Employment Rights Bill

Debate between Baroness Fox of Buckley and Lord Leong

Committee stage
Tuesday 24th June 2025 Lords Chamber

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I am grateful to every noble Lord for their contribution, and I have listened intently to each and every one of them. I thank noble Lords for their kind words about my previous business career.

We return to the important issue of impact assessments. I appreciate the continued efforts of the noble Lords, Lord Sharpe and Lord Hunt of Wirral, here. It will be no surprise to your Lordships’ House, given the number of separate debates—I think there have been about eight now—we have had on this topic, that the Government view these amendments as unnecessary. Let me recap. We have already published 27 impact assessments, available on GOV.UK, which have been updated where needed as policy has been added to the Bill during passage.

Academics at Warwick University, Oxford University, MIT and UCL all find a positive relationship between job satisfaction and productivity in their research. For example, Simon Deakin, professor of law at the University of Cambridge, said:

“The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity. Labour laws also help ensure that growth is more inclusive and that gains are distributed more widely across society”.


All this evidence is laid out in our impact assessment, which was developed in consultation with external experts. Business supports the view that this will be good for productivity. In a survey undertaken by the Institute of Public Policy, seven in 10 employers said that strengthened employment rights will boost productivity, compared to just 7% who disagreed, and six in 10 employers thought stronger employment rights would have a positive impact on business profitability, while fewer than two in 10 disagreed.

We have worked hand in hand with businesses, trade unions and civil society to understand the impacts of this Bill—

[Baroness Fox of Buckley (Non-Afl)]

There is no doubt that people who are happy at work are likely to contribute positively to the workplace. Nobody, I think, is arguing against that and wants miserable workers with no rights. However, what we are trying to explore is not whether people will have job satisfaction but whether they will have jobs. It is about the unintended consequences of the Bill that might mean that people are not employed; or, indeed, that new jobs are not created because productivity will not go up; or that it becomes too risky to employ, for example, young workers, and so on.

With all due respect to Warwick University’s academics—I went there and I know some of the people who wrote that research, and I am sure that they are happy in their workplace—the truth is that if some piece of legislation ended up unintentionally closing down Warwick University, they would not be happy and productivity would not go up. That is what we are concerned with. It is not a theoretical academic argument about how being happy at work makes you work harder—I know that. But if there is no work, then you are not going to be happy, you are not going to do any work and productivity will go down.

[Lord Leong (Lab)]

I thank the noble Baroness for that contribution. If she can be a bit patient, I have some more positive news for her.

We have worked hand in hand with businesses and trade unions, as I said earlier, to understand the impacts of the Bill on industry and will produce further analysis as required under the Better Regulation Framework. It is worth noting that more doors are opening than closing. In the first quarter of 2025, the UK saw 90,000 businesses created, up 2.8% on last year, while business closures fell by 4.4%. This Government are backing British businesses and British workers, and our Modern Industrial Strategy, published yesterday, is making that real. To give one example, we have boosted the British Business Bank’s capacity to £25.6 billion, unlocking billions for innovative firms, especially SMEs. For the first time, the British Business Bank will be able to take equity in fast-growing tech companies. This has never happened before. That is helping crowd in tens of billions of pounds more in private capital, fuelling growth, creating jobs and driving long-term prosperity. I hope that gives comfort to the noble Lord, Lord Deben.

Employment Rights Bill

Debate between Baroness Fox of Buckley and Lord Leong

Committee stage
Thursday 8th May 2025 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

I am delighted that consultations are occurring but, as legislators, we are asked to vote on a Bill without having seen the consultations. The Minister can tell me that there are no gaps because it will all be done for us. I do not know why we do not sack ourselves; what are we doing, sitting here, reading through line by line in Committee and discussing a Bill that we are told not to worry our little heads about? Those are the gaps.

[Lord Leong (Lab)]

First, I did not say “little heads”. It is important that we continue to have conversations with stakeholders. Most noble Lords know, and I am sure the noble Baroness knows, that employment law includes a lot of regulations. Previous employment legislation puts further regulations in place. It is important and right that we speak to a wide group of stakeholders, businesses, workers, trade unions and everybody involved in this, so that we get it right.

[Baroness Fox of Buckley (Non-Afl)]

One last thing: to be frank, I want the Government to speak to wider groups of stakeholders than the official bodies that represent people. It is simply that it should have been done before the Bill was brought to us. I want it to be noted on the record that wide consultation work should have been done, but the Government should not have brought legislation that could have unintended consequences that damage workers’ rights, while they proclaim that it will save workers’ rights. If they had not done the consultations, they should never have brought it to Parliament to be discussed.

[Lord Leong (Lab)]

I hear what the noble Baroness has said. The Bill has gone through the other House and been scrutinised line by line. We have also taken the point on board here and we will continue with further consultation.