Workers (Predictable Terms and Conditions) Bill
Friday 3rd February 2023
(1 year, 2 months ago)
Commons ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Scott Benton (Blackpool South) (Con)
I beg to move, That the Bill be now read a Second time.
I am pleased that we have time to debate this important issue in the Chamber. I know that many hon. Members in the Chamber will have a personal interest in this area and am grateful for their participation. Zero-hours contracts are an important part of the UK’s flexible labour market, both for employers when there is not a constant demand for staff and for individuals who need to balance work around other commitments such as childcare and study. However, the 2017 Taylor review of modern working practices found that workers on zero-hours contracts, as well as agency workers and temporary workers, struggle where flexibility is “one-sided” in an employer’s favour. Some employers misuse flexible working arrangements to create unpredictability and insecurity of income, and there is a reluctance among some workers to assert basic employment rights. That one-sided flexibility means that workers need to be available to their employer with absolutely no guarantee of work. Employers can also schedule or cancel shifts with little notice, leading to insecurity of hours and income for workers—or, in the case of temporary workers, dismissal altogether at short notice.
To address one-sided flexibility, the Taylor review recommended that the Government should create a new right to request a contract with guaranteed hours for zero-hours contract workers. The successful passage of my Bill would create a new right for eligible workers to request a more predictable working pattern.
Nickie Aiken (Cities of London and Westminster) (Con)
I welcome my hon. Friend’s private Member’s Bill, because it is incredibly important to give people on zero-hours contracts the security of knowing that they will have protected hours. Does he agree that, as we are trying to encourage the over-50s back into the workplace, the Bill may go some way to giving them security over their hours and pay for the work that they do?
Scott Benton
I thank my hon. Friend for her intervention. She is a brilliant champion for her constituents in the Cities of London and Westminster. Of course, the nature of the economy in central London means that, often, people will be in the retail, hospitality and the tourism industry with insecure work. I thank her for championing the Bill. The point that she makes regarding older people in employment is important. The Government are actively looking at that. I hope that they continue to press the issue to ensure that we can address labour shortages by widening the pool of potential people to take those vacancies.
The new right would give workers who would like more certainty the ability to request a more predictable work pattern that reflects the hours or times that they work. A qualifying worker would be able to make an application to change their existing work pattern if it lacked predictability in terms of the hours or times they worked, or if they have a fixed-term contract for less than 12 months. The Bill would ensure that workers and employers retain the benefits of zero-hours contracts and other forms of atypical work. Of course, workers who are content to work more varied hours will continue to be able to do so.
Many individuals who work unpredictable patterns often experience an imbalance of power with their employers, which leaves them afraid to ask for more fixed conditions out of fear of being dismissed or denied future shifts. The Bill would address that unfair imbalance of power, empowering and encouraging workers to talk to their employer about their contract, safe in the knowledge that starting the conversation would not result in any detriment whatsoever to the worker. Workers will be better able to secure employment that suits their individual circumstances, helping them to be more satisfied at work and less stressed around the lack of predictability of their hours and income.
Kerry McCarthy (Bristol East) (Lab)
It is good that we have cross-party support on this issue as well. It is one thing for an employee to have a right, but as we have seen, quite often employers who do not want to give their employees those rights and treat them well have ways of getting around that; they will find an excuse to dismiss the employee and take on somebody who might be prepared to be more flexible. How does the hon. Gentleman envisage that the safeguards and rights under this Bill will be genuinely enforced? I would suggest trade union membership as a pretty good start.
Scott Benton
I thank the hon. Lady for her intervention and I will get to that section of my speech in a couple of minutes. She does great justice to the people in her constituency who work on zero-hours contracts by raising that important point. The Bill introduces a right to request a more predictable working pattern and the process employers have to follow is clearly outlined to ensure that there is some certainty when employees request that their contract is changed and that their employer deals with them seriously and appropriately.
The Bill helps to support the income security of workers at a time when many are feeling increased cost of living pressures. It will not only benefit workers; businesses will reap the rewards of having a more engaged and happier workforce. The rights introduced through my Bill will apply to all eligible workers, including agency workers, not only those employed on zero-hours contracts; it will apply to the wide range of workers who have unpredictable working conditions, including temporary workers, agency workers and workers with non-guaranteed hours.
Workers must have worked for their employer for a set period of time before an application can be made. This period will be set out in regulations; I am sure the Minister will expand on that in his remarks, but it is expected to be 26 weeks. The worker only needs to have been employed with their employer at some point during the month before that period and to be working again for the employer when the application is made. Given that the Bill targets workers with unpredictable working patterns, they are not required to have worked for their employer continuously.
The same criteria will apply to agency workers applying to temporary work agencies. Agency workers who make applications directly to hirers will be required to have worked for their hirer for at least 12 weeks continuously during the 26-week period. This replicates the provision in the Agency Workers Regulations 2010 which states that after 12 weeks’ continuous service an agency worker will gain entitlement to the same set of employment rights as if they had been recruited directly. It ensures that workers cannot use the right to request a more predictable contract to circumvent the agency workers regulations and gain entitlement to additional employment rights before they have worked those 12 continuous weeks.
Once a worker has made their request, the employer will be required to notify them of their decision within one month. An employer will be able to turn down a request for more predictable conditions on specific statutory grounds, similar to those established for the existing right to request flexible working. That will help to ensure that businesses are not unfairly burdened by the new right, for example if the costs of providing a worker with a more predictable pattern would be too burdensome at the time.
Workers will have the option to complain to an employment tribunal if their employer does not handle the request in a reasonable manner, wrongly treats the request as withdrawn, dismisses or treats the worker poorly because of their request, or rejects the application on the basis of incorrect facts. We assume, however, that most declined requests will be handled informally and will not give rise to an employment tribunal claim.
I thank officials at the Department for Business, Energy and Industrial Strategy for their assistance with drafting the Bill and the arrangements for today. This area has broad cross-party support: indeed, it was included in the manifesto I stood on and the Liberal Democrats and Labour made similar commitments on zero-hours contracts in their manifestos. I hope that Members on both sides of the House share my desire to ensure that the Bill succeeds. As you will know, Mr Deputy Speaker, there is a certain fragility, to say the least, that accompanies the passage of private Members’ Bills through the House, and I would therefore like to navigate this process with the support of Members on a cross-party basis.
This Bill is a golden opportunity to bring about real change on the pressing issues of atypical contracts and one-sided flexibility, at a time when insecurity of pay and hours is particularly pressing. I hope that Members will be able to support it.
Danny Kruger (Devizes) (Con)
I am delighted to support the Bill, and I congratulate my hon. Friend the Member for Blackpool South (Scott Benton) on presenting it and on his speech. I am pleased that the Government are giving the Bill their backing. Of course, it was a Conservative-led Government who banned exclusivity clauses in 2015, which was an important step towards the system of worker protection that is needed in the new economy that is unfolding. I am pleased to see that we are supporting this new measure, which will end the system of one-sided flexibility that prevails and ensure that workers can request a predictable pattern of work. It is right that we are doing that.
The Bill sits in the context of a broader question about the model of work we want in 2023. One part of the answer to that question is that we want a model of work that is not fixed or ossified, as work perhaps was in the industrial age. We cannot respond to the gig economy by insisting on restrictions and inflexibilities that are inappropriate to this age. Ultimately, we will end up destroying jobs if we insist on too much structure and predictability, but neither can we chase the gig economy down the plughole of ever greater rights for employers at the expense of their staff. We cannot let employers dictate terms that include unacceptably low wages or unacceptable conditions.
One part of the answer, which is not within the scope of the Bill, is to ensure we have an immigration policy that ends the economic model of the last 20 years, in which we have imported foreign labour at the expense of British workers and at the expense of investment in our own people and in the innovation and technology that are needed if labour has its real value, which it does not if our rates of immigration are too high.
We also need to empower workers. My hon. Friend explained the problem very well. People are not robots that we can just switch on and off and leave dormant when we are not using them, waiting for us to switch them on again. We have to respect the human dignity of staff. As I said in an earlier debate, we need to recognise that people are not just workers; they have obligations and relationships outside work that we need to respect.
The question of what model of work we want is part of a broader question about what type of life we think people should have in this country. My simple answer is that we want people to have the conditions for a decent family and community life. An important measure to achieve that is ensuring we have a model of employment in which one adult can earn enough wages to support their family. We need jobs that support whole families, whether that is one full-time job or two, three or four part-time jobs. If someone has a partner, they need to be able to share the workload, to earn enough money to support the family, enabling them to have time for children or dependent adults and, importantly, to spend time supporting their community.
This introduction of a right to request a predictable pattern of work is good, and I applaud it. I like the fact that we are imposing a duty on employers in terms of what they should do when a request for a predictable pattern of work is made. I prefer duties to rights—the language is better, and the implication is better. We need to beware the wrong enforcement of duties that we create, but in principle, duties are better than rights because they imply relationships and obligations. The alternative—a world in which society is regulated only by individual rights—is one of eternal competition, a constant contest between individuals each claiming their due and eternal legal battles over who has broken which contract and which law.
We need a better culture than that, in which we recognise that we live under our obligations, not our entitlements, and our responsibilities matter more than our rights. That starts with people who have power in society—people with the power to hire and fire. We are insisting today on the fulfilment of employers’ duty to enable their staff to create the conditions for a decent family and community life. That is a good use of the power of the state, and I am delighted to support the Bill.
Imran Hussain (Bradford East) (Lab)
I congratulate the hon. Member for Blackpool South (Scott Benton) on bringing forward this very important Bill. I apologise: I may have mistakenly referred to him as the hon. Member for Blackpool North earlier; I know that can cause serious issues on occasion.
I will endeavour to keep my remarks brief as I am sure that Members across the House will wish to wrap up this debate and move the Bill on to the next stage of the legislative process as soon as possible. This appears to be a welcome piece of legislation, as measures to give workers the right to request more predictable terms and conditions of work are long overdue. Indeed, over the past decade we have seen an explosion in the use of unpredictable and exploitative zero-hours contracts that fail to guarantee for working people a set number of hours of work on set work schedules.
