Employment Rights Bill (Ninth sitting)

Steve Darling Excerpts

Committee stage
Tuesday 10th December 2024 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell. The Minister mentioned that the clause builds on private Member’s legislation passed in the last Parliament, and it would be remiss of me not to put on record that the transformation in some employers’ attitudes to their employees and to the retention and fair distribution of tips was in large part down to the former Conservative Member for Watford, Dean Russell, who piloted the original legislation through the House. There were one or two little bumps along the road as he came into ministerial office and then out again in—what was the number?—43 days, but many Conservative colleagues really pushed for the legislation. It is one of those great unfairnesses that, for years, incredibly hard-working people in the hospitality sector and others had an expectation that they would receive the generosity of their customers’ tips at the end of the meal, the round of drinks or whatever but, for various reasons, did not get their fair share. The legislation the Minister referred to righted that historic wrong, and clause 10, which seeks to strengthen that, is very welcome.

Where I gently suggest to the Minister that there needs to be a little more thought and clarity is settings where there is no union to consult. That might be a small business such as a restaurant or pub, where the people who work there are not affiliated with any union or body that could be consulted on their behalf. Will he say something about how those smaller businesses—smaller restaurant or pub settings—will get dialogue going with their employees so that the business has a fair and equitable, and clear and unambiguous policy to ensure that the tips reach those workers?

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I just emphasise what the hon. Member for Mid Buckinghamshire stated in respect of smaller settings. In my constituency there are lots of restaurants and small hotels without the network of support for workers that a trade union would offer. It would be useful if Ministers were alive to the circumstances of those smaller settings. I also wonder whether the Minister is reflecting on what guidance he might issue on the question of what is equitable that could be reflected if people end up going to a tribunal.

[Laurence Turner (Birmingham Northfield) (Lab)]

I draw attention to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and Unite trade unions. I noticed last week that the Prime Minister made a James Bond joke, and I wondered whether he was following the Committee’s proceedings in real time. There is a valid question here: when James Bond buys a vodka martini, what happens to the tips? Hopefully, thanks to this Bill and the legislation passed last year, we will have a more equitable solution.

I want quickly to raise two issues. The “Make Work Pay” document published earlier this year stated:

“Labour will strengthen the law to ensure hospitality workers receive their tips in full and workers decide how tips are allocated.”

I would be interested in the Minister’s views on whether this measure meets that very welcome commitment. Whether tips that would have been received during shifts that are cancelled fall under the definition of reasonable compensation is presumably a question to be addressed in the future.

In respect of the points raised by the hon. Members for Torbay and for Mid Buckinghamshire about consultation with groups of workers who are not represented by a trade union, I suggest that the kinds of businesses they mentioned should have at least a degree of familiarity with the principles of that, since they are established and well understood in the context of redundancy situations and in other areas.

--- Later in debate ---

[Greg Smith]

He is a fine television superstar these days.

All of us will have published these statements on our websites, because that is straightforwardly set out in statute—straightforwardly set out in law. I am at a loss to understand why it would be a burden for a business of any size to do that, but I am mindful that we do not want to overburden businesses. I accept the explanation given by the hon. Member for Chippenham.

Turning to new clause 17, I would have loved to have six weeks of paternity leave when my three children were born. When my first child was born, I was still self-employed. It was before my election to this place, so the time I took off in 2016 was entirely unpaid because I just had to forgo client work, but it was important to do that.

I am slightly concerned that, as desirable as six weeks would be, it is too great a burden for businesses automatically to have to shoulder. Some good and generous employers may well find a way of offering it in one way or another, paid or otherwise. However, to go beyond the current entitlement of two weeks, which can be split up, as the Minister mentioned, seems to be too big an ask for some businesses, desirable though it may be for fathers to be able be there with their new child in the most precious early days of life to support the mother and the child. I gently invite Liberal Democrat Members to reflect on whether six weeks is realistic for every business.

[Steve Darling]

As a state, we need to reflect on what makes up our society. Often, it is family units. Whether that is the quintessential family of two parents and two children or something similar, supporting the family unit is absolutely essential. I suggest that the two new clauses are about supporting families. New clause 17 allows both partners to engage. Both my lads are now grown up. It is not just about the link with the child; it is about supporting the partnership of the couple—whatever form that couple happens to be—in bringing up the child. Extending leave entitlements would strengthen that bond. The impact of broken families on youngsters can be very profound, and we are strengthening families through these proposals. We will not push the new clauses to a vote, but we stand by them and believe in them wholeheartedly.

[The Chair]

Just for information, new clauses 16 and 17 would not be voted on at this point. That will come later in the consideration of the Bill.