Employment Rights Bill (Twenty First sitting)

Steve Darling Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I would like to add my support to what my hon. Friend the Member for Bridgwater has proposed. The first duty of Government is to protect citizens from threats abroad and keep them safe at home. Given all the other rights and extensions of rights that the Government are pushing in the Bill, it would seem unusual if support for our special constables, whom I salute for all their hard work day in, day out as part of the mission to keep the British people safe, were not included. I urge the Minister to consider the new clause in a genuine spirit of trying to work together on this issue.

I am tempted to rise to the bait set by the hon. Member for Worsley and Eccles. We have many differences of opinion about the Bill’s provisions, but, in the spirit of the Bill, surely we can find some cross-party consensus on extending employment rights to special constables going about their duty—the often dangerous duty that they carry out on behalf of us all.

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I rise to strongly support the new clause. We have seen throughout our debates in Committee that there are opportunities for changing the weather around our employment world, whether it is around foster carers, adoption or volunteering—the subject of new clause 38, championed by my hon. Friend the Member for Woking (Mr Forster), which we will discuss later.

I hope that this new clause falls on fertile ground because, as the hon. Member for Bridgwater has highlighted, volunteering across the piece has significantly reduced. We need to change the weather around the employment world and make sure that people feel able and confident to volunteer, as we know that policing is a particular challenge.

I welcome the Government’s plans to invest in neighbourhood policing. Special officers are often involved in that. People feel confident when they see a uniformed officer on the street. The public do not care whether it is a paid officer or a special officer; it is a trusted individual. The more we can drive that agenda, as I know from my residents in Torbay, the more it will be welcomed. I look forward to a strong endorsement from the Minister.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair this morning, Sir Christopher. I start by referring to my entry in the Register of Members’ Financial Interests. I congratulate the hon. Member for Bridgwater on the new clause and join him in paying tribute to his constituent Emma-Elizabeth Murphy and all special constables who perform the vital work that Members have spoken in support of. We recognise and value the vital role that special constables play, which includes supporting neighbourhood policing. We are committed to ensuring that police forces have the support that they need from the Government to tackle important matters of public safety.

Special constables, along with the full range of police volunteers, bring valuable and diverse skills that complement the roles that officers and staff play in delivering the best service to the public. We recognise that there has been a fall in the number of special constables over recent years. Further work needs to be done to understand exactly the reasons for that. Initial consideration suggests that a range of factors has led to the reduction in the number of special constables. It is not clear whether the new clause would reverse that trend or what its impact on business would be—the hon. Member for Bridgwater has been a constant critic of the Bill’s impact on businesses—so we need to understand that better.

We are already doing a range of work to support special constables and employment rights more broadly. We are introducing the neighbourhood policing guarantee, which will put thousands of additional police officers, police community support officers and special constables on our streets and restore patrols in town centres across the country.

Many employers already support their employees to volunteer in a special constabulary. Under the Employer Supported Policing scheme, led by the National Police Chiefs’ Council, a number of organisations across a range of sectors have committed to supporting members of their workforce to serve as special constables, in recognition of the opportunities to build new skills and support local communities. The Home Office is also supporting the NPCC to develop and implement initiatives to improve the recruitment and retention of special constables. That includes developing a refreshed national citizens in policing strategy and a national special constabulary working group.

I will not be able to accept the new clause, but I am sympathetic to the case that has been made. In preparation for dealing with it, I learned that that the initial legislation that introduced time off for certain public duties is now 50 years old, so it seems time to consider this issue in the round, and the role of special constables will no doubt be included in that. The Home Office will clearly have an important say. As I said, a number of factors has led to the decline in the number of special constables in recent years.

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[Sir Ashley Fox]

Although I am disappointed that the Minister has not accepted the new clause, I will withdraw it at this stage. I can count 10 Government Members and only five on the Opposition Benches, so my chances of success in a Division would be limited. I hope the new clause can find its way back into the Bill, perhaps in another place. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 35

Carer’s leave: remuneration

“(1) In section 80K of the Employment Rights Act 1996, omit subsection (3) and insert—

‘(3) In subsection (1)(a), “terms and conditions of employment”—

(a) includes matters connected with an employee’s employment whether or not they arise under the contract of employment, and

(b) includes terms and conditions about remuneration.’”—(Steve Darling.)

This new clause would make Carer’s Leave a paid entitlement.

Brought up, and read the First time.

[Steve Darling]

I beg to move, That the clause be read a Second time.

The new clause is an opportunity to extend carer’s leave across the whole of Great Britain. I hope it falls on more fertile ground than the previous new clause. There are 10.6 million carers across the United Kingdom, yet only 2.5 million are actually in paid employment. That shows that, although some of those carers may be beyond or even below working age, there is still a significant untapped pool of opportunity to drive productivity in our economy.

The economic growth figures released this morning show that the handbrake is sadly still on in our economy due to the appalling state that the Labour party inherited from the previous Government, so we need to think about how to allow people to work in our economy as strongly as possible. Centrica has found that there is an £8 billion cost to our economy for those who choose to leave the workplace due to having caring commitments. This would potentially allow a goodly number of those to remain in the workplace and continue to contribute. Although this is a probing amendment, I hope the Minister will give it some serious consideration and advise the Committee on what exploration the Government may choose to undertake of this golden opportunity for us as a society.

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[Steve Darling]

I thank the Minister for her encouraging words. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 37

Right to be accompanied

“(1) Section 10 of the Employment Relations Act 1999 (right to be accompanied) is amended as follows.

(2) In subsection (3), after paragraph (b) insert—

‘(ba) a person who has been reasonably certified in writing by a Professional Body as having experience of, or as having received training in, acting as a worker’s companion at disciplinary or grievance hearings, or’

(3) After subsection (7) insert—

‘(8) In this section, “Professional Body” means any organisation, which is authorised by a regulation made by the Secretary of State pursuant to subsection (9).

(9) The Secretary of State may make a regulation or regulations authorising any organisation as a Professional Body for the purposes of this section.’”—(Steve Darling.)

This new clause would expand the right to be accompanied by a certified companion at disciplinary and grievance hearings.

Brought up, and read the First time.

[Steve Darling]

I beg to move, That the clause be read a Second time.

The new clause would ensure that workers in the early stages of an employment dispute, such as a disciplinary or grievance hearing, can be supported by those who are qualified, rather than just by trade union representatives or similar colleagues. It would allow for matters to be brought to a head much sooner and prevent cases from necessarily going to tribunal, which clogs up the tribunal system. I hope the Government will take the new clause in the positive sprit in which we tabled it.

[Greg Smith]

I listened carefully to what the hon. Member for Torbay said. On one level, I would be interested to know why the Liberal Democrats think the expansion is needed, where the shortfalls are in the current right to be accompanied, and what benefits the new right would bring. I think that what the hon. Gentleman is proposing could be done through existing legislation in many respects.

That said, representatives of the charity and third sector who seek to represent those in the teaching profession have welcomed the new clause, because the teaching unions have a bit of a monopoly at the moment. Although my mother has been retired for many years, she always joined a union through considerably gritted teeth—she may have been the only Conservative in the staff room, but she gritted her teeth. In fact, she may even have taught for many years in the constituency of the hon. Member for Birmingham Northfield. The teaching unions have that monopoly because of the insurances and so on that they give to teachers. The new clause would widen things out and allow teachers who do not wish to join a union to get the support they need—accompaniment at a hearing—from a charity or third sector organisation, which may be welcome.

We need more clarity on the impact that would have on the teaching profession, which is why we do not think the new clause should be accepted at this time. However, the hon. Member for Torbay has opened the door on an area that it is important for us to explore as the Bill proceeds, and perhaps in future legislation.

[Justin Madders]

I thank the hon. Member for Torbay for tabling the new clause. I think its origins are in written evidence to the Committee from the edu-legal organisation Edapt, which has been raising this issue with successive Governments for a number of years.

It is important to set out the position under current law. Section 10(3) of the Employment Relations Act 1999 explains that when a worker is asked to attend a disciplinary or grievance hearing they are entitled to bring a companion who is either a fellow worker, an official employed by a trade union, or a workplace trade union representative that the union has reasonably certified as having received training in acting as a worker’s companion at such hearings. Employers are free but not obliged to allow workers to be accompanied by someone who does not fall into those categories. Some workers may have a contractual right to be accompanied by persons other than those listed, such as a professional support body, partner, spouse or legal representative.

As one of the initial steps in resolving tensions when the worker-employer relationship has broken down, the provisions of the 1999 Act seek to keep disciplinary and grievance procedures internal to a workplace. Expanding the types of organisations that can be involved in representing workers could lead to hearings requiring legal representation for both worker and employer. We certainly do not want to see internal disciplinary or grievance hearings ending up in a legal battle. That would invariably increase the cost of holding a hearing and potentially decrease the chances of an amicable resolution. Equally, introducing increased legal expertise from outside the workplace could increase the likelihood of a tribunal. Workers and employers may judge ACAS conciliation or mediation unlikely to resolve a dispute because legal arguments have been made during an internal disciplinary hearing. We certainly believe that amicable resolutions are the swiftest way for justice to be delivered.

The new clause would give the Secretary of State the power to set out and define in regulations the professional bodies that could represent employees in disciplinary and grievance hearings. Although, as the shadow Minister said, this measure relates specifically to the education sector, one can easily see a whole range of organisations beginning to knock on the door. It would raise all sorts of questions about regulations, standards and enforcement, and it would inevitably expand quite quickly.

As the shadow Minister said, it is not clear beyond the written submission to the Committee where the demand is for the expansion of this right. Employers are of course entitled to nominate individuals or organisations for recognition. The Government are clear that trade unions are best placed to provide workplace representation. The legislation is fit for purpose in terms of ensuring that that is done in a proportionate and balanced way. On that basis, we reject the new clause.

[Steve Darling]

Although I am disappointed that the new clause has fallen on stony ground, it was only a probing amendment, so I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 38

Time off for volunteering: consultation

“(1) The Secretary of State must consult on the introduction of a requirement for employers with more than 250 employees to grant employees time off for volunteering.

(2) The consultation must consider, amongst other things, the following matters—

(a) the amount of time off an employer must grant;

(b) when the time off may be taken;

(c) any conditions to which the granting of time off may be subject; and

(d) the definition of ‘volunteering’.

(3) The consultation must be conducted within one year of this Act being passed.

(4) The Secretary of State must, within three months of the consultation closing, publish and lay before Parliament the Secretary of State’s response to the consultation.”—(Steve Darling.)

This new clause calls for a consultation on allowing employees at companies of over 250 people the opportunity to take time off in order to undertake voluntary work.

Brought up, and read the First time.

[Steve Darling]

I beg to move, That the clause be read a Second time.

