contracted hours.

Thirdly, the Bill takes an important step towards widening access to statutory sick pay by removing the requirement to earn the lower earnings limit, and by making SSP payable from the first day of sickness. My sincere request to the Government is that, with the rate currently at £116.75 per week, we need in the consultation process—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I call Alison Griffiths.

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[Lola McEvoy]

I absolutely agree, because people want to work, and they want to work in good-quality jobs that allow them to spend a decent amount of time enjoying the things that matter in life.

The Bill will make thousands of my constituents in Darlington better off, safer and more secure at work. More than that, it will benefit businesses’ bottom lines, as they will have a happier, healthier and more productive workforce. That is essential for the growth we need to see, it is good for working people, it is good for business, and it is great for the economy.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Katie Lam to make her maiden speech.

[Katie Lam (Weald of Kent) (Con)]

Thank you, Madam Deputy Speaker, for letting me make not just my first contribution to this House, but the first contribution from the newly formed constituency of Weald of Kent. My predecessors are illustrious: William Hart Dyke helped invent tennis, Charles Barnett was a first-class cricketer, and Edward Percy Smith was a scriptwriter like me, penning the Hammer Horror hit “The Brides of Dracula”. We even have a Prime Minister in our history: Benjamin Disraeli began his parliamentary career representing a patch of Kent that includes the village of Linton, which is now in my constituency. However, only one of my predecessors, Ann Widdecombe, can boast Britain’s highest honour: an appearance on “Strictly Come Dancing”. [Laughter.]

Two of my most recent predecessors have left this place. Damian Green and Damian Collins both worked doggedly for the area and for the country in government—Damian Collins especially in the field of digital, culture, media and sport, the Select Committee for which he chaired for many years, and Damian Green with senior roles in government, all the way up to First Secretary of State. Both served my constituents with distinction, and on their behalf, I would like to say thank you.

I am not the first politician in my family. My grandmother came to Britain in 1937 at the age of 13 as a refugee from Germany. Her grandfather, Paul Heide, was a state senator and a fierce critic of the Nazis. When Hitler came to power, the whole family were arrested and stripped of their citizenship. After years in prison, Paul jumped out of the window of his second-floor cell and made it to Czechoslovakia despite his broken ankle. There, the family set up a resistance radio station broadcasting back over the border, until one night they were raided by the SS and one of the operators was shot dead. They managed to escape, and fled to England and freedom. My grandfather’s family were far less fortunate: Jews from Amsterdam, almost all of them were murdered in Sobibor and Auschwitz. One of them was eight years old.

My grandparents’ stories helped make me who I am, so even as a small child, I already knew the power of politics. It is an honour to take my place in Parliament, to serve my constituents and this country—the country that saved my family and saved the free world—but freedom does not come for free: it must be fought for. Every time I come into this Chamber, I see the shields that surround us and think of our country’s sacrifice. Colonel Victor Cazalet, whose shield is on the other side of the Chamber, lived in Cranbrook in my constituency. He had already served with distinction in the first world war, receiving the Military Cross for gallantry in 1917. He was killed in an air crash in world war two, as was Commander Rupert Brabner, whose shield is a few places further down. Commander Brabner was the Member for Hythe, a constituency that borders my own, and an ace Royal Navy pilot awarded the Distinguished Service Cross. We will remember them.

The weald of Kent has played its part in our nation’s sacrifices. Headcorn aerodrome operated in the second world war as RAF Lashenden, at the same time as Benenden school was converted for use as a military hospital, and Coxheath was once the British Army’s largest training ground. The constituency may be new, but the Kentish weald is anything but: Appledore was raided by the Vikings in 893, and the Archbishop of Canterbury had his palace at Charing as far back as the year 900. Enriched by ironmaking in Biddenden and clothmaking in Marden and Staplehurst, today the weald of Kent boasts hundreds of square miles of the most gorgeous countryside, surrounding two delightful towns—Tenterden and Cranbrook—as well as over 100 of Britain’s most charming villages, many 1,000 years old or more. From Aldington to Yalding, every one of the weald of Kent’s 56 civil parishes is a rural jewel. The area is awash with medieval churches, cricket clubs, intricate gardens, and a mosaic of farms growing the nation’s food—and now, vineyards growing the very finest British wine.

Do not take my word for it: the glory of the weald of Kent has been immortalised in films, books and television shows. H.E. Bates was inspired by his home, Little Chart, to write “The Darling Buds of May”, and the TV adaptation was filmed in Pluckley and neighbouring Bethersden. Godmersham Park was the inspiration for Jane Austen’s “Mansfield Park”, while Agatha Christie fans will know Chilham as the backdrop for episodes of “Poirot” and Smarden as a television stand-in for Miss Marple’s home, St Mary Mead. The steam train in the opening shot of “Downton Abbey” is the Kent and East Sussex railway, rolling from Rolvenden to Wittersham Road, and one of my favourite films, “Kind Hearts and Coronets”, shot its countryside scenes in Boughton Monchelsea.

Lastly, I should like to give a few personal thanks. First, I thank hon. Members on the Government Benches, for it was while delivering leaflets for their party that Grandma and Grandpa Lam met in the late 1940s. Had the Mill Hill Labour Club never existed, neither would this Conservative. [Laughter.] Secondly, I thank Alex, my family and my friends for all they have done for me. Thirdly, I thank the best Conservative association in the country. Finally, I thank the people of Weald of Kent who have sent me here to represent them. I will never look at the responsibility of being the Member of Parliament for Weald of Kent as merely a job; I will always treat it as an honour.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

We now have another maiden speech. I call Sarah Smith.