In 2010, just over 150,000 workers were employed on a zero-hours contract, but that number has risen dramatically, with more than 1 million now employed on such contracts, according to the latest release from the Office for National Statistics. As the hon. Member for Blackpool South highlighted, it does not reflect a rise in the number of people wanting flexible work, as such contracts offer flexibility only for employers, not for working people. It is a rise in the number of people who are being exploited in a dire employment market by bad bosses.
Under these contracts, working people feel pressured into accepting shifts, knowing that if they turn them down, they may not get any hours at all in future. Many are given hours at short notice: a TUC poll found that four in five were offered shifts with less than 24 hours’ notice, leaving them scrambling for childcare cover or transport to work, often at great cost. They are left entirely at the whim of the employer and, as a result, zero-hours contract workers find it next to impossible to plan their finances on time, thereby holding them back and holding back our economy. Is it really any wonder why our productivity is so poor compared with other countries when working people are exploited in this way? Women and those from an ethnic minority background are more likely to be exploited by zero-hours contracts, entrenching the discrimination they already face in the workplace.
I was, then, pleased that in their December 2018 good work plan the Government accepted that this is an issue that faces our economy in the 21st century and that action is needed to protect people’s rights in the modern world of work. However, as for many other pieces of legislation to address the injustices faced by working people, we have been waiting for far too long to see a Bill like this on the Floor of the House. Matthew Taylor published his review of modern working practices in July 2017 and it took another year and a half for the Government to publish their good work plan in December 2018. Although they accepted the recommendation to create a right to request a contract that guarantees hours for those on zero-hours contracts, it is not until now—more than four years later—that we are seeing legislation to give effect to it.
Why did the Government not include this legislation in the employment Bill that they have repeatedly promised from the Dispatch Box but appear now to have dropped? Such a Bill offered a clear opportunity to introduce the statutory right to request more predictable terms and conditions, as well as the opportunity to strengthen protections for pregnant women and new parents, to introduce a statutory right to carer’s leave and to protect people from harassment in the workplace—today alone we have considered Bills on all those things.
I want to be absolutely clear that the next Labour Government will, within the first 100 days of our taking office, move to put on the statute book our new deal for working people, which will ban zero-hours contracts and contracts without a minimum number of guaranteed hours. It will ensure that everyone working regular hours for 12 weeks or more will gain a right to a regular contract that will reflect the hours normally worked. It will ensure that all workers get reasonable notice of any change in shifts or working time, with wages for any shift cancelled without appropriate notice being paid to workers in full.
We will, of course, support this Bill. I look forward to seeing it progress to Committee very soon, so that we waste no more time to enhance much-needed rights for working people.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)
I thank my hon. Friend the Member for Blackpool South (Scott Benton) for proposing this important Bill, and I thank all hon. Members who have spoken on this subject. I am pleased to say that the Government support the Bill and are committed to ensuring that the UK is the best place in the world to start and scale a business—a phrase hon. Members will hear a lot more, after the Business Secretary’s recent speech from Davos about scale-up Britain, which is music to my ears. To do that, we need a strong and flexible labour market that supports participation and economic growth.
I would like to take a little time to talk about the Bill before addressing some points raised by hon. Members on both sides of the House. It is good to see cross-party support, for the third time today. Unlike the shadow Minister, we believe that zero-hours contracts are an important part of the UK’s flexible labour market, both for employers that do not have a constant demand for staff and for individuals who need to balance work around other commitments such as childcare and study. Around 1 million individuals are on zero-hours contracts—around 3% of the UK workforce.
The Government are keen to ensure that everybody can enjoy the benefits of flexible working. We are determined to tackle unfair working practices, such as the issue of one-sided flexibility where workers have to be available to their employer, with no guarantee of work. Employers may schedule or cancel shifts with little notice, leading to insecurity of work and income. I declare my interest, because my daughters are in a similar situation—one is of school age and works at the local pub, and that has happened to her. To be fair, a zero-hours contract works for her to provide flexibility from her side, too.
We recognise that receiving unpredictable and varying levels of income each month can make it difficult for some workers to meet the cost of rent, mortgage and household bills, especially during a cost of living crisis. My hon. Friend’s Bill will allow workers to request more predictable working arrangements, addressing the issue of one-sided flexibility, while ensuring that workers are able to continue working on a zero-hours contract or another form of non-guaranteed hours or temporary contract, if that is the type of arrangement that works best for them.
Wera Hobhouse (Bath) (LD)
Does the Minister agree that it is important that employers feel that there is loyalty to their companies and loyalty to the work that the employee is doing? It should very much be a win-win.
Kevin Hollinrake
I agree entirely. That is what modern employers are looking for. One of the biggest pressures that employers are facing is recruiting and retaining people. This is another measure where people can demonstrate that the workplace is fairer and more flexible, which should attract more people back into it.
The Bill will allow individuals and businesses to strike the right balance between flexibility and job security. Workers will be empowered and encouraged to start conversations with their employers about their work patterns, with the confidence that starting such a conversation will not result in detriment. We expect that employers will benefit from the new right, too—the point that the hon. Member for Bath made—through improved worker satisfaction and productivity. By allowing employers to retain skilled staff as workers, those workers will not have to look for a new role in order to secure a working pattern that meets their needs.
Facilitating higher productivity, both through this measure and the other five private Members’ Bills that we are supporting, will help to drive higher employment, wages and economic growth. As my hon. Friend the Member for Blackpool South has explained, the right will function in a similar way to the existing right to request flexible working. An employer will be able to refuse a request for more predictable working patterns on specific statutory grounds similar to those established for flexible working. We know how important it is to balance new workers’ rights with the impact on businesses, and those grounds will ensure that employers do not experience disproportionate burdens.
The Government consulted in 2018 on the right to request a more predictable contract, and the vast majority of respondents agreed with the creation of a right to request a more predictable working pattern.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
I congratulate the Minister on his usual excellent summation of the legislation. On that final point, does he agree that giving employers certainty and giving employees the ability to have flexible working is a win-win and a good thing for both sides?
Kevin Hollinrake
I entirely agree. That is why we have carefully struck a balance so that there will not be too much of a burden on employers. That would be detrimental to employees, too, because employers would be less likely to take people on. The right to consider it is clear, and the process is clear, but if it cannot work for the business, the process of saying, “I’m sorry, we can’t do that” is simple and set out in regulations.
The Government consulted in 2018 on the right to request a more predictable contract, and in response to that consultation we committed to introducing a right to request a more stable working pattern for all workers, including those on zero-hours contracts. Those workers will be able to make a request if their existing work pattern lacks predictability in terms of the length of their contract or the days or hours that they are required to work. The 2019 Conservative manifesto contained a commitment to introduce for workers
“a right to request a more predictable contract”.
I am therefore delighted that the Bill introduced by my hon. Friend the Member for Blackpool South reflects our previous commitments on this important issue.
The Bill will also build on the progress that the Government have already made in bringing forward measures allowing additional flexibility for workers on zero-hours contracts and those in low pay. As my hon. Friend the Member for Devizes (Danny Kruger) pointed out, in 2015 this Government banned exclusivity clauses in zero-hours contracts, helping workers on zero-hours contracts to secure additional employment and boost their incomes. As of December 2022, that ban has been extended to workers who have a guaranteed weekly income equivalent to or below the lower earnings limit of £123 per week. On top of that, on 1 April 2023 the Government will increase the national living wage for workers aged 23 and over by 9.7%, to £10.42. That keeps the Government on track to achieve our manifesto commitment for the national living wage to equal two thirds of median earnings by 2022 if economic conditions allow.
This is the sixth private Member’s Bill on employment rights that the Government are backing. As a package, those Bills will increase workforce participation, protect vulnerable workers and level the playing field, ensuring that unscrupulous businesses do not have a competitive advantage. The Bills build on the strengths of our flexible and dynamic labour market and give businesses the confidence to create jobs and invest in their workforce, allowing them to generate long-term prosperity and economic growth.
I will address some of the specific points made by colleagues. This is the Bill of my hon. Friend the Member for Blackpool South, and I am pleased to be able to explain the Government’s policy position on any points that he has raised. My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who is no longer in her place, made a point about the over-50s. It is important that we try to attract more over-50s who have left the workforce back into the workplace. We know that about 575,000 people of working age have left the workforce since the start of the pandemic. I joined a cross-ministerial group, put together with business groups, to look at how we can attract those people back into the workforce. That body of work is ongoing, and we are very keen to find solutions, which will be partly about making the workplace fairer and more flexible, as this legislation will do.
As my hon. Friend the Member for Blackpool South pointed out, the legislation will lead to a happier and more engaged workforce. He also mentioned the 26-week qualification period, which aligns with other, similar measures in employment law. As he points out, this results from a manifesto commitment, which is why we are delighted to be able to support his Bill today.
My hon. Friend the Member for Devizes made similar points and also talked about the balance to be struck between employer and employee and the other work we are doing and have done to improve workers’ rights, including that ban on exclusivity clauses. The shadow Minister, the hon. Member for Bradford East (Imran Hussain), said that the Opposition were considering banning zero-hours contracts and other measures if they ever got into government—I very much hope that day will not come. By implementing things like that, there could be some serious damage to the economy, were that situation to come to pass. Nevertheless, we will let the electorate decide on that.
To conclude, this Bill will introduce an important new right that will help to address the issue of one-sided flexibility and support those with unpredictable working arrangements to gain security of hours and income. It has been encouraging to see support across the House for this Bill, as is evident from today’s good-natured debate. The Government look forward to continuing to work closely with my hon. Friend the Member for Blackpool South to support the passage of these measures, and I commend the Bill to the House.
Scott Benton
With the leave of the House, I thank Members for their contributions today. In particular, my hon. Friend the Member for Devizes (Danny Kruger) as ever made a thoughtful contribution, and I agree wholeheartedly with his comments about the need to utilise the experience, skills and potential of British workers, rather than automatically reaching for this lever of unskilled immigration and workers from overseas. I thank the hon. Member for Bradford East (Imran Hussain) for signalling the support of the official Opposition for my Bill. There is also the brilliant support from the Government, particularly the Minister and his private team, who have been incredibly helpful over the past few weeks and alleviated some of my stress with their technical guidance on some of the finer points of the Bill. That has been greatly appreciated.