The new clause relates to volunteering and giving leave to volunteers. It would require a consultation, so I hope that the Government will grasp it with both hands. It feels like their modus operandi on the Bill is for a vast majority of it to go out to further consultation, so what harm would there be in another small consultation on volunteering?

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[Justin Madders]

Let us start where we can all agree: volunteering is a very important part of our society and we want to do everything we can to encourage it. It is a central part of civic life and has a positive impact on our society, and we all pay tribute to the volunteers in our communities. There are large employers that have impact days and corporate social responsibility days where they come into the community—there are a number of examples in my constituency where that has happened. Larger employers, in particular, have been able to pool their resources and have a real benefit in their communities.

However, as the shadow Minister outlined, the Government will be undertaking a significant number of consultations, and we do not wish to add to that at this stage. We want to focus on the priorities in our “Make Work Pay” agenda. In particular, we want to see how the enhanced right to flexible working will benefit people’s ability to volunteer. We believe that when we implement the new rights to flexible working in the earlier parts of the Bill, they will enable employees to access flexible working requests in order to fit in their volunteering, and that further legislation is not necessary at this time.

The Department for Culture, Media and Sport is delivering the Know Your Neighbourhood fund, which has a key focus to ensure that learning is shared

“on how people in disadvantaged areas can be supported to volunteer and improve their social connections”.

So there is work going on in Government, and a recognition that volunteering is an important part of the fabric of our society, but, as has been indicated, we do not wish to undertake additional consultations at this point.

[Steve Darling]

I draw the Committee’s attention to the fact that we are looking at employers that employ over 250 individuals, so the new clause would far from impact smaller businesses. I have grave concerns that the Government believe they have all the time in the world and expect that there will be a second glorious term for the Labour party, come hell or high water. The jury is out on whether a second term for Keir will appear. One is better driving the agenda forward while one has the helm than to hope for the helm when it turns the next headland. I encourage the Government to reflect on their proposals and grasp the opportunity to consult on this volunteering opportunity.

Question put, That the clause be read a Second time.

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[Greg Smith]

I beg to move, That the clause be read a Second time.

The new clause would require the Certification Officer to publish a report on the impact on various sectors of the economy of introducing a four-day week. The Certification Officer is responsible for ensuring that trade unions carry out their statutory duties, and it is important that it is aware of the impacts of this policy, which various elements of the labour movement and the trade union movement have supported.

We have seen just how effective the four-day week has been where it has been tried. Let us take the example of South Cambridgeshire district council, which introduced it for its workers in 2023. The Mail reported last week that one in six staff have a second job during their day off. That is despite the council’s website stating that the time off is to allow workers to “recover and re-energise” for the “more intense” four-day week. It is full-time pay for part-time work, and then some.

It would be extremely helpful for all concerned if we had a little more transparent information about the effects the four-day week might have on the economy as a whole if introduced more widely. That is why we have tabled new clause 42, which would require the Certification Officer, within 12 months of Royal Assent, to lay before both Houses of Parliament a report on the economic and financial impact of introducing a four-day week.

The report would be required to cover the retail and wholesale industry; the manufacturing industry; the finance and insurance industry; the health and social care industry; the construction industry; the education industry; the public sector and defence industry; the transport and storage industry; the arts and recreation industry; and agriculture, mining and fishing. To ensure that the report is balanced, the Certification Officer must consult business owners, workers and consumers, although that, of course, is not an exhaustive list.

For full transparency, we would like to make sure that any submissions that are received are published, preferably in a way that can be questioned in this House. The new clause aims to introduce a “look before you leap” ethos into the Government’s policymaking. Given the state of the Bill, I would argue that that is very much needed.

[Steve Darling]

I am delighted that the hon. Member for Mid Buckinghamshire has had a road to Damascus moment on the need for further consultation on the Bill. I am delighted that the Conservatives believe that consultation is a good thing, unlike my Conservative council colleagues in Torbay. I look forward to the Minister looking kindly on the new clause, which shows that the Conservatives believe in consultation. I would ask that he please grasp this opportunity.

[Justin Madders]

It seems the coalition era love-in has started again in earnest. As the shadow Minister outlined, new clause 42 would require the Certification Officer to lay before both Houses, within 12 months of Royal Assent, a report setting out the impact on various sectors of the UK economy of introducing a four-day week. It would require the Certification Officer to consult businesses, workers, consumers and others and to publish consultation responses when laying the report. Just when we thought we had got away from consultation, we have another one.

In considering the new clause, it might be helpful to set out the role of the Certification Officer. It has been the regulator of trade unions and employer associations since 1975. It not only carries out regulatory functions, but has administrative, supervisory and significant quasi-judicial functions. It adjudicates on complaints raised by trade union members and other parties. As part of our repeal of the provisions of the Trade Union Act 2016, we will remove the Certification Officer’s enhanced investigatory and enforcement powers, as well as the levy imposed on trade unions and employer associations. As such, we will return the role of the Certification Officer to what it was before that Act.

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[Greg Smith]

I listened carefully to the Minister’s response. The four-day week is subject to much media interest at the moment, and it is important that we keep a close eye on moves to shorten the working week, given the impact it would have on productivity and growth in our economy going forward. For the time being, I am happy not to press the new clause, but the Opposition are concerned, and we will keep an incredibly close eye on the issue. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 46

Adoption pay: self-employed persons

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations enable statutory adoption pay to be payable to persons who are—

(a) self-employed, or

(b) contractors.

(2) For the purposes of subsection (1), the meaning of ‘self-employed’ and ‘contractors’ shall be set out in regulations under this section.”—(Steve Darling.)

This new clause extends statutory adoption pay to the self-employed and contractors.

Brought up, and read the First time.

[Steve Darling]

I beg to move, That the clause be read a Second time.

The new clause would extend statutory adoption pay to those who are self-employed or contractors. I must declare something of an interest, although I do not formally need to, because I am adopted myself, and this issue is extremely close to my heart. When I was leader of the Torbay unitary council, we went from “failing” to “good” for our children’s services within two years. That is probably the biggest achievement of my life. Again, it was something I was driven on because I am adopted. In the ’70s, I was very fortunate to be adopted by Eric and Penny. Eric was not a toolmaker, but he was a lorry driver, and would potentially have benefited had there been an opportunity such as the one I have outlined in the new clause.

I encourage colleagues to step back slightly and to reflect on the challenges in social care, and particularly children’s social care, and on the heavy costs—I am sure colleagues are only too aware of them—to local authorities, which have a responsibility for children’s services. For those kids who need support, the best people are foster carers or those who adopt. When there is a lack of such people—when there is not that capacity—kids might have to be picked up by the private sector, and hard-pressed local authorities often have to pay through the nose for that. The new clause is about changing the weather again around support for youngsters in need. By extending statutory adoption pay to those who are self-employed or contractors, we would enhance the pool of those who can participate.

I thank my hon. Friend the Member for Hazel Grove (Lisa Smart) for her help with the new clause. Earlier this week, she led a worthwhile debate on this issue, and I acknowledge the positive feedback the Minister in that debate gave on the proposals. I look forward to hearing from this Minister how the Government could take the proposals in this probing amendment forward.

[Greg Smith]

I listened carefully to the speech by the hon. Member for Torbay. The issues he raises are worthy of debate, but as he said this is a probing amendment, so these are matters for a future occasion.

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[Dame Nia Griffith]

I thank the hon. Member for Torbay for tabling new clause 46. I start by expressing my appreciation for all adoptive parents, who offer loving and stable homes to children who are unable to live with their birth parents. This Government are committed to ensuring that all working parents receive the best possible support to balance their work and family lives.

New clause 46 calls for eligibility for statutory adoption pay to be extended to individuals who are self-employed or contractors. It would require the Secretary of State to introduce regulations within six months of the passage of the Bill to enable self-employed individuals and contractors who adopt to receive statutory adoption pay. The proposed regulations would also define the terms “self-employed” and “contractors” to ensure that we have a shared understanding of who would qualify for statutory adoption pay under this extended eligibility.

At present, parental leave and pay entitlements are generally not available to the self-employed. That is because the parental leave system is focused on supporting employed parents, who need specific rights and protections to take time off work. Self-employed people are generally considered to have more flexibility and autonomy, and not to need those same protections. There is, of course, the exception of maternity allowance, which is available to self-employed mothers to ensure that they can take time off work following childbirth to recover and establish breastfeeding, if they wish to do so. That is an important health and safety provision.

None the less, the Government are committed to supporting parents to balance their work and family responsibilities and keen to hear how the system can be improved. While adoptive parents who are self-employed or contractors do not qualify for statutory adoption pay, statutory adoption guidance advises local authorities to consider making a payment similar to maternity allowance for those parents.

In November 2024, the Government published “Keeping Children Safe, Helping Families Thrive,” which sets out our vision for children’s social care. As part of that vision, the Government have allocated £49 million to the adoption and special guardianship support fund for this financial year. The fund enables local authorities and regional adoption agencies to offer a wide range of tailored support, including psychotherapy, family therapy and creative therapies to children who are adopted and their families. These services are available to all adoptive families following a locally conducted assessment of the family’s needs. Depending on individual circumstances, additional financial support—for example, universal credit and child benefit—may also be available to contractors or self-employed people who adopt.

We have committed to a review of the parental leave system to ensure that it best supports all working families. The review will be conducted separately to the Employment Rights Bill, and work is already under way on planning its delivery. On that basis, I invite the hon. Member for Torbay to withdraw his proposed new clause.

[Steve Darling]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 51

Access to employment rights: workers on temporary visas

“(1) The Secretary of State must, within six months of this Act being passed, commission an independent report on the extent to which workers on temporary visas are able to assert their rights under employment law.

(2) In commissioning the report, the Secretary of State must arrange for the report to meet the requirements set out in subsections (2) to (4).

(3) The report must examine the extent to which workers on temporary visas feel unable to assert their employment rights because they are dependent on their employers to sponsor their visas.

(4) The report must make recommendations to the Secretary of State about how the Secretary of State can support workers on temporary visas in the assertion of their employment rights.

(5) The report must be completed within three months of being commissioned.

(6) The Secretary of State must, as soon as is practicable after receipt of the report, publish the report and lay it before both Houses of Parliament.

(7) The Secretary of State must, within three months of receipt of the report—

(a) respond to the recommendations in the report, and

(b) publish the response and lay it before both Houses of Parliament.”—(Chris Law.)

Brought up, and read the First time.

[Chris Law (Dundee Central) (SNP)]

I beg to move, That the clause be read a Second time.

It is good to see you in the Chair, Sir Christopher. I believe this is the last of the new clauses to the Bill.

