Employment Rights Bill

Sonia Kumar Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake]

We deserved to lose the election fair and square, but the hon. Gentleman should look at that result, because it was not a popular vote for Labour. The party’s popularity is dropping by the day, and the business confidence that we need to protect in this country is dropping by the day.

The Bill is a trade union charter. By repealing the Trade Union Act 2016, it will increase the number of strikes by 53%. It is a charter that will take Britain back to the 1970s—a stated goal of the Deputy Prime Minister. The public will pay the price not just through uncollected waste, dysfunctional local government and picket lines outside hospitals, as in the 1970s; they will be forced to pay through higher taxes—a fact that the Government have now admitted in the impact assessment, despite pledging not to increase taxes on working people.

At a time when the Government claim to be scrambling for cash and are taking the winter fuel payment from 9.5 million pensioners, they have the gall to drive up taxes to reward their trade union paymasters. That will be done not just through higher national insurance, a hike in fuel duty or whatever other punishing measures the Government choose, but through council tax. Because of the Government’s Corbyn-style collective bargaining for social care, councils will be required to stump up an additional £4.2 billion, or £150 per household.

The path that we took in government was pro-worker and pro-business. Whereas this Government put party first and country second, we worked in partnership with businesses and workers to deliver improvements without risking investment, unemployment and businesses going bust.

[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.

--- Later in debate ---

[Sonia Kumar (Dudley) (Lab)]

I declare my interests as a member of the GMB, Unison and the Chartered Society of Physiotherapy.

Dudley is home to thousands of small businesses and gig economy workers. Some 89% of those businesses are microbusinesses, and they will be watching closely to see that the Bill strikes the right balance between being pro-business and pro-worker. I believe that it does so. Alongside the “Next Steps to Make Work Pay” policy, the Bill offers a consultation period for businesses and a probation period, allowing them to shape practical and beneficial reforms, giving a voice to businesses and time to adjust, as it will not be rolled out until 2026. I dismiss the claim from Conservative Members that the Bill is rushed, and I hope that the Business Secretary will reaffirm that and reassure Conservative Members that specific guidance and support will be provided to smaller businesses in places such as Dudley so that they can implement the reforms effectively, without excessive costs.

The Bill includes welcome provisions that will strengthen statutory sick pay and provide financial stability for workers. Currently, 10 million people are not able to access basic health support at work, including up to 12,600 people in Dudley. The changes will ensure that no one is forced out of work due to ill health, helping to create workplaces that protect and promote the health of all employees.

For too long, workers have had to wait months for basic protections such as unfair dismissal rights. The Bill will change that by making them day one rights, so that workers are protected from the start of their employment.

Under successive Conservative Governments, access to justice for workers was weakened. Tribunal fees made it harder for workers to hold bad employers to account. Although those fees were eventually scrapped, the damage remains, and the Bill corrects those failures by giving workers the protection that they deserve from day one.

The Bill is also a significant step forward on gender equality. It makes parental leave a right from day one, allowing parents to access leave as soon as they start their job. That is particularly important in Dudley in sectors such as healthcare, education and the beauty industry, and will ensure that being a parent does not undermine a person’s job security.

At university, I was on a zero-hours contract in one of the biggest industries in Dudley. I remember when my colleagues and I would wait for the supervisors to produce a rota, and the uncertainty of not knowing who would be on the shift next. We were not alone; more than 1 million workers in the UK are stuck on these contracts, with more than 80% of them seeking predictable hours. The Bill reflects the values that we stand for of fairness, equality and dignity.

Employment Rights Bill

Sonia Kumar Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Andy MacNae]

I am a member of Unite the union, but I rise to make my remarks from the perspective of a business owner and employer, in response to comments made by Conservative Members, who have now wandered off, about small and medium-sized businesses. These are personal comments and I will give my personal perspective, but I know many businesses, large and small, that share this point of view.

Before coming to this place, I was running businesses of various shapes and sizes for well over 20 years. I did my MBA at Manchester Business School, I have started and led several businesses, and I have served on the board of many others, so I have been about a bit. Throughout that time, it was always clear in my mind that whatever the business, the critical success factor is always the skills, drive and quality of the people that the business employs or contracts. To succeed, any business must attract the best possible people. That is why I have always felt that the selection and recruitment process was my key role in any organisation that I led. I will always argue that great businesses, by which I mean those with sustained success, will always be good employers.