I know that my fellow Thatcherite, my hon. Friend the Member for Christchurch (Sir Christopher Chope), is keen to introduce his Bill, so I will keep my remarks short. Suffice it to say, I hope that Members on both sides of the House can agree that this important piece of legislation will give workers struggling with unpredictability in their working lives a way of addressing that, by empowering them to discuss their working conditions with their employer to see whether they can gain more predictability in their hours and income. I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).
Workers (Predictable Terms and Conditions) Bill
Wednesday 8th March 2023
(1 year, 1 month ago)
Public Bill CommitteesRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text Read Debate Ministerial Extracts
The Chair
Before we begin, please switch off electronic devices. No food and drink are permitted during sittings of the Committee, except the water provided. Hansard colleagues would be grateful if Members emailed their speaking notes to hansardnotes@parliament.uk. My selection of groupings for today’s sitting is available online and in the room. No amendments have been tabled. We will have a single debate on all clauses of the Bill and the schedule.
Clause 1
Workers (except agency workers): right to request predictable work pattern
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to consider the following:
Clauses 2 to 4 stand part.
That the schedule be the schedule to the Bill.
Scott Benton (Blackpool South) (Con)
It is a pleasure to serve under your chairmanship, Sir Robert. I am delighted that we are here today to take another step towards introducing a new right for workers to request a more predictable working pattern.
The 2017 Taylor review of modern working practices found that workers on zero-hours contracts, agency workers and temporary workers struggle where flexibility is one-sided in their employer’s favour. Some employers misuse flexible working arrangements to create unpredictability and insecurity of income, and some workers are reluctant to assert their basic employment rights. To address the issue of one-sided flexibility, the Taylor review recommended that the Government create a new right to request a contract with guaranteed hours for zero-hours contract workers.
My Bill will introduce a new right for workers to request a more predictable working pattern. A qualifying worker will be able to make an application to change their existing work pattern if it lacks predictability in terms of the hours or times they work, or if it is a fixed-term contract for less than 12 months.
The right will apply to all eligible workers, including agency workers—not only those employed on a zero-hours contract. That will ensure that the right will benefit a range of workers with unpredictable working conditions, including temporary workers, agency workers and workers with non-guaranteed hours. Workers must first have worked for their employer for a set period before they make their application. This period will be set out in regulations, but it is expected to be 26 weeks. A worker needs only to have been employed with their employer at some point during the month before that period, and to be working again for their employer when the application is made. The same criteria will apply to agency workers and those working on behalf of temporary work agencies. Agency workers who make applications directly to hirers will be required to have worked for their hirer for at least 12 weeks continuously during the 26-week period.
Once a worker has made their request, their employer will be required to notify them of their decision within a one-month timeframe. An employer will be able to turn down a request for a more predictable working pattern based on specific statutory grounds, similar to those established for the existing right to request flexible working. That will help to ensure that businesses are not unfairly burdened by the new right—for example, if the cost of providing the worker with a more predictable working pattern would be too burdensome on the business. Workers will have the option to complain to an employment tribunal if their employer does not handle the request in a reasonable manner, wrongly treats the request as withdrawn, dismisses or treats a worker poorly because of their request, or rejects the application on the basis of incorrect facts.
I am delighted that the Bill has support from the Government and from Opposition parties. We are keen to ensure that it can progress through the House quickly so that this important new right for workers can be introduced. I will now discuss the detail of the four clauses and one schedule, which will make new provisions in part 8A of the Employment Rights Act 1996.
Clause 1 inserts a new chapter into part 8A of the Employment Rights Act. These sections introduce the right to request a more predictable working pattern for non-agency workers. Section 80IA provides that a worker may apply for
“a change in terms and conditions”,
while section 80IB provides that a worker can apply only if they were
“employed by the same employer”
at some point during the month immediately before the prescribed period, ending with the making of the request. The length of that period will be set out in the regulations.
Section 80IC sets out what the duties of an employer are when receiving requests. It must deal with the request in a reasonable manner and notify the worker of its decision within one month. Section 80ID allows a worker to make a claim to an employment tribunal where the employer has not complied with its obligations, and section 80IE sets out the remedies that an employment tribunal can award if the claim is successful.
Clause 2 introduces the right to request a more predictable working pattern for agency workers. It inserts chapter 3 into part 8A of the Employment Rights Act 1996. A number of the provisions mirror those in clause 1, so I will highlight only those sections that differ materially from clause 1.
Section 80IF provides that an agency worker may make a request to either a temporary work agency
“with which the agency worker has a contract to perform work or services personally”
or a hirer under whose supervision and direction they are working. Section 80IG requires that workers making an application to a temporary work agency must have had a contract with the agency at some point in the month immediately before a period prescribed in the regulations. Workers making an application to their hirer must have worked in the same role with the same hirer continuously for 12 weeks in the period specified in the regulations.
Grahame Morris (Easington) (Lab)
I congratulate the hon. Gentleman on introducing the Bill, which is a welcome step in the right direction. I am aware of the figures for the number of workers who are on zero-hours contracts, but does the hon. Member have a figure for the number of workers who would be covered by the Bill?
Scott Benton
I do not have the figures at hand, but I will gladly work with the Minister’s private office to see whether we can obtain them.
Using experience from my own constituency, Blackpool South, a large number of people work on zero-hours contracts in the leisure and hospitality industry. Anecdotally, from speaking to those businesses, I believe that several hundred constituents of mine would have the legal right to request a more predictable working pattern. If we extrapolate from that across the country, we are no doubt speaking about potentially millions of workers who could benefit from this. I thank the hon. Member and his party for their support on Second Reading.
Section 80II sets out the circumstances in which requests must be considered after an application has been made, but before a decision has been reached, the contract that the agency worker has with the temporary work agency comes to an end, or the agency worker ceases to work under the direction of the hirer.
Clause 3 inserts chapter 4 into part 8A of the Employment Rights Act 1996. It makes provision to ensure that workers cannot make more than two requests in any 12-month period. That ensures that the policy is in line with those on flexible working, which also permits up to two requests per year. It also makes provision to ensure that workers cannot make a request for either flexible working or a more predictable working pattern if they have another request in progress.
Clause 4 is a straightforward measure that addresses the extent of the Bill, makes provision for commencement and provides the short title of the Bill. The schedule contains a list of amendments to other employment legislation that will be required to ensure that this measure is effective and does not adversely affect existing legislation. That includes provisions to ensure that there is legal protection for any worker who is penalised by their employer because they have tried to exercise their new right to make those requests, and for an employee who is dismissed as a result of doing so. There is also provision to deal with the potential passage through Parliament of the Employment Relations (Flexible Working) Bill at the same time as this Bill.
Grahame Morris
It is a pleasure to serve under your chairmanship, Sir Robert. I congratulate the hon. Member for Blackpool South on introducing the Bill and explaining the provisions in such an eloquent and articulate fashion. It is apt that we are considering the Bill on International Women’s Day, as it is women who are disproportionately affected and victimised by poor employment practices, and subjected to insecure employment. I welcome the Bill for that reason and a number of others.
My earlier question to the hon. Member was based on some family experiences. My eldest son was working in retail in the north-west. He was in the category where he did not have a zero-hours contract, but he did not have a secure, specified number of hours. Before Christmas, he was expected to work 60 hours a week. Once the peak of demand had subsided, the guaranteed hours fell substantially. However, he could not go to his landlord and say, “Well, I have had only 20 hours this week, so is it okay if I give you only half my rent?”
The issue affects many hundreds of thousands of workers, and this is an important step forward. I welcome the Bill, because it gives workers on atypical contracts, especially zero-hours contracts, more predictable and stable working hours. It gives people a greater say over when, where and how they work. It is right that the Government address one-sided flexibility, which inevitably benefits employers, and often forces employees to put their lives on hold when they are called up at short notice for shifts. Not having a secure employment also has implications for any kind of hire purchase debt, such as mobile phone contracts.
It will probably come as no surprise to Conservative Members that I support the abolition of zero-hours contracts altogether. I would welcome a comprehensive employment rights Bill that would provide statutory protection against all forms of poor employment practices. Nevertheless, notwithstanding my reservations, I welcome the intention of the Bill and I am pleased to support the hon. Member for Blackpool South today.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
It is a pleasure to serve under your chairmanship, Sir Robert. I was interested in serving on this Committee because the Bill sits in employment law, which is a reserved policy area. As we know, the territorial extent will include Scotland when the Bill secures Royal Assent.
We have heard about difficulties with zero-hours contracts for years. It is fundamentally unfair that those on zero-hours contracts are expected by employers to be completely flexible and available at short notice, with no guarantee of shift patterns or even paid work at all. Although the Bill does not give workers the right to a fixed and predictable working pattern, it sets out clear grounds on which an employer can decline, limiting spurious refusals. That is a positive step.
If the Bill is enacted, it will have some very positive impacts, such as reopening the door to employment for those currently out of work. We have heard a lot in recent weeks about the impact of a lack of suitable childcare on women and single parents, and their ability to participate fully in the labour market, which costs the economy £38 billion a year by some estimates. I can only imagine how much more difficult finding childcare becomes for someone on a zero-hours contract, or someone working in the gig economy who may need it at incredibly short notice. I thank the hon. Member for Blackpool South for introducing a Bill that will begin to make the necessary changes and I congratulate him on seeing it through its legislative stages so far.
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
It is a pleasure to serve under your chairmanship, Sir Robert. I start by thanking my hon. Friend the Member for Blackpool South for bringing this Bill before the House and for his clear explanation of its clauses. I am delighted to be here today to reiterate that the Government fully support the Bill, which will introduce an important new employment right and tackle the issue of one-sided flexibility.
