Employment Rights Bill

Paul Waugh Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

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

[Paul Waugh (Rochdale) (Lab/Co-op)]

I am sure that my hon. Friend shares my frustration at the sheer misinformation that has been spread about the removal of the cap on compensation. As she rightly says, the median award at the moment is less than £7,000. More importantly than that, only 2% of all employment tribunals ever result in a compensation award for unfair dismissal. Does she agree that the Government have indeed taken into account the concerns of Cross-Bench peers by committing to an assessment, and more importantly does she agree that those employers and the unions together can see what the Opposition do not, which is that this is will be fair to workers and fair to businesses that are fair to their workers?

[Kate Dearden]

I wholeheartedly agree with my hon. Friend’s comments. We believe that the current compensatory award cap also creates a systemic incentive for unfair dismissal claimants to construct more complex cases, which could take longer for a tribunal to handle. By removing the compensatory award cap for unfair dismissal claims, the incentive may be lessened, potentially making it easier for tribunals to reach a judgment more quickly and decreasing the burdens on the system.

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[Bradley Thomas]

I was just about to get to the point that I wanted to make: removal of the cap will make matters significantly worse. To put it plainly, it will open the floodgates for senior executives to pursue multimillion-pound claims that will further congest the courts. For many companies, the dismissal process for senior executives is fundamentally different from that used for other employees, in many cases as a result of strategic complexities relating to board involvement. Unlike the structured procedures applied to the wider workforce, senior leaders are seldom afforded opportunities such as performance improvement plans before removal. The Bill creates a significant liability and establishes a direct financial incentive for senior executives to pursue employment claims.

[Paul Waugh]

Is the hon. Gentleman aware that, at the moment, compensation for racial, sexual and disability discrimination, and for whistleblowers, is uncapped? What is the difference between that and being unfairly dismissed?

[Bradley Thomas]

The hon. Gentleman misses the point that I am making. Currently, there is no financial incentive for very senior executives who cannot exercise any leverage over things such as pay and equity, and the Bill risks clogging up the system. The CEOs of large UK corporations earn a median salary of over £4 million, compared with the £118,000 cap on unfair dismissal claims, so high earners have little incentive to lodge claims. Remove the cap and that incentive becomes glaringly obvious.

UK Modern Industrial Strategy

Paul Waugh Excerpts

Monday 23rd June 2025 Commons Chamber

[Jonathan Reynolds]

I recognise the case that the hon. Gentleman makes. Some of the courses that we need and that are central to our economy—engineering is a good example—are more expensive to put on and need greater capacity. When I talk about a funding package, it is to deliver the business-led, needs-led courses to which he refers, and I would expect Harrogate college to feel the benefits of that.

[Paul Waugh (Rochdale) (Lab/Co-op)]

Rochdale Training provides local apprenticeships in engineering and other skills that we desperately need, and works with local employers to deliver that. Its chief executive, Jill Nagy, told me that today’s announcement of £1.2 billion in extra funding for training is warmly welcomed, as are the new foundation apprenticeships. Will the Secretary of State join me in praising the work of Rochdale Training? May I urge him to look closely at Hopwood Hall college’s bid to be one of the north-west’s technical colleges of excellence for construction?

Oral Answers to Questions

Paul Waugh Excerpts

Thursday 30th January 2025 Commons Chamber

[Sarah Coombes (West Bromwich) (Lab)]

14. What progress his Department has made on developing an industrial strategy.

[Paul Waugh (Rochdale) (Lab/Co-op)]

16. What progress his Department has made on developing an industrial strategy.

[The Minister for Industry (Sarah Jones)]

This Department and, indeed, Departments across Government are working extensively on developing our industrial strategy, which the Conservative party opposes, but which business and industry welcome. Last month, we launched the Industrial Strategy Advisory Council, comprising a very impressive group of the UK’s top business leaders, policy experts and trade union leaders. My right hon. Friends the Chancellor and the Secretary of State for Business and Trade attended the council’s inaugural meeting on 17 December. In addition, we are currently analysing more than 3,000 responses to the Industrial Strategy Green Paper from businesses, academics, think-tanks and unions, and their insights and feedback are incredibly valuable as we develop the strategy.

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[Sarah Jones]

I know my hon. Friend will hold this Government to account on what we are doing and how we are going, and she will push, and already has done, to make sure we are doing everything we can for the industries in her area. The CBAM will be introduced in 2027, and she speaks to concerns that I have heard in conversations around steel in particular, which is very important to this country. That is why we are developing a steel strategy, which will set a future direction of travel for steel, but we are working with the EU and with industry here to make sure the CBAM works and does what it is supposed to do.

[Paul Waugh]

Andy Burnham’s Atom Valley mayoral development zone is creating a world-class supercluster for advanced manufacturing right across 70 million square feet in Rochdale, Oldham, Bury and Middleton. Rochdale’s Kingsway business park will be home to the SMMC—the sustainable materials and manufacturing centre—a world-class cutting-edge research centre. Will the Minister join me in supporting the SMMC, and perhaps arrange a visit either by herself or the Secretary of State to see what is happening with the jobs of the future in Rochdale?

[Sarah Jones]

I thank my hon. Friend for bringing to the House the work that is going on for the Atom Valley development zone, which is incredibly important and exactly what we want to see. The Mayor of Greater Manchester is to be congratulated for his leadership in this space as well. I am very interested in the work my hon. Friend refers to, not least because of the critical minerals strategy we are developing and the graphene work that I know will be under way in the manufacturing centre hub, so I very much look forward to talking further to him about what is happening and how we can help.

Oral Answers to Questions

Paul Waugh Excerpts

Thursday 5th September 2024 Commons Chamber

[Jonathan Reynolds]

I give the right hon. Gentleman an absolute assurance that I would expect and demand there to be no modern slavery in any part of a supply chain that affects products or goods sold in the UK. He is right to say that under the Modern Slavery Act, which was put in place by a previous Conservative Government, any business with a turnover above £36 million needs to have a reporting regime around that. I promise him that, where there are specific allegations, I will look at those to ensure that. It is an area where we have existing legislation, and indeed we would go further if that was required.

[Paul Waugh (Rochdale) (Lab/Co-op)]

T9. The Secretary of State pledged to be the most accessible Business Secretary, so will he give us an update on his most recent business engagement? May I also invite him to meet me, the Rochdale Development Agency and the Rochdale business improvement district to discuss our exciting plans for advanced manufacturing in Rochdale and for town centre regeneration?

[Jonathan Reynolds]

I am grateful to my hon. Friend for that question. I meet businesses every day, and my most recent engagement was the breakfast we did on our plans to make work pay, where businesses themselves were pointing out the things they are doing because they value and care for their workforce and will invest in them. The issue in Rochdale he refers to is close to my heart as a Member of Parliament from just down the road in Tameside. I will of course have that meeting with him and continue to work closely with him to deliver on his objectives.