Income tax (charge)

Debate between Ruth Cadbury and Justin Madders

Monday 16th March 2020 Commons Chamber

[Justin Madders]

Again, we need a definitive answer on that from the Secretary of State. I appreciate that things are evolving rapidly, and sometimes what was considered best practice a few weeks ago might have changed in light of the evidence. It is incumbent on us to hear the advice directly from the Secretary of State, and then we can send the same message to our constituents, so that there is no more confusion and ambiguity.

[Ruth Cadbury]

My hon. Friend was excellently covering council income, but one area I am concerned about, and have heard nothing about, is council rents. Many council tenants are at risk of losing work or being forced into self-isolation, and they might not get paid. I appreciate the Government’s work on statutory sick pay, but that will not be enough to pay council or housing association rents. Does my hon. Friend share my concern that many people could be at risk of arrears unless the Government support councils in addressing that issue?

[Justin Madders]

My hon. Friend is right: a whole raft of issues will have an effect over the coming months, and although housing revenue accounts are separate to main council budgets, we still need to have that balance. Over the past decade, as a consequence of welfare reform, we have seen how councils and housing associations have adopted policies to deal with that loss of income from a number of changes to the welfare and benefits system, and we must keep that dialogue open over the next few months. We certainly could not expect full collection rates at this time, and we must work with people to understand the limitations of that. We will talk to the Government regarding any legislation that comes forward in due course.

Draft Employment Rights (Amendment) (EU Exit) Regulations 2019 Draft Employment Rights (Amendment) (Northern Ireland) (EU Exit) Regulations 2019 Draft Employment Rights (Amendment) (EU Exit) (No. 2) Regulations 2018 Draft Employment Rights (Amendment) (Northern Ireland) (EU Exit) (No. 2) Regulations 2018

Debate between Ruth Cadbury and Justin Madders

Wednesday 13th February 2019 General Committees

[Justin Madders]

It is a pleasure to serve under your chairmanship, Mr Evans. I am standing in for my hon. Friend the Member for North West Durham (Laura Pidcock), who has had a family bereavement. I am sure the Committee sends its condolences.

The Minister’s introduction presented the regulations as a necessary tidying-up exercise to remove unnecessary references to EU directives in important areas of workers’ rights, such as maternity leave, part-time work, fixed-term contracts and so on—I think she used the term “minor” to describe the effect of the legislation. On one level, that is understandable—we need our laws to be aligned with reality—but it seems at odds with the Prime Minister’s stated aim of protecting workers’ rights. From the removal of those powers, one can only conclude that the Government do not intend to match our EU counter- parts in terms of employment protection. The Committee will note that I asked the Minister about that and I do not think we had any confirmation that it is Government policy.

The regulations do not just remove our ability to keep pace with the EU but remove one area altogether. The Minister has already referred to it, so the Committee will not be surprised to hear that I am talking about European works councils, which are an important part of workplace democracy and a vital mechanism for giving a voice to the employees of multinational companies.

The Transnational Information and Consultation of Employees Regulations 1999 set out the rules governing European works councils. They say that where a company is based in two or more member states and has more than 1,000 employees, a European works council can be set up if one is requested. The regulations provide for the procedure to set up the council and a series of rights for employee representatives. Many of the information and consultation rights and protections are stronger than those under national legislation—for example, in relation to time off for workers’ representatives and the right to use experts and to undergo training. Those rights will be lost in a no-deal scenario.

Article 1 of the EU’s recast directive on European works councils anticipates the possibility of works council agreements that include non-EU countries and encourages them to proceed on a voluntary basis to enable workers’ representatives to participate. For example, the European works councils of companies operating in Switzerland often include Switzerland in their scope and may include Swiss representatives as members. However, the regulations do not appear to make provision for works councils to continue to include the UK in their scope on a voluntary basis, even though some European works councils have already amended their agreements to enable them to continue to work with UK representatives after Brexit.

In the regulations, the Government seek to retain certain aspects of the European works council scheme for councils set up before exit day, whenever that turns out to be. We welcome the fact that the enforcement framework, various employee representative rights and protections, and the confidential information protections are preserved for existing European works councils. There are also provisions to ensure that existing European works councils can continue to operate.

The concern, however, which we have already referred to, is that no new councils will be set up and that the right to request information on employee numbers, the provisions governing the setting up of a negotiating body, and the process and content of works councils and information and consultation procedure agreements will be lost. That clearly constitutes a loss of valuable workers’ rights in contravention of the Prime Minister’s promise to maintain existing workers’ rights at current levels.