Scott Benton
I begin by thanking you, Sir Robert, for your chairmanship. I thank every Member who has given their time to serve on this Committee. In particular, I thank the hon. Member for Easington for his comments. He mentioned the irregularity experienced by some on zero-hours contracts and its detrimental effect on their financial stability. That should be at the forefront of everyone’s minds, given the considerable challenges that many of our constituents face with the cost of living at the moment. That is one very good reason why this Bill is progressing through the House.
I also thank the hon. Member for Rutherglen and Hamilton West, who is a fantastic advocate for her constituents. I think she probably speaks more often in this House than any other Member, apart from the hon. Member for Strangford (Jim Shannon). I am pleased to see her here. She made a particularly good point about workers on zero-hours contracts experiencing inflexibility with childcare, with the added pressure and stress of trying to juggle their daily routine, family, finances, work-life balance and so on. If this Bill does nothing else, I hope it will help those struggling with childcare.
I also thank the Minister for his brilliant support and extend that thanks to those in his private office, who have been extremely helpful over the last few weeks. In closing, I reiterate the importance of this Bill and I hope that it can progress through the House quickly.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 4 ordered to stand part of the Bill.
Schedule agreed to.
Bill to be reported, without amendment.
Workers (Predictable Terms and Conditions) Bill
Friday 24th March 2023
(1 year, 1 month ago)
Commons ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Scott Benton (Blackpool South) (Con)
I beg to move, That the Bill be now read the Third time.
I am delighted that we are here today to take a further step forward towards introducing a new right for workers to request a more predictable working pattern. Throughout the passage of the Bill I have spoken of the importance of introducing this new right to tackle one-sided flexibility. Although zero-hours contracts are an important part of the UK’s flexible labour market, the 2017 Taylor review of modern working practices found that workers on zero-hours contracts, as well as agency and temporary workers, struggle when flexibility is one-sided in an employer’s favour.
Some employers misuse flexible working arrangements by scheduling or cancelling shifts with very little notice, leading to insecurity of hours and income for workers or, in the case of temporary agency workers, dismissal at short notice. Short-notice changes to working patterns can be hugely disruptive to workers’ lives, for example when they are juggling caring or childcare responsibilities. One-sided flexibility can also create an unfair imbalance of power between workers and their employers, leaving workers afraid to ask their employer for more predictable terms and conditions, out of fear of being dismissed or denied future shifts. One-sided flexibility is particularly pressing at a time when so many workers with unpredictable working patterns are feeling the pressure of household living bills rising so acutely.
The introduction of a new right to request a predictable working pattern will empower workers to start a conversation with their employer about their working patterns. It will not only benefit zero-hours contract workers, because agency and temporary workers will also be able to take advantage of the new right. A qualifying worker will be able to make requests if their existing working pattern lacks predictability in the hours or times they work, or if it is a fixed-term contract for less than 12 months.
The Bill will not only benefit workers. On Second Reading my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) aptly described the right to request a more predictable working pattern as a “win-win” for workers and employers. The new right will boost worker satisfaction and productivity, and allow employers to retain skilled staff. It is vital that we maintain the flexibility that zero-hours contracts facilitate for businesses and workers, which is why workers will be able to choose to continue working on a zero-hours contract, or in another form of less predictable work, if that is what works best for them.
Mr Louie French (Old Bexley and Sidcup) (Con)
Does my hon. Friend agree that in certain cases, particularly for the likes of students, for example, it is more desirable to have greater flexibility regarding when they can work around their studies?
Scott Benton
My hon. Friend is entirely correct. Whether it be for students who perhaps have different working patterns and ability to work shifts compared with other workers, or the rest of the general workforce, zero-hours contracts are here to stay. They are an important part of the flexible working market, and rightly so, but they have to work not only for the employer but for the worker. This positive step forward allows those who are working flexible hours to request a more predictable working pattern. As I will explain, the business or employer in question does not necessarily have to accept the request, if for example it is too burdensome on the business. The Bill is a moderate and positive step forward that works for both employer and worker.
The right to request a more predictable working pattern will function in a similar way to the right to request flexible working. For example, an employer will be able to refuse a request for a more predictable working pattern on specific statutory grounds similar to those established for flexible working. I appreciate how important it is to balance new rights for workers with their impact on businesses; these grounds will act as a safeguard, ensuring that employers do not experience disproportionate burdens. My Bill will introduce that important new right and ensure that it can be properly enforced.
The clauses set out the eligibility criteria for the new right, and ensure that as many workers as possible who have an unpredictable working pattern can benefit from it. All workers who have worked for their employer for a set period before making their application will be eligible. That period will be specified in regulations, but is expected to be 26 weeks. Given that my Bill targets workers with unpredictable working patterns, they will not be required to have worked for their employer continuously during that period.
Specific provisions will be made for agency workers, given the unique way that their working relationship with their employer functions. For example, agency workers who make applications directly to hirers will be required to have worked for their hirer for at least 12 weeks continuously during the proposed 26-week period. That replicates a provision in the Agency Workers Regulations 2010 that states that after 12 weeks’ continuous service, an agency worker will gain entitlement to the same set of employment rights that they would have had if they had been recruited directly. That ensures that workers cannot use the right to request a more predictable working pattern to circumvent the Agency Workers Regulations 2010 and gain entitlement to additional employment rights before they have worked for 12 continuous weeks.
Employers’ responsibilities are also clearly set out. That supports employers when they receive a request and ensures that workers know what they should expect from their employer. Employers must deal with requests in a reasonable manner and notify the worker of their decision within a month. My Bill details the grounds on which workers may make a complaint to an employment tribunal. That protects workers if their employer does not consider their request in a reasonable manner, wrongly treats the application as withdrawn, dismisses or treats a worker poorly because of their request, or rejects an application on the basis of incorrect facts.
Workers will be permitted to make two requests for predictable working per year. That recognises that workers’ and businesses’ circumstances can change. This mirrors the number of flexible working requests that will be allowed under the Employment Relations (Flexible Working) Bill introduced by the hon. Member for Bolton South East (Yasmin Qureshi). Together, my Bill’s clauses will create an important new right to request a more predictable working pattern, and will carefully balance the needs of workers in unpredictable work and their employers.
I thank the Minister for confirming the Government’s continued support for the Bill, which of course delivers a Conservative election manifesto pledge. I am delighted to see such broad support for my Bill from across the House, and I thank all hon. Members who share my desire to ensure that the Bill proceeds to the other place, so that we can take a positive step forward for working people.
Laura Farris (Newbury) (Con)
I rise in support of the Bill, which injects important clarity about zero-hours contracts. My hon. Friend the Member for Blackpool South (Scott Benton) is correct to say that zero-hours contracts are here to stay and occupy an important role in the British labour market. They can certainly offer a degree of flexibility to students; to older workers who want complete flexibility when it comes to their hours; and to people with caring responsibilities, particularly parents. For example, one of the advantages of the bank model in the NHS, which is effectively a zero-hours contract by another name, is that people can take school holidays without having to apply to their boss and request the time off in the usual way.
I understand why zero-hours contracts are attractive, but we have to be honest: they exist in a grey zone between full employment rights and independent contractor status. We know that they have caused particular problems, which is why the Government have already legislated to ban exclusivity clauses where they applied. Some really high-profile cases about the contested grey zone, including the Uber case and the Deliveroo case, have reached the Supreme Court: are people independent contractors or workers with basic rights?
The Bill includes an inherent requirement that there be a right to request terms in the zero-hours arrangement that give some predictability. Whatever the advantages of flexible working, we know that some employers use zero-hours contracts on a quasi-exploitative basis. I have read grim stories in the newspapers, albeit not recently, of people travelling a long way by bus only to arrive at their employer’s gates and be told that there was no work for them that day. That is clearly not an acceptable situation.
The Bill would amend the Employment Rights Act 1996. Section 1 of that Act requires that within the first two weeks of employment all employers must provide an employment contract that sets out the days workers are required to work, the rate at which they will be remunerated, what they will be paid and when, what their basic duties are and what overtime they will get. At the heart of all employment relationships is the requirement that people who come to work have a basic idea of what is expected of them, how they will be paid and what they are reasonably expected to do. Even in this grey zone, with all the flexibility that I otherwise support, it cannot be right to allow a system to exist in which people have no idea from week to week and from day to day whether they will be required to work and, if so, how much.
Another important point of employment law is that, while of course it is correct that an employer can consider what it requires its members of staff to do and that it can set their duties and working hours, it does not have the unilateral right to vary the employment contract in any other context. It therefore seems to me right that, where reasonably possible, a worker should have the right to request predictability. The burden should be on the employer either to say, “Yes, we can offer you some predictability, and here is what it looks like”—something that would come pretty close to a standard contract of employment—or to say, “Such is the nature of our work that predictability is impossible in any circumstance.” That would at least give the worker the opportunity to know whether or not they could begin to plan their life around the job. That approach is a counterpoint to some of the exploitative practices that linger at the uglier end of the zero-hours contract world. For that reason, I support it, and I support this private Member’s Bill.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
I support the Bill and congratulate my hon. Friend the Member for Blackpool South (Scott Benton) on guiding its passage through the House. It is fantastic to follow my hon. Friend the Member for Newbury (Laura Farris), who always does such a good job of outlining the complexities and ins and outs of employment law. She has made huge contributions to other debates and has done so again today.
The position taken by my hon. Friend the Member for Blackpool South demonstrates the Conservative approach to the issue. We have heard again and again from the Labour party—I think this is still its current policy—that we must ban zero-hours contracts. Actually, as students I and many others benefited from access to zero-hours contracts and the flexibility to fit things in as we liked. We know that they are also hugely important in the NHS for people who may want to do a lot of hours one week and fewer hours the next. There is always a balance to be struck, and it may be helpful for the NHS that there is a balance between permanent staff and flexible staff.
I want to emphasise that the right way to approach things, rather than banning these contracts, is to do what we are doing: look at how we can advance the law in smaller ways to make the overall position better. I congratulate my hon. Friend on his contribution, which edges forward a situation that can be improved but certainly should not be banned.
