Employment Rights Bill

Richard Burgon Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake]

I am happy to give way to the hon. Member for Leeds East.

[Richard Burgon (Leeds East) (Ind)]

I have listened with interest to what the shadow Minister is saying about people being entitled to go all the way to an employment tribunal hearing from the moment they take up employment. Has he ever heard of pre-hearing reviews for employment tribunals?

[Kevin Hollinrake]

The point I was making is that the case may go all the way to an employment tribunal, as the hon. Gentleman knows, but there would also be the cost of defending the case even if it does not. That small business will have to bring consultants in and will have to speak to lawyers. That itself costs money, and in many cases that will be thousands of pounds. That is what the hon. Member fails to understand: when you are accused, you lose.

--- Later in debate ---

[Richard Burgon (Leeds East) (Ind)]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests. I have to start with reflections on some of the speeches from Conservative Members, although their Benches are now deserted. Those speeches brought back memories from when I was younger of watching my favourite actor, Rik Mayall, in his role as Alan B’Stard MP. Many Conservative Members seemed to be trying to reprise that role today. It was incredible and left me wondering what planet they are living on. It also took me back to Conservative Members objecting to the last Labour Government introducing the national minimum wage. They said it would have a cataclysmic effect on jobs across the country, when in fact it helped to move people towards getting a decent wage. Conservative Members do not seem to understand that many good employers follow such standards already, and we are enabling those good employers to operate on a level playing field with bad, rogue bosses who seek to undercut good employers left, right and centre.

Before I was first elected back in 2015, I was a trade union lawyer for 10 years, and I saw day in, day out how working people are held back by weak protections and anti-trade union laws. I am really proud to be here today to welcome and vote for this significant step forward in employment rights by a Labour Government. There is so much in the Bill to improve workers’ rights in a range of areas—parental leave, paternity leave, unfair dismissal, statutory sick pay, collective redundancies, tips, the duty to prevent sexual harassment and the requirement for firms of more than 250 employees to make equality plans. The Conservatives think this is bad news for business, for workers and for our country, but that could not be further from the truth.

As this important Bill makes progress, I hope that the Government will find ways to clarify and strengthen a small number of points. Some loopholes on fire and rehire need to be closed, and it would be great if we could further strengthen the rights of union access to workplaces. I would also welcome improvements in a host of other areas. For example, it is 30 years since the Tories took away prison officers’ right to strike, and I would like to see that returned. If people succeed in proving unfair dismissal at an employment tribunal and get a reinstatement order, I would like to see it made much more likely that they will, in fact, be reinstated.

I welcome the Bill, I am proud to vote for it and I think it is shameful that the Tories will vote against it.

Employment Rights Bill

Richard Burgon Excerpts

Report stage
Tuesday 11th March 2025 Commons Chamber

[Andy McDonald]

As a proud trade unionist, I refer the House to my entry in the Register of Members’ Financial Interests.

Today marks a truly historic moment: the most significant expansion of employment rights in more than a generation. I extend my congratulations to the Secretary of State and the Deputy Prime Minister for their efforts, and express my enormous gratitude to the employment rights Minister, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), for his time and engagement with me over recent months in discussing the measures in the Bill. I also wish to acknowledge the dedication of Bill Committee members, as well as the countless trade union officers, academics, Labour party members and staffers who have worked tirelessly for decades to bring us to this day. This is a milestone we have long strived for. On a personal note, I extend my sincere thanks to the Prime Minister for entrusting me, while in opposition, with the responsibility of delivering Labour’s Green Paper, “A New Deal for Working People”.