The opportunity for workers to participate in discussions with their European colleagues on company-wide issues is valued by businesses, employees and their representatives. It can include opportunities for the workforce to be included in strategic multinational decisions about jobs, investment and training. Employees and unions are concerned that if UK representatives lose their place at the table, there will be a risk to UK jobs and investment.

In the event of a no deal, we need a commitment to continue to support and facilitate future voluntary UK worker participation in European works councils, as anticipated by article 1 of the recast directive, by keeping in place existing rights and protections for UK representatives on European works councils after Brexit. This will ensure that, in future, UK worker reps joining new or existing councils will continue to have their current rights and protections, including the right to paid time off to attend such meetings, as currently set out in regulations 25 to 27, and a right to training, as set out in regulation 19B. In our view, the draft regulations need to be amended to cover at least those basic work- place protections. Failure to do so would mean not honouring the Prime Minister’s clear commitments in this area.

On a more technical point, as alluded to by my hon. Friend the Member for Wallasey, the draft regulations are supposed to come into force on exit day, with the exception of certain provisions. The Minister needs to explain the need for that distinction.

I also have concerns about the lack of a Government statement on their timetable for revoking the regulations, in full or in part, should a withdrawal agreement with the EU be concluded. The draft regulations do not provide for the method by which they would be revoked. The unique circumstances that we currently face could involve considerable numbers of statutory instruments being repealed or revoked in a short space of time. The nature of the revocation is an important matter that we need clarity on from the Minister. I hope she agrees that, if a withdrawal agreement is secured, the draft regulations will not be needed subsequently, including in a transition period or in any backstop, if that is where we end up.

The second draft instrument proposes to alter the Secretary of State’s power under section 38 of the Employment Relations Act 1999 to provide TUPE protection to workers not ordinarily covered by those regulations, which typically include what are colourfully known in the directive as administrative reorganisations of public administrative authorities and the service provision changes that the Minister referred to.

I understand the need to remove the reference to the EU, but I do not understand why, as part of that process, the Government intend to water down TUPE protections, which it seems will be the inevitable consequence of using the phrase “TUPE-like” in the draft regulations. That is the nub of it. Why is “like” in there at all? Surely it is superfluous. The protections will be “the same or similar”. Why can they not just be the same? That is what the Opposition want, and I think it is what the Prime Minister intended.

This change will cover a potentially huge number of employees, as it will apply to contracting out of public sector services, market testing, private finance initiatives, any other outsourcing and contracting exercises, second and subsequent generation contracting where the contract was first awarded from the public sector, and reorganisations and staff transfers from one part of the public sector to another. We cannot simply nod through the draft regulation because it could affect thousands of employees.

The risk is that “TUPE-like” could mean that TUPE protections on changes to terms and conditions may no longer apply. Will the Minister confirm that the power could be used to prevent employees’ terms and conditions from being preserved after a transfer? Is it not the case that the draft regulations will mean that current rules regarding protection against a dismissal connected to a transfer could also be disapplied? Is it not also correct that existing laws regarding information and consultation on a transfer could be ignored as a result of the draft regulations? On the latter point, the Trades Union Congress points out that the draft regulations do not expressly refer to employee representatives, be they trade unions or elected representatives. Will the Minister explain why that has been omitted?

I would also be grateful if the Minister clarified what would happen in a no-deal Brexit where employees of a UK company were involved in a TUPE transfer post 29 March to a new employer based somewhere within the EU. Would any employee wishing to enforce their rights against their new employer have to do so subject to the European Court of Justice’s jurisdiction? Normally, both employers in a TUPE litigation would be made parties to the case. Does that mean that UK companies could still be subject to ECJ jurisdiction post Brexit?

The other aspect of the second draft instrument is the proposed amendment to section 13 of the Working Families Act 2006, which will have the effect of removing the obligation to keep pace with EU law on annual leave entitlements. The enshrining in UK law of the working time directive was one of the finest achievements of the last Labour Government, bringing for the first time a legal entitlement to rest breaks and paid annual leave. I am not surprised that the Government are taking the opportunity to weaken the standing of the working time regulations, given that a number of current and former members of Government, including Cabinet members, have spoken at length about the supposed burdens of the regulations. The Opposition do not consider paid annual leave or daily and weekly rest breaks to be a burden. They are essential health and safety measures, as well as important parts of workplace protection.

It is clear from this instrument that the Government do not wish UK workers in future to enjoy parity with their European counterparts. This can be seen as the firing of the starting gun on the race to the bottom. Indeed, as the political declaration makes clear, employment standards are to be considered subordinate to open and fair competition. That is where we are heading.