Imran Hussain (Bradford East) (Lab)
I also start by welcoming the Bill brought by the hon. Member for Blackpool South (Scott Benton). As a Member of this House representing one of the most deprived constituencies in the country, which is not unlike my own, he too will know the role that bad pay, long hours and few rights play in trapping working people in a constant cycle of poverty and deprivation and entrenching poverty in his constituency—again, not unlike many constituencies up and down the country.
I am glad this Bill to address one of the biggest challenges faced by working people is finally reaching its conclusion today. I am glad the Government have supported the Bill through its passage. Given the negligible trickle of Bills that relate to the employment rights of working people have come before the House during their more than a decade in office—unless, of course, they concern taking rights away through their anti-trade union restrictions—in contrast with the recent flood of employment rights legislation proposed from the Back Benches, it would seem that the Government have suddenly discovered the exploitation suffered by working people. But that is not the case.
At the end of 2019—well over three years ago—the Government promised to introduce an employment Bill, which many, including Labour MPs, hoped would address the exploitation of working people and would help create an economy and workforce fit for the modern day. We warned the Government years ago, long before even the 2015 general election, about the exploitation of those on zero-hours contracts and in the gig economy. Trade unions have been banging on the Government’s door urging for stronger protection for workers in a changing economy. We know full well that the Government knew of the hardships created for working people because of zero-hours contracts, so pleading ignorance is no defence for their failure to act. In fact, there is no defence at all.
Imran Hussain
Yes, it absolutely is, and I will go on to clarify that in my remarks. The Government’s only excuse for their refusal to tackle the exploitation of working people before their support for this Bill is that Ministers were too busy hailing the alleged benefits of being on zero-hours contracts. The reality is that the advantages of these contracts asserted by the Government are frankly alien to people on them. What they face is no utopia of flexibility, but a prison of exploitation by bad bosses at worst or a world of uncertainty at best. As has been pointed out during the passage of the Bill, people are often compelled to accept shifts that they do not want—and so they struggle to work—because they know that if they turn them down, they may not get any hours at all in future.
Robin Millar (Aberconwy) (Con)
I am listening carefully to what the hon. Member says, and I note his response to my hon. Friend the Member for Crewe and Nantwich (Dr Mullan). My Aberconwy constituency is known for its tourism, hospitality and all that comes with that, including shift working. The reality for many residents in my constituency is that zero-hours contracts give them flexibility to juggle family and other commitments and to balance a range of employment. Does he accept there is some virtue of this model for some people some of the time at least?
Imran Hussain
The hon. Gentleman’s constituency is known for the things he has said. He will appreciate there is a huge difference between shift working and zero-hours contracts. Those are two very different concepts, and I do not think anybody is arguing against shift working. Equally, nobody is saying there should be no flexibility. I accept that in a minority of situations—perhaps, for example, in the case of students, as was mentioned earlier—there may need to be that flexibility.
To answer the question from the hon. Member for Crewe and Nantwich (Dr Mullan)—I will cover this later as well—the reality is that over the past decade we have gone from around 150,000 people on zero-hours contracts to more than 1 million, as the Minister will know. To suggest that the majority of those people somehow benefit from some flexibility in zero-hours contracts—or some of the points that the Minister may outline later—is just not true.
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
The hon. Gentleman suggests that it is not true that a majority of people like that relationship, but surveys show that some 64% of people do not want more hours. He would ban zero-hours contracts, even though 64% of people want them. Where is the sense in that?
Imran Hussain
I will refer the Minister to another survey. By far the most over-represented groups of people on zero-hours contracts are women and those from ethnic minority backgrounds. The Minister quotes statistics, but in the current market people who have a choice between zero-hours contracts or no work at all are a different case altogether.
Dr Mullan
As this is obviously a strongly felt position from the Labour party, I assume that there is not a single Labour-led local authority employing people on zero-hours contracts. If the hon. Gentleman cannot confirm that, will he write to me and explain what steps he will take with his Labour local authority leadership figures to ensure that they do not make use of these contracts, which the Labour party clearly feels are immoral?
Imran Hussain
The point that the hon. Gentleman makes is political point scoring on a very serious issue. The fact remains, and this is perhaps where he could direct his energies, that his Government ordered the Taylor review more than five years ago, the findings of which were published in their “Good Work Plan” in 2018. Where has he been for the past few years not questioning his own Government on why they are failing working people, and frankly, why they have failed those being exploited by zero-hours contracts until today? That is perhaps the question he should be asking.
People on zero-hours contracts often face having the shifts they had planned and budgeted for cancelled, leaving them unable to make their bills add up at the end of the month. They are often offered shifts at short notice, forcing them to go to great expense to arrange childcare and transport. As I set out on Second Reading, when the Conservative party came to power, just over 150,000 people were employed on zero-hours contracts. At the last count, more than 1 million were employed on them according to the Office for National Statistics.
As the Bill recognises, for a small group of people who are okay with varying shift patterns and do not face significant outgoings, the contracts may fit better, but let us not kid ourselves: the flexibility of zero-hours contracts is flexibility for the employer, not for working people. As I have mentioned, it is also not as though the Government have never had a chance to improve the rights of working people before this Bill today. They commissioned Matthew Taylor to carry out a review on modern working practices and then accepted his recommendations in full as far back as 2018, but rather than implementing the recommendations, they sat on the review instead. Many of them, including recommendation 13 to allow workers on zero-hours contracts
“a right to request a contract that better reflects the hours they work”,
have gone unfulfilled. That is, until the hon. Member for Blackpool South (Scott Benton) introduced his Bill last year, four years on from the Taylor review.
That lack of progress in implementing the Taylor review’s recommendations almost five years later is lamentable for us, but is devastating for those working people who would be helped by the greater security at work that the recommendations would provide. It is right that the hon. Member’s Bill addresses that issue to some degree. We therefore support the Government in ensuring that this Bill and Bills like it get on to the statute book, because long overdue as it is, it is a step in the right direction towards stronger rights and better protections for an overexploited workforce. However, I cannot let the opportunity of today’s debate go by without asking whether Government support would have been quite so forthcoming had it not been for the relentless pressure they have faced from our trade unions, which have long campaigned for zero-hours contract workers to get the protections they need and deserve.
Although it has taken this Conservative Government years to take some form of action on strengthening workers’ rights by supporting the private Members’ Bills brought by several hon. Members, rather than by introducing their own employment Bill, the next Labour Government will not be so timid. As set out by the leader of the Labour party—the next Prime Minister—within the first 100 days of taking office, a Labour Government will bring legislation to the Floor of the House to begin to deliver our groundbreaking new deal for working people, which will ensure that our economy is fit for the 21st century and will transform the rights and protections afforded to ordinary working people for the better. That includes stronger protections for those on zero-hours contracts, with a ban on contracts without a minimum number of guaranteed hours and the right to a contract reflecting hours normally worked, and a requirement for employers to provide reasonable notice of shift changes, with wages paid in full to workers whose shifts are cancelled without notice, so they are no longer left to shoulder the burden and suffer the costs of unexpected last-minute changes.
Kevin Hollinrake
I start by thanking my hon. Friend the Member for Blackpool South (Scott Benton) for all his work. He has been a delight to work with all the way through and I have been delighted to support his Bill through its various stages. I reiterate the Government’s support for the Bill.
It has been encouraging to observe the support for the Bill from across the House. I was pleased to hear that reflected once again in this debate, including by the shadow Minister, the hon. Member for Bradford East (Imran Hussain), who represents part of the fine city of Bradford, in my county of Yorkshire.
As my hon. Friend the Member for Blackpool South pointed out, zero-hours contracts are an important part of the UK’s flexible labour market, for both employers and individuals who may need to balance work around other commitments. We believe they play an important role, and 64% of people surveyed said they do not want more hours and that they are happy with the basis of their current contracts. As my hon. Friend the Member for Crewe and Nantwich (Dr Mullan) pointed out, Labour is determined to take that option away from people, which once again illustrates that the Government believe in freedom of choice while the Opposition believe in state diktat.
Around 3% of workers in the UK workforce are on zero-hours contracts and such contracts may offer many of those individuals the kind of flexibility they want, but, of course, we are determined to tackle unfair working practices used by a small minority of employers. I endorse the comments made by my hon. Friend the Member for Newbury (Laura Farris), who speaks in this House with such authority on employment matters, given her background. Many of those employers take advantage of what she describes, quite rightly, as “a grey zone”. Workers may be left waiting on standby for work that never materialises, unsure whether they will receive the hours they need to pay their bills.
We have already made significant progress in bringing forward measures that support individuals on zero-hours contracts and in low-paid work. In 2015, we banned exclusivity clauses in zero-hours contracts; in December 2022, we extended the ban to workers who have a guaranteed weekly income equivalent to or below the lower earnings limit of £123 per week; and on 1 April, we will increase the national living wage by 9.7%, to £10.42 per hour.
Mr French
In reference to the comments made by the shadow Minister, does the Minister agree with me that the Labour party’s words on sticking up for workers are rather hollow, particularly when they support the Labour Mayor of London’s ultra low emission zone expansion and tax rise, which will impact over 850,000 drivers in London and have been described as “anti-worker” by Unite the union?
Kevin Hollinrake
My hon. Friend is a fine champion on that issue; I would describe the measure as anti-worker and also anti-business, particularly at a time when we are all seeing cost of living challenges. It is simply the wrong measure to take and I applaud him for his constant campaigning on it.
The Bill in the name of my hon. Friend the Member for Blackpool South represents a further step towards addressing one-sided flexibility, as he says. In 2018, the Government consulted on the right to request predictable working and in 2019 we committed to introducing a right to request a more predictable contract in our manifesto. That militates against the hon. Member for Bradford East’s argument that we have suddenly discovered this concern. We have always committed ourselves to legislating in this area.
The new right to request a more predictable working pattern will apply to all eligible workers, not only those on zero-hours contracts, meaning that a wide range of workers who have unpredictable working conditions will benefit, including temporary workers, agency workers and workers with non-guaranteed hours. Crucially, that is a right to request more predictable hours, not a right to insist on them, because we also need to look after the interests of businesses in this conversation.