When I look at the measures in this Bill, all I see are the things that good employers are already doing. We know that support for employees when they have children pays off in the long term. We know that giving employees job security increases their commitment and productivity. We support our people when they are sick, and we know that taking holidays is vital to maintain performance. We do not unfairly dismiss, whether someone has been with us for one day or for many years. We have rigorous recruitment processes, and we make it clear that employees must show they meet requirements for a job during the probationary period. We pay as well as we can, knowing that employees who feel valued will deliver for our businesses.

Up until now, good employers have always felt the risk of being undercut by unscrupulous and short-term disruptors looking to make a quick buck. This is a real and serious issue—I have experienced it in business, and many other business owners have raised it with me. Businesses doing the right thing should not be disadvantaged, yet weak and outdated employment legislation has left them exposed. This Bill levels the playing field. Good employers can keep on doing what they do, knowing that their competitors can no longer undercut them by, for instance, employing a majority of their staff on zero-hours contracts, not giving holiday pay, firing and rehiring or just underpaying.

This Bill is good for good businesses and good for workers. It is good for growth and for society. It will put more money in people’s pockets and deliver real, tangible benefits for working people, and I am very pleased to support it.

[Sonia Kumar (Dudley) (Lab)]

I draw attention to my entries in the Register of Members’ Financial Interests, which include my membership of GMB, Unison and the Chartered Society of Physiotherapy.

When I spoke on Second Reading, I welcomed the advancements that this Bill would make on statutory sick pay, maternity and paternity pay and protections around pregnancy, as well as its values of fairness. I support new clauses 44, 47 and 48: it is only right that if someone has done a fair day’s work and a business fails to pay them, the Secretary of State should have the authority to give notice of underpayment. No one in Britain should go home from an honest day’s work out of pocket and worried about paying their bills. I also welcome the Secretary of State’s interventions on imposing financial penalties on businesses that make underpayments.

I believe that poor practice in the workplace should be called out and that those responsible should be held accountable. However, we also need an adequately resourced fair work agency, so I support new clause 82, tabled by the Chair of the Business and Trade Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne). The agency should be agile enough to tackle issues upstream by supporting businesses that want to comply with the law, as well as having enough resources to tackle meaningfully non-compliant businesses. On the Business and Trade Committee, we heard from several businesses, some of which were great employers and some of which were unable to justify their malpractice, with evidence of modern-day slavery in their supply chains.

We cannot have companies getting away with poor practice where workers cannot use the toilet, are not entitled to their breaks or fail to get their fair pay. Transparency, accountability and enforcement are key, but we must remember that most businesses do their best by their workers, and I have witnessed that. Since Second Reading, I have met with business owners in several sectors, from steelworkers and scaffolders to restaurant owners and retail. During my visits and roundtables in my constituency of Dudley, both workers and employers often tell me that they want the same thing: the stability to grow and a fiscally responsible Government who care about them and their future. Stability is not a zero-sum game. Research shows that when businesses look after their employees, they create a more loyal and productive workforce, which in turn strengthens businesses and helps them to grow the economy. In 2023, digital research by Deloitte found that

“fostering trust, opportunities for growth, and employee well-being are the keys to increased workforce retention and satisfaction”.

To reassure businesses, we know that the implementation of this Bill will be in phases. That approach promises to allow step-by-step upskilling of HR professionals and to update employment practices one step at a time; they will not be expected to be employed until 2026. I therefore ask the Minister to provide a road map outlining details of future consultations, with a two-year timeline to help to guide business owners to provide stability for businesses. A road map would undoubtedly help to ease growing pains, allowing small businesses time to plan the necessary administration, upskilling and ability to resource for the fair work agency. Both workers and businesses in Dudley would benefit greatly from that stability, and I wholeheartedly support this Bill.

[Steve Yemm (Mansfield) (Lab)]

I rise to support the Bill, and in particular Government new schedule 2. I must also draw the House’s attention to my entry in the Register of Members’ Financial Interests and my membership of both the GMB and Unite trade unions. I should also make clear to the House my employment history, both as a chief executive officer and a managing director of companies in the United States, the UK and Israel, and my record as a company founder and employer.