Greg Smith MP: speeches

Speeches

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Sure. Martyn Gray: No, is the very short answer to that. It needs to go further in terms of protections for those who work at sea. There are still monumental gaps in the protections that are afforded to seafarers compared with the protections afforded to land-based workers, even under existing employment legislation, and those gaps still need to be closed up. This legislation comes some of the way to addressing some of the challenges we saw in the wake of the decision by P&O Ferries to terminate, without notice and without consideration, 786 people in March 2022, but it still does not go far enough to place the rights and protections of those who work at sea on parity with the rights and protections of those who work in shore-based roles and with shore-based employment contracts. More still needs to be done, and more can still be done, that will allow for greater protections to be delivered for those who work at sea. That is fully within the remit of this Parliament to legislate for. Mick Lynch: From my point of view, I do not think there will be unintended consequences. I hope the intended consequences go far enough, but maybe we will have to have more legislation. We had lots of legislation against the unions under previous Governments, so hopefully we can get more legislation in favour of workers and their organisations. The Bill does not go far enough, but we can improve it during this process. One of the things we would like to see is the power for trade unions to get redress—injunctive power—against people like P&O, which was never considered. We were told that if we took action against P&O—and there was a slim possibility of it—we could be liable for all its revenue loss for every day of trading, which could have been up to £15 million or £20 million a day. That is impossible for workers and their organisations to take forward. You have to remember that P&O deliberately broke the law to get rid of its workforce and to undermine good shipping companies. We have employers such as P&O and Irish Ferries working out of our ports that undermine good businesses. I just caught the end of the previous session, when the witnesses hoped that there would be a lifting of all boats—to use that pun—to create a playing field that is fairer. It will never be completely level, but it would be fairer on all the good businesses in Britain—British businesses and those working in Britain—to make the pirates, which is what we consider P&O to be, come up to the standards of everyone else doing business here. Businesses should treat their workers well, treat the environment well and treat their passengers well. If you do all those things, you will run a successful business despite a marginal increase in overhead. Let us not forget that people like P&O are dramatically resourced by the richest people on the globe. P&O deliberately took that step to exploit our laws—as poor as they were, left to us by previous Governments—because it knew it would get away with it. What P&O has got to be aware of in the future is that it will not get away with it without consequences for its business and reputation. Unfortunately, the previous Government allowed P&O to shed its skin and leave it behind, along with all those people it made unemployed, and carry on as if nothing had happened. That is a shame on all those people who allowed P&O to do that.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Thank you for being with us. Can you give us your view on whether the Bill goes far enough to combat the issues that you campaign on, particularly women’s rights at work? Where would you like to see elements of it amended, either to make it stronger or to get rid of things that might have unintended consequences, and are you concerned about any particular areas of the Bill either not delivering what they say they will or delivering something completely different? Jemima Olchawski: At Fawcett, we really welcome the Bill. Overall, we still have an economy and workplaces that consistently disadvantage and exclude women. That means that they are much more likely to be on zero-hours contracts, to be in low-paid work and to be held back by a lack of access to quality flexible part-time work. Each of those issues is intensified for most black and minoritised women, and for disabled women. The situation results in serious consequences for individual women. We have a gender pay gap of just under 14%. On average, women take home just over £630 a month less than men. It also has a detrimental impact on our economy, because it is a marker of the ways in which women are not fully participating or contributing to the economy at their full potential. Estimates indicate that that means we are missing out on tens of billions of pounds of GDP. We strongly support the measures as an important step towards redressing that balance. In particular, we are pleased to see the inclusion of equalities action plans as an important way to get employers to drive forward progress on the gender pay gap. We are glad to see the emphasis on the importance of flexible working and the day one right to statutory sick pay, which will have a disproportionate beneficial impact on women, as well as further protection from sexual harassment in the workplace. Some 40% of women experience sexual harassment at some point during their career. There are areas where we would like to see additional inclusions or things going further. Flexible working is incredibly important for women who have caring responsibilities and continue to do the majority of unpaid care, and having access to flexible work is vital to enable them to progress and earn to their full potential. We would like to see a duty on employers to advertise jobs as flexible, rather than a situation where women have to wait until they are in a job before they can begin that conversation. You cannot move into a new job if you are not sure whether you will be able to replicate