I speak in support of the Government’s amendments and will touch on my own tabled amendments selected for discussion. Specifically, I support Government new clause 32 and Government new schedule 1, which will extend guaranteed hours protections to nearly 1 million agency workers. This is a crucial step, aligning with my own amendment 264, and I am pleased to see the Government taking it forward. The TUC has rightly emphasised that for these rights to be effective, they must apply to all workers. Including agency workers is essential to prevent unscrupulous employers from circumventing new protections by shifting to agency staff. Exploitative tactics employed by a minority of employers, designed to avoid responsibilities and deny workers job security, remain a deep concern, which is precisely why I have consistently advocated for a single employment status.

I tabled new clause 61 because I believe that establishing a single status of worker is a necessary step to ending unfair employment practices. The Government’s “Next Steps to Make Work Pay” document, published alongside the Bill, states their intent to consult on moving towards a single worker status. On Second Reading, I noted that we cannot truly eradicate insecure work until we establish a clear and unified employment status. Since then, the Director of Labour Market Enforcement, Margaret Beels, has told the Business and Trade Committee that

“the whole business of employment status needs to be addressed”,

adding that

“you can probably consult until the cows come home on this issue…it is about time to do something about it”.

The TUC also urged a rapid review of employment status to prevent tactics such as bogus self-employment from proliferating as employers respond to new rights.

I welcome the Business and Trade Committee’s recommendation that the Government must prioritise their review of employment status and address false self-employment

“so that these reforms are rolled out alongside…the Employment Rights Bill.”

I acknowledge the new clause tabled by the Chair of the Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), which seeks to establish a deadline for this consultation. I urge the Government to accelerate progress on this front, but take reassurance from the fact that this issue is well understood at the highest levels.

I turn to collective redundancy and the unacceptable practice of fire and rehire. ACAS reported in 2021 that the use of fire and rehire tactics by employers was prevalent in the UK and had increased since the pandemic. Nearly a fifth of young people say their employer has tried to rehire them on inferior terms. Many will recall how P&O shamelessly broke the law, choosing to pay compensation rather than comply with its legal obligations because it calculated that replacing its workforce with cheaper labour would ultimately be more profitable.

I welcome the Government’s consultation on collective redundancy and their introduction of new clause 34, which doubles the maximum protective award for unfairly dismissed workers to 180 days’ pay. However, while this may deter some employers, I question whether it is a sufficient deterrent to prevent further abuses. The TUC has raised concerns that merely doubling the cap will still allow well-resourced employers to treat breaching their legal obligations as the cost of doing business. The TUC instead proposes a stronger deterrent: the introduction of interim injunctions to block fire and rehire attempts—an approach I have sought through new clause 62.

Mick Lynch, the outgoing general secretary of the RMT, told the Bill Committee that unions should have the power to seek injunctions against employers like P&O. He rightly pointed out:

“The power is all with the employers,”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 59, Q57]

and that unions currently lack the legal means to stop mass dismissals before they happen. My new clause offers a solution, giving employees immediate redress through an injunction if they can show that their dismissal is likely to be in breach of the new law, ensuring that they remain employed with full pay until a final ruling is made. I encourage the Minister to address this issue in his response and to indicate an openness to considering injunctive powers in this Parliament.

[Richard Burgon]

My hon. Friend has played such an important role in the development of these policies. He is making a wide-ranging speech—in his remaining remarks, will he reflect on the importance of not just individual rights, but collective rights?

[Andy McDonald]

My hon. Friend highlights a critical issue—this is about making that shift and reversing the decline in collective bargaining. We should be looking for the International Labour Organisation standard and, as per the European Union, to get to 80% collective bargaining coverage across the piece.

I also note the concerns of the TUC and Unite regarding Government new clauses 90 to 96, on the “one establishment” issue, and urge them to engage with the unions on these issues.

Much has been said about wealth creators, but there needs to be a recognition that working people are wealth creators and they are entitled to their fair share. The Chair of the Business and Trade Committee calls for consensus. At the core of this discussion has to be that good, well-paid, secure, unionised employment is good for our constituents, our businesses and our economy, and this crucial Employment Rights Bill is an essential step along that road to a brighter economy and a brighter future for all our people.