It is imperative that employment rights are universal. Everyone should have access to them, regardless of their circumstances. That cannot just be theoretical; it needs to be applied in practice too. Although the Bill increases workers’ rights for many people, which I fully support, it will make no difference to their realities if they do not have the ability to access those rights or to seek redress when they are breached. To make the Bill as worth while and effective as it can be, we must take every possible action to strengthen it and to ensure that no one is denied their rights. We must do our utmost to prevent scenarios in which denial of employment rights and exploitation can exist.

I have therefore tabled this new clause on access to employment rights for workers on temporary visas. I know that most of us in this room will have had constituents on those visas who have been exploited. If we accept the new clause, it will compel the Secretary of State, within six months of the Bill being passed, to commission an independent report on the extent to which workers on temporary visas are able to assert their rights under employment law.

Workers on temporary visas consistently report that they are unable to assert the basic rights derived from being a worker in the UK. Why is that? Because they are dependent on their employer for not only their job but their ability to live in this country. More often than not, they do not have the same safety nets that others benefit from. For people in that situation, the stakes are simply so much higher.

We know that migrant workers, who often incur large debts to migrate to the UK to work—to address labour shortages—simply cannot afford to report abuse, if doing so risks their jobs and visas. They are justifiably fearful that their employer, who sponsors their visa, will punish them and that they will be left without redress. Time and again, we see cases of workers who face unsafe conditions—including in my constituency and, I am sure, in those of everyone in this room. Whether it is underpayment or sexual harassment, they do not feel able to do anything about it, for fear of deportation. That lets exploitation run rife.

By not addressing this issue, we are allowing a huge blind spot in the UK’s employment rights framework to continue unchecked. Until the Government address temporary and restrictive visas, the gap between workers only widens, entrenching the UK’s tiered workforce and leaving migrant workers behind. That is simply unacceptable. Restrictive visas have created a tiered workforce, where migrant workers face significant barriers to enforcing their rights, driving a race to the bottom in pay and conditions across the UK labour market.

Such visas often limit the sectors in which workers are permitted to work or the employers for which they can work. Workers’ immigration sponsors may also be their employers or responsible for placing them in employment. This results in a vicious cycle, in which migrant workers are doubly punished for speaking out, first by unscrupulous employers and then by immigration enforcement, with a resulting loss of work, income and immigration status. That has allowed a proliferation of abuses, from non-payment of wages to overwork and sexual assault, among a litany of other labour and criminal law violations.

It is important to recognise that workers’ experiences of exploitation can vary, but all these instances need addressed. At one end of the scale, there is decent, well-paid work, with bad practices such as breaches of employment rights culminating, at the opposite end, in severe labour exploitation, such as human trafficking and forced labour. Where minor breaches of rights occur and are not sufficiently addressed, it increases the risk of more severe exploitation further along, as well as driving down workplace standards. Surely the new Labour Government find that totally unacceptable?

In working on the new clause, I engaged with Focus on Labour Exploitation—I have a briefing from it here, which I am happy to share with the Minister. FLEX is a research and policy organisation working towards an end to labour exploitation, and its recent research and policy work has focused on sectors where workers are known to be at higher risk of exploitation.

The new clause, which is intended to be friendly and collaborative, would lead to an investigation into the extent of these issues and how they can be addressed. Any immigration system that does not proactively include mechanisms that enable workers to report exploitation—and ultimately leave an exploitative employer without jeopardising their employment, accommodation and immigration status—inevitably has exploitation baked into its design. To meet its aims, the Employment Rights Bill needs to address that.

It is especially important that the use of restrictive or short-term visas is not allowed to prevent improvements in working conditions and pay in certain work sectors by facilitating access to workers who, due to immigration restrictions, are unable to challenge poor working conditions. One option open to the Government to combat that would be to introduce a UK workplace justice visa, drawing on international best practice. Such a visa would provide 12 months of renewable limited leave for those who have visas dependent on their employment and who have experienced labour exploitation or lost their employment and limited leave through no fault of their own. That would ensure that migrants with work visas who experience such issues have a route to remain and settle in the UK, to enable them to leave abusive work situations and, most importantly, to access justice. The new clause does not propose such a visa, but it is one option the Secretary of State should strongly consider as a way of supporting workers on temporary visas in the assertion of their employment rights.

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[Greg Smith]

I think this will be the last set of amendments we discuss, so let us ensure that they are good ones. Amendment 164 would require the Secretary of State to have regard to the objective of the international competitiveness of the economy and its growth in the medium to long term when making any regulations under the Bill. Amendment 165 would require the Secretary of State to undertake consultations on all regulations published under the Bill.

The effects of the Chancellor’s Budget of broken promises are apparent for all to see. On 7 January, the yield on a 30-year gilt broke a 27-year record, at 5.198%. That is the highest figure since the Debt Management Office was created in 1998. On Monday, the yield rose to 5.461%. That is not abstract; it reflects dwindling confidence in the UK economy, puts extra pressure on the Government’s headroom against their own fiscal rules and could lead to taxpayers paying billions more just to service the Government’s debts.

The Chancellor has chosen to increase borrowing by an average of £32 billion a year for the next five years. That is the largest fiscal loosening in any fiscal event in recent years. It will add substantial pressure to those debt repayments. Earlier this week, The i Paper reported that average two-year and five-year fixed deals for those with 25% equity or deposit are now expected to rise above 5% in the coming weeks, causing more financial pain for buyers and those trying to remortgage.

The Budget, the rise in employer national insurance contributions and, importantly, the provisions in the Bill could not be described as pro-growth, yet the Government repeatedly assure us that growth is the one thing they will deliver, which will unlock everything else.

Amendment 164 would restore the Government’s good intentions and get them back on track. It would ensure that the Secretary of State has regard to the need to ensure growth when making regulations under the Bill. On the basis of all the evidence that we have seen since the general election, growth is clearly not front and centre in the Government’s thinking when they are making policy. It must be.

Amendment 165 would ensure that the Secretary of State consults properly before making regulations under the extensive powers in the Bill. It is merely to hold the Government to their word: they acknowledge that in many respects the policy in the Bill is undercooked and needs further work before implementation.

With these final amendments that the Committee will discuss, let us lay down the gauntlet and see whether the Government will put their money where their mouth is. If the Government are serious about growth, they will surely accept amendment 164.

[Steve Darling]

Throughout our debates, Conservative colleagues have been critical of the Government for not having an oven-ready Bill and emphasising the need for further consultation. I have sympathy with that, as does my hon. Friend the Member for Chippenham. However, the last Conservative amendment that we will consider in Committee would require consultation, so I wonder whether the Labour party’s proposals have worn the Conservatives down into believing in it. I am delighted by that; perhaps they have changed their minds on the rest of the Bill, too. I hope that the Minister will grasp the opportunity with both hands.

--- Later in debate ---

[Greg Smith]

I echo the thanks that the Minister gave, particularly to the Clerks of the Committee, the wider Scrutiny Unit and everyone else who has worked so hard. These Bills are an enormous amount of hard work for the staff of the House, particularly the Clerks, and it is always appreciated by His Majesty’s loyal Opposition. Likewise, from the Doorkeepers and Hansard to everyone who prepares the room for us, it is an enormous job of work, and we thank them most sincerely. The Bill will shortly move on to Report, when the battle will recommence. In the meantime, Sir Christopher, I thank you and the other Chairs of the Committee for your chairmanship. We look forward to the next round.

[Steve Darling]

I echo the thanks to you, Sir Christopher, and the other Chairs who have ably chaired the Committee. I thank the Clerks, Doorkeepers and Hansard, who have reported throughout. I thank colleagues for the good-natured way that the Bill has been debated. This is my first Bill Committee, and I look forward with gusto to my next one. I also thank Laura Green, who has ably supported me throughout the Committee.

Employment Rights Bill (Nineteeth sitting)

Steve Darling Excerpts

Committee stage
Tuesday 14th January 2025 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell.

As the Minister has outlined, Government amendment 183 will ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a relevant document that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under the Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.

Clause 109 will abolish the Gangmasters and Labour Abuse Authority, a non-departmental public body that investigates reports of worker exploitation and illegal activity such as human trafficking, forced labour and illegal labour provision, as well as making offences under the National Minimum Wage Act 1998 and the Employment Agencies Act 1973. Significantly, the Gangmasters and Labour Abuse Authority also issues licences to employment agencies, labour providers or gangmasters who provide workers in the sectors of agriculture, horticulture, shellfish gathering and any associated processing or packaging. That is important work; we do not in any way, shape or form deviate from that.

The Government amendment will rightly ensure that providing false licences remains an offence, including where that was identified before the Bill receives Royal Assent and becomes an Act at some point this year, but I would like to be reassured about the work of the Gangmasters and Labour Abuse Authority in connection with the provisions of the Bill. For example, what will happen to the staff at the authority once it has been abolished? The Bill provides for the transfer of staff, property rights and liabilities to the Secretary of State. Does the Secretary of State envisage redundancies or envisage that the same staff will continue to do the same work under a different ultimate authority? Will the reorganisation lead to any disruption? I think we all accept that any change will bring with it some level of disruption, but how can the disruption be minimised?

Likewise, the amendment appears to ensure continuity with existing legislation once the Bill has passed. I will be grateful if the Minister can confirm that that is the case. If any new powers are being taken, please could they be explained?

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I welcome the clarity offered by the Government in the amendment.

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell.

The amendment will ensure that the provisions of section 12(2) of the Gangmasters (Licensing) Act 2004 remain effective even in the context of the changes proposed in the Bill. Section 12(2) will make it a criminal offence for an individual to be in possession or control of a relevant document that is false, is forged or has been improperly obtained with the intention of deceiving others into believing that the individual holds a valid licence under the Act. It is essential that that provision continues to apply to documents issued by the Gangmasters and Labour Abuse Authority before its abolition, ensuring that any fraudulent documents issued before the GLAA is dissolved can still result in prosecution. Maintaining that provision is crucial to preventing exploitation and ensuring that individuals and businesses cannot evade accountability with fraudulent documentation.

Clause 109 proposes to abolish the Gangmasters and Labour Abuse Authority, which plays a significant role in tackling issues such as labour exploitation, human trafficking and forced labour in certain sectors. The dissolution of the GLAA marks a significant shift in how those matters will be managed. Given the importance of its work, the transition raises important questions about how those responsibilities will be carried forward under the new structures set out by the Bill. The GLAA has played a vital role in regulating the labour market in high-risk industries, so the Government’s proposal to abolish it must be accompanied by a clear plan to ensure continuity of its crucial work.

The GLAA is a non-departmental public body that has been responsible for investigating and addressing serious forms of worker exploitation such as human trafficking, forced labour and illegal labour practices. Additionally, it monitors compliance with regulations under the National Minimum Wage Act and the Employment Agencies Act. By issuing licences to employment agencies, labour providers and gangmasters in high-risk sectors, including agriculture, horticulture, shellfish gathering and associated processing and packaging, the GLAA has been instrumental in safeguarding vulnerable workers and preventing exploitation.