the flexibility that you have in an existing role. That leads to women being under-employed and their skills underused. The day one rights to maternity, paternity and parental leave are important, but they have to be remunerated. There has to be a day one right to pay if we actually want people to take it. Particularly if we want men to take on more caring roles, we need to make sure we have a refocus on remunerated leave, and that includes parental leave. We welcome the fact that there will be a review, but we need to think about this as part of those measures. I would like to see more around equal pay in the Bill. Measures could be taken that would support women to access fair pay, such as pay transparency and ending salary history questions. The last thing I would like to see more on is making sure that there is proper enforcement of those rights—that the enforcement bodies are properly resourced and have the teeth to ensure that the rights really hold. Joeli Brearley: It is a big question that you have asked. I support everything that Jemima has just said. We are very supportive of the Bill, but I think there is a lack of clarity on some of the areas that we are particularly interested in. On flexible working, we are really pleased to see that the Government want to make it the default way of working. That is really important, but we need to know exactly how, and what mechanisms will be in place to do that. The current law on flexible working isn’t working. We want to see an advertising duty as well, which I am sure we can explore in a bit more detail later. We are also very supportive of parental leave being moved to a day one right. It is kind of amazing that that is not in place already. But without it being remunerated, take-up will be very low. We would have liked to see more on parental leave. We have a shockingly low rate of pay for maternity. We have the worst paternity benefit in Europe. This is causing huge problems for families, particularly new families that have just had a baby. They are getting themselves into terrible amounts of debt. Also the way that our parental leave system is structured means that women are responsible for the care of a baby. They tend to take long periods of time out of work, whereas men tend to go back to work very quickly. They fall into the role of breadwinner, and the woman falls into the role of caregiver, and that continues for the rest of their lives—which is why there is such a large gender pay gap. The redundancy protections are great. Again, we are very pleased to see that, but we need specifics about what it means. We would like to see that pregnant women and new parents can only be made redundant in exceptional circumstances. By that we mean when a business is closing or perhaps when a service has stopped being delivered. It is very difficult, if you are made redundant when you are pregnant or have just had a baby, to get another job. Often you are made redundant and then cannot access statutory maternity pay. These are very particular circumstances. We know that many women are still being made redundant when they are pregnant or when they are new mums; 17% of calls we get to Pregnant Then Screwed are related to redundancy, so it is a big problem. What we do not have at the moment, but really need, is data that shows us what is happening on the ground. A report was done by the Equality and Human Rights Commission under the coalition Government that found that 54,000 women a year are pushed out of their jobs for getting pregnant or for taking maternity leave, and 77% of new mums experience some form of discrimination. That report was done in 2016, and there was a guarantee at that point that the report would be done again five years later. It is now nine years later and we still do not have any new data to show us exactly what is happening on the ground. Without it we are making decisions in the dark, so we would really push for that report to be done again. We would have liked to see something in the Bill on non-disclosure agreements. Our research found that 435,293 mothers had been gagged by non-disclosure agreements when experiencing some form of discrimination. It is a serious problem. Again, we do not know what is happening in companies across the country. Women tend to experience this form of discrimination and are then forced to sign these agreements and are given a low amount of compensation. They suffer mental health consequences because of that. We want to see the UK follow what Ireland has recently done, so that non-disclosure agreements cannot be enforced unless the claimant wants them to be. We would also have liked to see something in the Bill on miscarriage leave, because at the moment there is no right to any leave or pay if you miscarry before 24 weeks. We would have liked to see something on fertility treatment. As many of you will know, we have a baby crisis in the UK—we are not having enough babies. We want to encourage people to have fertility treatment, so we need a legal right to time off. We would like to see something on reasonable adjustments. There are currently reasonable adjustments if someone has a disability, but not if they have a dependant with a disability. Many mothers of disabled children are struggling in the workplace because they need time off for appointments, or whatever it may be. We would like to see a requirement for all employers to publish parental leave policies.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Do you have any views on the Bill’s provisions on trade union facility time? Mick Lynch: Not particularly. We make arrangements with our employers—we have private sector employers and public sector employers—through collective agreements. I imagine that we will always create decent arrangements with all our employers, whether they are road transport, rail or maritime, about appropriate release for our people, so that is not a thing that concerns us overly at this time. Martyn Gray: I have no particular concerns about the way facility time seems to be structured. I think overall it will prove to be beneficial. I know there are some in the trade union movement who would like to see more on that, but again, I think that, with the maritime aspect and the practicalities of working around that, what is proposed in the Bill is helpful. Gemma Griffin: There is not a problem from our perspective. We see both RMT and Nautilus as partners in our endeavours to do the right thing for our people, so we are fully supportive.