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

Does my hon. Friend agree that this is not just about the protection of employees but about those they serve? I refer to the ten-minute rule Bill introduced by our hon. Friend the Member for Warwick and Leamington (Matt Western) in the Chamber today, which was prompted by the deaths of people in Coventry as a result of a bus driver having worked inordinately long hours that week and the two weeks beforehand. That is an example of the importance of adequate employment legislation, not only for workers but for those they serve and their customers.

[Justin Madders]

My hon. Friend is absolutely right. That is why the working time directive was initially presented as health and safety legislation. It is not just about the worker’s health and providing adequate rest breaks, but about protecting those enjoying the benefits of their labour.

The Prime Minister may talk a good game but the evidence is that the words do not match the reality. Hers is the party that introduced employment tribunal fees, doubled the qualifying period for unfair dismissal and commissioned the atrocious Beecroft report, which proposed removing workplace protections altogether. I hope I will be forgiven for taking the Prime Minister’s comments in the Chamber yesterday about matching EU developments in employment rights with a pinch of salt, given what is before us today. Her track record does not inspire confidence, and these regulations do not do what she claims she wants to do. In fact, they do the opposite.

I say to the Minister that if the Government are genuinely trying to find common ground with Members across the House, these regulations should be withdrawn, because they do not do what the Prime Minister claims she wants to see happen. They represent the erosion of workplace protection and they must be opposed.

Employment Tribunal Fees

Debate between Ruth Cadbury and Justin Madders

Tuesday 1st December 2015 Westminster Hall

[Justin Madders]

I thank the hon. Gentleman for his intervention; his record on representing working people is one of note. He is absolutely right that everyone who takes part in the system contributes already through their taxes. As I will go on to demonstrate, there is little sign of any wider benefit to society. In fact, it could be argued that the fees are creating more problems than they solve.

Between October 2013 and September 2014, there were 32,671 fewer single claims brought by individuals than in the previous 12 months. That is a decrease of 64%. Over the same period, the number of multiple claim cases—those brought by two or more people against the same employer—was down by 3,527. That is a decrease of 67%. Comparing different periods can produce different figures, and an awful lot of different comparisons can be made. Indeed, some comparisons show up to an 80% drop in claims lodged. Whatever the comparisons or periods used, there is an average drop of around 70% in the number of claims lodged. It is therefore indisputable that there has been a significant drop in the number of claims since the introduction of fees.

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

I congratulate my hon. Friend on securing this debate. I held a debate in this room a few weeks ago on women and low pay, an issue that my hon. Friend the Member for Wansbeck (Ian Lavery) just raised. The tribunal process is an important mechanism through which women can secure equal pay in their place of work, because if the claim is successful, their employer is instructed to carry out an equal pay audit. The financial barrier, however, means that many women are not getting to that stage, and therefore fewer equal pay audits are being done than could be done. Does my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) agree that tribunal fees represent a barrier to equality in the workplace for not only the women making claims, but those in workplaces where claims could be made but are not?

[Justin Madders]

I pay tribute to my hon. Friend’s excellent contribution in the debate she referred to. She is, of course, right that there are significant issues of barriers to justice, and of employers not learning lessons about inequality; that needs to be put right. She makes a valid point about equal pay audits. Tribunals have additional powers beyond simply awarding compensation. We hear a lot of rhetoric from the Government about cutting down on the compensation culture, but tribunals have important powers that go beyond compensation. They also, for example, have the power to make a statement of an employee’s terms and conditions. That is absolutely basic, bread-and-butter stuff that we should expect to happen in an employment relationship, but occasionally it is necessary for an employee to go to a tribunal to get that basic statement of terms and conditions.

We can bandy the figures around in a number of ways, but the common thread is that there has been a 65% to 70% drop in the number of claims lodged. It is little wonder that, with such overwhelming evidence, Lord Justice Underhill stated the following when he considered in the High Court Unison’s judicial review of the fees regime:

“It is quite clear from the comparison between the number of claims brought in the ET before and after 29 July 2013 that the introduction of fees has had the effect of deterring a very large number of potential claimants.”

That is a very clear statement.

There has no doubt been a reduction in the number of claims made. Have employers suddenly started treating their employees better? [Laughter.] I do not think there is any suggestion among Opposition Members that that is the case. It is worth remembering that since the introduction of fees, the general trend has been an increase in the number of people in work, so the proportion of people in employment who are bringing tribunal claims is actually decreasing even more than is suggested by the raw data.