--- Later in debate ---

[Greg Smith]

Through this morning’s debate on the 10 Government amendments to schedule 6, most of the points about the schedule have been well aired. As we consider whether it should fully stand part of the Bill, however, I genuinely believe that a number of questions posed—in particular by my hon. Friends the Members for West Suffolk and for Bridgwater—on the practicalities of the transfer of some of the powers have not been adequately addressed during the debate by the Minister.

We do not challenge or seek to undermine in any way, shape or form the intention of the schedule. I appreciate the Minister’s willingness to write to me on a couple of the points I made, and I accept the good faith in which that offer was made, but any transition involves some disruption. That is simply a fact of life, and I think that the Government would do well, given the good intent of what the schedule seeks to do, to reassure not just the Committee, but the whole House and the country at large, that that disruption will in fact be minimised and practical steps taken to make that the case.

Fundamentally, however, His Majesty’s loyal Opposition understand and accept the necessity of the schedule. We just think that some unanswered questions remain.

[Steve Darling]

I echo the shadow Minister, who sits to my right—in more ways than one. Definitely, further clarity from the Minister would be welcome.

[Justin Madders]

I understand what the Opposition Members are saying. They seek reassurance that there will be no disruption to the good work that goes on already, and clearly, that is our intent. We will keep a close eye on how this works when the Bill has passed and received Royal Assent. A lot of the operational questions that have been asked will emerge during that time. Whether the hon. Member for Mid Buckinghamshire remains my shadow—either of us could of course be moved on at any point—it would be perfectly reasonable for us to keep the Opposition updated on operational decisions and how the fair work agency emerges. There will of course be further parliamentary opportunities for scrutiny as more detail emerges.

Question put and agreed to.

Schedule 6, as amended, accordingly agreed to.

Schedule 7

Transitional and saving provision relating to Part 5

Employment Rights Bill (Seventeenth sitting)

Steve Darling Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[Greg Smith]

A lot of the detail is in the clauses that follow this one; as the Minister said, this is very much a building-block clause. Although I totally understand and appreciate the rationale for taking enforcement powers that are currently fragmented across multiple different agencies and consolidating them into one, the devil is always in the detail.

Although it might seem sensible to consolidate the powers that are currently so spread out into one agency, this is very much a centralisation of power. The crux of clause 72 is about directly providing the Secretary of State with the overall function of enforcing labour market legislation. Whenever I see such provisions in any legislation, I cannot help but be reminded of the late, great President Reagan’s famous quote about the nine most terrifying words in the English language:

“I’m from the Government, and I’m here to help.”

As my hon. Friend the Member for Bridgwater suggested in his intervention on the Minister, the serious detail is about the practical workings of the fair work agency as it is set up. What will be the total number of enforcement officers, employees and ancillary staff required—admittedly, some will be brought across from other agencies—to form it? What will be the cost to the taxpayer of putting that together? How many people are we actually talking about? I think that, as opposed to the powers that they will hold, was the crux of my hon. Friend’s intervention.

As I said, we accept the rationale for bringing these powers together under one agency, but whenever such powers are granted to a Secretary of State, no matter what the field, there is always uncertainty and scope for never-ending expansion of the new agency, and of the size of the state, to do what is, in many cases, important enforcement work—I do not doubt that. Given the presumption that the Bill will become an Act of Parliament and that the agency will be set up in the way envisaged in clause 72, it would be good to have clarity about the plan for just how big the agency will be and whether the Secretary of State will put any cap on that from the get-go. How far does the Minister envisage the agency going?

[Steve Darling (Torbay) (LD)]

It is a pleasure to work under your chairmanship, Mr Mundell. I broadly welcome the bringing together of powers under the fair work agency. I note that the Secretary of State is due to publish an annual report, but I am sure that businesses in Torbay would be interested to know where in the Bill the critical friend is to hold the Secretary of State to account and ensure that they are being light of foot and driving the agenda we all want to see in this area, so I would welcome the Minister’s sharing that.

[Michael Wheeler (Worsley and Eccles) (Lab)]

As is customary, I draw the Committee’s attention to my declaration in the Register of Members’ Financial Interests. I am a member of the Union of Shop, Distributive and Allied Workers and the GMB.

I warmly welcome this clause and the subsequent clauses, and the establishment of the fair work agency. I remind the Committee of the evidence we heard of the broad support for the agency, including from Helen Dickinson, the chief executive of the British Retail Consortium, who said:

“I think everybody is supportive of and aligned on proposals like a single enforcement body.”––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 99, Q95.]

Jamie Cater, the senior policy manager for employment at Make UK, said:

“The important thing for levelling the playing field is the fair work agency, and making sure that we have an approach to enforcement of labour market policy and regulation that is properly resourced and does have that level playing field.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 54, Q53.]

Jim Bligh, the director of corporate affairs for the Food and Drink Federation, said:

“For me, it is about enforcement and having a really strong, well-resourced enforcement agency.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 55, Q53.]

--- Later in debate ---

[Greg Smith]

Yes, Mr Mundell. I am genuinely struggling to find the connection between my questions in transport orals this morning on sustainable aviation fuel and this Bill. I will gladly offer to have a coffee with the hon. Member for Birmingham Northfield to discuss my passionate view on synthetic fuel in the future, but it really is not relevant to this Bill.

I accept the hon. Gentleman’s latter point, about previous reviews, but new clause 23 is specifically looking at the creation of this new body and is about ensuring that that is the right thing to do and that the cost of it will actually bring the benefit that the Minister and other Government Members have explained that they believe it will. It is incumbent on all of us, whether we sit on the Government or Opposition Benches or for the smaller parties, that we challenge everything put in front of us. Any culture in any organisation that does not challenge what is put in front of it is often weaker for it. That is what new clause 23 is seeking to do.

Inherent in that, notwithstanding the Taylor review, is the aim to ask and double-check whether the rationale takes into account how effectively labour market legislation is currently being enforced and understand what research this Government—not former Governments, but this one—have undertaken on what will be done more effectively or efficiently with the creation of this new body. We would like the Government to assess how effectively the labour market legislation that will be enforced by the new body is currently working in that fragmented sense that the Minister spoke about earlier, and how effective the enforcement of it is, before setting up any new quango.

Generally speaking, new quangos fill me with dread and fear, but this one may be worth while. However, we need the evidence. Will the Minister expand on how matters will change for businesses through the new labour market enforcement authority? What will feel different for them and what changes might they need to make as they prepare for it? New clause 23 tries to get to the heart of that.

[Steve Darling]

I know from my surgeries and casework in Torbay that discrimination is sadly alive and well. I ask the Minister to reflect on some of the evidence from the Equality and Human Rights Commission, which talked about the provision leading to fragmentation and the possibility of some of its standard work falling between two stools. What reassurances can the Minister give that the good work will proceed appropriately either through the fair work agency, or in a partnership approach with the Equality and Human Rights Commission?

[Sir Ashley Fox]

I want to speak in support of new clause 23 and to ask the Minister whether he is familiar with Parkinson’s law. It states that the number of workers in any public administration will tend to grow over time, regardless of the quantity of work done. The corollary is that work expands to fill the time available for its completion.

Although Conservative Members are in favour of the creation of the fair work agency, there is a risk that, over time, it will seek to have more staff and more power, will consume a great deal more of taxpayers’ money and resources, and will impose more on employers’ time, without great result. That is why a review is necessary. We want to ensure that any new authority is lean and efficient. We also want the Government to take the same approach to regulations.

Unfortunately, the Bill is a hefty document. It will impose £5 billion-worth of costs on employers, which will probably result in fewer people being employed, higher inflation and lower growth. It is therefore perfectly reasonable for the Opposition to ask the Government to reflect after 18 months and ascertain whether they can find anything in this weighty tome that they could do better or more efficiently.

The working time directive is immensely complicated and imposes burdensome record keeping on employers. In the past, it has resulted in retained firefighters in rural areas having to count the time when they sit at home, not doing anything, as working time. It has been a difficult and troublesome measure, and perhaps my party should have done more to simplify it when we were in office, but that is not an excuse for the Government to say, “Because you didn’t do enough, we intend to do nothing.” It is reasonable for us to ask the Government, at the end of 18 months, to take another look and see whether they can do anything to reduce the burden on businesses.

--- Later in debate ---

[Greg Smith]

On the face of it, the clauses are not problematic: they are quite clear, and it is important that those things that are considered as enforcement functions are clearly defined. That is all well and good—until we get to clause 74(5), which states:

“Arrangements under this section do not prevent the Secretary of State from performing a function to which the arrangements relate.”

Therefore, a body with certain powers—admittedly in the Secretary of State’s name—is created; essentially, a quango is put in place, and people are given the clear job of carrying out the enforcement functions in the Bill. However, if the Secretary of State is not prevented from performing one of those functions, what is the mechanism by which they can overrule the quango they themselves set up to perform them? Of course, the ultimate buck must stop with the Secretary of State, but it is a pretty established convention that where a quango is set up and has powers delegated to it—I think of Natural England within the Department for Environment, Food and Rural Affairs and many other quangos—it is very rare for a Secretary of State to intervene, overrule and perhaps come to a different conclusion from that quango.

We will not oppose the clauses, but I would be grateful if the Minister could reflect on the circumstances in which he believes clause 74(5) would come into effect, to make clear the procedures a Secretary of State would need to follow to bring that subsection into effect.

[Steve Darling]

I broadly welcome the proposals in the clauses, and I look forward to the Minister’s explanation of the issues outlined by the shadow Minister.

--- Later in debate ---

[Greg Smith]

I understand the hon. Gentleman’s point. I believe in freedom; I have no problem with any hon. or right hon. Government Member being a member of a trade union. The point here is clarity and transparency. We have a Bill in black and white in front of us that refers to equal numbers but fails to define whether a member of a trade union could sit as an independent expert or would have to be categorised under subsection (4)(a) as representing the interests of trade unions. This is a matter of information on which the Committee and the general public deserve to have clarity before we allow this clause to become part of primary legislation in our country. As in all walks of life, there will be points of debate on that. I want to hear from the Minister’s own mouth whether he deems it to contradict the “equal number” provision. We could dance on the head of a pin all day, but when we are seeking to pass legislation, clarity is very important, and I look to the Minister to give it.

[Steve Darling]

I am concerned about the heavy weather that colleagues on the Opposition Benches are making of this. For me, this measure is about driving a positive culture in employment, and the board’s balance is entirely appropriate. I welcome the clause.