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Have you had any feedback from your members on their willingness going forward to take on the very people you have just talked about—employees with caring responsibilities, students, people with complex situations in their lives who find a zero-hours contract useful—and whether some of them are reticent about taking people on in the new circumstances that this Bill would bring about? Allen Simpson: I come back to the point that you need the right legal structure. I think it is legitimate for someone who in practice is working 30 hours a week regularly and has been doing so for the last year to ask for that to be reflected in a different form of contract. That is absolutely right. It is worth saying that the data shows—and it does not matter how you look at this—that most people on zero-hours contracts are happy with that. In fact, if you advertise a zero-hours contract, you will get more applicants. To a degree, as long as it is in the gift of the employee to say, “Well, I am working these regular hours and I want that reflected in a permanent contract”, that is the right balance. However, it is important that the Government move their thinking, as they have, to recognise that zero-hours contracts are a really important social fairness point because they allow access to work for people who cannot necessarily offer their employer set hours every week—again, I come back to my mum when I was a kid. Having that distinction in law is really important.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Can you give us a hint of the ambers? It is important that the Committee knows where different sectors are concerned. Allen Simpson: There is something around statutory sick pay, which is worth considering. There is a tendency, when we look at what a good job means, to build around the paradigm of an office, when working in hospitality—not unlike my wife, who is a nurse, working in a medical setting—is a different way of working. We need to think about whether or not sick pay kicking in from day two might be more appropriate than day one. Equally, I have an amber around the notice of shifts and how we manage things like major events at Ascot, Wembley or anywhere else. You did not ask, but I will say that for green, I am very supportive of changes in general to zero-hours contracts.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Good afternoon, and thank you for joining us for this session late in the day. The Bill is multifaceted. It has a lot of measures in it. It could rapidly become a Christmas tree Bill. What do those you represent see as the good elements of it? More significantly, what are the areas that perhaps need amendment or change to avoid unintended consequences, and what straightforwardly will not work for you? Alasdair Reisner: One of the benefits of being tail-end Charlie is that I have been able to watch some of the earlier evidence, so I was primed for this question. From an industry perspective, the first reaction is that it is a very big Bill, and that does create challenges. We have about 360,000 employers in our industry, more than half of which employ fewer than four people, so even raising awareness of the existence of the Bill is a particular challenge. In terms of how we take things forward, whatever happens during the rest of this process, a big engagement process is required to raise awareness of the outcome. That said, generally speaking, based on the feedback that we have had, I think there is a lot of positivity about some elements of the Bill, particularly on tackling sexual harassment and looking at improving equality in the industry. I think our members would say that this is stuff that they do as custom and practice already, so it is almost raising the level of the wider industry and trying to cut out poor behaviour among not bad actors in industry, but those that are less developed. There are a couple of points where we do have particular concerns. One is the redundancy piece. I suspect that, as MPs, you are all sick and tired of people special pleading and saying that their industry is different, but I am afraid that I am going to say that our industry is different. We deliver on a geographical basis, and when a project comes to an end, understandably, there will be cases where redundancy is the only option. To enforce upon the whole business the requirement for consultation feels like it was not the intent of this policy. It seems that we should spend some time trying to find a way through that works and results in productive outcomes. I have seen personally the impact of people being on multiple rounds of redundancy. It is miserable for the individual, and that is what I think we should seek to avoid. The other area we have some concerns about—we have heard this a number of times today—is day one unfair dismissal claims. In construction, it takes a lot of time to get people ready to work. Coming down from two years to day one feels like a big step for an industry that, as I articulated, may not even be aware that this is coming towards them. We would want to look at how that might work. I am sure you may have questions on that, so I do not want to spend the time garbling on—I would rather give you the chance to ask questions.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Mr Gray? Martyn Gray: To clarify, I am a director of organising for a trade union, so I will answer from the perspective of whether the legislation goes far enough, if that is okay.