My hon. Friend’s Bill includes a list of eight specific grounds on which any employer may decline a request, similar to those established for the existing right to request flexible working—for example, if the costs of providing a worker with a more predictable pattern would be too burdensome, or if accepting a request would have a detrimental impact on the ability to meet customer demand.
The Bill forms part of a wider package of six private Member’s Bills on employment rights that the Government are supporting. I pay tribute to the businesses and business representative groups that have supported them, despite the obvious impact on businesses—if hon. Members have read the impact assessment, they will know the additional impact on business is £16.9 million, at a difficult time for them, so we should pay tribute to businesses that are willing to take on these extra duties.
The hon. Member for Bradford East talked about a ban on zero-hours contracts. I gently ask whether he is doing that in the full and certain knowledge of the costs on business, because I have not seen a figure from Labour to say what would be the cost to business of doing that. That is a reasonable concern that businesses may have about the extra costs of doing business under a potential Labour Government.
Taken as a package, these Bills will deliver on our 2019 manifesto commitments to enhance workers’ rights and support people to stay in work. They will help new parents, unpaid carers and hospitality workers.
Before I close, I want to thank the officials who have worked on this Bill: Sasha Ward, Bex Lowe, Lizzy Blakeman, Mel Thomas, Sarah Boulton-Jones, Louis Ariss, Laura Robinson, Richard Kelly, Adrienn SzNagy, Rose Jefferies and Dan Spillman and, from my private office, Cora Sweet. I commend the Bill to the House.
Scott Benton
With the leave of the House, I would like to thank all hon. Members for their contributions. My hon. Friend the Member for Newbury (Laura Farris), with all her knowledge and experience in this particular area, gave a characteristically compelling speech in favour of the Bill. She was entirely correct to shine a light on some of the murkier practices that I am afraid are out there on zero-hours contracts.
My hon. Friend the Member for Crewe and Nantwich (Dr Mullan) is a superb advocate for blue-collar Conservatism and articulated that, as Conservatives, we can advance workers’ rights—and rightly so—while also recognising that both the employer and the worker are often quite happy with the existing arrangements around zero-hours contracts. I was interested to hear him ask how many Labour-run councils across the country actually utilise zero-hours contracts.
I am afraid that in 2020, at the height of covid, Labour-run Blackpool Council in my own constituency dismissed dozens of zero-hours contract workers who worked in leisure centres. The circumstances around their dismissal left a particularly nasty taste in the mouth at the height of a pandemic when those families were particularly struggling. I am also interested to hear that protecting such workers remains a Labour manifesto commitment, but I suggest that the hon. Member for Bradford East (Imran Hussain) communicates to Labour council leaders around the country that they need to up their game and practice what they preach on this issue.
I would, however, like to thank the hon. Gentleman for his support throughout the passage of the Bill. He alluded to the fact that my constituency is particularly deprived, given its reliance on the tourism and leisure sectors. My constituency will probably benefit from the Bill more than most, given the higher number of zero-hours contracts in the tourism industry in Blackpool. I know his constituency well, having grown up very close to it, and I know that his constituents will also disproportionately benefit from the Bill due to the specific labour conditions in and around Bradford.
As ever, I would like to place on record my considerable thanks not only to the brilliant Minister, but his fantastic private office team who have been an absolute joy to work with throughout the passage of the Bill. The Minister rightly articulated that it is this Conservative Government who have taken so many steps over the last 13 years to improve workers’ rights, not least delivering on this private Member’s Bill, which, as the Minister articulated, was a manifesto commitment of this party. I am always proud to defend this Government’s record in my constituency, not least on the way we have supported working people and helped to take so many of them out of poverty since 2010. No doubt the Bill will be a further step on that journey.
I am pleased to have had the opportunity to promote the Bill on Third Reading. I commend it to the House.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Workers (Predictable Terms and Conditions) Bill
Monday 27th March 2023
(1 year, 1 month ago)
Lords ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text
Workers (Predictable Terms and Conditions) Bill
Friday 16th June 2023
(10 months, 2 weeks ago)
Lords ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text Read Debate Ministerial Extracts
Baroness Anderson of Stoke-on-Trent
That the Bill be now read a second time.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, before I move on to the detail of the Bill, I put on record that today marks seven years since we lost Jo Cox, our friend in the other place. It is important to recognise that today. She celebrated that we have more in common than that which divides us. I hope this Bill demonstrates that to be the case. I thank Scott Benton MP, the Member for Blackpool South, for steering this Bill through its various stages in the other place.
Trade unionism is in my blood. Securing a better deal for working people is one of the reasons I joined the Labour Party and first ran for election. I come from a family of proud trade unionists. My great-grandfather was the founding member of his Yiddish branch of cabinet makers in the East End of London, my grandfather was a blacklisted steel worker who became a miner, my father was the first trade unionist to lead industrial action in the insurance sector—he was then also duly blacklisted—and my wonderful mother was the deputy general secretary of Amicus before her retirement. It should surprise no one that I followed in these footsteps and became a trade union officer too. This is why legislation giving more rights to people at work is so important to me and why I am proud to be able to promote this Bill today. It is another chapter, albeit a limited one, in the journey of empowering workers and rebalancing power in the workplace.
There is some technical detail to cover today, but I invite noble Lords at the back their minds to remember that there are over 3.7 million people working on insecure contracts and 1.1 million on zero-hours contracts. It is easy to get lost in the scale of those numbers, but behind the statistics are families struggling to make ends meet and working people in dire need, not knowing how much will be in their pay packet at the end of the month. In the 21st century in the UK, there is no excuse for our fellow citizens to be experiencing that level of fear and the onus is on us to help them.
The 2017 Taylor review of modern working practices found that workers on zero-hours contracts, agency workers and temporary workers struggle where flexibility is one-sided in the employer’s favour. We know that some employers misuse flexible working arrangements to create unpredictability, insecurity of income and a reluctance among some workers to assert basic employment rights—rights that many of us take for granted. This one-sided flexibility means that workers need to be available to their employer with no guarantee of work. Employers can also schedule or cancel shifts with very little notice, leading to insecurity of hours and income for workers or, in the case of temporary or agency workers, dismissal at short notice. Many individuals working unpredictable patterns experience an imbalance of power with their employers, which leaves them afraid to ask their employer for more fixed conditions for fear of being dismissed or denied future shifts.
To address the issue of one-sided flexibility, the Taylor review recommended a new right to request a contract with guaranteed hours for zero-hours contract workers. This, in part, is why we are here today. The successful passage of the Bill will create a new right for workers to request a more predictable working pattern. A qualifying worker will be able to make a request if their existing working pattern lacks predictability in the hours and times they work or if it is a fixed-term contract for less than 12 months.
Both workers and employers will be able to retain the benefits of atypical forms of work, if that is what works for them, such as zero-hours contracts, temporary contracts and agency work, as this is a right to request more predictable working, not an entitlement to it. That will have to be the next step.
We know that atypical employment suits some, not all, groups, such as those working around their studies or caring responsibilities. Workers who are content to work in these circumstances will be able to continue to do so and employers will be able to decline requests on specific, statutory business grounds. The Bill will begin to address the unfair imbalance of power which exists between some employers and workers, empowering workers to talk to their employer about their working pattern, safe in the knowledge that starting the conversation should not affect their standing in the workplace.
Where this legislation is embraced by employers as a force for good it will give workers additional predictability and security of both hours and income, at a time when we know that too many people with unpredictable or varying levels of income are struggling with the cost of living.
The powers outlined in this legislation, if embraced by employers, will work for everyone. Workers will be better able to secure employment which suits their individual circumstances, increasing job satisfaction and helping many with their work/life balance. Businesses which accept their workers’ requests will reap the benefits of improved retention, as workers will not have to look for a new role to secure a working pattern which meets their needs.
The four clauses of and one schedule to the Bill will both introduce this important new right and ensure that it can be properly enforced. The Bill sets out the eligibility criteria for the new right. To ensure that as many workers as possible who have an unpredictable working pattern can benefit from this new right, all workers and employees will be eligible after an expected period of 26 weeks, subject to the secondary legislation. Given that the Bill targets workers with unpredictable working patterns, they are not required to have worked for their employer continuously over that period.
Specific provisions are also made for the eligibility of agency workers, given the unique way in which their working relationships function. Agency workers who make applications directly to hirers will be required to have worked for their hirer for at least 12 weeks continuously during the proposed 26-week period. This replicates the provision in the Agency Workers Regulations 2010 which states that, after 12 weeks’ continuous service, an agency worker will gain entitlement to a set of employment rights which are the same as if they had been recruited directly.
Employers’ responsibilities are also prescribed to support employers when they receive a request and to ensure that workers know what they should expect from their employer. Employers must deal with the request in a reasonable manner and notify the worker of their decision within a month.
The Bill also details the grounds on which workers may make a complaint to an employment tribunal. This will protect workers effectively if, for example, their employer does not consider their request in a reasonable manner, wrongly treats the application as withdrawn, dismisses or treats a worker poorly because of their request, or rejects an application on the basis of incorrect facts.
Workers will be permitted to make two requests for predictable working per year, in recognition that workers’ and businesses’ circumstances can change over the course of a year. If we have learned anything over the last five years, we know that the world can change beyond all recognition, seemingly overnight. This will mirror the number of flexible working requests which will be allowed under the Employment Relations (Flexible Working) Bill, which has recently passed its Second Reading in this House. As a package, this Bill’s clauses create an important new right to request a more predictable working pattern, which will carefully balance the needs of workers in unpredictable work with the needs of their employers.
In conclusion, I thank the Minister for indulging me today, and thank his officials, who have been so incredibly helpful and supportive. I also thank the policy teams at UNISON, the TUC and the GMB for providing briefings on the Bill; I look forward to working with them in the years ahead to make sure that our employment legislation really does balance power in the workplace and help drive both economic growth and enhanced wages. I thank all noble Lords who plan to speak on this important matter today. I am sure I will see support from across the House for action to tackle the issue of one-sided inflexibility.
This Bill is a starter for 10. There are many tweaks we could make to make this legislation better for workers, but I do not believe in allowing the perfect to be the enemy of the good. I hope your Lordships’ House will embrace my pragmatism and support the Bill. I beg to move.