[Sir Ashley Fox]

I have a number of concerns about the establishment of the advisory board for the enforcement of labour market rules. I do not believe that such an advisory board is necessary and I am convinced that its creation would represent an expensive and bureaucratic exercise that would be redundant at best and a tool to disguise the Government’s intentions behind a veil of unnecessary consultation at worst. Let me explain why.

Let us first address the central issue: the need for advice. It is not as if there is a shortage of expert opinions on labour market matters; far from it. If the Secretary of State is seeking guidance from trade unions, he need look no further than the extensive and loud representation of trade union interests on the Benches behind him. There seems to be no shortage of trade union representatives in key positions, be it MPs with close ties to the unions or those with—

Employment Rights Bill (Fifteenth sitting)

Steve Darling Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I too wish you and all members of the Committee a very happy, prosperous and healthy new year. If only the optimism of that statement were matched by business confidence around the country as we start this new year.

I understand why the Government want to take this measure, and it is pretty clear that it will happen as part of the Bill. As the Minister prepares for the consultation that he spoke about, I ask him to reflect on how quickly we can give businesses certainty on the frequency with which they will have to remind their employees of their right to join a trade union. Of course everyone has a right to join a trade union—there is no issue with that—but this is yet another thing that HR departments of bigger businesses, and individual owners of smaller businesses, who have to do everything from the HR function down to replacing the loo roll in the toilets, will have to remember to do on a regular basis, and presumably they will face consequences if they do not. It might not seem onerous as we talk about it at half-past 9 on a Tuesday morning in Westminster, but once we start ratcheting up all these different things for businesses—particularly those very small businesses—to do, it will become a burden.

The other thing that I gently ask the Minister to consider as part of his consultation is this. Would it not be a fairer, more balanced and better way of doing things to have in the proposed statement, as well as a reminder to employees of their right to join a trade union, a reminder that they do not have to do so—that there is equally a right not to join a trade union if they do not wish to? It would be much more fair and balanced if the consultation focused on ensuring that both sides are equally reflected—yes, a reminder that there is a right to join a trade union, but equally, a reminder that there is no compulsion and no absolute, set-in-stone requirement to do so. If we could have that, the clause would be much more balanced.

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I wish all colleagues a happy and prosperous new year.

I welcome these proposals. Only this weekend, I was speaking with a constituent in Torbay who told me that the unit he worked in had transferred out of the NHS and been taken over by the private sector. He was gravely concerned about sharp practices that he saw being undertaken by the new employer. My best advice to him was, “Have you engaged with the trade union on site? How can the trade union help you? If I can do anything to assist the trade union, I stand ready to help.”

Trade unions are a force for good in the workplace, and many of the proposals that we will discuss today will put us mid-range in the OECD on trade union rights. Far from the extremism that the Conservatives are painting us into a corner with, these measures will actually put us back on an even keel as a nation in our relations with trade unions, rather than something like third or fourth bottom among OECD countries in the rights that we give unions.

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I wish you and other colleagues a happy new year.

I want to follow on from the comments made by the shadow Minister, my hon. Friend the Member for Mid Buckinghamshire, and emphasise that the clause is completely pointless. Of course all workers have the right to join a trade union and the right not to join a trade union. Will the Minister outline the consequences for a small employer of not complying with the clause? Will there be a penalty? Will the employer be taken to a tribunal that can make a protective award? If there will not be a penalty, surely the clause is only performative, and just more evidence that the Government are doing what their trade union masters are telling them to.

Time and again in the Bill, we see measures that are small and inconsequential individually, but in total mount up to £5 billion of additional costs, most of them on small and medium-sized businesses. We see from surveys of business confidence that businesses are reeling under the imposition of additional taxes and of these rights, and the Government’s business-unfriendly stance. While the Minister talks about growth, the actions of his Government point to the very opposite. They believe that somehow they can regulate their way to growth. We start this new year with more regulation from the Government, none of which will contribute to the wealth and prosperity of our citizens.

--- Later in debate ---

[Greg Smith]

As the Minister clearly outlined, the requirement for a trade union to have a certificate of independence to have the rights provided for in clause 46 is a tidying up of the Bill. The Opposition are not entirely on board with the spirit of the Bill in this regard, but we welcome its being tidied up and the clarity that the amendments bring to what the Government are trying to do to prevent even more of a free-for-all in terms of access to workplaces.

I have said many times that it is a shame and regrettable that so many of these tidying-up amendments have had to be tabled. Welcome though they are in bringing certainty to businesses about the Bill’s core provisions, if we had not had that arbitrary 100-day deadline, we probably would not be spending our time going through these sorts of amendments, and could instead be debating much more of the substance of the Bill. As I say, the Opposition are not convinced about some of the core provisions of the Bill, but these particular amendments do at least tidy it up to some extent.

[Steve Darling]

I welcome the amendments. Driving our economy to achieve the productivity that we need must be a mission for all of us in this House. The culture in our businesses is really important, and I think the amendments will drive a positive working relationship between workers and bosses, so that we can see productivity enhanced across the United Kingdom.

[The Chair]

Minister, do you wish to say anything further?

--- Later in debate ---

[Greg Smith]

As the Minister said, Government amendment 80 clarifies that if circumstances are specified under new section 70ZF(4)(a), the effect of specifying those circumstances is that it is to be regarded as reasonable of the CAC to make a determination that officials of a union are not to have access, but does not require the CAC to make such a determination. Government amendment 81 would allow the Secretary of State to prescribe matters to which the CAC must have regard when considering an application for a determination about access. Therefore, these amendments set out that if the Secretary of State has specified circumstances in which it would be reasonable to decline union access to a workplace, the CAC must accept those circumstances.

That is all well and good, but the access principles, as they are set out, are incredibly broad and make it very difficult for an employer to refuse access. For example, subsection (2)(a) of new section 70ZF specifies that

“officials of a listed trade union should be able to access a workplace for any of the access purposes in any manner that does not unreasonably interfere with the employer’s business”.

That accepts that access can and should be allowed to cause interference, but what would count as unreasonable interference? Can the Minister give any concrete examples? How will businesses know what they are or are not expected to put up with in terms of inconvenience and disruption to their operations? This all seems to be still particularly woolly and ill-defined. It will cause a lot of headaches and a lot of businesses to scratch their heads to work out what they have to put up with, bear the burden of, or lose profit to in order to enable some of the access that the Bill determines will take place.

The circumstances in which it would be reasonable for officials of a union not to have access will be specified in future regulations, but this is an area where it is incumbent on the Government to be very clear—indeed, crystal clear—about where the Minister or the Department feels these regulations should sit, or the operating window in which they should sit, moving away from woolly language and into real practical detail to allow businesses to begin to prepare. Can the Minister give any examples of matters that might be specified by the Secretary of State to set some constraints on the access principles envisaged by the amendments? I know he will say that he wishes to consult, which is all very well and good, but as I said a moment ago, this is an area where I do not think businesses will simply accept the offer of future consultation; they will instead want an operating window with practical examples and very clear language about what the amendments envisage will happen in the future. It is just not good enough for us to be left in this position of trying to second-guess and wonder what things will be like when the consultation finally happens.

[Steve Darling]

I will be concise and echo the shadow Minister’s call for clarity.

[Justin Madders]

I acknowledge the points made by the shadow Minister, but of course, as he has already anticipated, my response is that all of that will be determined in secondary legislation following a consultation. That is the right approach. The sort of detailed questions he is rightly posing are best dealt with in secondary legislation and probably in codes of practice as well. That is the kind of detail that would not normally find its way into a Bill. Of course, for me to prejudge any consultation on the circumstances in which it may or may not be appropriate for unions to gain access would of course, be to predetermine the outcome of the consultation.

--- Later in debate ---

[Greg Smith]

As the Minister said, the amendment clarifies that the Employment Appeal Tribunal may dismiss an appeal under new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992. Of course the Opposition agree that this amendment should be accepted and put into the Bill, but it beggars belief that the amendment was necessary in the first place. Of course the Employment Appeal Tribunal should be allowed to dismiss an appeal if it finds that to be necessary, but how on earth was a Bill put before this House of Commons—this Parliament—that only envisaged that the tribunal might quash the order or make an order requiring the person to pay a reduced amount to the CAC? How was this Bill introduced in a form in which the dismissal of an appeal was not even an option?

It is extraordinary that a Bill could have been allowed through the write-around process—the various processes that Government have—without this anomaly being spotted and rectified before the Bill was presented and had its Second Reading debate. I gently ask the Minister to reflect on that and go back through the Bill’s provisions to double-check for any other glaring omissions, which I am sure he never wished to see in the first place and is now correcting by the amendment in his name. Could he ensure that the Bill contains no more of these, frankly, howling errors that could cause so much damage?

[Steve Darling]

Bill Committees are here to check for snags in the final construction of legislation. I am pleased that this snag has been picked up and will be sorted out by this amendment.

[Justin Madders]

I am not sure that the shadow Minister wants me to check everything again, because it might lead to further amendments and we may have this debate repeatedly. I would gently push back on the suggestion that this is a “howling error”, as he described it. Of course, the Employment Appeal Tribunal already has the jurisdiction of the CAC to hear appeals. It is probably more a case of making sure it is clear that that applies to this particular provision rather than its being an oversight in the first place.

Amendment 82 agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.

--- Later in debate ---

[Greg Smith]

I do not wish to misrepresent the hon. Gentleman in any way, shape or form, but I return to my central argument. Although I entirely accept what he says—that there are examples of hostility—and I understand why the Government wish to take measures to overrule them, it is impossible to view clause 47 in isolation. It must be looked at as part of the package of measures in the Bill. If, having become law, they still fail at some future point to counteract the problems that he talks about, there is something much more fundamentally problematic occurring, which the clause alone would not solve. I therefore ask the Minister to reflect on how he envisages the other provisions impacting the need for the clause to be implemented in the first place, particularly if an already low threshold of 10% has the potential, under the Secretary of State’s direction, to become even more absurdly low by the test of reasonability and go down to 2%.

If Members were to go to the average high street to do one of those dreaded media-style vox pops and ask, “Is 2% a reasonable threshold to allow in any of these circumstances?” I think the general answer would be that 2% is absurdly low, and that 10% is already low enough. The test of public opinion is important. I dare say that many more consultations are to come, and it is important that they tease out what is reasonable and what is not.

[Steve Darling]

To me, the clause is all about resetting the culture within our employment world, and I welcome the proposals within it. It is about driving the partnership approach that we should have in the workplace. The more we can achieve that, the better for our economy.

[Laurence Turner]

In an earlier intervention, I failed to draw the Committee’s attention to my declaration in the Register of Members’ Financial Interests: I am a member of the GMB and Unite trade unions. There has clearly been some learning loss over the Christmas period.