• 26 Nov 2024 · Employment Rights Bill (Second sitting) · Hansard source

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  Q Mr Carberry, I will come to you shortly, but Mr Simpson, to continue that theme: this is a pretty wide-ranging Bill with a lot of measures. Which of them do you think the Government have got wrong, which you would like to see either deleted or amended? Allen Simpson: I have a red, amber and green list in front of me, so I can tell you what is on the red if that is useful. First, it is the aggregate cost: the cost of this, alongside the employer national insurance and national living wage increases, is going to be a barrier to employment. You can take the 50,000 job losses that the Government’s impact assessment describes or the 100,000 that Deutsche Bank have, but there is an aggregate cost question. More specifically, there is a question around the variation of contracts—we can talk about that in more detail—and making sure that that protects against what we can probably call a P&O event. Equally, we need to allow for like a restaurant moving from one high-street premises to another so that contracts are not accidentally novated. There are questions around how we manage union thresholds, which we need to think through in detail. Those would be my reds, but equally, I have ambers and greens as well.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q I want to come back on this point, as it goes to the nub of any change to employment law. This does not mean that I am against employment law—I want to make that clear before anyone suggests otherwise. Alex, you mentioned the net impact of this legislation on the number of people in the United Kingdom in employment and the number of new jobs that will be created—or not, as the case may be—and you gave clear data from the 700 business leaders you spoke to. Could I ask the other two witnesses about your research among your members? What is your assessment of the likely impact of the Bill on job creation and job losses? Matthew, you talked about the risk of redundancy actually becoming greater as a result of some of the measures on fire and rehire. What is your assessment of the Bill’s impact on job numbers? Matthew Percival: It is very difficult to put a number to it, because there are so many unanswered questions in areas where details are intended to be put into the Bill at a later stage. That leads to a wide range of potential estimates about the impact of a number of the measures. Work we are doing at the moment will give us updated figures on sentiment around a number of measures. We are looking to publish that soon, and I will make sure that we include those numbers in our written evidence. Jane Gratton: The feedback we have had from members has been concern about increased cost, complexity and lack of flexibility to manage the workforce in the way that a business needs to. Members say that there would be a reduced hiring appetite were this legislation to come in, and that they would be less likely to recruit new employees due to the risk and difficulty, particularly under the day one rights, unless there were at least a nine-month probation period with a light-touch approach. There would be a preference for contractors and temporary staff, again to reduce the risk and avoid legal complications. To give some figures, 38% said that there would be a hiring freeze, 25% said that the Bill would result in less pay, and 30% spoke of less investment in their business. There would be significant risks and costs, particularly to small and medium-sized enterprises. Alex Hall-Chen: In addition to considering recruitment levels at the higher level, we are also getting feedback about types of recruitment and the impact that the policies will have on that. We have had a lot of feedback, particularly with respect to day one protection against unfair dismissal, that essentially boils down to the fact that, under the current system, employers are very likely to take a risk on hiring a borderline candidate who may not have quite the right experience or qualifications, but they will now be much less likely to take that risk because the cost of getting it wrong will be considerably higher. I think there are really important questions about what that means for people on the fringes of the labour market, especially as those are precisely the people the Government need to get back into work to meet their 80% employment rate target.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Mr Hale, do you have a view on that perspective? David Hale: If the Government had a good process for the Bill, which I do not think they do, we would be exploring what the participation harm is. Part of that is not just whether firms choose to recruit, but who they choose to recruit. On the whether, from a small-business perspective, you might get a contract, you might choose to scale to meet it, or you might not. It is not the case that all small businesses will choose to scale regardless. There is a risk there, and if you increase risk, you lessen the chance that somebody will do that. Part of the importance of participation harm is not just whether, but which people are employed. We know we have a CV culture in this country. We know that managers at all levels—I am talking not only small employers, but managers in small and large businesses—look down CVs and look for gaps. If people find gaps in CVs, we know that in the UK, they are less likely to feel that that is a risk they can bear. If you add risk to employment, part of the problem is not just whether they take that risk, but who they take that risk with. Small businesses are currently most likely to take that risk. Small businesses currently recruit most from outside the labour market. If they do not do that—and we know that small businesses are responsive to risk—it is not just small businesses that lose out, but the businesses that in turn recruit from them. Larger businesses might well be more likely to recruit someone who has two years at a small business on their CV or experience doing bar work when they were a student, and they might benefit from the introduction to work they have had. But the whether and who is currently missing from the conversation, and I think that is because we have had such a quick process. That is the main thing. Does the Bill help somebody take that leap? The Government should be making that case. I have not seen a case for how the Bill would help somebody want to recruit more.