Lord Davies of Brixton (Lab)
My Lords, I support the Bill and thank my noble friend Lady Anderson of Stoke-on-Trent for bringing it to this House. I also thank her for her clear and comprehensive summary of what the legislation involves.
I said very similar words exactly four weeks ago, when I spoke at the Second Reading of the Employment Relations (Flexible Working) Bill, which was introduced by my noble friend Lady Taylor of Bolton. I am going to repeat much of what I said on that occasion.
I still think it is a shame that a series of measures affecting employment is being brought bit by bit through the legislative process, when the Government gave a commitment to a Bill on employment law. On the earlier occasion, I asked the Minister to say something about whether and when we are actually going to get this overall employment Bill. Although he did not answer, his answer was, in effect, never. The Government have effectively given up on the idea without saying so in as many words. Perhaps the Minister may wish to comment in his response. I would welcome even more a new Labour Government’s employment law, where we can address all of these issues coherently and effectively.
The employment relations Bill was about flexible working, whereas we are currently talking about predictable terms and conditions. Obviously, the two mesh together, pointing out the absurdity in the Government’s position. My particular interest in this area of the law is the effect it has on people’s pensions. Increasing attention has been given to the gap between the pensions that women tend to get and those received by men. One of the underlying reasons for that gap is that women face uncertain terms and conditions in employment more than men. We have to resolve one problem before we can resolve the other.
I emphasise that this is not about freedom and choice. Sometimes it is suggested that people want flexible conditions to fit in with their lifestyle. A poll recently undertaken by the TUC found that almost half of respondents said that zero-hours work was the only work that was available to them, and that was the reason they chose to accept it, not because it fitted in with their lifestyle. Some 16% said that it was a typical type of contract in their area of work, so they are stuck without a choice. Fewer than one in 10 people said that work/life balance was the most important reason for entering this type of work. It is also likely that it is the absence of good flexibility and more secure roles, rather than a preference for employment, that means this appeals to those with caring responsibilities, again because they are forced into it with no real choice.
I welcome this proposal. There is much that can be done to improve it, and it is worth highlighting just a few of the issues. Too much is being left to regulations. A request to consider is inherently weak; it does not take account of the disparities of power in the workplace, and requests are too easily rejected provided an employer follows the correct procedure. There are weaknesses. Even when we come to the remedies, they need to be more effective because of weaknesses in the industrial tribunal system currently. It can take up to two years to get a case heard, which is not an effective way of enforcing.
To repeat the conclusion I reached four weeks ago, the Bill, while limited in scope and with deficiencies, is still to be welcomed, and I thank my noble friend for bringing it to us. I thank the Government for their support for the Bill, in anticipation of the Minister’s response, but we still need a more comprehensive approach to employment and labour law.
Lord Palmer of Childs Hill (LD)
My Lords, we on these Benches welcome this Bill but it is flawed. As the noble Lord, Lord Davies, said, and as the mover said, it is a step on the way, with limited use. I thank the noble Baroness, Lady Anderson, for bringing it to this House for us to discuss.
The Bill establishes a new statutory right for more predictable working patterns, but the person has to have been with the same employer for a set amount of time. Can the Minister say what the Government understand to be the length of that time?
I would like to think that all sides of this House would agree that insecure work is deplorable, and the Bill is a small step towards alleviating that problem. Do the Government support it? It is a Private Member’s Bill which passed through the Commons, but what is the Government’s position on it now?
Can the Minister explain how the Bill affects flexible working? There was a consultation on workers’ rights to reasonable hours and what happens if shifts are cancelled. How is that affected by the Bill’s being passed in this House? As was said by other noble Lords, almost 4 million people are in insecure work: agency workers, casual workers and seasonal workers. Can the Minister say whether work has been done in identifying those paid less than the national living wage? Can he also say whether it is correct that over 1 million workers are on zero-hours contracts?
There are extensive grounds for employers to reject applications, even with the Bill we have before us: costs; not being able to satisfy customers; recruitment; harming business—the list goes on. The Bill is a veritable minefield for the employee who we are aiming to protect. It is a step on the way but it is a minefield. Is a complaint to a tribunal a feasible remedy? I recently spoke, as did the noble Lord, Lord Davies, on the flexible working Bill. Can the Minister say how the two Bills interact, because there are two Bills?
What is required is that people have secure jobs with proper rights and fair pay. This Bill is part, but only part, of that requirement. Changes in technology and the nature of employment have outgrown the existing system of employment rights and protections. The aim is to make work pay and ensure that there are good and well-paid jobs available for people to do. This is for the benefit of workers, employers and the wider community.
There is a need to establish an independent review to consult on how to get a genuine living wage across all sectors. This living wage should be paid in all central government departments and their agencies, while other sector employers are to be encouraged to do the same. We would establish a powerful new worker protection employment authority to protect those in precarious work and change the law so that flexible working, which we refer to again and again, is open to all from day one in the job, with employers required to advertise jobs accordingly, unless there are significant business reasons why that is not possible.
We need to modernise employment rights to make them fit for the age of the gig economy, so we would establish a new dependent contractor employment status, between employment and self-employment, with entitlements to basic rights, minimum earnings levels, sick pay and holiday entitlement. We also need to review the tax and national insurance status of employees, dependent contractors and freelancers to ensure fair and comparable treatment, perhaps setting a 20% higher minimum wage for people on zero-hours contracts at times of normal demand to compensate them for the uncertainty of their fluctuating hours of work. Giving on request a fixed-hours contract to zero hours and agency workers after 12 months should not be unreasonably refused. We also need to shift the burden of proof in employment tribunals regarding employment status from the individual to the employer.
Although I welcome the Bill, as the noble Lord, Lord Davies, said before me, there are lots of gaps that need to be filled. We seem to be nibbling around the edges, with a Bill last week or the week before and now this Bill today. These are very welcome, but we need to hear some comprehensive reply from the Minister as to how workers are really going to be protected.
Lord Leong (Lab)
My Lords, I echo what my noble friend Lady Anderson of Stoke-on-Trent said about our friend Jo Cox. We remember her more so today than any other day. She was the best of us, and let us be the best of her.
I congratulate my noble friend Lady Anderson on bringing this proposal as a Private Member’s Bill and hope that it can swiftly pass through its remaining stages. I admit that I was more than a little shocked to discover that the provisions and protections of this Bill were needed. When it comes to zero-hour contracts, the default position has been to offer one-sided flexibility—an awful example of political double-speak, which attempts to disguise the unbalanced and exploitative relationships between employers and some of the most vulnerable people in our workforce.
In 2015, exclusivity clauses on zero-hour contracts were made unenforceable for many workers, but this right was not extended to those earning less than £123 per week until December of last year. Let us consider what this really means: workers in low-paid jobs, facing double-digit inflation and mostly impacted by food inflation in the high teens, have been entitled to non-exclusive zero-hour contracts only for the last six months. That is shameful. It pains me to think how many people may have been so desperate that they remained trapped into staying with an employer who could treat them as an afterthought, with little sense of the human being and their family depending on unpredictable wage packets, week after week.
My noble friend’s Bill improves their position a little further, supporting workers who have been employed in this way for some time, whether directly or through an agency, to request that it becomes formally recognised in their employment contract. This will add a much-needed layer of security for those teetering precariously on the very fringes of the world of work. It has been estimated that the net cost to businesses of this legislation will be only £16.9 million annually. As a businessperson and an investor in many SMEs, I recognise that some micro-businesses may find even the smallest additional costs challenging, especially with the current cost of living crisis. However, I was surprised that it was such a relatively low figure for the whole UK economy, given that it could make an enormous difference to thousands of our most vulnerable citizens. We should remember that many of the employers facing these costs will not be micro-businesses or SMEs—not at all. In a country where the average FTSE 100 CEO earns 103 times the average worker and more than 150 times a full-time worker on the minimum wage, this minimal cost that can be met.
We know that the cost of living crisis disproportionately impacts the lowest paid. Just last week, the publication of annual reports of some well-known British companies revealed that their CEOs received seven-figure bonuses, which more than doubled their enormous so-called basic salaries of around £1 million. I do not think it would break their business models to ensure that some of this money found its way to their lowest-paid employees, perhaps demonstrating some “other-sided” flexibility.
The potentially life-changing social and economic impact on the lives of the lowest-paid workers, who would be helped by the Bill, and the resultant benefits to the employer of a more engaged and stable workforce will, in my view, quickly repay the relatively small additional cost. I believe—indeed, the Labour Party was born out of this belief—that treating employees with dignity, providing them with the stability that comes with a regular wage, leads directly to improved self-esteem and loyalty, which in turn builds a more positive, productive and profitable business. Although investment in equipment and technology is important, investing in the workforce should always take account of the people behind the spreadsheets. People are the drivers of any business, and this will always be the case. As employers wrestle with artificial intelligence and the much discussed “rise of the machines”, we should be looking after our employees.
Although much more can still be done to improve workers’ employment rights, as my noble friend Lord Davies and the noble Lord, Lord Palmer, said, I have enormous respect for my noble friend’s efforts in bringing the Bill before us. It is definitely a step in the right direction, and I urge noble Lords to support it.
The Minister of State, Department for Business and Trade (The Earl of Minto) (Con)
I thank the noble Baroness, Lady Anderson, for bringing this important Bill forward for debate today—it is a notable day. It is an honour to be here to confirm the Government’s ongoing support for it, and I thank all who spoke on this important matter. I also thank Scott Benton MP for initiating the process that has led to us debating this topic today. The Government are pleased to support this Private Member’s Bill, which will introduce a vital new right to request a predictable working pattern.
I watched the Bill’s progress through the other place with great interest, and I am pleased that it has arrived here for our consideration so swiftly. Its progress demonstrates just how much we can achieve through cross-party co-operation and the dedicated work of Bill sponsors across the political spectrum—in this case, Scott Benton MP and the noble Baroness, Lady Anderson. There is always an element of fragility in the parliamentary process for a Private Member’s Bill, but I am pleased that, so far, the Bill has met with consensus, and I hope that the same will be the case today.