I rise to make a couple of brief points. The shadow Minister said that 10% was not a high threshold. In one sitting before Christmas he encouraged us to listen to Tony Blair, the former Prime Minister; the debates that accompanied the Employment Relations Act 1999 make it very clear that 10% was put forward at that time precisely because it was a high bar for trade unions to meet. It has now been tested by time, and it is the case that for some high-turnover employers the 10% threshold is hard to meet in practice.

I take the point that there might be different views about whether employers’ approaches to trade unions tend to be genial and welcoming or hostile. As former trade union officials, we have had exposure to some of the most hostile employers. There is scope, where there is a limited number of employees who are known to the employer as individuals, to try to whittle down trade union membership to below the 10% threshold. I would also say that 2% is the threshold for the information consultation regulations, which I believe were introduced by the previous Government, so there is some precedent for that lower number.

Let me get to the heart of why we put forward this proposal. The introduction of a statutory recognition regime was an important step forward—we talked before Christmas about some of the historical injustices that gave rise to the regime as it exists today—but there are flaws within it and, where there are flaws, they must be remedied. I draw particular attention to the case of the Amazon Coventry warehouse site, where the GMB union fought a particularly difficult recognition campaign. Having successfully applied for the recognition campaign to start, it suddenly found that the bargaining unit was flooded with a number of new starters, who were very hard to reach in that recognition campaign. Some of that would be covered by the Bill as it stands.

On a related point, the code of practice on access and unfair practices in relation to recognition disputes at the moment does not apply from day one of an application, and I think it is important that that should be changed. This clause clearly contains important changes, however, that respond to some of the adverse and unfair practices that can occur during a recognition dispute. Some Committee members might want the clause to go further in some areas, but as it stands, it should be very strongly welcomed.

Employment Rights Bill (Sixteenth sitting)

Steve Darling Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[Greg Smith]

I am grateful to the hon. Gentleman for bringing that up. He has clearly been doing his homework and researching the wonderful transcripts from my time on that local authority. I have some very happy memories of it—I remember cutting council tax by 20%, which I am very proud of—but he is really going to stretch my grey matter if he wants me to remember that particular motion. However, I am certainly of the view that it is not for taxpayers to fund trade union activities; it is for trade unions to meet their own costs. It is for trade unions, just like any other body, not to require taxpayer subsidy or the state to step in and help them meet their costs. I certainly remember campaigning on the expansion of facility time back then, with many across the Conservative party. From memory, my right hon. and noble Friend Lord Pickles took a particular interest in the issue.

My direct answer to the hon. Gentleman’s question is no: taxpayers should not be funding trade union facility time. That is for the trade unions themselves to fund out of their membership fees and other income streams, where they have them, so that they can go about doing their work. I repeat that it is really not for taxpayers to fund that. There needs to be wider reform to protect taxpayers from indirectly—or directly, in this case—funding third-party organisations such as trade unions.

We have to consider the extra burden to employers in the round. Along with other elements of the Bill, such as the provisions on unfair dismissal, and the growth-stunting hike to employers’ national insurance contributions in the Budget, this is another straw that may yet break the camel’s back for a number of businesses. The Government are carelessly piling cost and red tape on employers with this Bill and other measures, and are just expecting those burdens to be absorbed. We would like to be reassured that it is possible to find a better way that does not burden the taxpayer or private businesses with the provisions that we find in this Bill. We have tabled these amendments to rectify that and to put those protections in place.

[Steve Darling (Torbay) (LD)]

Happy new year, Sir Christopher. I have a small amount of sympathy with the shadow Minister—I understand the cost to business, so I welcome that element of the amendments—but I have great fears. One need only have listened to the radio this morning to have heard about the issues for McDonald’s workers that have not been sorted out. I accept that that is the private sector, and the amendments are about the public sector, but it demonstrates that if equalities issues are not taken seriously in the workplace, it can cause major harm to employees and to the culture of improvement that we need to see.

[Greg Smith]

Nobody is suggesting that equalities issues should not be taken seriously. The point that I was making about our amendments is that the law is already very clear about equalities, and employers should be held to that law. There is no need to place this additional burden on the public sector or the private sector. Equalities are incredibly important—nobody in the Opposition is denying that—but we must find the right vehicle to ensure that equalities duties are enforced. This Bill is not it.

[Steve Darling]

I am concerned that the hon. Gentleman is taking a Panglossian approach that all in the world is perfect. It is far from perfect, which is why I welcome large tracts of the Bill, as long as we are supporting employers on the journey.

[Sir Ashley Fox (Bridgwater) (Con)]

It is good to see you in the Chair, Sir Christopher.

I rise to speak in support of Opposition amendments 113 to 115 and new clause 18. These are modest proposals to ameliorate the additional costs and burdens that the Bill is will place on employers and the public sector. It seems extraordinary that the Government want to introduce this new facility time without any thought about what the cost will be. It strikes me that the measures the Government are bringing forward are simply a bung to their trade union friends to provide extra money to employ extra trade union officials to do work that genuinely does not need doing.

The law is clear and should be enforced. We do not need the state to impose further burdens by employing trade union officials to effectively double up as Government inspectors. I shall therefore support the amendments and vote against the Government’s new clauses. A pattern is being followed through this Bill, whereby Ministers rise and say that each individual proposal is reasonable and modest, yet each one is an additional burden on the taxpayer and/or employers. The net result is £5 billion in additional costs, which will make this country less competitive, efficient, and effective.

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[Greg Smith]

This is one of the less contentious clauses in the Bill. The Minister is right to say that something that has not been updated for a decade probably should be looked at again, especially in the light of some of the technology that we see emerging. We will not oppose clause 53 standing part of the Bill.

[Steve Darling]

I strongly welcome this modernisation of approach.

Question put and agreed to.

Clause 53 accordingly ordered to stand part of the Bill.

Clause 54

Industrial action ballots: turnout and support thresholds

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Clauses 55 and 56 stand part.

New clause 32—Workplace intimidation in regard to balloting—

“(1) The Employment Relations Act 2004 is amended as follows.

(2) After section 54 (12) (c) insert—

‘(d) measures are in place to prevent workplace intimidation.’”

This new clause requires the Secretary of State to consider whether there are sufficient measures to be in place to prevent workplace intimidation before they make any order to allow balloting to take place by a means other than by postal ballot.

New clause 33—Balloting in the workplace—

“(1) The Employment Relations Act 2004 is amended as follows.

(2) After section 54 (12) insert at end—

‘(12A) No order may be made under this section that would permit balloting to take place in the workplace.’”

This new clause would prohibit the Secretary of State from making an order to extend the means of voting in trade union ballots and elections that would allow the ballot to be held in the workplace.

New clause 43—Industrial action: impact assessments and family tests—

“In Part V of the Trade Union and Labour Relations (Consolidation) Act 1992, before section 234A (and the italic heading before it), insert—

‘Industrial Action: impact assessments and family tests

234ZA Impact assessments and family tests

(1) No ballot for industrial action may take place unless the trade union has taken the following steps—

(a) published a report containing an economic impact assessment of the industrial action;

(b) published a report containing a family test on the impact of the industrial action; and

(c) informed members of the trade union of the publication of reports required under paragraphs (a) and (b).

(2) For the purposes of this section, a “family test” is defined as an assessment on the impact of industrial action on family relationships.’”

This new clause would require trade unions to carry out an impact assessment and a family test, for the reports of these to have published, and trade union members informed of their publication, before a ballot for industrial action can take place.

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[Greg Smith]

I hear the hon. Gentleman’s argument, but the proof of the pudding is in the eating. I gently ask him how a no-strings-attached bumper pay rise for the train drivers worked out in practice when it came to strikes over the Christmas period. We have heard repeatedly from Labour party politicians that they will prevent or stop strikes. The most visible example of that in our newspapers and on our television screens was the Mayor of London, who made some pretty bold promises about stopping strike action. Londoners and those coming into London for work, pleasure or hospital appointments have suffered multiple times during his tenure. I am not sure I fully accept the hon. Gentleman’s point that the Bill will somehow magically reduce the number of strikes, when the reality on the ground has been very different.

Given the prolonged and repeated strike action made easier by the Bill, it could almost certainly lead to large costs across the economy. We think it is only right that a level of transparency similar to that applied to Government Departments should be applied to trade union decisions. Trade unions should exercise some responsibility and consider the consequences of their decisions to undertake strike action. We would therefore like trade unions to assess the likely impact that their going on strike will have on real people and their lives, journeys, hospital appointments, theatre tickets, enjoyment, pleasure or whatever it might be that the strike action will prevent them from doing—and, of course, on our children’s education, which is so important.

New clause 43 would require trade unions to carry out impact assessments and family tests, to publish the reports of those, and to inform members of the trade union about their contents, before a ballot for industrial action can take place. It is hardly a controversial position that people should know what they are voting for before they are asked to cast a ballot on it, and that they should understand the consequences of the strike action not just for them, but for the wider economy and people’s health, education, and so much more across our great country. We think it is only right that trade union members should be fully informed of the consequences before they cast their votes. Such information would provide some public transparency about the cost and inconvenience that trade unions are willingly inflicting on the British public.

[Steve Darling]

I have some sympathy with the desire to understand the cost, but to me, the vast majority of the Government proposals before us today are about modernising the system appropriately. I am concerned that this afternoon we have seen the official Opposition one minute say that all in the garden is rosy and there is no need for equality, and the next flip over and catastrophise about the Government’s proposals. We need to get a firm hand on the tiller and see that the vast majority of these proposals simply entail modernisation. I welcome them.

[Justin Madders]

The shadow Minister asked why we cannot support new clauses 32 and 33. The simple answer is that there are already legislative protections in section 54(12) of the Employment Relations Act 2004, which sets out the conditions that must be adhered to in order to ensure that balloting is done in a secure and safe manner. He made some interesting points about people peering over others’ shoulders when votes are taking place. Clearly, his colleagues in the parliamentary Conservative party cannot be trusted to behave themselves when electronic voting takes place. That is something he will no doubt address with his colleagues in private.

If the shadow Minister is concerned about the impact of electronic balloting in all spheres—I am sure there are sometimes reasons in his own party to question the outcome of the electronic ballot—we can look at that, but there is already clear provision in law about how any trade union ballot is to be conducted. The working group will be considering that. If the Conservative party thought there were concerns about the use of electronic ballots for industrial disputes, they might not have commissioned the Knight review back in 2017 to consider the matter. That they did so suggests that they considered that it is right and appropriate that we modernise trade union practices to allow for electronic balloting for industrial action.