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q Good morning, gentlemen. In the last session, we heard evidence that this Bill could have a £5 billion-a-year impact, disproportionately impacting SMEs. Is that something that you both recognise as a risk of this legislation? David Hale: The impact assessment was quite clear that the bill would be more than £5 billion a year. For example, it did not include any of the consequential impacts on businesses from the changes to unfair dismissal. It merely counted the ability of the Government to change. Changes to unfair dismissal are one of the things that businesses flagged, so £5 billion is very much at the low end of that estimate. You may well have seen the Regulatory Policy Committee say yesterday that the impact assessment as a whole is not fit for purpose. The only question about the £5 billion, or the £5 billion-plus, is where that cost is borne. Obviously, businesses can bear the cost. People who are not in work can bear the cost, or people who are in work can bear the cost through wages or through lower hours. The £5 billion is a very low estimate, but where that cost falls is the more complex question. Dom Hallas: The starting point from our perspective is that tech start-ups and scale-ups are unusual businesses—unusual small businesses, frankly. They scale rapidly—they can be growing at 50% or 100% a year. They pay unusually well—disproportionately well. The average salary is in the range of £50,000 to £60,000. They change really fast, because they are scaling and doing things really quickly. They treat staff like royalty—they treat them incredibly well—because it is a highly competitive labour market for technology talent, and they need to be able to hire in it. That means they really value flexibility. I cannot speak to the £5 billion figure, and the reports out today throw some scepticism on that. What I will not do is sit here today and tell you that this piece of legislation would be disastrous for our ecosystem—clearly not—but what it would do is present a series of speed bumps, a series of bumps in the road, for these kinds of businesses, the cumulative effect of which is to chip away at some of the flexibility that our companies prize.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q Good morning to the witnesses. This is clearly a very large piece of legislation. Previous witnesses have said that perhaps it should be broken up. Do your organisations and those you represent think that it should be broken up? Is it too complicated? Is it putting too much on HR advisers, for example, in one swoop? Ben Willmott: There is no doubt that the cumulative impact of the proposed regulatory changes will be significant. Our members are responsible for making changes to employment contracts and workplace policies to ensure they align with any changes in employment legislation. They communicate any changes to staff and, crucially, ensure that managers have information, advice and, where necessary, training so that they meet any new legal obligations in the workplace. Of course, we know that there will be a likely increase in the number of tribunal applications, which our members will have to respond to. That has not just potential compensation costs; there are HR and management costs to responding to tribunal claims, even those that do not actually make it to tribunal in the end and those that do not have any merit. Without a doubt, there will be a significant impact on workload. The other point I want to make is that the time resources spent on those activities mean that employers will not have the time to invest in addressing the skills gap, upskilling staff and supporting technology adoption. That is the other challenge, which may undermine the other productive activities that you want HR and people management specialists to engage in. So, yes, phasing these measures and really thinking about how they will be implementable is really important. Cathryn Moses-Stone: Echoing Ben’s last point, which moves the discussion on quite nicely, we know that broadly there is quite strong support for the Bill among British managers. We have polled our managers over the past year and the last month, and in the last month over 75% were supportive of improved workers’ rights as a means to boosting productivity and 65% felt that it should be a top national priority. But obviously these are just changes. We know that they are meant to be the catalyst for implementing better working practices and more improved working cultures; the extent to which they can do that will very much depend on the implementation, which depends on the time and the process that we give to the managers who have to deliver it day to day, on the ground, to get it right. Our data shows that over 82% of people are accidental managers, which means they go into a management position without any formal management training. If you are expecting them to deliver a whole suite of really complicated reforms, we need to ensure that the consultation period is long enough and that they are consulted in the right ways. Also, things like the fair work agency really have to take into consideration what the legislation means for allowing managers and leaders to upskill to deliver things in the right way, and the agency should not assume ill intent as a first port of call but work with people to understand what it might look like for them in practice, when they deliver it in their organisations. Carly Cannings: I would probably echo the comments of the other panel members. It is not necessarily a case of splitting the Bill up; it is about giving enough time, and enough time with the detail. On reading the Bill initially, it is quite obvious that there are intentionally large gaps, because they are to be filled by secondary legislation for the most part. It is a case of ensuring that employers have enough time to get used to the changes introduced by the broad brush of the Bill, which should then be followed up with further consultation and enough notice on those changes.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q Sticking on that theme of flexibility, particularly from the start-up perspective, and thinking back to the post-2010, pre-pandemic period, a huge proportion of economic growth and the success of economic growth in that period was down to the growth in self-employment and people making that leap to set up their own business and become entrepreneurs. Do you think the lack of flexibility, or making the rules more rigid, as this Bill does, and some of the factors that previous witnesses talked about—dissuading people to take on new hires and making the risk of new hires that much greater—will dissuade more people from choosing to leave payroll and start up on their own, whether through self-employment or registering a business? Dom Hallas: I leave self-employment to one side, but from the perspective of an entrepreneur trying to build one of our tech businesses, the truth is that any number of things the Government may or not do in policy are not necessarily what persuades or dissuades someone from starting a business. The reality is that they are probably going to do it anyway. The question is, are we going to make it harder or easier for them? In truth, what we consistently see—and I think this is where you have the conversations around taxation and the Budget layered on top—is the risk of a number of pebbles in the stream for entrepreneurs that will not prevent them from trying to build their business, because they will crack on and try to do it. One of the things we consistently talk to entrepreneurs about when we ask them about policy is, “What are the challenges you face?” The answer they give far too frequently is, “There are loads of things, but we just have to get on with it.” I put to the Committee that the question is ultimately how we prevent our policy environment from being seen as a barrier to overcome by the entrepreneur community and the founders who are building these kinds of businesses and creating these kinds of jobs. How do we create a situation that is as open and flexible as possible for them to operate and, therefore, a competitive jobs market that will ensure that the workers are treated really well?

