Employment Rights Bill

Robbie Moore Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Joe Robertson (Isle of Wight East) (Con)]

I congratulate those who have given their maiden speeches today and spoken with such passion for and about their communities.

There is much in the Bill that I support, and I support the sentiment behind it. I am sure there is common ground in wanting to improve conditions and rights for workers, but there is a balance to be struck, and I have grave concerns about some provisions in the Bill—those that increase burden and red tape on employers and on employees, and those that are a threat to and a drag on economic productivity.

My first concern is the unnecessary introduction of a new concept of statutory probation. As the law currently stands, workers get protections against things like unfair dismissal. Those long-standing principles have survived different Governments, and indeed survive in this Bill. The debate has been about when those rights are accrued—whether it is after two years of employment or one—and there has been a fluctuation. This Bill attempts to introduce those rights from day one, but then to row back on them by introducing a statutory probation period, during which, in the Deputy Prime Minister’s own words, there is only a “light touch” approach to unfair dismissal. It creates a new concept that is vague and unclear, and it will increase the glut of litigation in the employment tribunal. Indeed, it will need to do so to create case law so that employees and employers can understand what a “light touch” approach to unfair dismissal means.

My second concern is the increased burden on smaller employers. Indeed, that is contained in the Government’s own analysis, and much has been said about that, so I will turn to my third issue: specific burdens in specific sectors, such as social care. The Government’s own analysis says that the Bill will increase costs for employers, but employers in social care cannot bear any more cost. The Government have said they will bring forward reform of social care; that must come first, before this law is brought into force.

[Robbie Moore (Keighley and Ilkley) (Con)]

Does my hon. Friend agree that the crux of the issue is that the Bill is lacking in detail? The issues he is discussing have been identified and indeed referenced in the Government’s own economic analysis, and we cannot get into the detail of this debate without having that level of information on the face of the Bill.

[Joe Robertson]

I agree that the Bill lacks detail. It also contains a lot of powers that are intended to come about through secondary legislation. For example, we do not know how long that probation period will be, because it is not set out in the legislation.

Turning to the NHS, we understand that the Chancellor will increase the money to the NHS in the Budget but, as an employer, the NHS will have increased costs through this Bill. If national insurance contributions on employers are to be raised in the Budget, it will have that cost as well. That means there will be less money available to cut waiting lists. I urge the Government to delay this Bill, get the detail right and put some detail into it, and ensure that sectors such as health and social care get the support first so that, as employers, they can deal with the increased costs from this legislation.

--- Later in debate ---

[Nick Timothy]

The Government could be doing something about the fact that nearly 22% of the workforce is economically inactive and a record number of men is leaving the labour market. They could be backing British business.

[Robbie Moore]

This again highlights the point that there is so much detail yet to be released into the public domain about this Bill. I highlighted this before. Does my hon. Friend agree that if we had that detail, we could provide more reassurance to the small and larger businesses dealing with the challenges he has mentioned?

[Nick Timothy]

My hon. Friend is exactly right; I agree.

The Government could be backing British business, not burdening it with all these new regulations. Instead, we have an Energy Secretary driving up energy prices, a Chancellor planning a jobs tax, increases to capital gains tax and the imposition of inheritance tax on small family businesses, and a Deputy Prime Minister reregulating the labour market at a cost to business of £5 billion, to pay back the unions who fund the Labour party. The Prime Minister promised us that his priority was “growth, growth, growth”, but like everything else he said before the election, he did not mean it, because the only three things that this Bill will bring are more costs, less investment and fewer jobs.

--- Later in debate ---

[Robbie Moore (Keighley and Ilkley) (Con)]

I congratulate the hon. Member for Airdrie and Shotts (Kenneth Stevenson) on his maiden speech. Knowing his constituency a little, I can guarantee that the weather is not the link between Airdrie and Rome. I congratulate him on taking his place in this House.

Today’s debate is deeply important, and it will have huge ramifications for businesses of all sizes across the country. Hiring new staff is a big moment for small businesses, like many in Keighley and Ilkley, and it comes with huge potential but also risk. That is why many businesses in my constituency have contacted me in advance of the introduction of this Bill to express their concerns about the proposals before us today.

At a time when we need to grow the economy, we do not need a Bill that the Federation of Small Businesses has described as

“rushed…clumsy, chaotic and poorly planned.”

It has to be noted that this Bill will have a disproportionately negative impact on smaller businesses compared with larger companies that have their own HR departments.

Simply put, Labour’s day one rights and other similar measures are worrying for many small businesses across the country. The Government have made this situation worse by adding clause after clause of clarification, exception, regulation and definition, in an attempt to micromanage every possible situation for businesses across the country. This has created a quagmire of regulatory jargon that small businesses will simply have to cope with, and they will not be able to cope. The fear of falling foul of these regulations has been made clear to me by many businesses in Keighley and Ilkley.

The Bill will also prevent the backbone of our economy from hiring staff, expanding and growing our economy. Even the Government’s own economic analysis stipulates that the risks are highest for workers with the weakest attachment to the labour market, such as low-paid workers, disabled workers and the youngest workers, who are still gaining the experience and skills they require.

[Rebecca Harris]

An SME in my constituency once found someone sleeping rough on its premises and offered them a job. Does my hon. Friend agree that, when this Bill is enacted, it is very unlikely that a business will go to such lengths to give someone that kind of break in future?

[Robbie Moore]

I absolutely agree. My hon. Friend highlights that this Bill will not give businesses the certainty and confidence to recruit individuals who need that little bit more experience to get into the job market. Indeed, the Government’s own analysis points to an unintended consequence:

“Where businesses cannot absorb the increase in labour costs, they may look to pass them onto workers by reducing expenditures that benefit workers (e.g. staff training) or scaling back future improvements to T&CS (e.g. wage growth).”

This is not a pro-growth Bill, and it is not even a pro-work Bill; it is a pro-union Bill. The Government have even said this themselves. Their plan to make work pay has referred to this Bill as an “Employment Rights Union Bill”. Perhaps that is because the Bill is chock full of changes to union regulation made by our previous Conservative Government—changes that were specifically designed to protect the public from the unscrupulous practices of the unions and their more militant members.

Minimum service provisions were introduced by the last Government specifically to protect the public from being caught in the crossfire between the unions and the Government—yet, by lifting those restrictions with this Bill, Labour is showing that it is more interested in appeasing its union bosses than in ensuring that minimum service is guaranteed throughout any dispute between the public sector and the Government.

[Nick Timothy]

Earlier, I asked the hon. Member for Bracknell (Peter Swallow) whether there are any business leaders who actually support the Bill. Is my hon. Friend aware of any?

[Robbie Moore]

I have spoken to and received correspondence from many businesses, both small and large, in my constituency, but not one gave the Bill their full backing. In fact, they raised concerns about the relationship between the employer and employee being tampered with by the Government.

One of the most unsurprising parts of the Bill is clause 48, in which the Government want to force union members to pay into the political fund of the union, unless they explicitly decide to opt out. No matter what views hon. Members may have about unions, this clause is simply not right; working people should not be paying into political funds without giving their prior consent, especially when that money ends up in the pockets of a political party. Having received over £29 million in donations from the unions, we know which political party that money will end up going to—the party in government; and all this from a self-proclaimed Government of supposed transparency. Every employment is different, every job is different and every circumstance is different, but this Bill fails to recognise that.