Moving on to the assessments the shadow Minister is requesting, the Government are pretty clear that, through new clause 43, the Opposition seek to add another administrative hurdle for a trade union that wants to take industrial action. There is no doubt that any such tests or assessments that were undertaken would lead to a multitude of satellite litigation, delay resolution of disputes, and divert both parties’ focus from resolving the disputes to arguing about impact assessments. I am not quite sure what the family test is. I think there is a family and friends test that some organisations use. It is a little vague. It is also unclear who would be the arbiter of whether these tests and assessments were being done sufficiently accurately. It is also fair to say that trade union members know, when they take industrial action, that there will be consequences. They are well aware. They do the job every day, they know the impact, and that is why they always take these matters very seriously.

The central point that the Bill will lead to more industrial action is counterintuitive, given that we are, in the main, reversing provisions of the 2016 Act. As we know, there has been more industrial action in recent years than there has been for decades. Perhaps there is not a cause and effect relationship between that and the 2016 Act, but I would suggest that the evidence points to it.

Question put and agreed to.

Clause 54 accordingly ordered to stand part of the Bill.

Clauses 55 and 56 ordered to stand part of the Bill.

Clause 57

Industrial action: provision of information to employer

Harland & Wolff

Steve Darling Excerpts

Thursday 19th December 2024 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson, who has up to two minutes.

[Steve Darling (Torbay) (LD)]

This is an outstanding Christmas present for the 1,000 employees from Devon to the Isle of Lewis who will benefit from this decision and the deal that has been pulled off by the Government. In the west country, we have a low-wage economy, and in the Appledore dockyard, which is not too far from my constituency of Torbay, this will go down extremely well, so congratulations are in order. That is in sharp contrast with the failure of the previous Administration on implementing an industrial strategy, supporting our shipping industry and growing our economy over many years. The position that the Conservatives are taking now is utterly shameful. How can we hardwire that long-term support for our shipping industry so that we see growth in this area and support for industries such as steel manufacturing?

[Jonathan Reynolds]

I am extremely grateful to be able to deliver that outcome for the hon. Gentleman’s constituents as a result of the announcement. He is right to say that successful UK Government policy must be about more than one-off solutions to specific problems such as this. That is why we have adopted an ambitious industrial strategy that covers key sectors of the economy and delivers exactly what he has asked for: consistency, long termism, and policy that covers every aspect of government rather than being seen as led by one Department. When we get it right, good long-term and effective public policy—working hand in hand with the private sector—delivers tremendous outcomes for the country, and that is what we are seeking. Ultimately, any strategy is only as good as its delivery, and this statement is evidence that the Government will deliver.

Post Office Redress and Funding

Steve Darling Excerpts

Wednesday 18th December 2024 Commons Chamber

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

I thank the Minister for sharing his statement in advance.

Honest, hard-working people had their lives totally wrecked by this scandal, and it is a great shame that it happened over a number of years, and that there was dither and delay over it for far too many years. I welcome the steps that he has outlined this afternoon. I welcome the suggestions made to him about an independent body for compensation. However, this scandal must never happen again. One way this Chamber could ensure that is the case is by having a duty of candour on officials, as the Liberal Democrats have called for. I hope he will give that serious consideration, to stop such a scandal ever happening again. Finally, there is a real opportunity, should the Government choose to take it, to set up an office for whistleblowers through the Employment Rights Bill, which is currently making its way through the House.

[Gareth Thomas]

I am grateful to the hon. Gentleman for his opening remarks. In particular, I share his anger, and that of the whole House, at how sub-postmasters were treated, whether as victims of the Horizon scandal or of the Capture software issues, which was clearly appalling. We must do everything we can to ensure that can never be repeated. He will understand that yesterday was the last day of hearings in Sir Wyn Williams’s inquiry. Sir Wyn Williams has said that he will publish his conclusions and recommendations within months. The Government will then work at pace to consider his recommendations and to publish our response within six months of that date. The specific ideas that the hon. Gentleman has referenced in that context will, I am sure, be part of the Government’s deliberations. He will forgive me if I wait at this stage for Sir Wyn Williams’s recommendations. We will then look at those recommendations and come to the House with the future steps we intend to take.

Employment Rights Bill (Thirteenth sitting)

Steve Darling Excerpts

Committee stage
Tuesday 17th December 2024 Public Bill Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell.

Clause 25 has got me thinking about many moons ago, in 2006, when I was part of the team that won Hammersmith and Fulham council for the Conservatives for the first time since 1968. One of our first acts was quite literally to take the red flag down from the roof of the town hall. Part of the symbolism of that, which is why I mention it, was that the council, in 2006, was one of the last to outsource anything at all. Competitive tendering simply had not happened in that London borough. Everything was still a direct service run by the local authority, and we set about contracting out waste, grounds maintenance and many other services. Why? Because we wanted to deliver better value for taxpayers—indeed, we cut council tax by 20% over the eight years that we ran the council—and to improve service standards.

One of the things I learned in that process, and the reason my point is relevant to the clause, is that the first iteration of any contracting out—that first contract, be it for refuse collection, street cleansing, grounds maintenance or whatever—does not tend to result in economies and improvements. It is often in the second or third contract iteration where the cost savings and improvements in service standards start to be seen. That is partly because of the TUPE provisions that rightly exist to ensure that those staff who are being transferred from whatever part of the public sector we might be talking about—in this case, local government—transfer with the same rights, terms and conditions, and pay that they had at the point that they ceased to be direct employees of the council, or whatever other public service, and became employees of whoever won the contract.

The rub comes in the real-world application. In such cases, the staff members who transferred are on favourable terms and conditions, and probably better pay, than some of the staff that the contractor brings into the team. If it is immediately locked in that everybody new has to be on the same terms and conditions and pay scales, we will never achieve value for money for taxpayers, and we will never enable the contractor, be that a refuse collection company or whatever, to find efficiencies and savings at the same time as increasing service standards in the way that we all want to see. It might as well never be done in the first place. That makes me question whether that is in fact the ideological position that the Government want to take. I can see the Minister grinning; perhaps I have hit upon something.

I gently remind the Committee of the time when every refuse service and local government service was provided directly, in house, before competitive tendering and the revolution of the 1980s and the Thatcher Government. We can all remember what delivery of those services looked like in the 1970s: the rubbish piled up on the streets with no one collecting it.

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I just reflect that when I was a unitary authority leader, we were effectively a hostage client of the private sector, since the previous Conservative authority had set up a joint venture with it. That was far from the land of milk and honey. Well, it was the land of milk and honey for the private sector, whereas local taxpayers had to suffer under a system that was set up to benefit the private sector. The reality is that often it is more appropriate for local authorities to run these services so that they are run in the interests of local communities rather than the profits of the private sector.

[Greg Smith]

The hon. Gentleman is clearly not of the orange book wing of the Liberal Democrats.

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[Steve Darling]

I echo the comments from my hon. Friend the Member for Chippenham about the impact of endometriosis on younger women’s lives. It can be extremely incapacitating. A constituent of mine in Torbay shared how her daughter had to give up work because of the impact and the length of time that it was taking her to go through the NHS system to get the treatment that she deserved. Action to resolve that and get her in the right place was months and months away.

To me, the Bill needs a couple of touch points that test the employer and challenge them to reflect on certain areas of their workforce. That will result in a culture change among employers, so that they reflect on these matters and see the broader picture. It is extremely important to drive that culture change by adding this amendment, because throughout the United Kingdom, including in my Torbay constituency, there are significant issues related to finding enough people to fill workplaces. If we have the appropriate culture through this proposal and other changes in the Bill, we can make sure that the pool of people who can step up and work and contribute to our economy is enhanced.

[The Minister for Equalities (Dame Nia Griffith)]

Amendment 112 would add menstrual problems and menstrual disorders to matters related to gender equality in clause 26. Prioritising women’s health is a positive step that the Government are taking, and the hon. Member for Chippenham is absolutely right to highlight the terrible impact that many different conditions related to menstruation can have on whether a women can perform to the best of her ability. Physical symptoms can be further compounded by the taboo that often surrounds conversations about women’s reproductive health, and I thank her for bringing that to the Committee’s attention.

Clause 26 does not provide an exhaustive list of matters related to gender equality, as the hon. Member for Mid Buckinghamshire referenced. As the hon. Member for Torbay said, this is about culture change in a place of employment. In creating equality action plans, we are reflecting the fact that many actions will be beneficial for people in lots of different circumstances. For example, the improved provision of flexible working can be valuable for an employee balancing childcare, as well as someone managing a health condition.

In the same way, ensuring that employers support staff going through the menopause will necessitate them taking steps that are positive for supporting women’s health in the workplace more broadly. For example, menopause best practice includes greater discussion around women’s health and awareness of potential workplace adjustments—things that have a much wider potential benefit. I therefore ask the hon. Member for Chippenham to withdraw the amendment.

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[Steve Darling]

I beg to move amendment 162, in clause 26, page 38, line 35, at end insert—

“(c) supporting employees who provide or arrange care for a dependant with a long-term care need, as defined by the Carer’s Leave Act 2023.”

This amendment adds caring to the list of “matters related to gender equality”, on which regulations will require employers to produce an equality action plan.

This amendment relates to research showing that by the age of 46, 50% of women have taken on caring responsibilities, whereas the equivalent age for men is 57. Clearly, the impact of caring happens much sooner for women, and that is why it is appropriate to take carers into account under the equality action plan.

There are approximately 10.5 million carers in the United Kingdom, 2.6 million of whom work. That shows that a significant number of carers do not work. In an earlier debate I made the point about the pool of workers for whom there are opportunities in our workforce yet who are not able to access longer-term employment. I strongly contend that the amendment is a way to enhance the pool of opportunity by driving the culture change that I was delighted to hear the Minister say a lot of the Bill is all about.

Carers will often stay in lower-paid jobs or refuse promotion because of caring commitments. It is extremely important to include caring as part of the consideration and clearly flag that to people who consider the action plans, because it is not an obvious matter for an employer to take into consideration, but it affects such a large number of people in the United Kingdom that it would be an error in judgment not to include it in the Bill.

[Greg Smith]

I rise to address the technicalities of how the amendment would work in legislation and with the Bill’s gender equality provisions. I entirely accept the hon. Gentleman’s point about the disparity between the average age by which a woman might take on caring responsibilities compared with the average for a man, but those are averages and there will be outliers and exceptions across all age ranges and all genders.

I say clearly that the Opposition welcome the contribution of all carers and salute them as the heroes they are, but I am concerned that the amendment would shoehorn a very worthy and important matter into a provision on gender equality. I do not see how it fully fits; it would have been more sensible to have created provisions for the support and recognition of those with caring responsibilities in a new clause or in another part of the Bill. I worry that, like amendment 112, amendment 162 could confuse the Bill’s interpretation as it goes down the line and, potentially, is challenged in court at some point.