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q Clearly, this is quite a thick Bill; it has lots of measures in it. If you were able to change any element of it, what would be your top priority? David Hale: There seems to be a big question about whether the Bill should be split up. It is a very large Bill. Overwhelm is the primary response. The second response is, to put it politely, bemusement about what the Government are trying to achieve and how these measures are intended to achieve it. We know the very high level, but the high level does not match the measures. If you are talking about security at work, the Bill does not appear to give extra security at work. There is bemusement about that. Like most of us, small businesses are scared of getting sued, so there is fear about that. The Bill increases the risk of litigation against small businesses. The next question is about the possible harms of the response to that fear, which are things like the participation harm, harm to the work environment, and harm to individuals and the whole economy from the knock-on effects. I am not sure whether there are 28 or 70 measures—maybe some of you could list them all, but I do not think anyone else could. I do not think a small business would be able to tell you what they are or implement them all at once, so there is a question about whether the Bill should be split up. Dom Hallas: I agree on the scale point. The Bill has a big impact. The top practical concern from a start-up ecosystem perspective is day one rights and exactly what that means. Obviously, there is an open discussion about the probationary period and exactly how that is going to work. From a start-up ecosystem perspective, the core point is ultimately that you have fast-moving businesses whose needs change, and the experiences of employees change. The practical impact of the Bill in that area will be that people are less likely to continue to take a risk on someone, even when they have hired them after a probation period, because of the changes the Government are looking at. What we will get is a situation where employees who might be doing well, but not as well as you might hope, are more likely to see their employment terminated at that stage, as opposed to over a longer timeframe, with the business saying, “Well, we can’t take the risk.” So there seems to be a perverse incentive that ends up being created.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q Thank you, Mr Stringer, and good morning, witnesses. I always like to get down to the nitty gritty and the nuts and bolts of any legislation in front of us. This is quite a weighty Bill that makes significant changes to employment law. What do the organisations that you represent fear most in it? Jane Gratton: Let me just say that there is a lot in the Bill that represents what good businesses are doing already, but there are five areas where we have received concerns from members. First, on trade union access and ballot thresholds, increasing access and making it easier and quicker for unions to call strike action does not mean that the union is representative of the workforce, and does not improve the relationship with employers. From our members’ point of view, it simply makes it easier to reach an end point that nobody wants. They can see nothing in the Bill to reassure businesses that the relationship will be better, so we do not think that there should be any change to union access or ballot thresholds. Matthew Percival: Our members support the idea of thoughtfully designed and appropriately enforced employment laws—a strong floor of rights that supports fair competition in the labour market. It is not as simple as saying that employment laws are bad for business; lots of them are very good. That is why we have supported a number in the past, as well as a number of the measures in the Bill, very much as Jane said for her members. Your question encourages me to give a quick checklist of the top issues, in the order that they come up in the Bill. There are a number of areas of concern around the regulation of zero-hours contracts, which has less to do with zero-hours contracts and more to do with the issue of guaranteed hours within contracts—it is low-hours contracts as well. We get a number of concerns about the removal of waiting days from statutory sick pay. We get concerns around the landing of probation periods during the initial period of employment, which are more about the tribunal risk than the sorts of processes that employers might put in place. It is the cost of demonstrating compliance, rather than having a good process, that is more of a concern. In the redundancy space, we are quite concerned about the increase in the frequency with which people will be put at risk of redundancy and the greater uncertainty for people in that environment, and that there might be an unintended kickback for workers. In the fire and rehire proposals, there is a risk that we might be making it easier to make people redundant than to change contracts, so we might go too far and not find that landing zone where it is a last resort short of redundancy. In the industrial relations space, there are a number of concerns similar to those that Jane outlined. A big one is that there has been a lot of focus on the trigger threshold for whether a ballot for recognition should take place. Between 10% and 2% is what the Bill outlines, but the far more significant change from employers’ perspective is the removal of a requirement for a sufficient level of support in the result of the ballot. There is a risk that it could, in the extreme, become a simple majority vote in which hardly anyone votes in a large workforce but it leads to recognition. Alex Hall-Chen: I completely agree with what has been said so far. I would add that a key fear for us is the cumulative impact of all the 28 reforms in the Bill coupled with everything else that is happening in the employment space. Taken as a whole, the measures make hiring someone riskier and more expensive for businesses. Our research shows that businesses will hire fewer people as a result. We polled over 700 business leaders on this topic in August and 57% said that the reforms would make them less likely to hire. I would say that the situation has actually worsened since then, given recent announcements around employers’ national insurance contributions, so the cumulative impact cannot be overstated. For the first time since October 2020 our data is now showing that more business leaders expect to reduce their headcount in the coming year than increase it. The Bill is a key reason for that change.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q I have a final question on the upskilling of professionals, which Cathryn just mentioned, so that they can advise on the new measures coming in through both the Bill and the secondary legislation that will follow. What would be the cost burden and the impact on the whole sector to get into a position where it can give accurate and good advice when the Bill finally reaches the statute book? We can see the parliamentary maths: it will become an Act. Cathryn Moses-Stone: I cannot talk to the specifics of the Bill’s initial cost implications, but I can talk to the cost implications of having really highly trained managers in the workplace. When thinking about general management training, we know that chartered managers, on average, boost a business’s revenue by £59,000. We know that the average pay rise of a chartered manager is £13,000. We see in a lot of our data that there is a direct productivity impact on an organisation from having highly skilled, highly trained managers who are able to implement policies that increase retention, retain talent, boost morale and create a more positive workplace culture, which prevents turnover, which saves a business from losing money. It probably also comes back to the point that managers need time to get it right and to understand it, so that the burden on their business in the long run is not huge because they have the right amount of time to understand how they will work with their employees so that they do not have to escalate everything to tribunal. The early training period is crucial for the wider cost savings, because we know that there are lots of concerns from businesses on these issues, as well as the broader sentiment of being in support of the Bill. Ben Willmott: One of the challenges for a business looking to upskill its managers is that that will incur a cost. If we look at the proposed increases in employment costs overall, we see those from the different measures in the Bill and those from the changes in the Budget, which also need to be taken into account. Businesses will have to find the money to upskill and train their managers. That is one reason why we are saying that ACAS needs to be resourced, particularly to help those smaller businesses that are more resource-challenged and have less knowledge and capability around the HR and people-management side of the business, which is so important to this. Carly Cannings: Ben made a really important point about making sure that small businesses are adequately resourced to deal with the changes. I am, as many employers are—as the statistics bear out—very supportive of raising the standards of employment, and the Bill certainly takes a step in the right direction towards raising standards. The balance that needs to be struck is about making sure that employers, and particularly small employers, are able to cope with the changes. There are lots of businesses out there already doing really good things, and some of the things in the Bill will be measures, practices and policies that lots of employers already have in place. That is not the case for everyone and, in particular, that might not be the case for small businesses. Echoing Ben’s point, small businesses are more likely to fall foul of the legislation accidentally, rather than intentionally, because they do not have the right access to support and advice in the same way. That is an important point that must not be missed. Cathryn Moses-Stone: Would it be all right if I added a point? It is true, obviously, that there is a cost to training managers, but that is why we are also really concerned about the proposed defunding of the level 7 apprenticeships, because there will be a huge knock-on impact. Potentially, a huge skills gap could open up in highly trained management across the UK, at a time when businesses are going to be required to know their staff and to implement the legislation in the right way. We are concerned about how that aligns with the development and delivery of the Bill.