Zero-hours contracts and other forms of atypical work are an important part of the UK’s flexible labour market, for both employers where there is not a constant demand for staff, and for individuals who need to balance work with other commitments such as childcare or study. However, as outlined by the noble Baroness, Lady Anderson, many workers experience the issue of one-sided flexibility, whereby workers have to be available to their employer with no guarantee of work. We recognise that receiving unpredictable and varying levels of income each month can make it difficult for some workers to pay their bills, especially during a time of cost of living challenges.
The Workers (Predictable Terms and Conditions) Bill will allow workers to request more predictable working arrangements, addressing this issue of one-sided flexibility, while also ensuring that workers are able to continue working on a zero-hours contract or another form of non-guaranteed hours or temporary contract if that is the type of contract which suits them. The Bill will allow individuals and businesses to strike the right balance between flexibility and predictability.
The Government fully appreciate that businesses are facing challenges, not least those associated with the rising cost of living, and it is vital that this new right does not place further burdens on our hard-working business owners. As the noble Baroness, Lady Anderson, explained, this new right will function in a similar way to the existing right to request flexible working. An employer will be able to refuse a request for a more predictable working pattern based on one of six specific statutory grounds, which are similar to those established for the right to request flexible working. These grounds build in vital flexibility for businesses, ensuring that they are not unfairly burdened by accepting requests which would, for example, generate burdensome additional costs or affect their ability to meet customer demand.
As the noble Baroness set out, the right will be available to workers who have been with their employer for a set period before they make their application. We will set this out in regulations and expect it to be 26 weeks. Given that this Bill targets workers with unpredictable working patterns, they will not have to have worked for their employer continuously during that period. This eligibility criterion ensures that as many workers with unpredictable working patterns as possible will be able to benefit from this new right.
Workers will be empowered and encouraged to start conversations with their employers about their working patterns, with the confidence that starting these conversations should not result in detriment to them. Businesses will benefit too from improved worker satisfaction, and therefore productivity. Accepting predictable working requests will allow businesses to retain valuable skilled staff. Facilitating high productivity, both through this measure and through the other five Private Members’ Bills we are supporting, will help to drive higher employment, better wages and economic growth—and hence, prosperity.
This House frequently adds much value and challenge through asking the right questions about the need for delegated powers in a Bill and their intended use. I am pleased to reiterate the assertion made by the noble Baroness, Lady Anderson, that the powers in this Bill are, as far as possible, in line with the delegated powers in existing legislation on the right to request flexible working. The powers contained in the Bill are also drawn as narrowly as possible.
The new right to request a more predictable working pattern is the latest in a series of measures that the Government have taken to support workers on zero-hours contracts and those on low pay. In 2015, the Government banned exclusivity clauses in zero-hours contracts, as the noble Lord mentioned, helping zero-hours contract workers to secure additional employment and boost their income. As of December 2022, this ban has been extended to exclusivity clauses in the contracts of workers with a guaranteed weekly income equivalent to or below the lower earnings limit of £123 per week. In April 2023, the Government increased the national living wage for workers aged 23 years and over by 9.7% to £10.42, the largest ever cash increase.
Further to these measures, the Government consulted on the right to request a more predictable contract in 2018, and the vast majority of respondents agreed with the creation of a right to request a more predictable working pattern. In response to this consultation, we committed to introduce a right to request a more predictable working pattern for all workers, including those on zero-hours contracts, agency workers and those on temporary contracts. This was followed by a commitment in the 2019 Conservative manifesto to introduce a new right to request a predictable working pattern. I am therefore delighted that the Bill reflects the Government’s previous commitments on this important issue.
The Bill forms part of a wider package of six government-supported Private Members’ Bills, which are delivering on our 2019 manifesto commitments on employment rights. Taken as a package, the Bills will enhance workers’ rights and support people to stay in work. They will help new parents, unpaid carers and hospitality workers. They will give all employees easier access to flexible working. I am delighted that four of the Bills have now gained Royal Assent and become law, and I look forward to seeing the predictable working Bill and flexible working Bill complete their parliamentary passages shortly.
I will address some points made by Members during this debate. While this is a Private Member’s Bill, I am pleased to explain the Government’s policy position on these points. On the question about employment law raised by the noble Lord, Lord Davies, the Queen’s Speech set out an ambitious legislative programme that includes a competitive set of Bills that enable us to deliver on priorities such as growing the economy, which will, in turn, help to address rising living costs and get people into good jobs. There is no employment Bill, but we are making good progress in bringing forward alternative legislation to deliver on our manifesto commitments on employment. I do not have the detail on the specific effects on pensions, so I will write to the noble Lord with the detail he requests.
On the issue raised by the noble Lord, Lord Palmer of Childs Hill, I believe that I have explained the length of time that needs to be applied, for both agency workers and other workers. On the question of flexible working and cancelled shifts, my understanding is that a consultation has been held and they are now waiting to respond in due course.
I mentioned the national living wage. While I take the point about zero-hours contracts, I believe that they now affect only 3% of the workforce—a very valuable part of the workforce, who are extremely useful for a lot of businesses with unpredictable work requirements. Some 75% of people on zero-hours contracts report that they work part-time, compared to only 24% of other people in employment, and 26% of people on zero-hours contracts are in full-time education, compared to only 3% of people in other employment, so they fulfil a valuable role.
On the point made by the noble Lord, Lord Leong, we entirely agree with the concept of an engaged and stable workforce. This involves a balance between workers’ rights and the need for employment; it always has, and, I imagine, always will. I completely understand the worry about the increasing pace of technology and the advance of AI, and what effect that may have on the employment numbers. The Government are looking at that most carefully.
Supporting the Bill is in line with the Government’s ongoing commitment to build a strong and flexible labour market that supports participation and economic growth. It has been encouraging to see that there is support from across the political spectrum in the House for this important measure, as is clear from today’s debate. I look forward to continuing to work with the noble Baroness, Lady Anderson, as the Bill progresses through this House.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, I thank all noble Lords for their contributions today, especially my noble friend Lord Davies of Brixton, who highlighted how far we still have to go. I also thank the noble Lord, Lord Palmer, for his support, my noble friend Lord Leong for making it clear that this legislation is supported by my Front Bench and the Minister for signalling the Government’s ongoing and continued support for this and the other legislation that follows as part of Private Members’ Bills. This is a stepping stone in the long journey of securing comprehensive employment rights for all who work in the UK, but it is a vital one for those who find themselves in insecure employment. It might not be perfect but it is an important step forward and I therefore invite noble Lords to support the Second Reading of the Bill.
Bill read a second time and committed to a Committee of the Whole House.
Workers (Predictable Terms and Conditions) Bill
Tuesday 4th July 2023
(10 months ago)
Lords ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text
Baroness Anderson of Stoke-on-Trent
That the order of commitment be discharged.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, I understand that no amendments have been set down to this Bill and that no noble Lord has indicated a wish to move a manuscript amendment or to speak in Committee. Unless, therefore, any noble Lord objects, I beg to move that the order of commitment be discharged.
Workers (Predictable Terms and Conditions) Bill
Monday 18th September 2023
(7 months, 2 weeks ago)
Lords ChamberRead Full debate Workers (Predictable Terms and Conditions) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Anderson of Stoke-on-Trent
That the Bill do now pass.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, I thank all those involved in getting the Bill to this stage. I particularly thank Scott Benton MP for steering it through its various stages in the other House; the Bill team, which has been so supportive; and, of course, the Minister and my noble friend Lord Leong.
The successful passage of the Bill will create a new right for workers to request a more predictable working pattern. It will address the unfair imbalance of power that exists between some employers and workers in atypical work, such as workers on zero-hours contracts and temporary workers. Workers will be empowered and encouraged to talk to their employers about their working patterns, safe in the knowledge that starting this conversation will not result in any detriment to the worker. It will give workers additional predictability and security of both hours and income, at a time when many workers with unpredictable or varying levels of income—as well as many others—are struggling with the rising cost of living. Workers will be better able to secure employment that suits their individual circumstances, helping them to feel more satisfied at work.
The Bill does not mean that our work is done in securing employment rights for those who need it most, but it is a crucial step on that journey. I am grateful for all the support for the Bill from all sides of the House. I beg to move.
Lord Leong (Lab)
My Lords, it is a great pleasure to support this Bill at its final stage. I particularly thank my noble friend Lady Anderson for taking the Bill through the various stages of the process. Of course, I also thank the Conservative MP Scott Benton for his willingness to work collaboratively to achieve this laudable objective. The passage of the Bill is an excellent reminder that good outcomes can be achieved even in politically and economically turbulent times. I am sure that many of us in this House will agree that when workers are treated with dignity, higher levels of well-being can lead to a range of benefits to businesses, especially around productivity, which will frequently be of more benefit to the employers than can be measured in wage costs. We fully support the Bill, which brings us one step closer to the protection of workers, and I look forward to seeing it passed in this House.
The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)
My Lords, I thank the noble Baroness, Lady Anderson, for bringing the Bill through this House and I am delighted to confirm the Government’s ongoing support for the Bill, which will fulfil our 2019 manifesto commitment to introduce a right for workers to request a more predictable working pattern. The Bill will allow workers to request more predictable working arrangements, addressing the issue of one-sided flexibility while ensuring that workers can continue working on a zero-hours contract, another form of non-guaranteed hours contract or, indeed, a temporary contract, if that is the type of contract that suits them. This will allow individuals and businesses to strike the right balance between flexibility and predictability.
This new right will function in a similar way to the existing right to request flexible working. An employer will be able to refuse a request for a more predictable working pattern based on one of six statutory grounds similar to those established for the right to request flexible working. These grounds build in vital flexibility for businesses, ensuring that they are not unfairly burdened by accepting requests that would, for example, generate burdensome additional costs.
In conclusion, I am delighted to see the Bill progress, and I thank the noble Baroness, Lady Anderson, for sponsoring the Bill as it moves through this House and my honourable friend Scott Benton MP for sponsoring it through the other place.
Royal Assent
Monday 18th September 2023
(7 months, 2 weeks ago)
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