I accept the core argument about support for those with caring responsibilities, but it is dangerous to shoehorn provisions into clauses where that is not the primary intent. It is important that the gender equality points remain focused on gender equality issues, on which I think the Government have good intent. If the Bill gets changed too much by us bringing in things that—although clearly in scope, given that they have been selected—are on the edge of scope, that could cause an interpretative challenge later. Provisions on support for those with caring responsibilities would be far better in a new clause or a different part of the Bill, where they might fit more neatly and enable us to avoid judicial challenge.

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[Dame Nia Griffith]

If I may, Mr Mundell, I will draw attention to my registered interests, including my membership of the Union of Shop, Distributive and Allied Workers and the National Education Union.

Amendment 162 would add caring to the matters related to gender equality listed in clause 26. The hon. Member for Torbay is absolutely right to highlight the impact of caring responsibilities on women in the workplace, and we recognise that carers might need extra protection and support. I reassure him that many people with caring responsibilities are likely already to be afforded protections under the Equality Act 2010, through the provisions relating to age and disability discrimination.

The Equality Act protects people from direct discrimination by association. That means that individuals with caring responsibilities for someone who is, for example, elderly or disabled are likely to have protection from unlawful discrimination because of their association with someone with a protected characteristic. The Government frequently receive requests for the creation of new protected characteristics. Unfortunately, merely creating new characteristics within the Act will not necessarily lead to a change in the behaviour of service providers and employers. We can see that from the number of court cases that continue to be brought under the existing characteristics.

Clause 26 does not provide an exhaustive list of matters related to gender equality. Instead, we are reflecting the fact that many actions will be beneficial for people in lots of different circumstances. For example, improved provision of flexible working can be valuable to someone who is managing a health condition as well as to an employee who is balancing care. Equality action plans will increase awareness of the need for a wide range of potential workplace adjustments for all who would benefit from them, delivering a much wider potential impact. I therefore ask the hon. Member to withdraw the amendment.

[Steve Darling]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Dame Nia Griffith]

The clause is the first step towards introducing equality action plans, and it provides the power to do so in subsequent regulations. Women are a crucial part of securing economic growth and improving productivity, but the national gender pay gap remains at 13.1% and eight in 10 menopausal women say that their workplace has no basic support in place. This lack of support adds up to a significant loss of talent and skills. Menopause affects 51% of the population, with one external estimate showing that the UK is losing about 14 million work days every year because of menopause symptoms.

Large employers have been obliged to publish gender pay gap data since 2017, with action plans being encouraged, but voluntary. Analysis in 2019 found that only around half of employers that reported data went on to voluntarily produce a plan saying how they would act to improve the figures. That demonstrates that only making it mandatory will push employers to act. The best employers already recognise that providing women with the conditions to thrive is good for their employees and good for business. In taking this step towards introducing mandatory action plans, we are making sure that all large employers in scope of this clause follow their lead.

We are using a delegated power, mirroring the approach taken for gender pay gap reporting. Just as with that requirement, we want to give employers as much detail as possible in legislation—more than would commonly be in a Bill. The use of regulations allows us to do that while maintaining flexibility. When drafting this power, we reflected on what we have learned from gender pay gap reporting and from the hundreds of employers we have engaged with as a result. Most organisations think about equality in the round. They have one diversity and inclusion strategy, recognising what is borne out by the evidence: the most effective employer actions have benefits for more than one group or identity. That is why this clause proposes that employers produce one plan that covers both the gender pay gap and the menopause, reflecting the way they already work, reducing the burden of duplication and ensuring that they can get on with putting the plan into action. I commend clause 26 to the Committee.

Employment Rights Bill (Eleventh sitting)

Steve Darling Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Sarah Gibson (Chippenham) (LD)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I will speak principally to our amendment 5, but Opposition amendment 155 is also relevant.

We broadly welcome the Government’s intention to clarify some issues around probation. However, we feel that these measures will make it too difficult for small businesses, which we all know are the backbone of our economy, to take staff on. If we are not careful, the Bill, albeit not by design, could be catastrophic for some small businesses.

I would like the Minister to assure me that small and medium-sized enterprises can be confident that they will not be unduly penalised if they need to give notice during a probation period. Our amendment would put a number on the period, albeit that it allows a range. Both amendments aim to find out whether the Government have an idea of the timescale for the probation period.

When I speak to some of my small innovative businesses, especially those in renewable energy, one thing that concerns me is that they are taking staff on who do not have experience in the field. There simply are not enough people with experience, so businesses are taking people on speculatively who they hope to encourage, teach and train on the job. If they realise early on that that is not possible and that the employee is not suitable for the sector, they need to be able to start again and try again without feeling penalised. There is no way they can do this over a 10-minute coffee, as one Government Member suggests, because these people have no experience in the field. They are on a learning curve as much as the employer is. This probation period is vital for both sides to understand whether the sector, which is new to many people, is appropriate.

I am very concerned that the period, which is the only thing we know about, is not defined as a set amount of time to give small businesses confidence that they can continue to take on staff about whom they are concerned. If the timescale cannot be set out in the Bill, I would like some idea from the Minister of when we might hear it.

[Steve Darling (Torbay) (LD)]

It is a privilege to serve under your chairmanship, Ms Vaz. I want to unpick another issue on which I would welcome some reassurances from the Minister.

I have spoken to a gentleman from the Torbay Business Forum who supports a charity that works across Devon, particularly by supporting people with learning disabilities into employment. One often finds that it can take a bit longer for people with learning disabilities to find the right place and get a firm contract. What safeguards are there for charitable organisations and not-for-profit companies working in that sector to prevent them from ending up in the difficult position of having people on their books who, sadly, over an extended period of time, they realise are not fit for purpose because of challenges in their lives? There will no longer be the opportunity to offer extended flexibility.

Like my hon. Friend the Member for Chippenham, I broadly welcome the Bill’s direction of travel, but I would like to see some of the rough edges knocked into shape for Torbay residents.

[Justin Madders]

I am grateful to Opposition Members for tabling their amendments and asking a series of questions.

The hon. Member for Chippenham seeks to set the boundaries for the statutory probation period at three and nine months. The hon. Member for Torbay seemed to argue for a lengthier period; I do not know whether he was asking for nine months or beyond, but I take his point. The hon. Member for Mid Buckinghamshire asked us to put six months on the face of the Bill, so there is quite a range of options. We have decided that the best thing to do is work with businesses and consult with them on the detail of the proposal as we move forward. We have expressed a preference for nine months as a result of the engagement that we have undertaken.

As the hon. Member for Mid Buckinghamshire indicated, businesses have said that generally six months is about the right period, but in some circumstances they may need a bit longer to ensure that the person is the right fit. That is why we alighted on the proposal for nine months, but we do not want to tie our hands by putting it on the face of the Bill; we want to continue to work with businesses and trade unions to understand whether that is the right figure. Putting a number in the Bill would be premature, because we will have further conversations. As we develop the light-touch process in our deliberations, that may help people to firm up their views about whether nine months is indeed the right amount of time.

The hon. Member for Mid Buckinghamshire questioned the evidence base. Of course there can be no evidence base for people being unfairly dismissed under two years’ employment, because there is no right protecting them from unfair dismissal before then, except for those who may seek to hang their hat on an automatically unfair dismissal. As we have discussed at length, people sometimes do that because they have a sense of grievance about the way they have been treated, and they may well have a legitimate claim.

Hon. Members generally accepted that the labour force survey statistics are not particularly helpful, but there is quite a lot of evidence about the impact of job insecurity more generally and the fact that the two-year qualification period creates uncertainty for individuals. Business in the Community surveyed 4,000 employees, of whom 66% say that their mental health and wellbeing is affected by their personal job insecurity. In written evidence to this Committee, the Union of Shop, Distributive and Allied Workers notes:

“Being dismissed on spurious conduct or capability grounds, without a fair investigation”—

as can happen at the moment under two years of employment—

“can have devastating consequences for an employee. It can destroy the individual’s morale and confidence and…living standards”.

This is happening to people already, and it is having an impact.

There is also evidence to suggest that there are further advantages for the wider economy. The Resolution Foundation has done some research on the cooling effect of people not moving jobs because they do not have job security. Someone who is considering moving from one job to another may be more likely to take the leap if they have that window of protection, so it is important for individuals as well.

Employment Rights Bill (Twelfth sitting)

Steve Darling Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Steve Darling (Torbay) (LD)]

Fire and rehire is an absolute scourge to those people who are impacted by it. Whether in significant numbers or a minority, it is utterly shameful. My Liberal Democrat colleagues broadly welcome the amendments, and we look forward to supporting the clause.

[Justin Madders]

It is good to hear that we have the support of the Liberal Democrats. Most of the country supports this measure; fire and rehire is rightly seen as a practice that should see its end. I quote the former right hon. Member for Welwyn Hatfield, Grant Shapps, who said at the time, when P&O first started on that course, that

“we will not allow this to happen again: that where new laws are needed, we will create them, that where legal loopholes are cynically exploited, we will close them, and that where employment rights are too weak, we will strengthen them.”—[Official Report, 30 March 2022; Vol. 711, c. 840.]

I have news for the Committee: I am afraid that only this week several Members of this place have told me about fire and rehire tactics going on in their constituency. A fire and rehire situation is taking place right now in Wrexham. The loopholes have not been closed. That is why we need to act.

To put the shadow Minister’s mind at rest, I believe that proposed new subsection (5) gives employers a real guideline as to how they need to deal with this. Furthermore, as was common to much of the evidence we heard, responsible and good employers do all those things anyway, so they will not be penalised or face any additional burdens, but rather will be able to operate on a level playing field.

To refer to the evidence given by DFDS about this particular matter, or to someone working in an area very relevant to it, they said that they were pleased that fire and rehire was going to be dealt with, because as an operator, they are

“simply looking for a fair and level playing field.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 56, Q54.]

That is why we need to act today.

I also refer to the support of the Institute of Directors; approximately two thirds of its members who were polled supported this action, too. I think it will come to be seen as a watershed moment in industrial relations in this country, where we finally got rid of one of the most obnoxious and outdated practices that this country has ever seen.

Question put and agreed to.

Clause 22 accordingly ordered to stand part of the Bill.

Clause 23

Collective redundancy: extended application of requirements

--- Later in debate ---

[Greg Smith]

I understand where the Minister is coming from, particularly on the expansion of the requirement to notify the flag state. I spoke earlier about my time on the Transport Committee watching the P&O scandal unfold; we held some pretty tough evidence sessions as part of that. I understand that the clause is very specifically to protect seafarers from that sort of engagement. I very much hope that it works to protect those seafarers, and we will not oppose it.

[Steve Darling]

We are strongly supportive of the measure.

[Justin Madders]

I am pleased to see that we have support all round.

Question put and agreed to.

Clause 24 accordingly ordered to stand part of the Bill.

Clause 25

Public sector outsourcing: protection of workers