• 26 Nov 2024 · Employment Rights Bill (First sitting) · Hansard source

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  Q What is enough time? Ben Willmott: We understand that the changes to the unfair dismissal regime in any new initial or statutory probation period will not come in until autumn 2026 at the earliest—that is the sort of timeframe you need to be thinking about. The other thing is that, because of all the other measures, it would help if you could push that out, as that is possibly the most substantive change that will affect all workplaces. If you could phase in some of the other changes over a longer period of time—say three years in total—that would certainly help. The other point I have been echoing is that ACAS absolutely needs more resources to support the implementation process. We have called for ACAS’s budget to be doubled to £120 million a year. It is really crucial to support compliance, particularly among those small and medium-sized businesses that we know are more likely to fall foul through accidental non-compliance. They are less likely to know what their employment regulation obligations are and have less resources to adapt to the changes. Cathryn Moses-Stone: Similarly, we would like to see consultation throughout the whole of 2025, which would be a really nice long period to try to understand exactly what the legislation means for managers. When we are looking at training courses and development for managers and leaders, that does not happen overnight. If there is an understanding that there will be a management gap in some particular area of the Bill, you then have adequate time to try to find the ways to support the people delivering it to upskill, so that they can do it in the right way. Although we cannot give specifics, I think 2026 echoes a decent period of time with implementation.

• 25 Nov 2024 · Storm Bert · Hansard source

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  A couple of weeks ago I held a roundtable with some Mid Buckinghamshire farmers on the measures required to mitigate flooding, especially after extreme weather events such as Storm Bert this weekend. At the top of the list was the point that my hon. Friend the Member for North Dorset (Simon Hoare) made about dredging and river capacity. On top of that, however, communities in Buckinghamshire such as Calvert Green and Fleet Marston are being flooded for the first time in decades as a result of some of the big infrastructure that is being built, particularly HS2. It seems that HS2 will concrete over a field, completely unaware that that will have a knock-on effect on farmland next door. Will the Secretary of State commit to working with the Transport Secretary and, I suggest, the Deputy Prime Minister, given their plans to concrete over the countryside, to ensure that where construction takes place, there are proper—and I really mean proper—flood mitigation measures?

• 21 Nov 2024 · Condition of Local Roads · Hansard source

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  I am just trying to get answers for our councils. Of course, it was the previous Government who committed £8.3 billion to road repairs, using money from the rightly cancelled sections of High Speed 2. Back in May, when it was in opposition, Labour tried to claim a backlog of more than £16 billion in road repairs, but now it just trumpets funding of £500 million. That is not enough, is it?

• 21 Nov 2024 · Condition of Local Roads · Hansard source

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  I associate myself with the tributes paid to Lord Prescott. Talking of pothole repairs and road resurfacing, the director of the RAC, Steve Gooding, said: “The long-term solution is a long-term funding settlement for councils so they can finally get on top of what has been a perennial problem.” But councils— [ Laughter. ] Hon. Members might laugh, but our councils, which have to do the work of repairing our roads, do not know how much money they will get from the much-trumpeted £500 million. When will our councils actually get their allocations?

• 21 Nov 2024 · Business of the House · Hansard source

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  The Leader of the House will have surely seen the thousands of hard-working farmers who came to Whitehall on Tuesday to protest against the cruel family farm tax. While he was at COP29, the Prime Minister tried to defend his policy by quoting BBC Verify, but BBC Verify has now deleted its comment supporting the Government. Likewise, The Telegraph has reported this week that a Treasury source has told it that no impact assessment will be published on the family farm tax until just before the next Budget. Will the Leader of the House get the Chancellor to come to the Dispatch Box, so that we can have an informed debate about the actual impact the family farm tax will have on the constituents of all Members of the House, including her own Back Benchers who represent rural seats? Her colleagues can then decide whether they stand with their party or with the farmers.

• 20 Nov 2024 · Draft Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024 · Hansard source

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  It is a pleasure to serve under your chairmanship, Mr Mundell. As the Minister said, this draft statutory instrument was largely consulted on and prepared by the previous Conservative Government, so clearly the Opposition will not divide the Committee this afternoon. I congratulate the Department for Business and Trade, however, on managing to update the explanatory memorandum, unlike a Department for Transport statutory instrument that I responded to the other week, which still listed Guy Opperman, a Minister in the previous Government, as having signed off the declaration. The measures in the draft Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024 build on legislation passed under the previous Government. The memorandum that accompanies this statutory instrument directly references historical concerns about fire and rehire tactics, which—I put it to the Committee—the last Conservative Government addressed through the establishment of a statutory code of practice. I gently suggest to the Minister that that should be reflected in the Bill that comes to Committee next week. In government, we were clear with employers that they must not use threats of dismissal to pressurise employees into accepting new terms, and that they should have honest and open-minded discussions with their employees and representatives. In accordance with the code of practice, businesses must consult with employees in a fair and transparent way when proposing changes to their employment terms. The Conservatives took the initiative to uphold and secure employment rights. Meanwhile, the Government—this is where some contention sneaks in—seem content with their disastrous national insurance jobs tax on employers and employees, the latter shouldering 76% of the cost according to the Office for Budget Responsibility, and to see businesses struggle and in many cases risk failure all together. There cannot be employee protections without employees in the first place.

• 20 Nov 2024 · Shared Rural Network · Hansard source

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  In my constituency, only 40, 50 and 60 miles away from this House, villages such as Cuddington are still complete mobile notspots. Will the Minister explain how quickly the Government intend to move on activating the shared rural network, to ensure no rural community is left without a reliable mobile signal?

• 20 Nov 2024 · Shared Rural Network · Hansard source

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  1. Whether he is taking steps to accelerate the roll-out of the shared rural network.

• 12 Nov 2024 · Topical Questions · Hansard source

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  National Grid’s rationale for rebuilding East Claydon substation is based on speculative applications, not consented real schemes. Will the Minister therefore meet me to find a way to get National Grid more grounded in reality rather than speculation?